Consumers Shift to Cheaper Rice Amid Price Pressures

Shoppers are increasingly opting for more affordable rice products instead of premium options as rising living costs influence their grocery choices. In response, SunRice is adjusting its strategy to remain competitive by focusing on exports and value-oriented marketing to manage changing consumer preferences and protect profitability.

Rice, like other pantry staples, is under significant price pressure. Many Australian consumers are now choosing bulk grains and supermarket-brand options rather than branded microwave pouches or premium rice snacks. This shift has prompted SunRice to reassess its domestic approach. Although the company is among Australia’s largest food exporters, it has also felt the impact of local market changes. Despite this, SunRice remains financially stable.

The company, which is listed on the ASX and offers both grower and investor-class shares, reported $70.7 million in net profit for the year ending April 30. This marks a 4% increase from the previous year. While total revenue dipped slightly to $1.85 billion from $1.88 billion, group earnings rose 3% to $147.7 million. Strong export performance, especially in the Middle East and the United States, which together make up about 60% of total sales, has helped offset weaker margins in the local market.

To better connect with price-sensitive consumers, SunRice has worked with major supermarket chains to launch discounts and promotions. It has also introduced new products such as flavoured rice cups and Toscano pizza bases, which are among its best sellers. These initiatives aim to provide value through convenience and differentiated offerings that go beyond what typical store brands can deliver.

Looking forward, SunRice is placing greater emphasis on innovation and diversification, particularly within its convenience and snack ranges. Its export outlook remains positive with growing volumes and tailored marketing campaigns. However, fluctuations in the weaker Australian dollar continue to affect the cost of imported ingredients and packaging. Even with those pressures, the company has raised its final dividend to 50 cents per share, signalling careful optimism for the year ahead.

Source: The Australian, Statista, USDA