The Growth Distillery has identified a 4.4 million-strong consumer market in regional cities and towns that now rivals Sydney and Melbourne in size, as new research highlights a significant opportunity for national advertisers.
The report, Australia’s Next Growth Markets: Understanding the Rise of Regional Cities and Towns, defines these areas as major population centres outside the five capital cities and finds they remain underrepresented in national brand campaigns.
The research shows population growth in these regions has increased by 17% over the past decade, with cities including Geelong, the Sunshine Coast and the Gold Coast growing by up to 28%.
Residents in these markets also demonstrate strong financial fundamentals, with higher rates of home ownership and 26% lower average loan debt compared to capital city households.
Savings are growing nearly 25% faster than the national average, indicating increasing spending capacity among these audiences.
Consumer behaviour aligns with metro audiences
The report found consumers in regional cities and towns behave similarly to metro audiences, with high levels of digital engagement and a willingness to shop online.
They are also planning major purchases across categories, including travel, technology and household upgrades, with 72% intending to travel in the next 12 months.
Liza Williams, Head of Growth Intelligence at The Growth Distillery
Strong expectations on brands
What these consumers differ on is their expectations of brands.
The research found 60% expect brands to actively engage with their communities, yet nearly half say brands are not meeting those expectations.
For brands that do engage, the report found 71% of consumers demonstrate stronger loyalty than metro audiences.
Liza Williams, Head of Growth Intelligence at The Growth Distillery, said marketers need to adjust their approach to capture the opportunity.
“If you’re a national marketer and these markets aren’t in your core strategy, you’re missing 4.4 million Australians with lower debt, rapidly growing savings and stronger brand loyalty.
“But you can’t win these markets by simply extending metro campaigns – you need to show up differently. That means visible community participation, trusted local media environments, and genuine long-term commitment.”