POY dominated by Woolies, Coles

The annual Product of the Year Awards (POY) has confirmed one of the dominant and enduring consumer trends when it comes to food and beverage choices – personal health. NielsenIQ research, commissioned by POY, found 74 per cent of us are focusing on products that support energy, fitness, better sleep, stress relief, and brain function. This year was dominated by private label products, accounting for 68 per cent of winning products.

While there is no entry fee for POY, if shortlisted companies pay a $3500 fee for the NielsenIQ research. If the product wins its category, the company must pay $15,500, which goes some way to explaining why the food and beverage category is dominated by Coles and Woolworths. And raises questions about if the product would be POY if it was up against a broader range of products from a wider pool of brands and manufacturers.

The two retailers won 27 of the 40 winning products – $405,000 between them. Coles won 17 categories ($255,000) and Woolworths the remaining 10 ($150,000).

Winning products can promote their win from the announcement to the end of 2026.

POY entries are initially assessed by a panel of industry experts for quality, credibility, and innovation, producing a shortlist of category finalists. These finalists are then evaluated and voted on by a panel of over 5000 Australian consumers.

The process is supported by NielsenIQ, which applies six innovation criteria to analyse the consumer feedback:

• Relevance – is the product fulfilling a need or addressing a problem?
• Uniqueness – does it stand out and bring something new to the category?
• Excitement – how excited are shoppers to use the product, and would they spread the word?
• Likeability – does it deliver on its promise?
• Distinctiveness – does it add something new to its category?
• Innovation – is it genuinely innovative?

POY director, Sarah Connelly, said this year’s research revealed that private labels are seeing unprecedented levels of trust.

“More than half of shoppers now trust them as much as, if not more than, national brands. This is particularly strong among younger adults, higher income earners and employed individuals.

“Last year, home brands claimed 55 per cent of the winning categories, while this year that figure has jumped to 68 per cent, showing us that investments in innovation from private labels are continuing to resonate with shoppers,” Connelly said.

No sugar, high protein trend continues

For consumers, no sugar (37 per cent), high protein (36 per cent) and gut health support (20 per cent) still dominate their purchasing decisions – a boon for the vitamin and supplements sector while continuing to be the foundation of much “innovation” we are seeing across market segments, not just health related products.

NielsenIQ found almost one in five consumers buy products that have been promoted by social media influences. For the 18 to 24 age bracket, TikTok (66 pet cent) and Instagram (49 per cent) shape their purchasing decisions. Strong value was also put on recommendations from peers across the board.

Retail hopping is also on the rise, with four in five Australians now shopping at more than one retailer each month. For seven in 10, the motivation is finding better deals, but other drivers include product availability (57 per cent), convenience (40 per cent), loyalty rewards (35 per cent), and access to exclusive products (31 per cent).

“Shopping can feel overwhelming when you’re faced with hundreds of options in every aisle, so it’s important to have some smart shortcuts, including seeing the POY logo on shelves,” she said.

Sustainability is still important as a purchase driver as well, particularly for younger generations and employed people. Three in four consumers said ethical sourcing was important to them.

2026 Product of the Year winners