New Zealand’s supermarket sector has seen strong consumer spending despite inflation impacting household budgets.

Circana’s survey shows that 69 per cent of Kiwis now prepare meals at home at least five nights a week since food prices have soared 30 per cent since 2019.

It noted that based on supermarket data, customers have purchased a record 4.9kg of rice per capita this year, highlighting a preference for affordable meal components.

Moreover, lifestyle changes have propelled demand for convenience and frozen categories as consumers seek to recreate ‘fakeaway’ meals at home, particularly Asian, Indian, and Mexican dishes.

Circana added that three out of four FMCG suppliers are prioritising new product development during the next year, especially in health-focused, indulgent, flavour-rich, and ‘free-from’ products.

“While many retail categories are facing headwinds, New Zealand’s supermarket sector remains resilient, strategically positioned to withstand economic challenges,” said Julie Bramley, insights director for New Zealand at Circana.

“By focusing on innovation and value-driven solutions, supermarkets and suppliers are well-prepared to meet changing consumer needs, ensuring growth and stability in an unpredictable market.”