Findings from Nielsen’s Ethnic-Australian Consumer Report indicate that this important consumer group will spend a total of $18.7 billion (or 28%) on grocery items in the next five years.
This represents an increase of $4.4 billion in incremental revenue, with Asian born consumers making up 57% of this growth.
“Asian born Australians are the biggest growing demographic in Australia today and represent more than 10% of the overall population – more than doubling in 20 years and showing no signs of slowing,” said Justin Sargent, CEO Pacific at Nielsen.
“This is a great opportunity for brands and retailers. Asian born consumers are growing in importance and engaging with them requires a change in focus. Very few companies in Australia have embraced this to date.
“For example, Asians’ food preferences are very different compared to the rest of the consumer population – they want more fresh produce, more seafood and healthier food options.”
Asian born consumers devote almost a third of their grocery spend to fresh food and importantly three-quarters would shop more at mainstream supermarkets if there was a greater international selection.
“Meeting the needs of Asian born Australians is key to maximising these growth opportunities. Marketers need to re-examine their short and longer-term strategies to engage with this growing consumer group,” added Sargent.
“Brands and retailers may consider more in-store product variations, increased nutritional information and more focused promotional events.
“Importantly, the changing Australian demographic impacts on the whole population. Australians as a whole are buying more international foods and flavours.”
Asian born Australian consumers tend to be well informed with almost half being influenced by retailer catalogues and brochures. This group are highly price sensitive and are most likely to compare prices online before purchasing.
They are more likely to read product labels, are influenced by comments and reviews online and are willing to pay extra for well-known brands. They are also twice as likely to be influenced by their children when shopping.