Australians make do with less spending as cost of living continues to hike: Nature
Australians are tightening their belts on shopping, dining and alcohol purchases as the cost of living continue to hike, according to research by Nature.
The strategic insights consultancy found that 85% of Australians consider the cost of living to be the number one issue in the country right now.
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In response, they are taking drastic measures to cut their spending and save money, with 89% shopping for more specials and promos, 84% dining out less, and 77% reducing alcohol purchases.
On the household front, 85% of Australians are planning on or currently using less gas, electricity or hot water, while 46% are considering switching energy providers.
As 64% of Australians put their travel plans on hold, 79% are planning on or currently switching to lower-priced clothing or footwear brands.
Eighty per cent of the people surveyed expect grocery prices to continue rising over the next 12 months, which is the biggest cause of stress, along with other essential items, bills, fuel and transport.
For non-essential spending, 89% of Australians are planning to spend less, especially within these categories:
- Homewares and furniture (61%)
- Sporting events and cultural experiences (61%)
- Luxury items (58%)
- Technology and electronics (55%)
Nature consultant, Jacqui Dreher, said: “While the burden is heavy across all ages, the research shows it is heaviest for those who are middle-aged as they are more likely have children or other dependants as well as spend the most on groceries.
“People say they are eating out less, taking a packed lunch and entertaining at home, meaning there’s an opportunity for businesses to capitalise on these choices by dialling up the versatility of products and providing inspiration for how to best achieve savings,” she said.
Nature consultant, Luke Crellin, said: “The sentiment around the country is that it’s getting to the point of becoming unbearable, with inflation outstripping wage growth and some people unsure about how they’re going to keep up with their regular payments.
“Companies need to be very aware of how consumers are feeling and thinking, especially as they begin to resort to more drastic measures to mitigate the problem. Those businesses who can offer savings or build trust among consumers will win out,” he said.
The research was conducted in late August 2022 and covered 1,000 people across Australia who are mainly or jointly responsible for household finances. The sample size was representative of the national population.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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