One in three consumers are willing to pay more for premium products, especially in some categories, according to Nielsen.
A premium product is one that costs at least 20 per cent more than the average price for the category, the market researcher said, and when it comes to trading up, meat and seafood are the top choices, followed by tea and coffee, and then dairy products.
In the dairy category, ice cream in particular was the most popular in the category, driven by indulgent flavours.
Also, three in five consumers said they were willing to pay more for products that deliver on social responsibility claims, and one in four consumers said theywould fork out extra for a premium beverage.
“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," Nielsen director Julianne Westaway said.
According to Westaway, consumers are also choosing products that are organic or have all natural ingredients.
“’Green’ attributes justify a higher price tag in many consumers’ minds and they show a willingness to pay for them.”
Brands can therefore drive growth in their premium offerings, or support a higher price point, by tapping into Fair Trade and responsible practice certifications, Westaway says.
“Premium products should be activated in a way that amplifies the product’s unique proposition.
“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 perceptions.”
