Once upon a time, buying home brand groceries was something many Australians did quietly—a budget-friendly choice often tucked away at the bottom of the trolley, hidden beneath the more ‘respectable’ name-brand items. But times have changed.
With the cost of living continuing to rise and grocery bills climbing higher each week, more and more Australians are proudly reaching for supermarket home brands—and not just for the savings.
Recent data shows that one in three Coles customers are now buying more home brand products than ever before.
So, what’s behind this shift? Are home brand products worth it? And is there a catch to those lower prices? Let’s unpack the rise of the humble home brand and what it means for your wallet—and your pantry.
Home brand groceries—also known as private label products—are items sold under a supermarket’s own branding. You’ll find them at all the major retailers: Woolworths, Coles, and ALDI.
But here’s the interesting part: supermarkets don’t usually manufacture these products themselves. Instead, they contract third-party producers—often the very same factories that make the big-name brands—to create these items under a different label.
That means your home brand tinned tomatoes might be made in the same facility as a premium brand, just with simpler packaging and a different name. Sometimes the product is nearly identical; other times, there may be slight differences in ingredients or formulation.
There are several reasons why home brand products tend to be significantly cheaper than their branded counterparts—and it’s not just about cutting corners.
According to financial experts, the biggest cost-saving comes from marketing—or rather, the lack of it. Big brands spend millions on advertising, packaging design, and paying for prime shelf space in supermarkets. Home brands, on the other hand, skip the flashy campaigns and settle for more modest packaging and shelf placement (often on the bottom row).
Other savings come from streamlined supply chains, reduced packaging costs, and fewer middlemen. In some cases, the ingredients may be slightly cheaper, but that doesn’t necessarily mean lower quality.
Are they any good? In a word: yes. Consumer advocacy group CHOICE has found that home brand products often outperform their more expensive rivals in blind taste tests and product comparisons.
Take tea bags, for example. In a recent CHOICE test of 32 different brands, ALDI’s Just Organic Black Tea came out on top, beating out well-known names like Lipton, Twinings, and T2. And at just 6 cents per bag, it’s a win for both your taste buds and your budget.
Other categories where home brands have shone include coffee, ice cream, toilet paper, dishwasher detergent, and more. So if you’ve been hesitant to try them, it might be time to give them a go.
While home brand products are a win for consumers, they’re also a strategic move for supermarkets. By selling their own brands, retailers can cut out external suppliers and keep more of the profit margin for themselves.
Over the past decade, we’ve seen a noticeable shift in supermarket shelves, with fewer name brands and more private label options. This gives supermarkets greater control over pricing, supply, and product development, while also allowing them to respond more quickly to consumer trends.
It’s a smart business move—and one that’s paying off, especially as shoppers become more price-conscious.
It’s no secret that Australians are feeling the pinch. A recent CHOICE survey found that 84 per cent of households are concerned about the rising cost of food and groceries. Meanwhile, a Finder survey revealed that nearly 40 per cent of people are switching to cheaper brands to cope with financial pressure.
Some are even turning to buy-now-pay-later services to cover their grocery bills—a worrying sign of just how tight things have become.
But there’s also a silver lining: shoppers are becoming savvier. Many are now shopping around at multiple stores, comparing prices, and being more open to trying new—and often cheaper—brands.
Once seen as a last resort, home brand products are now a regular feature in many Australian households. The old stigma—that buying home brand meant you couldn’t afford the ‘good stuff’—is quickly disappearing.
In fact, for many shoppers, choosing home brand is now a smart, conscious decision. It’s about value, not just price. And with quality improving across the board, there’s less reason than ever to stick with expensive name brands out of habit or loyalty.
At the end of the day, it’s your money and your choice—and if a home brand product does the job just as well (or better) for less, why not make the switch?
Have you tried home brand products? What has been your experience with quality versus cost? Feel free to share your comments below.
Also read: Australians leave old shopping habit behind for this new money-saving trend!
