Overseas born Australians are spending more on groceries

Posted by Andrea Hogan on 5th June 2017

The rate at which Australians born overseas are purchasing fast moving consumer goods is growing faster than the rate of Australian-born shoppers.

According to Nielsen’s latest Ethnic-Australian Consumer Report, in the next five years Australians born outside the country will spend AUD $18.7 billion on groceries, accounting for 28 per cent for the country’s total spend.

This represents an increase of AUD $4.4 billion in incremental revenue, with Asian-born consumers making up 57 per cent of this growth.

Justin Sargent, Chief Executive Officer of Nielsen Pacific, said that engaging with Asian-born consumers requires a change in mindset that few Australian manufacturers have embraced to date.

“For example, Asians’ food preferences are very different,” Sargent wrote on Nielsen’s website.

“They devote almost a third (32 per cent) of their grocery spend to fresh food (compared to Australian-born consumers who allocate 26 per cent of their spend on fresh); and they also have a strong skew toward seafood, fresh herbs and healthier food options in general,” he said.

Key report findings

  • 75 per cent of Asian-born Australians say they would shop more at mainstream supermarkets if there was a greater international selection
  • Almost half (48 per cent) of Asian-born Australians say their purchasing decisions are influenced by retailer catalogues and brochures
  • 31 per cent of Asian-born Australians say their food choices are influenced by their children
  • Asian-born consumers are more likely to read product labels, are more inclined to purchase healthier ingredients, are influenced by comments and reviews posted online, and are willing to pay extra for well-known brands

“The traditions, attitudes and shopping behaviours of multicultural consumers are influencing mainstream consumers and expanding the market opportunity,” Sargent said.

“The multicultural selling proposition for marketers and advertisers benefits all Australian consumers seeking unique flavours and products,” he said.


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