You’re not alone if you’ve noticed your weekly grocery bill creeping up.
With the cost of living rising and supermarket prices showing no sign of slowing, more and more Australians are looking for ways to stretch their dollars further.
And according to new research, one state is leading the charge regarding smart supermarket savings.
Victoria: Australia’s most frugal state
A recent study by Compare the Market revealed that Victorians are the savviest shoppers in the country. In the past year, 53 per cent of residents switched from big-name brands to generic or home-brand products.
That’s higher than in any other state, with Queensland and Western Australia tied at 48 per cent, New South Wales at 47 per cent, and South Australia at 46 per cent.
Nationally, nearly half of all Aussies (49 per cent) are now opting for generic brands to save money.
Why the switch? The savings are real
It’s not just a matter of cents and sensibility—Compare the Market’s number crunching shows that shoppers can save up to 41 per cent by switching to generic brands.
For the average Australian household, which now spends $213.64 on groceries each week (an 11.5 per cent jump since January 2024), that’s a potential saving of over $1,100 a year.
Chris Ford from Compare the Market sums it up: ‘Families have been doing it tough for long enough, and with high prices in almost every aisle at the supermarket, it’s hardly surprising to see so many Australians opting for generic brands over big names.’
‘Time and time again, we see people being stung with high prices because they stay loyal to certain brands, and our latest research shows the tide may be turning.’
Where are Aussies cutting costs?
The research found that Australians are most likely to ditch brand names for generic options on everyday essentials, including:
- Milk: 65 per cent have switched to generic
- Cleaning products: 58 per cent
- Bread: 57 per cent
- Frozen veggies: 52 per cent
- Toilet paper: 50 per cent
These are the staples that fill our trolleys week after week, so it’s no wonder shoppers are looking for savings here.
And the price differences can be eye-opening: Compare the Market found a 50 per cent reduction on multipurpose cleaner, a 38 per cent saving on bread, and a 27 per cent difference on milk when choosing home-brand over name-brand.
It’s not just the basics
While the biggest switch is happening with everyday essentials, Aussies are also rethinking their choices in other aisles:
- Confectionery: 18 per cent have gone generic
- Biscuits and snacks: 23 per cent
- Toothpaste, soap, and shampoo: 31 per cent
Even for those little treats and personal care items, the savings add up.
How much can you really save?
Compare the Market’s research looked at 13 common grocery items, from toilet paper and pasta sauce to teabags and poultry.
The results? A trolley full of brand-name items cost $79.15, while the same basket with generic brands came to just $46.35—a difference of $32.80, or 41 per cent.
Some of the biggest savings were found in surprising places. For example, there’s a 63 per cent price gap between brand-name and generic Earl Grey teabags.
So if you’re not fussy about your brew, that’s a cuppa worth considering!
Are generic brands really worth it?
It’s a question many of us have asked: are home-brand products as good as the big names? While some people swear by their favourite brands, many generic products are made in the same factories, often with similar ingredients.
In blind taste tests, home-brand items frequently hold their own against pricier competitors.
Of course, there are some products where you might notice a difference in taste or quality, but for many everyday items—think flour, sugar, cleaning products, and even some snacks—the savings can be well worth it.
Tips for making the switch
If you’re thinking about following Victoria’s lead and giving generic brands a go, here are a few tips:
1. Start Small: Try swapping out one or two items each week and see if you notice a difference.
2. Read the Labels: Check the ingredients and nutritional information—sometimes the only real difference is the packaging.
3. Taste Test: Do a blind taste test at home with your family. You might be surprised by the results!
4. Mix and Match: You don’t have to go all-in. Stick with your favourite brands for certain products, but save on others.
5. Watch for Specials: Sometimes, brand-name products go on sale and can be cheaper than generics, so keep an eye out for bargains.
The bottom line
With grocery prices on the rise, it’s no wonder Australians are rethinking their shopping habits. Victoria may be leading the way, but there’s no reason the rest of us can’t join in and start saving.
Whether you’re loyal to your favourite brands or open to trying something new, a few simple swaps could put hundreds of dollars back in your pocket each year.
Have you made the switch to generic brands? What products do you swear by, and which ones do you avoid? Share your tips and experiences in the comments below—let’s help each other save!
Also read: Cost-of-living relief: Coles matches Woolworths with major grocery price cuts
