Regional Australians contribute $250 billion annually to the national economy and consistently outspend metro consumers across groceries, petrol, home improvement, lifestyle and travel, according to the inaugural Boomtown Spend Snapshot report produced with CommBank iQ.
The report, drawn from de-identified transaction data from more than 17 million Australians across 40 spending categories, found regional consumers spend 13% more on groceries, 18% more on recreational goods and 38% more on outdoor and active lifestyle products than city counterparts.
Regional Australians account for 46% of total national hardware and garden spend, more than 40% of auto and petrol spend, and 39% of total national travel spend — with 41% of all national cruise spend.
"Regional Australia represents a third of the economy and, in many categories, the most valuable third," said Makenna Ralston, CEO of CommBank iQ. "This is an audience that spends, and spends with intent."
Boomtown chairman Andrew Baxter said brands are still consistently underinvesting in Australia's highest value consumers.
"In categories where almost half the spend comes from outside capital cities — and is growing — regional investment is essential to defend and grow market share. For FMCG brands in particular, a third of the economy can't be an afterthought,” he said.
The report also found regional Australians spend at parity with metro consumers in department stores, electronics, energy, telecommunications, insurance and pharmacy, and are increasingly digitally enabled, shopping seamlessly online and in-store.
Regional streaming subscription spend accounts for 36% of the national total, with 18% year-on-year growth.
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