Premiumisation in Australia

March 2020

Premiumisation is a key consumer trend in Australia, but it’s meaning is changing. Where once price and quality were paramount, consumers are moving to more thoughtful and emotional consumption. Simplification and provenance are also key, with consumers expecting brands to meet these requirements to offer a premium service. This report examines how these trends are playing out in Australia and how companies can take advantage of this.

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This report comes in PPT.

Key takeaways

Preconceived notions of premiumisation have evolved beyond theneed for status and success. Now, premiumisation is becoming increasingly aboutthe individual. More specifically it is less about what they own and more aboutwho they are.

At its core, premiumisation is about emotion. Consumers arelooking for purpose in their purchase. Purpose can be defined as ways tosimplify tasks in order to spend more time with loved ones. In addition tothis, purpose can also be defined as

Successful strategies increasingly link an evolving portfolioof products and ingredients to specific occasions and emotions. Accordingly,effective differentiation and timely innovation requires closer integration ofsourcing, production and marketing.

While the need for individuality has always driven our spendingdecisions, technology has intensified this even more. Technology will continueto enable the fragmentation of demand, access to more information and mostimportantly, access to each other’s lives. As a result, this will continue toevolve and challenge ideas and expectations of premiumisation.

Leaders harness megatrends to disrupt a market
We complete trend analysis using the following approach
Our approach to Megatrends
The drivers shaping consumer behaviour
Key findings
“I buy premium, therefore I am…”
Defining premiumisation
Above all, premiumisation is about emotion
Who is the Australian consumer? What are their spending motivations?
Australians look for…
Services that help
Ready meals helping consumers reclaim their time
Personalised vitamins promote time saving and self-care management
The Iconic: a case study
Case study : The Iconic (key news)
Thoughtful consumption
Justifying the price for clean beauty
Consumers are real gluttons for novelty
Farm to Fork
Examples of Farm to Fork
Building a better me
‘What’s in a name?
Is profit skin deep?
Premiumisation within pet food
Lyka pet food: a case study
Lessons learned
Opportunities and challenges
Key takeaways
Leverage the power of megatrends to shape your strategy today

Packaged Food

In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.

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