May 17, 2011
High-income earning households accounted for over 48 per cent of all sweet corn sales in 2010 according to new Nielsen data supplied to the vegetable industry, with large families of four punching well above their weight compared to their purchasing of vegetables in general.
AUSVEG spokesperson Andrew White said that the data had shown that sweet corn was popular among large households, with 22.6 per cent of sales made to households of four, compared to that household segment’s total vegetables share of 18.1 per cent of sales.
“Households of four are hitting considerably above their weight when you compare the distribution of sweet corn sales against those sales for the broader vegetable market,” Mr White said.
“While households of 1-2 members have contributed the larger share of sales at 46 per cent, it’s clear that households with four members are purchasing sweet corn at a higher rate than they are vegetables in general. Sweet corn was popular in households that are classified as high income earning and bringing in more than $70,000 per annum,” he said.
“Sweet corn was purchased by 48.1 per cent of high-income households. Opportunities were evident for growers and retailers to invest in creating greater household penetration within the low-income bracket,” Mr White said.
“Sweet corn had a market penetration of just 42.7 per cent within low income households, which are those classified as earning $35,000 or less per annum,” Mr White said.
“The report found that bustling families make the most significant contribution to sales, with 18.7 per cent of bustling families purchasing sweet corn in 2010.”
Bustling families are those families where the oldest child is 12-17 years of age. Mr White said the data showed a strong correlation between volume and price, with higher volumes resulting in lower prices for the consumer.
“The influence of supply and demand on retail prices is very obvious. When the volume of sweet corn on the market increases, in turn the price at the retail level decreases for the consumer,” Mr White said.
While the spend per month on sweet corn had grown amongst households over the past year, Mr White said that slightly fewer households had purchased the product overall.
“Shoppers who buy sweet corn do so 5.1 times a year, spending around $2.6 per trip. Sweet corn has the highest market penetration amongst young start-up and small scale families, and the lowest with independent singles.”
The Nielsen report was funded using the National Vegetable Levy with matched funds from the Australian Government.