Aussies are keeping their supermarket spend under control, but that doesn’t mean prices are getting cheaper.

One in five Australians (20%) say groceries are the household expense they worry about most, according to new findings from Compare the Market‘s upcoming 2026 Household Budget Barometer.

This is despite the average national weekly grocery spend falling 6% from $198.16 in 2025 to $186.23 in 2026. The average Aussie spends $9,683.96 a year on groceries or $806.99 a month.

Source: Compare the Market‘s upcoming 2026 Household Budget Barometer.*

But this doesn’t mean grocery prices are falling, with the research highlighting the savvy ways shoppers are keeping their budgets under control.

More than half of Australians (52%) are searching harder for discounts and specials, while 47% are planning cheaper meals.

Other tactics include:

• taking greater steps to reduce food waste to save money: 40%
• switching to generic products: 34%
• shopping at cheaper supermarkets: 29%
• buying more products in bulk: 28%
• cutting back on meat purchases: 26%.

Compare the Market’s Chris Ford said the findings paint a picture of households that are becoming increasingly resourceful rather than seeing genuine relief at the checkout.

“The weekly grocery shop remains a major source of stress for many Australian households,” Mr Ford said. “While average spending has fallen, that doesn’t necessarily mean people are finding things easier or that grocery prices are coming down.

“Many people are spending less because they’ve spent years adapting to higher living costs and are becoming much more strategic about how they shop.”

Mr Ford said the findings suggest Australians are becoming more strategic with their household budgets as cost-of-living pressures persist.

“We’re seeing consumers put much more thought into how they spend their money and that often starts with the weekly grocery shop,” Mr Ford said.

“Rather than accepting higher prices, many Australians are actively looking for ways to reduce the cost of their shop, whether that’s buying products on special, choosing a home-brand alternative or changing what meals they’re cooking that week.

“The reality is grocery prices are still putting pressure on household budgets, but consumers are getting better at stretching every dollar and finding value where they can.”

Despite these efforts, the research suggests some Australians are still struggling to afford essential groceries.

Alarmingly, 12% of Australians said they have skipped meals to save money, with that figure rising to 18% among 18 to 24-year-olds and 35 to 44-year-olds.

Mr Ford said the findings highlight the ongoing financial pressure many households face.

“It’s encouraging to see Australians finding ways to make their budgets go further, but it’s concerning that some households are still resorting to measures like skipping meals,” Mr Ford said. “That’s one in 10 people you know going without lunch or dinner because costs are too high.

“When people start cutting back on necessities like food, it shows cost-of-living pressures remain very real for many families.”

Mr Ford said there were several things people could do to save at the checkout.

• Shop with a plan: Build meals around specials and avoid impulse buys.
• Avoid the loyalty tax: Don’t be afraid to switch brands. Sticking with the same product, brand or grocery store out of habit can cost you more, especially when cheaper alternatives offer similar quality.
• Switch brands: Home-brand products can offer significant savings without a noticeable difference in quality.
• Check the unit price: It’s one of the easiest ways to spot better value on the shelf.
• Maximise rewards: Use loyalty programs and personalised offers to reduce your grocery bill.
• Use existing perks: Check whether your insurer, energy provider or membership program offers supermarket discounts.

The findings follow previous Compare the Market research, which found swapping brand-name items for generic counterparts could add up to $3,489 in annual savings for 20 everyday household items.

*Compare the Market commissioned PureProfile to survey 3,078 18+ aged Australian adults for a nationally representative survey, conducted August 2026.