Customers at the moment are transitioning again to some sort of normalcy post-COVID, however the world market volatility continues to affect shopper intention and motion. In Might 2022, 22% of Australian customers felt that the Ukraine battle would have a serious affect on their family funds, whereas almost half (48%) of them stated that the scenario would result in a rise in food and drinks costs, in keeping with Mintel’s monetary tracker analysis.

As the price of dwelling soars and provide chain disruptions proceed, there’s a better realisation that domestically produced merchandise have many benefits, together with supporting the area people and economic system.  Other than filling in the place there could also be gaps in imports, this may even assist Australian companies financially push by way of the present inflationary pressures. Simpler on-line entry to native merchandise is already driving the uptake of homegrown manufacturers in Australia. 

Aussies select to ‘go native’

‘It’s by no means been extra vital to purchase Australian than proper now’— was the catchphrase of the promotional initiative from the Australian Made Marketing campaign Ltd in 2020. In Mintel’s International Shopper analysis, 54% of Australians say they attempt to purchase locally-grown meals. It is smart, particularly throughout occasions of uncertainty, the place customers gravitate towards what they know and belief. This stems from their want to know the place their merchandise are coming from and assist the area people. As an example, we’ve seen how the notice of the struggles confronted by native sellers has grown through the pandemic, and customers wish to present their help. Moreover, this spotlights the shift in the direction of self-sufficiency by leveraging the worth of Australian made merchandise whereas balancing them with abroad imports.

However would customers pay for Australian made merchandise? Knowledge from Mintel Buy Intelligence reveals that Australians usually imagine domestically made merchandise ship on style, high quality and trustworthiness in comparison with imported merchandise. Value competitiveness can be driving buy intent, with 40% of customers saying that it is a crucial issue when selecting food and drinks going ahead.

These attributes resonate effectively with domestically manufactured breakfast cereals which make up the most important proportion of the Australian made meals class (75%), adopted by child meals (53%) and chocolate confectionery (51%). Others, like packaged vegatables and fruits, will not be as effectively represented, and this hole presents a possibility for manufacturers to faucet into. 

Manufacturers should be daring and reliable with their Australian made credentials

Customers at the moment are in search of transparency (much more so from elements), and types should use that authenticity to construct belief. In case your model is made in Australia from Australian elements, now could be the time to reveal the worth you deliver to the area people (e.g. supporting Australian farmers or Australian jobs). 

When analysing shopper buy reactions utilizing Mintel Buy Intelligence, clear communication on pack can be vital, for instance, itemizing what proportion of Australian elements is within the product. On reviewing a French salad dressing from an area model, one respondent stated: “I feel much less of the design of the packet or product even, I look first on the Australians origin. This says it’s 99% Australian and that makes me way more probably to purchase.”

Whereas not all manufacturers could be Australian made, highlighting product high quality and heritage can create a degree of distinction from Australian made merchandise. As an example, Swiss made chocolate manufacturers are ranked extremely for his or her high quality among the many 161 imported chocolate blocks picked up from Mintel Buy Intelligence. Educating customers with distinctive model tales will likely be key for imported merchandise to reveal authenticity.

As we enter a post-pandemic world the place worldwide provide chains take time to reconfigure, the new-found fondness for purchasing and purchasing native will probably proceed. The excellent news is that alternatives exist to capitalise on this rising urge for food for Australian made merchandise.

This text by our Mintel professional initially appeared in Retail World Journal’s November situation.