Nielsen data reveals Australian consumer spending shifts

Nielsen released research on September 30, 2025, revealing substantial shifts in Australian consumer behavior amid persistent cost-of-living pressures. The data comes from Nielsen Consumer & Media View (CMV), highlighting how spending patterns are changing across different income brackets and demographics.

The research presents a stark economic reality. More than a quarter of Australian households—26% precisely—earn over $160,000 annually. Yet these high earners express concern about rising prices. At the opposite end, one in five Australians survive on less than $25,000, marking a significant income divide across the nation.

Cost-of-living pressures affect nearly everyone. Almost nine in ten Australians, representing roughly 20.1 million people, worry about grocery prices. Fuel costs concern 17.7 million Australians, with 78% expressing anxiety about petrol prices specifically.

The data shows Australians transforming into "value-seekers" who carefully evaluate fairness, quality and trust before purchasing. Almost three-quarters of the population identify as "bargain hunters" willing to switch brands for better prices. Two-thirds describe themselves as careful with money.

Traditional financial institutions face a trust crisis. Four in ten Australians express distrust towards major banks. This skepticism creates opportunities for alternative financial services. Buy Now, Pay Later provider Afterpay has achieved awareness among three-quarters of Australians.

Payment methods remain diverse despite digital growth. Debit cards serve as the most common payment tool. Credit cards maintain widespread usage, primarily due to linked reward programs. Cash persists in everyday transactions, with more than a third of Australians preferring it for small purchases.

Online grocery shopping has gained ground, with 7 million Australians now purchasing food and drinks online. However, most retail journeys still involve physical store visits.

Generational divides shape consumer behavior significantly. Gen Z and Millennials embrace digital channels, showing high adoption rates for online shopping, social commerce and BNPL services. Gen X and Baby Boomers, who dominate national wealth, prioritize saving, brand loyalty and reliability.

Geographic patterns emerge clearly in the data. Metro Australia, comprising roughly 72% of the population, leads in digital adoption and discretionary spending. Regional Australians demonstrate more traditional behaviors, showing loyalty to established brands and local retailers.

Glenn Channell, Nielsen's Pacific Head of Advanced Analytics, emphasized the universal nature of cost pressures: "The cost-of-living crunch doesn't discriminate. Whether they're earning a little or a lot, Australians are looking for fairness and value in every purchase. With Nielsen CMV Persona Packs, we can rapidly profile how different households are navigating these pressures, giving retailers, brands, and financial service providers the insights they need to respond with speed and precision."

Monique Perry, Managing Director of Nielsen Pacific, reinforced the importance of audience understanding: "This data shows that no matter where Australians sit on the income scale, everyone is rethinking how they spend. It's a reminder that understanding your audience is more important than ever and that's what CMV and Advanced Audiences are all about."

Why this matters for marketers

The Nielsen research carries significant implications for the marketing community, particularly those managing paid advertising campaigns. Price sensitivity now affects consumers across all income brackets, requiring marketers to adjust messaging strategies accordingly.

Changing consumer behaviors demand different approaches to audience targeting and segmentation. The generational divide between digital-native younger consumers and traditional older demographics necessitates multi-channel strategies. Marketers must balance digital campaigns for Gen Z and Millennials while maintaining traditional channels for older audiences.

The rise of BNPL services and declining trust in traditional banks signals shifting financial preferences that affect purchase decisions. Payment flexibility has become a competitive advantage, influencing how products are marketed and sold online.

Geographic targeting requires recalibration. Metro areas show higher receptivity to digital advertising and e-commerce promotions, while regional markets respond better to brand loyalty messaging and local retailer partnerships.

The emphasis on value-seeking behavior means price-focused messaging may resonate more strongly than premium positioning. However, the data shows consumers evaluate multiple factors—fairness, quality and trust—not just price alone. Marketing campaigns need to address these multiple dimensions.

For retailers and e-commerce businesses, the 7 million Australians shopping for groceries online represents a substantial opportunity. Yet with most retail journeys still involving physical stores, omnichannel strategies remain essential.

The widespread concern about grocery and fuel prices suggests consumers are scrutinizing everyday expenses more carefully. This heightened price awareness affects advertising effectiveness and conversion rates, particularly for non-essential products.

Timeline

• • September 30, 2025 – Nielsen releases Consumer & Media View research showing 90% of Australians concerned about grocery prices and cost-of-living pressures affecting all income brackets
• • October 2025 – Research published highlighting generational and geographic divides in consumer behavior, with Gen Z and Millennials leading digital adoption while older Australians prioritize saving

Summary

Who: Nielsen conducted the research, analyzing behavior of Australian consumers across different income brackets, generations and geographic regions. Glenn Channell (Pacific Head of Advanced Analytics) and Monique Perry (Managing Director of Nielsen Pacific) provided commentary.

What: New Consumer & Media View research reveals 20.1 million Australians worry about grocery prices, 17.7 million concerned about fuel costs. The data shows 26% of households earn over $160,000 while one in five survive on under $25,000. Consumer behavior shifts toward value-seeking, with 75% identifying as bargain hunters. Trust in major banks has declined, with 40% expressing distrust. Alternative payment methods like BNPL gain traction, with 75% awareness of Afterpay.

When: Nielsen announced the research on September 30, 2025, with publication in October 2025.

Where: The research covers Australia, analyzing differences between metro areas (72% of population) and regional locations. Data collected through Nielsen Consumer & Media View platform.

Why: Cost-of-living pressures affect Australians across all income levels, driving changes in spending behavior, brand loyalty, payment preferences and trust in financial institutions. The research provides retailers, brands and financial services with insights to adjust strategies for current market conditions.