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Huge number of Aussies choosing cheap groceries warned of 'ugly side effects': 'New health epidemic'

The cost of living crisis is not only having a lasting impact on our budget and but on our health too.

Woman looking disappointed while leaning on a trolley.
Aussie shoppers are increasingly disappointed with how little they can afford at the supermarket. (Source: Getty)

With new data revealing that some groceries have increased in price by as much as 31 per cent in the past two years, Aussie families are feeling the impact of the cost of living crisis more than ever. As a result many Aussies have been forced to go without some important foods, with one expert warning we could be on the verge of a "health epidemic".

The new data from Finder found that a growing number of Aussie families are under financial stress doing their weekly shop. "This change over the last two years has seen the percentage of households feeling stressed about affording to put food on the table go from around 20 per cent of households to 40 per cent, so it has doubled," Head of Consumer Research Graham Cooke told Yahoo Finance.

"It's the same percentage of people who are stressed by their rent or their mortgage."

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The findings come as Aussies have revealed which foods they have had to stop buying due to their increased costs, with many saying that they've stopped buying meat, fresh fruit and vegetables.

Grocery items in shopping trolley (left) receipt (right).
A woman recently shared her disappointment at only being able to buy this much food for just over $59. (Source: Supplied)

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This financial stress is one of the key factors that could have a lasting impact on our health, according to Nutritional Medicine and EFT Practitioner Jacinta Callaghan, who told Yahoo Finance the price hikes are prompting people to seek cheaper alternatives to now unaffordable items.

“Many quality foods, such as good meat, fish, olive oils, and certain vegetables, are now reaching the cost point of becoming considered a luxury in many households,” she said.

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Callaghan warned that shoppers who are cutting back on fresh produce and meats due to budget constraints and opting for cheaper alternatives like pasta, bread, and rice could face long-term health consequences, such as chronic conditions like diabetes and Parkinson's disease.

“Replacing quality proteins, fats, and vegetables with low-quality carbohydrates, which in turn convert to sugar, is the underlying cause of many lifestyle conditions," she said.

“The cost of living is pushing us towards a health epidemic. Diabetes will be the new norm with all its ugly side effects.

“While on the surface, processed carbohydrates such as rice, bread, and pasta may seem like cheap fillers, the knock-on effects — in the short and long term — negate the savings.”

Fruit and vegetables.
Aussies are sharing online that they are being forced to give up on buying fresh fruit and vegetables because they can't afford them. (Source: Getty)

The research from Finder, which compared the price of 23 grocery items from Woolworths and Coles over the past two years, showed some of the items increased by 31 per cent.

“The research looks at inflation in the grocery sector averaged across Woolies and Coles online, and the biggest categories might be quite surprising, the biggest one is oils and fats,” Cooke told Yahoo Finance.

The biggest jump in price is an increase for oils and fats, with other everyday items like breakfast cereals, bread, cheese, eggs, and milk jumping up between 22 per cent and 25 per cent.

Some of the biggest increases included:

  • 30 cheese slices up 24 per cent from $8.87 to $11.

  • 1.2 to 1.4kg chicken breast up 15 per cent from $14.59 to $16.78.

  • Free range eggs up 24 per cent from $5.79 to $7.18.

  • 2 litres of vegetable oil up 31 per cent from $6.41 to $8.40.

In total, shoppers are now paying about $406 per 23-item basket in 2024 compared to $361 in 2022.

But there is some good news for consumers. In the past six months, the percentage increase in difference for fresh produce, meat, and seafood, in general, has started to ease and has come down in price.

“The increase in price over the past two years for meats and fresh fruit and vegetables is still there, but they are not the highest increases anymore,” Cooke said.

“The price for those went up a year ago due to supply chain issues and weather issues here in Australia. At that time, fresh produce went up pretty dramatically, but they’ve since dialled back. White prices are still higher than they were two years ago, but they are not as high as they have been.”

Aussies are certainly feeling the pinch, with several sharing the everyday items they’ve now stopped buying in a recent social media post.

“I don’t buy meat, cheese or fresh vegetables unless they’re in season and on special. I eat mostly canned beans and frozen veg and rice or pasta,” one person said.

“Blueberries, rockmelons, salmon, ham, a lot of meats, out-of-season veggies and fruit, laundry liquid,” added another.

“Strawberries, blueberries, the list goes on really, and I seem to be buying more ready-made meals instead of making from scratch as it works out cheaper to buy a pre-made lasagna than buy the mince,” added a third.

Others said they haven’t stopped buying certain products but have certainly changed the way they shop.

“I haven’t stopped buying but shopping around more, waiting for specials and picking cheaper brands,” one person wrote. Another agreed, saying, “I’ve adjusted to cheaper brands and substitutes.”

Nutritionist Shanya Soussan agrees that increased living costs over the past 12-18 months have changed people’s attitudes towards healthy eating and spending their money on healthier foods.

“As the cost of mortgages, petrol, utilities and household maintenance has sky-rocketed, people have less disposable income and are prioritising cheap “convenience” foods over fresher, whole foods,” she told Yahoo Finance.

However, there are ways to limit a “quantity over quality” mindset by sticking to healthier options on a budget. Her top tips include:

  • Write a list of your family’s favourite meals, then think of ways to bulk them up using canned legumes or frozen vegetables instead of more pasta, bread or rice.

  • Cook once, eat twice. Make larger “batch style” meals so you are essentially getting two meals for the cost of one.

  • Go for supermarket budget brands for basic pantry staples like pasta, rice, flour, canned legumes and vegetables.

  • Meal plan to avoid mid-week runs to the supermarket.

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