In this op-ed, Liza Williams, head of growth intelligence at The Growth Distillery, argues that Australia’s third-largest consumer market isn’t a capital city, but a powerful collective hiding in plain sight across regional centres too often overlooked by marketers. As brands double down on Sydney and Melbourne in the pursuit of scale, she makes the case that this narrow view of “national” is leaving a significant, high-value audience untapped – one that is growing, affluent and ready to spend.
Australia’s third-largest consumer market isn’t Sydney or Melbourne.
It’s not even a single city.
It’s a collective of 15 regional centres, such as the Gold Coast, Newcastle and Sunshine Coast, that marketers consistently overlook, undervalue, or lump into generic “regional” strategies.
Together, these 15 Cities and Towns (CAT markets) represent 4.4 million consumers. If they were a single market, they’d be the third-largest in Australia. Yet most “national” media plans barely account for them.
Busting the ‘Regional’ Myth
At The Growth Distillery, we set out to challenge the way the industry talks about “regional” Australia, giving it the same focus and clarity that we expect in metro markets. As we dug into the data, the reality was far more urban, far more powerful and far more valuable than the term “regional” suggests.
When we talk about a “national” buy, if these cities aren’t at the core, we aren’t actually covering the nation. While marketing teams are under immense pressure to squeeze more ROI out of saturated (and expensive) Sydney and Melbourne markets, these aren’t quiet country towns, they are sophisticated markets booming in population, diversity and most importantly, consumers ready to purchase.
The Disposable Income Disconnect
“Cost of living” is the number one topic in every boardroom right now, but the data showed me a fascinating disconnect.
While the capital cities are feeling the squeeze, I discovered that the average loan debt in these CAT markets is nearly 26 per cent lower than the metro average.
There is a surge of high-earning managers and white-collar professionals moving in, bringing strong incomes but facing much lower overheads. The result? A population whose savings are growing at 25 per cent higher than the national rate. An audience where 72 per cent have the intent to travel in the next 12 months, and they are just as likely to be in the market for a car.
It was a lightbulb moment: these consumers don’t just have the intent to buy; they actually have the disposable income to do it.
They are purchase ready across many categories and are leaning on e-commerce and marketplaces to get what they want. In fact, they have higher usage rates on online grocery shopping than their metro counterparts.
It’s About Trust, Not Just Reach
The most valuable thing I can offer a marketing team is an insight into how to connect.
The research showed that 71 per cent of CAT market residents are fiercely loyal to the brands they trust, but they aren’t “brand snobs.” They don’t care about a logo for the sake of it.
They told us—quite clearly—that they want brands to show up in their local community and take a stand on the issues that matter to them locally. Showing up in a way that is authentic and real is a massive opportunity for brands to build “sticky” loyalty that isn’t just based on who has the biggest digital ad spend.
These consumers expect more from their brands, but if you can meet these expectations and deliver, they will repay you with their trust and loyalty.
The Growth Gap
There is a massive strategic advantage waiting for the brands brave enough to look beyond the metro city limits.
If your 2026 strategy doesn’t have a dedicated, nuanced approach for these 15 CAT markets outlined in The Growth Distillery’s latest report, you’re essentially conceding the third-largest market in the country to your competitors.
It’s time to give the Regional Cities and Towns of Australia the focus they deserve.
If marketers can treat these areas as a priority rather than an add on, they will reap the benefits of trust, loyalty and intention to spend well into the future.
