Consumers reveal impact of rising cost of living

New research by Toluna shows that rises in cost of living have seen consumers switch supermarkets, forgo eating out, and reduce their energy consumption to save money.

Toluna’s Global Consumer Barometer Study is a regular index that taps into a community panel of 40+ million members providing accurate and timely information on the world’s current perceptions.

The latest research surveyed 1000 people in Australia between 23-29 March.

Key findings show that Australia’s rising cost of living is impacting consumer spending. The increased costs of groceries, in particular, is forcing shoppers to make changes to their weekly shop. These changes include dropping their favourite brands in favour of generic ones, shopping around to find the best deals, and buying in bulk in order to save money.

Toluna director Australia & New Zealand Sej Patel said that emerging from the pandemic, the rising cost of living was now one of the biggest issues for Australians.

“Our research shows that Aussies are noticing price increases across a number of categories, and are changing their behaviours as way of trying to combat this,” said Patel.

Consumers are also reducing social activities such as eating out, as well as finding ways to reduce energy consumption.

The increased cost of groceries is causing the most disruption, with 80 per cent of Australians stating they’re being impacted by the rising cost of grocery items; one in four shoppers said they plan to switch supermarkets to find cheaper alternatives.

Toluna found the following percentage of the population had noticed price rises in that category: 

• fresh food - 79%
• frozen food - 62%
• pantry goods - 60%
• bakery items - 59%
• soft drinks - 48%
• alcohol - 43%

The research company forecast that in coming months shopping behaviour will change to help combat grocery price hikes, with 29 per cent reporting they would be changing the brands they normally buy.

Half of those surveyed expect to be spending more on groceries in the next three months.  50% of Australians expect to be spending more on groceries for the next three months.

When it comes budgeting, Australian consumers said the first things they would forego in order to save money would include eating out and ordering takeaway, followed by overseas travel, spending on premium brand products, going to bars & pubs, and going to the cinema.

Almost a third said they would delay purchasing items for their home as a way to save money.

Patel said, “Understanding today’s consumer is critical, and businesses will do well to ensure that communication with customers over the coming months largely focuses on price and value for money.

"It’s important that businesses evolve the way they position and market themselves in a way that aligns with current consumer sentiment.”