As Christmas approaches, many Australian households are facing increased pressure on their budgets. A new survey of 1,002 Australians from Pureprofile indicates that the average household will spend $506 on festive food this year, a significant increase from $406 in 2023. In response, 78 per cent of Australians are planning to adjust their spending habits this festive season, with 21 per cent specifically intending to opt for more budget-friendly food and drink on Christmas Day.
Saving on the Christmas Feast
Experts suggest that rethinking traditional approaches to Christmas food shopping can yield substantial savings. One key strategy is to consider frozen alternatives to fresh produce. Professor Gary Mortimer from the Queensland University of Technology Business School explained, “Frozen is a better quality because often when seafood is caught and particularly when prawns are caught, they’re frozen immediately. They’re pretty fresh when they’re frozen. So when you thaw them out, it’s actually just like they’ve been caught.” He also noted the clear price advantage of frozen options, extending to vegetables as well.
Eden Radford, media spokesperson at Canstar Blue, observed that consumers are becoming more proactive in their savings efforts. “Consumers are getting a lot smarter either by want or by necessity because they know that they’re just going to need to save… Doing things like shopping around at multiple supermarkets, choosing frozen options ahead of fresh.”
Flexibility is Key
Beyond frozen options, experts recommend focusing on produce that is currently in “bountiful supply.” Professor Mortimer explained, “A lot of food tends to be fresh—fresh seafood, fresh fruit [often stone fruit] and those particular types of foods are highly susceptible to the supply and demand effect.” He pointed to recent shortages of potatoes due to drought as an example of how external factors can impact prices, adding that prawns and peaches are also subject to price fluctuations.
Data from Choice supports this strategy, revealing that the cost of a base basket of seven items—apples, carrots, bananas, strawberries, Weet-bix, milk, and chicken breast fillets—has fallen across the four major supermarkets in the last quarter. While milk prices have risen, strawberries saw the most significant price drop.
Collaborative Shopping and Smart Brands
Another growing trend is “collaborative shopping,” where families or groups pool resources to buy in bulk and share the cost. Professor Mortimer noted examples of families purchasing half an animal carcass for around $600 and dividing it amongst several households. Thinking about portion sizes is also crucial; Radford suggests considering whether a smaller cut of meat or a slightly larger item that can be used for multiple meals might be more economical.
Finally, experts are highlighting the increasing quality and affordability of supermarket-owned brands. Professor Mortimer stated, “Today, one in three products [in supermarkets] are a private label supermarket-owned brand… They’re traditionally lower priced than the brand product and equal, if not better quality.” He specifically recommended considering options like Woolworths Select and Coles Finest for Christmas fare.
Choice’s comparison of supermarket prices revealed that Aldi consistently offers the lowest prices, with a party food shop costing $41 and a base basket of groceries at $31.41. However, shoppers are increasingly willing to visit multiple stores to take advantage of the best deals.
Frequently Asked Questions
How much more are Australians expecting to spend on Christmas food this year?
Australians are, on average, expecting to spend $506 on festive food this year, which is $100 more than they spent in 2023.
What is one way to save money on seafood this Christmas?
Consider purchasing frozen seafood, such as prawns, as it is often frozen immediately after being caught and can be more affordable than fresh options.
Are supermarket-owned brands a good option for Christmas?
Yes, supermarket-owned brands are often equal in quality to name brands but are traditionally lower in price, making them a good option for saving money on Christmas fare.
As households navigate rising costs, will Australians continue to adapt their Christmas traditions to prioritize affordability?