Home brand groceries cost less—what Aussie shoppers give up

With the cost of living biting harder than ever, it’s no wonder more and more Aussies are looking for ways to trim their grocery bills.

For many, that means reaching for home-brand products—those no-frills, supermarket-branded items that have long been the subject of praise and a bit of old-fashioned snobbery.

But as the price gap between home brands and big-name products widens, it’s worth asking what we are getting (or giving up) when we make the switch.


Not so long ago, home-brand groceries were seen as a last resort—something you’d only buy if you were strapped for cash.

The plain packaging and 'budget' reputation made them easy to spot (and, sometimes, easy to judge).

But times have changed. According to Coles’ latest quarterly update, one in three shoppers now buy more home brand products to save at the checkout.


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As grocery prices rise, more home brand products are now bought by one in three Coles customers. Credit: Depositphotos


And with grocery prices continuing to climb, that number is only set to grow.

The stigma is fading fast. As Kate Browne from Compare Club points out, 'There was a bit of a stigma back in the day, but now we’ve seen them become a real game changer in the market.'

In fact, for many households, home brands are now a regular feature in the pantry, fridge, and laundry.


Home brand (or 'private label') products are items made specifically for supermarkets and sold under their branding—think Coles, Woolworths, or ALDI’s in-house labels.

But here’s a little-known secret: these products are often made by the same factories producing big-name brands. Sometimes, the only real difference is the label and the packaging.

Sarah Megginson from Finder explains, 'In some cases, the product is indistinguishable from the brand name, and in other cases, it tastes or works completely differently.'

So, while you might be getting the same tinned tomatoes as a premium brand, you could also be getting a slightly different recipe or a more basic version.

Home brand products can often undercut their branded rivals for several reasons.

They usually avoid costly marketing campaigns, flashy packaging, and premium shelf placements, allowing them to pass those savings on to consumers.


Their packaging is kept simple and inexpensive, focusing on function over design.

Supermarkets also streamline supply chains by dealing directly with manufacturers, cutting out middlemen.

Additionally, home-brand items often offer no-frills versions of products—like a basic pasta sauce made from just tomatoes—compared to branded versions that include added extras such as herbs and spices.

All these factors add up to lower checkout prices—sometimes dramatically.

You might be surprised to learn that, according to consumer advocacy group CHOICE, home brand products often perform just as well as, or even better than, their pricier counterparts.

In blind taste tests, ALDI’s Just Organic Black Tea beat out big names like Lipton and Twinings at a fraction of the price.


CHOICE has found similar results across a range of categories, from ice cream and coffee to cleaning products and toilet paper.

Of course, there are exceptions—sometimes the taste or quality just isn’t quite the same. But for many everyday items, the difference is negligible (or even non-existent).

It’s not just shoppers who benefit from the home brand boom. Supermarkets love home brands because they own the product from start to finish, keeping more of the profits in-house.

As Kate Browne explains, 'When supermarkets deal with name brands, they have to manage external retailers and suppliers, which can cost more. With home brands, they cut those ties—and keep more of the margins.'

This shift has changed the look of our supermarket shelves. A decade ago, you’d see far more big-name brands.


Now, home brands are everywhere, often taking up prime real estate in the aisles.

While home brands offer a budget-friendly alternative, they often come with trade-offs.

These products typically have less variety, so if you prefer specific flavours—like a pasta sauce with basil and garlic—you might need to choose a branded option.

Cost savings can also mean simpler packaging, such as tins without ring-pull lids.

Additionally, while some branded items support smaller, local producers, home brands are usually made by large-scale manufacturers, sometimes overseas.

Although many home brand items are high quality, others may fall short in taste or performance, requiring a bit of trial and error to find what suits you.


With 84 per cent of households worried about the cost of food and groceries (according to a recent CHOICE survey), it’s no surprise that shoppers are looking for ways to save.

Finder’s research shows that nearly 40 per cent of Aussies are switching to cheaper brands due to financial pressure, and many are shopping around at multiple stores to find the best deals.

Some are even turning to buy-now-pay-later services to cover the cost of groceries—a worrying sign of just how tough things have become.

While home brands offer a budget-friendly alternative, they often come with trade-offs.

These products typically have less variety, so if you prefer specific flavours—like a pasta sauce with basil and garlic—you might need to choose a branded option.

Cost savings can also mean simpler packaging, such as tins without ring-pull lids. Additionally, while some branded items support smaller, local producers, home brands are usually made by large-scale manufacturers, sometimes overseas.

Although many home brand items are high quality, others may fall short in taste or performance, requiring a bit of trial and error to find what suits you.
Key Takeaways

  • One in three Coles customers is now buying more home brand products to save money as grocery prices rise.
  • Home brand products are typically cheaper due to lower packaging and marketing costs and are often made by the same factories as branded items.
  • Consumer group CHOICE has found that, in many cases, home brand products can match or even outperform pricier alternatives in categories like tea, coffee, and cleaning products.
  • There has been a major shift in Australian shopping habits, with the stigma around home brands fading as more shoppers prioritise value and affordability.
Have you made the switch to home-brand groceries? Are there any products you swear by—or ones you’d never buy again? Do you think the savings are worth it, or do you miss the variety and quality of the big-name brands? Share your experiences and tips in the comments below.
 
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