Australians are willing to pay more for premium groceries, Nielsen
New Nielsen research has found one in three Australian consumers would consider paying more for premium groceries.
According to Nielsen, a significant amount of shoppers are already paying big dollars for certain items with one in four Pacific consumers currently purchasing premium beverages.
Julianne Westaway, Director at Nielsen, said Nielsen defines a premium product as one which costs 20 per cent for than the average price paid in the product’s category.
“Pacific shoppers are socially conscious when it comes to top tier goods, with more than two in three consumers spending more on products that contain environmentally friendly or sustainable materials,” she said.
“They are also choosing products that are organic or have all natural ingredients,” Westaway added.
Three in five consumers demonstrated a willingness to pay more for products which have responsibility claims.
“’Green’ attributes justify a higher price tag in many consumers’ minds and they show a willingness to pay for them,” Westaway said.
How food companies can take advantage
Nielsen says marketers can capitalise on this premium trend and brands can drive growth in their premium offerings, or support a higher price point, by tapping into Fair Trade and responsible practice certifications.
“Premium products should be activated in a way that amplifies the product’s unique proposition,” Westaway said.
“Several considerations should be kept in mind when optimising how these brands are marketed including how consumers see the products on the shelf, pricing promotions and emotional resonance of brands in managing perception,” Westaway concluded.
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