How much you save switching to own brand groceries

Switching from branded to own brand saves 20-35 percent on groceries. Here is the math and strategies that work for Australian families.

Private label brands represent 36 percent of Australia's grocery sales, worth $46 billion. But for many households, switching from branded products to own brand feels risky. What if the quality is worse? What if the family refuses to eat it? The answer: most own brand products are equivalent in quality, and the savings are substantial enough to justify a trial period.

Pinch tracks own brand prices across 52 weeks of history, showing you exactly which products save the most when you swap to own brand.

The math: how much you save by switching

The average Australian household spends $178-207 per week on groceries. The majority of this budget (typically 50-70 percent) goes to items that have a direct own brand equivalent: milk, bread, pasta, rice, tinned goods, oil, sugar, cheese, yoghurt, eggs, and breakfast cereals.

Switching these products from branded to own brand saves 20-35 percent on that subset:

  • Light switcher: Replace 30 percent of branded products with own brand. Savings: $10-15 per week ($520-780 per year)
  • Moderate switcher: Replace 50 percent of branded products with own brand. Savings: $25-35 per week ($1,300-1,820 per year)
  • Complete switcher: Replace 70 percent of branded products with own brand (except genuine preferences). Savings: $35-70 per week ($1,820-3,640 per year)

For a family on a tight budget, the difference between $178 per week and $143-158 per week is real. It is extra money for rent, bills, or emergency savings.

Biggest savings by product category

Some product categories offer higher savings margins than others:

  • Breakfast cereals: Branded Kelloggs or Nestl cost $5-6 per box. Own brand: $2.00-2.50 per box. Savings: 50-60 percent.
  • Milk: 2L branded organic milk is $2.80-3.20. Own brand 2L: $1.80-2.10. Savings: 30-35 percent.
  • Yoghurt: Branded individual pots cost $4.50-5.50 per 6-pack. Own brand: $2.50-3.50 per 6-pack. Savings: 35-45 percent.
  • Tinned tomatoes and vegetables: Branded 400g can costs $1.30-1.60. Own brand: $0.60-0.85. Savings: 45-55 percent.
  • Pasta and rice: Branded 500g pasta costs $2.00-2.50. Own brand: $0.90-1.30. Savings: 40-55 percent.
  • Biscuits and snacks: Branded packets cost $3.50-4.50. Own brand: $2.00-3.00. Savings: 30-45 percent.
  • Cheese: Branded 500g blocks cost $5.50-7.00. Own brand: $3.50-5.00. Savings: 25-40 percent.

The biggest savings come from breakfast cereals, pasta, rice, and tinned goods. If your household buys these items regularly, swapping them to own brand pays for itself within weeks.

How to trial own brand without wasting money

If you have never bought own brand before, the risk feels real. What if nobody likes it? What if you have to throw it away? Here is a low-risk trial approach:

  1. Start with three categories: Pick pasta, rice, and tinned tomatoes. These are low-risk because taste is minimal and family resistance is unlikely.
  2. Use them in mixed dishes: Spaghetti bolognese, risotto, or curry. Family will not taste the difference because other ingredients dominate the flavour.
  3. Track whether anyone notices: After two weeks, ask the family if they noticed a taste change. Usually, the answer is no.
  4. Add two more categories: Breakfast cereal and milk. These have higher family visibility but also higher savings.
  5. Give it four weeks: Taste buds adjust. Products that taste strange on day 1 often taste normal by day 15.
  6. Stop if there is genuine resistance: Some families will not accept certain own brand products. That is okay. Your savings come from the categories that do work.

Most families find they can swap 70-80 percent of their branded products to own brand without anyone noticing. The 20-30 percent where there is genuine preference is where you spend the premium.

Real-world impact by household size

Here is what $35-70 per week in savings means in practice:

  • Single person budget: Spending $100 per week, saving $20-35 per week means weekly groceries drop from $100 to $65-80. That is real money freed up for bills or rent.
  • Family of 4 on a tight budget: Spending $200 per week, saving $40-70 per week means weekly groceries drop from $200 to $130-160. For a family on the breadline, this change is life-changing.
  • Dual-income household: Spending $250+ per week, saving $50-100 per week funds monthly dinners out or accelerates debt repayment.

The absolute dollar amount varies, but the percentage is consistent: switching to own brand frees up 20-35 percent of your grocery budget.

How to know your actual savings

Savings vary by which specific products you buy and which products you switch. The most accurate way to find your personal savings is to track your own shopping:

  1. Write down 15-20 items your household buys every week
  2. Note the current price (branded or whatever you buy now)
  3. Find the own brand equivalent and note its price
  4. Calculate the weekly difference: (branded price - own brand price) x quantity per week
  5. Multiply by 52 to find your annual savings

Pinch tracks prices on these items across 52 weeks, making this calculation instant. Instead of guessing, you can see exactly which own brand swaps save you the most and which save less.

Calculate your personal savings

Download Pinch and add the products your household buys weekly. See exactly how much you save by switching to own brand and track that savings month by month.

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