This year, Easter falls during a bumper holiday period, coinciding with the April school holidays and closely followed by Anzac Day. According to IBISWorld, Australians will spend approximately $2.9 billion over the Easter period – up 3.4 per cent on last year.
IBISWorld General Manager (Australia) Karen Dobie said the average person will spend $125.34 on Easter-related products and services, with food and beverages, holidays and travel, and confectionery the largest beneficiaries.
"The growth in Easter consumer spending will be primarily due to an increase in available leisure time, particularly with the convenient timing of the school holidays. Many employees will take leave over the three day working week between Easter and Anzac Day to enjoy some time off," Dobie said.
Easter 2014 consumer spending
|
Category |
2013 ($ million) |
2014 ($ million) |
Growth (%) |
|
Chocolate |
183.2 |
191.4 |
4.5 |
|
Fish and seafood |
23.6 |
24.4 |
3.4 |
|
Food and beverages |
1192.0 |
1227.8 |
3.0 |
|
Alcoholic beverages |
135.4 |
139.5 |
3.0 |
|
Holidays and travel |
1200.1 |
1244.5 |
3.7 |
|
Pubs, bars and taverns |
63.9 |
65.7 |
2.8 |
|
Eggs (chicken and other) |
5.9 |
6.0 |
1.7 |
|
Total spend |
2804.1 |
2899.2 |
3.4 |
The seasonal sweet tooth
As the stalwart of Easter, confectionery in all its forms is set to be a go-to option this year. Chocolate consumption during the period will account for a sizeable 3.6 per cent of the nation's total annual consumption.
"While traditional chocolate brands will contribute the most to sales, there is a continuing trend towards fair trade and organic brands as consumers begin to shop with ethics taking precedence over price", said Dobie.
Chocolate products purchased as gifts will likely favour high-end brands, demonstrating the premiumisation of the category that has been harnessed by speciality chocolate shops.
Throw another prawn on the barbie
Good Friday meals have traditionally included seafood and this custom is expected to persist in 2014, with strong demand during the Easter period and expected annual growth of 3.4 per cent in the seafood segment.
"Over the past decade, Australian palates and kitchen habits have shifted away from simple meat-and-vegetable meals towards more diverse and creative options, spurred on by the popularity of cooking television shows. Seafood is a key category that has benefited, allowing fish, prawns, scallops and more to secure their place on the Australian table – particularly during traditional celebrations such as Easter and Christmas," Dobie said.
An appreciation for boutique beverages
During this Easter period, Australians will consume more than double the amount of alcohol at home than they will at pubs and bars. "As families get together to enjoy Easter meals, wine will increase in popularity as prices fall relative to other alcoholic beverages," Dobie said.
To accompany family gatherings and elaborate meals, premium beer, cider and wine will likely increase in favour this year, with alcoholic beverages coming close to matching confectionery in consumer spending.
"The growing trend in the appreciation and knowledge of alcohol will spur many Australians to make more sophisticated selections this Easter, with sauvignon blanc, pinot gris, imported wines and craft wheat beers all appearing on the table," Dobie said.
"This year, cider is expected to be one of the main beneficiaries of our broadening palates, and is tipped to continue as the fastest growing segment in alcoholic beverages," Dobie added.
Hitting the open road
Petrol prices are high, but this is unlikely to deter people from travelling at Easter. Self-drive options are presenting as more cost-effective than flying for many families, with the great Australian road trip still viewed as affordable and enjoyable.
"Scenic Australian drives along the Eastern seaboard, the Great Ocean Road or the Indian Ocean Drive are still high on the bucket list for many Australians. For families, the school holidays, Easter and Anzac Day period presents the perfect opportunity to embark on such a road trip," Dobie said.
But airlines will certainly not miss out, as many singles and couples take advantage of the public holidays to take off on domestic and international trips. "Easter is the longest holiday period of the year outside of Christmas and New Year's. As a result, it is one of the most lucrative periods for domestic travel in Australia and for short-haul international routes," Dobie said.
Wallets at the ready
While there is much focus on consumer expenditure and consumption during the Easter period, it is also a busy time for charitable organisations. Donations this year are expected to be strong, and will be supported by campaigns such as the Royal Children's Hospital Good Friday Appeal, which is forecast to raise more than $17 million in 2014.
"While Easter is traditionally a religious event and charitable donations through religious organisations will play an important part in the total amount given to charity, non-denominational benevolence during this period is also a significant contributor," Dobie said.
