Supermarket Shock

Average grocery spend slips 6% year-on-year, but prices may not be falling

Key takeaways

  • Australians reported spending an average of $186.23 a week on groceries in 2026, down $11.93 or about 6% from 2025, but lower spending may reflect households cutting back rather than falling grocery prices.
  • Compare the Market found shoppers could save around 43%, or up to $67.10 a week, by swapping 20 everyday brand-name items for comparable generic or home-brand products.
  • The average takeaway coffee cost $5.42 in 2026; three coffees a week equated to $845.52 a year and a daily coffee to nearly $1,973 a year.
Written by Phillip Portman
Expert reviewed by David Koch

Aussies aren’t just spending less at the petrol pump — they’re finding savings at the supermarket too. The average Australian spent $186.23 a week on groceries in 2026, down $11.93 from 2025. That adds up to a potential saving of just over $620 a year.

At that rate, the average Aussie spends $9,683.96 a year on groceries, or $806.99 a month.

Western Australia and the ACT were the only areas where grocery spending climbed year-on-year. In WA, the average shopper now spends $195.40 – up $17.23 a week, while it’s slightly higher in the ACT (up $20.31 to $210.76 year-on-year).

Spending less doesn’t necessarily mean grocery prices have fallen – households may simply be cutting back or changing what they buy. One in five Australians (20%) say groceries remain their most worrying household bill.

Concerningly, 12% of Aussies say they’re skipping meals to curb costs, with the figure rising to 18% among both 18–24-year-olds and 35–44-year-olds.

 

Bar graph showing the weekly grocery spend per state and territory.

 

Weekly grocery spend

Location  Weekly spend groceries August 2025  Weekly spend groceries August 2026  Year-on-year dollar difference  Year-on-year percentage difference 
National  $198.16  $186.23  -$11.93  -6.02% 
NSW  $193.69  $188.61  -$5.08  -2.62% 
QLD  $200.29  $180.88  -$19.41  -9.69% 
SA  $190.61  $183.03  -$7.58  -3.97% 
VIC  $199.25  $186.04  -$13.21  -6.62% 
WA  $178.17  $195.40  +17.25  +9.67% 
NT  $212.61  $198.66  -$13.95  -$6.56% 
ACT  $190.45  $210.76  +20.31  +10.65% 

Big earners spend more

The higher your income, the more likely to spend at the grocery shop. Compare the Market’s analysis shows lower income earners ($20,000 – $39,999) spend $150 on the weekly grocery shop – $91 less than the 241.37 spent on average by those earning $150k or more a year.

 

Weekly grocery spend based on income

Yearly income Weekly spend
$20-$40k $150
$40-$60k $173
$60-$80k $184
$80-$100k $191
$100-$130k $206
$130-$150k $221
$150k+ $241

Savings on the shelf

Savvy shoppers are using a range of tactics to cut their supermarket spend. More than half (52%) are hunting harder for discounts, 47% are planning cheaper meals and 40% are reducing food waste.

 

Other tactics to lower grocery shopping spend

Savings tactic The percentage of Australians who admit to to using each tactic
Switching to generic brands 34%
Shopping at cheaper stores 29%
Buying in bulk 28%
Eating less meat 26%
Buying seasonal produce 25%
Buying frozen foods 25%
Skipping meals 12%
Shopping online only 6%

How generic brands can help Aussies pocket $3.4k a year

Switching to generic brands is another popular way shoppers are stretching their grocery budget.

Compare the Market analysed 20 everyday household items at two major supermarkets and found shoppers could save between $64.90 and $67.10 a week — around 43% — by swapping brand-name products for comparable generic or home-brand alternatives. Someone making the same shop each week could save around $290 a month or $3,489 a year by choosing the generic option every time.

Now in its second year, the analysis also uncovered sizeable price rises on individual products. Generic-brand milk climbed 55 cents (18.33%) year-on-year, while a box of home-brand wheat biscuits rose 60 cents (11.99%). The brand-name wheat biscuits increased by $1 over the same period, a 16.66% jump.

Some of the biggest price discrepancies observed in the research included:

  • 1L mouthwash: $9.00
  • Instant coffee: $8.50
  • 1L bodywash: $8.20
  • Multipurpose cleaner: $5.05
  • Toilet paper: $5.00

Big little luxuries

Aussies splashing hundreds a year on coffee fix

The average Australian spends $5.42 on a single serve takeaway coffee or equivalent hot beverage in 2026.

Three takeaway coffees a week at the average price would add up to $16.26 a week, $70.46 a month or $845.52 a year.

A daily takeaway coffee may feel like a small expense, but at the average price it would cost $37.94 a week, $164.40 a month or nearly $1,973 a year.

 

Graph showing the average annual coffee spend.

 

Coffee spend in numbers

Coffees per week  Average weekly spend  Average monthly spend  Average annual spend 
1  $5.42  $23.49  $281.84 
2  $10.84  $46.97  $563.68 
3  $16.26  $70.46  $845.52 
4  $21.68  $93.94  $1,127.36 
5  $27.10  $117.43  $1,409.20 
6  $32.52  $140.92  $1,691.04 
7  $37.94  $164.40  $1,972.88 

Easy ways to spend less on your coffee habit

Brew your coffee at home

Making your coffee at home is typically much cheaper than buying takeaway. Compare the Market analysis found that a $6.50, 200g jar of instant coffee can make 50–100 cups, bringing the cost down to around 6.5–13 cents a cup.

Make loyalty programs work for you

Coffee rewards can add up over time. Regularly using loyalty programs could score you free drinks, discounts and other member perks.

Look for hidden discounts

It may be worth checking whether your insurer, energy provider, bank or other service providers offer coffee vouchers, rewards or café discounts.

Ask about concessions

Some cafés offer discounts to seniors, students or members of certain organisations. It never hurts to ask whether savings are available before you order.