Regional Australians are emerging as a “dominant economic force”, according to a new study conducted by regional media group Boomtown and CommBank iQ.
Regional Aussies, they found, are outspending their metro counterparts across key categories and contributing a staggering $250 billion annually to the national economy.
They account for 38 per cent share of spend, or $56.2 billion, and a larger share of household budgets than their metro counterparts.
Regional residents spend 13 per cent more at the check-out than their metro counterparts, with bigger baskets and fewer trips, reflecting planned, household-led shopping. They also significantly over‑index in pet‑related spending.
Lifestyle leads the way in regional Australia, with the data showing that Boomtown residents spend 18 per cent more on recreational goods and 38 per cent more on outdoor and active lifestyle products and services than those living in capital cities.
Streaming platforms are also popular, with regional Australians accounting for a 36 per cent spend share on streaming subscriptions and recording 18 per cent year-on-year growth.
Regional Australians are house proud, significantly investing in home improvement. Boomtown residents contributed nearly half of the total national hardware and garden spend (46 per cent), recording 15 per cent higher category growth than in metro areas, reflecting larger homes, bigger gardens and ongoing maintenance needs.
Boomtown residents also outspend metro consumers on auto and petrol, representing more than 40 per cent of the share of national spend across both categories. Regional Aussies spend $3,500 per capita on car-related purchases and fuel per annum, compared to $2,700 in metro areas.
Regional Australians travel more often and spend more per trip, with a 19 per cent higher per capita travel spend and 39 per cent of the total national travel spend. They also punch above their weight in cruising, accounting for 41 per cent of all national cruise spend.
The report also highlights that Boomtown residents spend the same amount on average as metro consumers in department and discount stores, and on computers and electronics, energy and telecommunications, insurance, and pharmacy.
Commenting on the research, CommBank iQ CEO, Makenna Ralston, said: “Our partnership with Boomtown for this landmark report into the spending habits of regional Australia has lifted the veil for the first time on the economic powerhouse that is Boomtown. Regional Australia represents a third of the economy and, in many categories, the most valuable third.
“This is an audience that spends, and spends with intent. The data shows that Boomtown delivers disproportionate spend across key food, home, lifestyle, travel, auto, and fuel categories, consistently accounting for a greater share of national spend. In addition, Regional Australia has a stronger per capita spend in several major categories and faster growth in key sectors.”
Boomtown chairman, Andrew ‘Billy’ Baxter, said: “This research shows the new reality of regional Australia. Regional isn’t incremental – it’s structurally embedded in our economy and represents a significant share of every major state economy.
“Despite the evidence, brands are still consistently underinvesting in Australia’s highest value consumers. In categories where almost half the spend comes from outside capital cities – and is growing – regional investment is essential to defend and grow market share.
“For FMCG brands in particular, a third of the economy can’t be an afterthought. This research confirms that regional Australia offers advertisers a $250 billion market that is hiding in plain sight. The ‘big money’ doesn’t just live in the big cities – national strategies now must include regional weight to ensure brands are reaching these high-value audiences.”
“We can see that metro and regional audiences are now digitally on par – and they’re just as sophisticated as each other. Access is no longer about proximity – it’s about connectivity, with regional Australians becoming more digitally enabled and self-directed, shopping seamlessly online and in-store. Regional media plays a vital role in driving both brand and digital performance,” Baxter added.
The Boomtown Spend Snapshot report was collated from de-identified transaction data from more than 17 million Australians across 40 spending categories and more than 200,000 brands. The data is based on real behaviour, not just intent, and weighted to reflect all Australian consumers.
