How did consumers behave in 2023?

Through the Harvest to Home platform, Hort Innovation invests in regular consumer behaviour data and insight reporting for a range of horticulture industries (www.harvesttohome.net.au). The information assists growers and supply chain partners in decision-making for their businesses.

The Harvest to Home team from NielsenIQ has produced a 2023 wrap-up of consumer behaviour together with a deep dive into how consumers behaved over the festive season.

The total grocery category recorded growth across both value and volume (six per cent and 1.4 per cent, respectively) while cost of living continues to rise with average prices up by 4.5 per cent.

With Australian households unable to escape the cost-of-living crisis, shoppers continue to make more frequent yet smaller shops in search of better deals. Amid the effect of inflation, discounters performed ahead of other retail channels versus the prior year as Australian households searched for lower-priced options.

VEGETABLES: A LOOK AT THEIR PERFORMANCE IN 2023

2023 was a positive year for total vegetable consumption overall, where total vegetables recorded a decline in average prices in the year 2023 by 7.8 per cent compared to the previous year (fall from $5.68 to $5.23), translating to increased volume sales by 3.1 per cent. Dollar sales for total vegetables, however, declined owing to a drop in prices in 2023 versus prior year

An increase in volume sales for total vegetables was fuelled by a rise in purchasing frequency (increasing by 3.5 per cent) as well as a drop in average prices compared with the previous year.

Within the vegetable categories, sweetcorn, beans, broccoli, capsicum and eggplant registered the most volume growth in 2023 compared with 2022. Among these top five performing vegetables, only sweetcorn displayed growth across both dollar and volume sales in double-digits. In contrast, beans, broccoli, capsicum and eggplant had a reduction in dollar sales in 2023 versus 2022.

VEGETABLES: PERFORMANCE DURING FESTIVE SEASON

Leading up to the festive season, average prices for vegetables were higher in December, compared with November, by 1.2 per cent, resulting in increased dollar and volume sales. However, compared with last year's festive season, dollar and volume sales have dropped by 2.2 per cent and -0.4 per cent, respectively.

Similarly, household reach for fresh vegetables was lower during the festive period compared with December 2022 (95 per cent for the four weeks to December 31, 2023, versus 96 per cent a year ago).

In terms of retailer performance, compared with the previous month, major supermarkets performed ahead of other retailers, growing by five per cent and 3.3 per cent in terms of dollar and volume sales. The increase in dollar sales stemmed from increased prices and more households purchasing more quantity per trip compared with November 2023.

During the festive season of 2023, eggplant performed ahead of all vegetables in volume sales compared with December 2022 while also registering growth in dollar sales. Following eggplant, celery, broccoli, herbs and cucumbers were among the top five performing vegetables in volume consumption during the festive period. Regarding dollar sales performance, only celery and broccoli registered a decline compared with the prior year.

FRUITS: A LOOK AT THEIR PERFORMANCE IN 2023

Fresh fruits are no exception to inflation and skyrocketing grocery prices, registering a double-digit rise in average price per kg of 11 per cent compared with the previous year. Increased prices have propelled an increase in dollar sales by 9.9 per cent in 2023, while at the same time, volume consumption slowed, declining by one per cent compared to the previous year.

Fewer buying households (down by 0.4pts to 98.6 in the 52 weeks to December 31, 2023) along with smaller basket (KG) per trip drove down volume sales, while purchasing frequency recorded an uplift by 4.3 per cent, to an average of 61 trips per household in the year 2023.

Regarding retailer performance for total fruits, all channels recorded declining volume while growing for dollar sales. Major supermarkets registered the most value growth for total fruits, growing by 11.8 per cent compared with the previous year, increasing share in volume and sales.

Stone fruits, specifically cherries, nectarines, peaches and apricots, were among the top five performing fruits in terms of dollar sales in 2023, with cherries growing the most. Berries registered the third strongest value growth while displaying the strongest growth in terms of volume consumption.

FRUITS: PERFORMANCE DURING FESTIVE SEASON

The overall fruit category performed ahead in the festive season compared to 2023 regarding volume consumption. A growth rate of 1.3 per cent was displayed for total fruits in the festive season of 2023 compared with the same time in the prior year (+3.6 per cent versus November 2023). Compared with the preceding year, dollar sales growth was less pronounced in the 2023 full-year performance, as average prices remained stagnant. However, value sales increased by 9.4 per cent compared with the previous month.

In comparison with the festive season in 2022, an uplift in purchasing frequency contributed to sales growth, while increased household reach and bigger basket size (KG) per trip were the catalysts for growth when compared to the prior month (November 2023).

For dollar sales, greengrocers and markets performed ahead of supermarkets in the four weeks to December 31, 2023, versus the same time a year ago. In terms of volume sales for the same period comparison, other supermarkets (excluding Woolies, Coles and Aldi) registered the most growth at 5.3 per cent.

Stonefruit (particularly plums, cherries, apricots and peaches) were among the top five performing fruits in terms of volume consumption in the four weeks to December 2023 versus the prior year. Increased household reach was the key contributing factor to growth. Melons had the second-highest growth in volume sales, fuelled by increased penetration and purchasing trips.