The 2024 Mid-Year Consumer Outlook by NIQ provides crucial insights into how inflation and global economic adjustments are impacting consumer behavior, with distinct takeaways for the plant-based food market in Australia and New Zealand. This report highlights while inflationary pressures are beginning to moderate, the lingering effects on consumer sentiment and spending are significant.
According to the report, 33% of global consumers have shifted from discretionary to essential spending, a trend echoed in both Australia and New Zealand. Despite these challenges, the outlook indicates that 60% of consumers still prioritise value-driven purchases, focusing on sustainability and quality—key attributes of plant-based products. This positions plant-based brands well to capture a conscientious consumer base, provided they address affordability without sacrificing quality.
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While inflation has shown signs of easing, 53% of consumers continue to cite rising prices as a primary concern. For plant-based brands in Australia and New Zealand, where production and import costs can already be high, this could pose a significant barrier. To remain competitive, brands must explore cost-effective production innovations and local sourcing partnerships that could mitigate these costs and appeal to price-sensitive shoppers.
Retail in Australia and New Zealand is adapting to new consumer expectations, with more supermarkets expanding their plant-based offerings. NIQ’s report underscores that 44% of global consumers are cooking more at home, a trend that aligns with the preferences of health-conscious Australians and New Zealanders. Plant-based food companies can leverage this by introducing versatile, easy-to-prepare products that fit seamlessly into home-cooked meals.
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Sustainability remains a strong motivator for consumers, with 45% of those surveyed prioritising environmentally-friendly purchases. This focus resonates particularly well in Australia and New Zealand, where climate-conscious consumerism is growing. Plant-based brands that emphasise their ecological impact—such as reduced carbon footprints and water conservation—can tap into this evolving market by highlighting these attributes in their marketing.
While many consumers are cost-conscious, the report reveals a significant portion (41%) still seeks premium quality. This dual demand presents both a challenge and an opportunity for plant-based brands as they attempt to balance affordability with premium positioning. Initiatives such as local partnerships with farmers and sustainable ingredient sourcing could help achieve this balance, allowing brands to market both quality and value.
Without doubt the NIQ 2024 Mid-Year Consumer Outlook paints a nuanced picture of the plant-based market in Australia and New Zealand. Brands strategically aligning their offerings with consumer values - emphasising sustainability, quality, and affordability - are more likely to thrive. As economic pressures shift and sustainability continues to gain traction, plant-based food companies able to navigate these dynamics will be well-positioned to capture and retain a loyal customer base.
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