Austrians have less in their shopping basket – but they rely on quality

Inflation contributed to Mr. and Mrs. Austrians shifting their priorities when shopping for groceries. Purchasing volumes fell by 3.5 percent in the first half of 2023. In the second quarter of 2023, the prices for the shopping basket were 11.3 percent higher than in the same period last year, according to the rolling agricultural market analysis (RollAMA).

Prices for fresh produce increased by around 10 percent year-on-year. The highest price increases were for cheese (20 percent), for drinking milk, yoghurt, cream, quark (+14.6 percent) and for fruit yoghurt, mixed milk drinks and desserts (+12.6 percent). The price of butter, however, only rose by 1.2 percent, while fresh fruit rose by 3.8 percent. Prices for meat and poultry rose by 7.9 percent and for sausage and ham by 10.6 percent.

Compared to the pre-Corona period, ready meals (+13 percent), frozen fruit and vegetables (+7 percent) and cheese (+6.8 percent) were among the winners. However, compared to the same period last year, there were also declines in these product groups.

Despite the price increases, freshness (83 percent) and quality (65 percent) are important criteria when purchasing, although promotions are increasingly coming to the fore and represent an important criterion for 58 percent. The AMA experts said that promotions are more in demand than permanently low prices. In their actual purchasing behavior, prices and promotions are now even more important than quality. This particularly applies to multi-person households.

The importance of quality depends on the product groups: According to RollAMA, quality was given a higher priority for eggs, fruit and vegetables as well as meat. But regionality was also an important trend for almost 60 percent of those surveyed, explained food trend expert Hanni Rützler.

The organic share increased, especially for fruit and vegetables. Since the prices for organic food increased by 12 percent less year-on-year than for conventional products (+14 percent), the surcharge for organic products was reduced. According to the household panel, fresh sales of organic products in the food retail sector amounted to around 460 million euros in the first half of 2023. This corresponds to an increase of 6 percent. However, the amount of organic products purchased also fell by 6 percent compared to the same period last year.

The private labels have become more important: the private label share (excluding meat, fruit, vegetables and potatoes as well as service products) is 65 percent. So almost every third euro went into promotional goods. According to RollAMA, over 40 percent of butter and meat were promotional products.

“While the Corona crisis has basically led to an increase in the appreciation of food, inflation has brought the focus back to prices and promotions,” said AMA Marketing Managing Director Christina Mutenthaler-Sipek.

There were also shifts in the distribution channel: discounters and supermarkets increased their market shares to 29.7 and 45.3 percent, respectively. However, consumer markets and other purchasing sources such as direct marketers became less attractive.

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