Australian families could save more than $3000 a year on groceries by making one simple change at the checkout.

New research from Compare the Market has found shoppers could cut their grocery bills by as much as 43 per cent simply by swapping 20 everyday branded items for supermarket home-brand alternatives, saving households around $3400 annually.

WATCH THE VIDEO ABOVE: How home brands could save shoppers $3400 yearly

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Speaking on The Morning Show on Monday, Compare the Market Economic Director David Koch said he was “stunned” by the savings.

“$3400 a year, that gets you a couple of economy class tickets to London,” he said.

The research compared the prices of 20 common household essentials and found shoppers could save $63 at one supermarket and $65 at another by choosing home-brand alternatives.

The biggest opportunities to save lie outside the food aisles, with household cleaning and personal care products delivering the largest discounts.

Mouthwash topped the list, with a $9 price difference between branded and home-brand versions, while instant coffee, toilet paper and cleaning products also offered significant savings.

“Body wash as well. So it is those non-food products and cleaners. Like surface sprays. That’s the biggest difference as well,” Koch said.

Compare the Market Economic Director David Koch said he was ‘stunned’ by the savings made when shoppers switch to home-brand products. Credit: The Morning Show

The research also found shoppers need to watch for “shrinkflation”, where manufacturers reduce the size of products while increasing prices.

One toilet paper product that previously sold as a 24-pack for $13 is now sold as a 16-roll pack for $14, reducing the quantity by one-third while increasing the price.

Koch urged shoppers not to rely solely on brand recognition while filling their trolleys.

Instead, he recommended comparing unit prices and checking ingredient panels, saying many home-brand products offer similar quality for substantially less.