Groceries are one of the largest expenses for most households and lately prices seem to keep going up.
A recent survey by Canstar Blue found Australians are spending an average of $168 per week on groceries in 2024, five per cent higher than 2023 ($160 per week).
If you're looking to spend less on groceries (who isn't?), it helps if you're not loyal to a particular brand. But while private label or "home brand" products are often cheaper than branded alternatives, some consumers may have concerns about their quality and value.
We spoke to a retail expert and a nutritionist to help you understand how much brands really matter when it comes to groceries.
Why supermarkets are increasingly focusing on private labels
Mark Field is the founder of a consulting firm specialising in food and grocery supply chains.
He says supermarkets often have a range of their own private label products at different price points, such as a value option at a low price point and a mid-market option that competes with branded alternatives.
From the supermarket's perspective, these private label products are attractive, because they are unique to their stores and are often more profitable than branded products.
"[For them] it's all about trying to get the best quality for the best price you can do and connect with consumers in a different way," Mr Field says.
Some retailers such as Aldi use a different operating model to the major supermarkets and focus almost exclusively on private label products.
A recent report by consumer advocacy group Choice found a basket of groceries from Aldi was $18 cheaper than similar items sold at Coles and Woolworths.
"You haven't got the same choice when you are in there and ultimately the consumer experience is different, but you have a different expectation," Mr Field says.
How are private label products different from regular brands?
Mr Field says supermarkets source private label products from Australian manufacturers and producers as well as overseas suppliers.
In some cases, the private label product may be made by the same producer as a branded one but with different ingredients or a slightly different formulation.
"Within Australia, a high percentage of suppliers that are producing branded product are also choosing to do private label," Mr Field says.
"Some businesses will choose to produce private label because access to [the increased] volume helps their operating model and helps them drive efficiencies and investment through their plants."
What to look for when comparing products at the supermarket
At the shops, Mr Field says the best way to compare branded versus private labels is to look at the ingredients on the label.
"If you're buying tinned tomatoes, as an example, not just comparing the price and the size of the pack, but turn [the label] around and see what's the [percentage] of tomatoes in that can," he says.
"[It's] very easy for the consumer then to decide, not just based on price and unit size, but [whether] they get in the same level of a product that they want."
Clare Collins, laureate professor in nutrition and dietetics at the University of Newcastle, says it's also important to check sodium and sugar levels when comparing products.
"What I've noticed is that sometimes the generic brands can be more healthy, particularly in regard to sodium," she says.
"Especially for things like canned tomatoes, canned legumes, sometimes the low salt option is cheaper."
Another way to save money is to buy frozen vegetables, which are often cheaper than fresh with comparable quality, Professor Collins adds.
“Frozen [vegetables] tend to be snap frozen at the time of picking. Often what is snap frozen is fresher than what goes to the warehouse, then cold storage, then the supermarket,” she says.
If there's a particular brand you like, wait for it to go on sale
Even if you're comfortable trying different products, you might be attached to certain brands.
Professor Collins says she is happy to buy cheaper canned tomatoes and beans but is particular about her brand of tea.
"I like a certain brand, I wait until they come on special, then I buy my two months' worth," she says.
While it's not always possible to stretch the grocery budget to buy in bulk, it's helpful to keep an eye out for promotions and specials, Mr Field says.
"If times are hard, [you might be] struggling to buy one, let alone buy more," he says.
"Maybe what you've got to do is stretch it out a bit and wait for next promotional cycle to come."
Professor Collins says it's also helpful to have a set budget for discretionary food items, like sweets, snacks and takeaway.
She recommends recording how much you spend on those items in a week.
"We did a study to ask people how much they spend on all of that, we found that by pre-planning, people were saving money," she says.
