Australians want local groceries, Shopfully survey finds

Shopfully has published YouGov research showing that 49% of Australians consider buying from local suppliers or small businesses important when grocery shopping, pointing to broad consumer interest in local products.

The survey found that 21% of shoppers consider buying local very important and consistently prioritise local products. A further 29% said they would choose local products when they are easy to find and competitively priced.

That gap suggests consumer intent does not always translate into routine purchasing. Price, convenience and availability remain central to grocery decisions, even for shoppers who want to support local producers and smaller businesses.

Commissioned by Shopfully, the YouGov study surveyed 1,007 Australians aged 18 and over. It also found that 24% of shoppers buy groceries from farmers' markets or local markets, with that behaviour most common among people aged 25 to 34.

Shopfully Australia Country Manager Brendan Straw said the results showed shoppers wanted local and sustainable choices to be easier to access through mainstream retail channels.

"Australians clearly have a strong affinity with local producers and small businesses, but conscious consumption still needs to work within the realities of everyday life," Straw said.

"Shoppers aren't necessarily looking to abandon the convenience of their local supermarket. Instead, they want more opportunities to choose local and sustainable products in the places they already shop, and larger retailers have the resources needed to accommodate this."

Retail opportunity

The research suggests major grocers could increase sales of local and sustainable goods by placing them within standard shopping trips rather than treating them as niche purchases. The approach spans both food and household categories, from locally grown produce and Australian-made pantry items to refillable household goods and lower-impact cleaning products.

Market shopping remains part of that picture, but should not be the only route for consumers seeking local goods. Large retailers are better placed to integrate those products into routine supermarket visits because they already have broad distribution and established customer traffic.

"While farmers' markets will continue to play an important role in connecting communities with local producers, shoppers shouldn't have to visit a separate destination to find products that reflect their values," Straw said.

"Large grocery retailers have the reach, scale and existing customer relationships to bring more of these choices into the mainstream. By placing carefully selected local and sustainable products alongside familiar national brands, retailers can give shoppers greater choice without adding complexity to their routines."

The findings also show affordability remains a barrier to broader adoption. Consumers may express support for local and ethically sourced products, but many are reluctant to pay a meaningful premium while household budgets remain under pressure.

That has implications for pricing and merchandising. Introductory offers, temporary discounts, multibuy deals and loyalty rewards could help lower the threshold for first-time purchases and encourage repeat buying if shoppers are satisfied with the product.

"A shopper who currently visits a market or specialist store to purchase local honey, handmade soap or environmentally conscious cleaning products may be willing to buy those items during their regular supermarket visit when the quality, provenance and value are clear," Straw said.

"Retailers need to consider how promotions, loyalty incentives and introductory offers can make local, sustainable and ethically sourced products easier to trial. Temporary price reductions, multibuy offers and loyalty rewards could help lower the barrier for shoppers purchasing a product for the first time."

Visibility matters

Beyond price and shelf space, the research points to the role of pre-shop discovery. Retailers that highlight local products in catalogues and digital retail media may be better placed to influence buying decisions before shoppers enter a store or finalise an online basket.

Product visibility should cover origin, seasonality and environmental attributes, especially where those factors help justify value. The research also suggests consumers are motivated by a mix of factors rather than a single ethical preference.

"Catalogues, for instance, can introduce customers to locally made products, seasonal Australian produce and lower-waste household alternatives before they enter a store, while digital channels can build on this by sharing product credentials," Straw said.

"Australians are motivated by a combination of community support, product quality, environmental impact, convenience and price.

"The retailers that respond most effectively will speak to all of these motivations rather than treating conscious consumption as relevant to only one type of shopper."

The study indicates that interest in local grocery products extends beyond a narrow customer segment, but retailers will need to close the gap between values and purchasing habits if they want that demand to translate into regular sales.

"Aussies have already demonstrated that they value local businesses and more responsible choices. The next step is to ensure those choices are available, affordable and visible wherever shoppers are planning and completing their purchases," Straw said.