Cost-conscious Australians are now nearly twice as likely to look for supermarket specials than to switch to a private label alternative, according to new analysis by Circana.
Of those polled by Circana, 66 per cent said they were relying on promotions or specials to help manage concerns about rising prices, but only 36 per cent told Circana’s Shopper Panel they were buying more private labels or home brands to save money.
More said they would rather stock up on specials, compare prices or shop around instead.
Circana’s data also found name brands have much greater visibility when people are shopping for a deal. Just four per cent of private label grocery items were sold on promotion in the 12 months to early January 2026, compared to 39 per cent of all packaged grocery units.
Almost two-thirds (65%) of shoppers surveyed told Circana they believe store brands are a good alternative to name brands, up five percentage points since 2021, but there are signs that private label growth is beginning to stall.
Excluding tobacco, total grocery spending increased by 4.2 per cent in the six months to March 2026, putting it slightly ahead of private label growth at four per cent. The total number of grocery items bought in the six months to March also rose by 1.6 per cent, ahead of home brand products which increased by 1.1 per cent.
This breaks a four-year pattern of growth for private labels, as spending in this category had been growing around 2.6 percentage points faster than the grocery market as a whole.
Circana also found shoppers do not judge value on price alone, with 49 per cent saying that getting the lowest price was extremely important when deciding whether something offered good value for money compared to more than half (55%) who said consistently good product quality was extremely important.
People who said price was the most important thing when choosing a product spent six per cent more on private label than the average shopper and bought nine per cent more private-label units.
But shoppers who said they were willing to pay more for better quality spent eight per cent less on private label than average, despite spending four per cent more on groceries overall.
Jules Green, director, Food & Grocery and Growth Enabling Teams at Circana, said Australians haven’t stopped buying home brands, but they are becoming much more selective about how they save their money.
“Value isn’t always about choosing the cheapest product and a familiar brand on a strong promotion can be just as compelling as switching to a cheaper alternative,” Green explained.
“Private label has become a normal part of the weekly shop for many and strong sales for more premium supermarket ranges show that home brands do not always have to win on price alone. Retailers have an opportunity to create products people choose because they want them, not simply because they are cheaper.”
The consumer findings draw on Circana’s Australian Shopper Panel and Shopper Panel Surveys. The survey on how Australians are responding to inflation concerns was conducted in April/May 2026 among 4885 shoppers.
Research into attitudes towards private label, including the finding that 65 per cent see supermarket own brands as a good alternative to branded products, was conducted in January/February 2026 among 5393 shoppers.
The analysis of price- and quality-focused shoppers combined January/February 2026 survey responses with Circana Shopper Panel Psychographics data for the period to 19 April 2026.
The value-for-money findings on the importance of consistent quality and low prices come from a September 2025 Shopper Panel Survey of 4920 shoppers.
