When you think of Ikea, the first thing that likely springs to mind is flat-pack furniture, maze-like stores, and perhaps the occasional lost weekend trying to decipher assembly instructions. However, it seems that the Swedish retail giant is becoming just as famous for its culinary offerings as for its BILLY bookcases and MALM dressers. In a surprising twist, it appears that Australians are heading to Ikea not just for home furnishings, but for a taste of their increasingly popular food offerings.


The iconic Swedish meatball has become a star in its own right, with a staggering 13.8 million meatballs sold, indicating that Ikea's food sales are outpacing its furniture sales. This trend is a testament to the changing habits of consumers, who are seeking out affordable dining options amidst the rising cost-of-living pressures. Ikea Australia's CFO, Ricardo Pereira, has noted that when people have less money, they tend to eat out where they can afford, and Ikea's food offerings provide a budget-friendly choice with a diverse range.


The affordability of Ikea's food is not the only factor driving its popularity. The company's commitment to expanding and developing its food range is also attracting customers. While the meatballs remain a firm favorite, reflecting Australia's love for meat, Ikea is also diversifying its menu to include other dishes such as chicken and chips, and salmon, which showcase the brand's Swedish identity.


The success of Ikea's food business comes at a time when the company is experiencing a dip in furniture sales. Financial statements reveal a 3.17 percent decrease in sales to $1.725 billion across FY24. Despite this, Ikea has managed to bounce back to profitability, with net profits rising to $51.3 million in 2024 after a loss the previous year. This trend is not isolated to Australia, as Inter Ikea Group has reported a 4 percent drop in retail sales globally.

The broader economic context cannot be ignored, with the Australian Bureau of Statistics (ABS) reporting sluggish economic growth. GDP grew by just 0.3 percent, with the economy expanding by only 0.8 percent over the 12 months until September 2024. Household spending is down, and business investment remains subdued, painting a picture of a cautious consumer environment.

In light of these economic challenges, Ikea's food business has become a beacon of success. The company's ability to offer value in both its furniture and food is resonating with customers who are looking for ways to stretch their dollars further. The meatballs, in particular, have become a symbol of Ikea's adaptability and understanding of consumer needs.


So, if you haven't yet indulged in the simple pleasure of Ikea's meatballs or explored their other food offerings, you might be missing out on more than just a tasty meal – you're bypassing an experience that has become a cultural phenomenon. Whether you're in for a new bookshelf or just craving some comfort food, Ikea seems to have found the recipe for keeping customers coming back for more.
We'd love to hear from you, our Seniors Discount Club members! Have you dined at Ikea recently? What's your take on the rise of their food sales compared to their furniture? Share your thoughts and experiences in the comments below – we're all ears!