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Tuesday 28 June 2022

Grocery Market Overview: Dairy drives growth as annual supermarket spend nears $17bn

4th April 2022 By Bridget O'Connell | bridget@foodticker.co.nz | @foodtickernz

Dairy takes a star turn in March as grocery sales jump almost 7% compared with the same month last year and the gap between value and unit sales becomes more pronounced, according to IRI.

The data insight firm’s April Grocery Market Overview, which covered the four weeks to 27 March 2022, found that total prepackaged grocery dollar sales maintained their upward trajectory rising by 6.9%, leading to total sales of $1.3bn – the same as last month.

The strong dollar growth compared with relatively flat unit growth of 0.6%, resulting in the price per unit rising 6.3% on a year ago.

Source: IRI

“There are a number of factors impacting price changes including inflation, strained supply chains and inventory shortages,” IRI said.

“Combined, these factors have led to consumers re-evaluating pack sizes, brands and items.”

On an annual basis, Kiwis spent a whopping $16.5bn in supermarkets. The channel grew by 5.1% in value and 2% in unit sales, outpacing the previous year when 4.4% value growth and a 0.2% contraction in unit sold delivered sales of $15.7bn.

Dairy jumped to the number one spot as the biggest growth department gaining $134m in March 2022, and displacing beverages, which took the top spot last month.

IRI said dairy value growth came in at 4.5%, outstripping unit growth of 0.8%, while tobacco and alcohol stayed in the red this month contracting 13.8% and 2.5% in value respectively.

Looking longer-term, costs continued to escalate and were becoming more widespread, placing pressure on household budgets and spending capacity. 

“Consumers are re-thinking how they spend their grocery dollars,” IRI said.

“This has been reflected in consumers new demand priorities with Omicron promoting categories like first aid, respiratory tract and analgesics to the top three fastest growing categories in store over the last quarter.

“In addition, long-life shelf staples are delivering growth in the latest quarter such as canned beans, noodles, canned vegetables, dried pasta, shelf-stable fruit and soup all appearing in the top 20 fastest growing category list confirming a budgetary focused consumer.”

 

 


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