Australia flag Australia: Buying and Selling

Advertising and marketing in Australia

Marketing opportunities

Consumer Profile
Australia 2022 population is estimated at 25,5 million people according to UN data. The median age in Australia is 37.5 years in 2022, it has increased by 3 years over the last two decades (rising from 35 years in 1998). The population is ageing and growing at a growth rate of 1.09%. According to the latest data provided by the World Bank, the proportion of the population under the age of 15 is 18.7% and decreases year by year, while the proportion of the population over 65 continues to increase to 16%. The proportion of family households has been declining and they are getting smaller. According to the Australian Institute of Family Studies, households are composed of an average of 2.6 people. Some 24.4% of households have only one person, and 71.3% are family households. The gender ratio is 98.4 men per 100 women while 85.9% of the population lives in urban areas. New South Wales has 32% of the population, Victoria has 26% and Queensland 20%. The south of the country is the most populated and the cities of Sydney, Melbourne and Brisbane have the most inhabitants. Australia is among the best countries in the OECD in terms of education where some 81% of 25- to 64-year-olds have secondary education, and 43.3% have higher education. The labour force consists of 23.7% professionals, 14.4% office and administrative workers, 14% technicians and skilled workers, 12.5% managers, 10.7% community and personal service workers, 9.7% workers, 8.8% of commercial and 6.6% of machine operators and drivers.
Purchasing Power
The GDP per capita PPP in the country is 52,518 US dollars in 2022, as reported by the World Bank. According to the latest data provided by the Australian Bureau of Statistics, full-time earnings in Australia averaged A$67,860 a year in 2022. The purchasing power of Australians is high and has increased appreciably over the recent decades. In Australia, the average household net-adjusted disposable income per capita is USD 42 547 a year, more than the OECD average of USD 33 604 a year. The Gini index is in the average of OECD countries, at 0.33. The Consumer Price Index (CPI) increased of 2.1% in March 2022. Women are more likely than men to live below the poverty line and are paid nearly 15% less than men. The average full-time male salary (excluding overtime) in Australia is A$87,209 per annum, whereas the average full-time female salary is A$74,563 per annum. In March 2022, unemployment rate decreased to 4% and the youth unemployment rate decreased 1.0 pts to 8.3%. Single parents, people over 65, people from non-English speaking countries and the unemployed have the lowest incomes in Australia.
Consumer Behaviour
Australia is mass consumer society. Purchase decisions in Australia are usually made with a price-performance analysis. Indeed, the price is an important determinant, but the quality, the image projected by the product its  authenticity and popularity have an influence. The places where Australians shop are varied ranging from department stores or supermarkets to small retailers. On average, prices are high when purchased and tend to increase with the demand for quality products. Australian household sentiment slumped to the lowest since September 2020 in March 2022, as soaring gasoline prices pushed inflation expectations to 6%. Australians often use the internet for purchases and often buy from retailer sites. The share of ecommerce is rising. Since domestic production does not cover the country's consumption, consumers are accustomed to buying foreign products. In general, the proven sources are Asia, North America and Europe.
Since the beginning of the COVID-19 crisis, Australian consumers have consistently been more concerned and cautious than consumers in US or China, according to McKinsey & Company survey.
In the pre-COVID-19 period, Australia consumers were more focused on just-in-time, convenience-driven behaviours and preferences for online shopping—a channel synonymous with immediacy. Currently, there is a reversal in direction, consumers are attracted to more planned buying and purchases. The factors pushing a consumer to be faithful are quality (in particular consumers are focusing on healthier and Australian brands), the price (consumers plan to buy more products on promotion or cheaper ones) and the quality of the after-sales service. Older people are more loyal than younger consumers and faced with a negative shopping experience nearly half of consumers say they are ready to stop buying the brand. Social networks are useful to learn about products (thanks to consumer comments in particular), but also to discover new products and change their buying habits. Protecting their data is usually an important issue for Australians.
The worldwide awareness of global warming and more generally the environment is present in Australia. The consumption of natural and organic products is increasing, especially for fruits and vegetables. According to Gumtree, the second-hand market is important and is estimated at 45 billion dollars in 2020 and almost 95 million used items were traded, for economic and ecological reasons. The collaborative economy is growing in Australia, mainly for financial reasons (saves money or saves money).
Consumers Associations
CHOICE , Australian Consumer Association
ACCC , Australian Competition Authority and Consumer Commission
CFA , Australian Federation of Consumers
Main Advertising Agencies
Advertising Federation of Australia
SAATCH & SAATCHI
CLEMENGER BBDO

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Latest Update: September 2022