Supermarkets and Grocery Stores in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC G4111Revenue
$131.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
440k
Businesses
2,267
Wages
$XX.Xbn
Supermarkets and Grocery Stores in Australia industry analysis
Price dynamics have played a big part in supermarket and grocery store performance in recent years. The continued expansion of Aldi and Costco has forced the two established industry giants, Woolworths and Coles, to remain price-competitive on the consumer front. To differentiate themselves from low-cost supermarkets, Coles and Woolworths have leant into attracting customers with improved store refurbishments and expanded online shopping capabilities. These supermarket giants are also relying on loyalty programs and promotions as deceptive discounting practices face heightened scrutiny from regulators. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics firms like Palantir to optimise their marketing and operational processes.
Trends and Insights
- Rising prices are behind supermarket and grocer revenue swings. However, tougher cost-of-living pressures are pushing shoppers away from more expensive products and brands and incentivising less frequent shopping trips.
- Changing consumer trends are causing a shift in store product mixes. Rising health consciousness among Australians has encouraged stores to offer Artisanal breads and milk alternatives to meet demand.
- Lots of the Australia’s supermarkets and groceries are located on the eastern seaboard due to high population and proximity to trade hubs. Supermarkets in these states, can benefit from centralised distribution networks.
- Price-conscious customers are driving the popularity of stores like Aldi and Costco. These stores' business models emphasise economies of scale and allow for competitive price points.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.7 % over the past five years, to reach an estimated $131.7bn in 2024.
Trends and Insights
Inflationary pressures have driven prices higher and kept profit margins healthy for many grocers
- As lockdowns ended, the discontinuation of many specials allowed supermarkets and grocers to capitalise on higher overall price points. In doing so, major supermarkets have been able to maintain profitability despite rising costs.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Supermarket inquiry and review to monitor industry conduct
- The Federal Government has directed the Australian Competition and Consumer Commission (ACCC) to investigate supermarket pricing practices due to rapid inflation, allegations of deceptive pricing practices and market power misuse.
Biggest companies in the Supermarkets and Grocery Stores in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Woolworths | 50,353.3 | |
Coles | 38,146.2 | |
Aldi | 11,294.4 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Dry and packaged foods, Bread and bakery products and Meat products. Dry and packaged foods is the largest segment of the Supermarkets and Grocery Stores in Australia.
Trends and Insights
Strong export demand for Australian Meat products has boosted domestic prices back home
- The meat products segment includes fresh meat products, like steaks, chops and roasts, along with processed meat products, such as smallgoods, mince and sausages. This segment includes all types of meat, like beef, lamb, pork, chicken, fish and game meats.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Fresh Meat, Fish and Poultry Retailing in Australia
- Fruit and Vegetable Retailing in Australia
- Liquor Retailing in Australia
- Bread and Cake Retailing in Australia
- Convenience Stores in Australia
- Tobacco and Other Store-Based Retailing in Australia
Complementors
- There are no industries to display.
International industries
- Supermarkets & Grocery Stores in the US
- Warehouse Clubs & Supercenters in the US
- Ethnic Supermarkets in the US
- Online Grocery Sales in the US
- Supermarkets & Grocery Stores in Canada
Table of Contents
About this industry
Industry definition
Supermarkets and grocery stores retail a range of groceries and food products, including fruit and vegetables, bread, cigarettes, canned goods, toiletries, dairy goods, delicatessen items and cleaning goods. Specialist retailers, niche retailers and convenience stores are excluded from the industry.
What's included in this industry?
Dry and packaged foodsBread and bakery productsMeat productsMilk and other dairy productsFresh fruit and vegetablesBeveragesTobacco products Toiletries, health products and general merchandiseCompanies
WoolworthsColesAldiPurchase this report to view all 8 major companies in this industry.
Related Terms
APPMEAL KITPRIVATE-LABELIndustry Code
ANZSIC 4110 - Supermarkets and Grocery Stores in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rising prices are behind supermarket and grocer revenue swings. However, tougher cost-of-living pressures are pushing shoppers away from more expensive products and brands an...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Changing consumer trends are causing a shift in store product mixes. Rising health consciousness among Australians has encouraged stores to offer Artisanal breads and milk al...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Lots of the Australia’s supermarkets and groceries are located on the eastern seaboard due to high population and proximity to trade hubs. Supermarkets in these states, can b...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price-conscious customers are driving the popularity of stores like Aldi and Costco. These stores' business models emphasise economies of scale and allow for competitive pric...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Supermarkets have passed on supplier costs to shoppers to preserve profit margins. However, they have also had to balance high-volume, low-margin operations to ensure they ma...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Woolworths's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Coles's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Aldi's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Woolworths, and factors influencing its performance in the industry
- Description and key data for Coles, and factors influencing its performance in the industry
- Description and key data for Aldi, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The ACCC monitors for breaches of competition law and administers the Food and Grocery Code of Conduct. Their interventions indirectly help smaller supermarkets and grocers. ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Emphasis on big-data analytics has sustained the wage costs of larger supermarkets. This has come despite the wider use of automation instore to push down labour activity.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Supermarkets and Grocery Stores industry in Australia in 2024?
The market size of the Supermarkets and Grocery Stores industry in Australia is $131.7bn in 2024.
How many businesses are there in the Supermarkets and Grocery Stores in Australia industry in 2024?
There are 2,267 businesses in the Supermarkets and Grocery Stores industry in Australia, which has grown at a CAGR of 0.2 % between 2019 and 2024.
Has the Supermarkets and Grocery Stores industry in Australia grown or declined over the past 5 years?
The market size of the Supermarkets and Grocery Stores industry in Australia has been growing at a CAGR of 0.7 % between 2019 and 2024.
What is the forecast growth of the Supermarkets and Grocery Stores industry in Australia over the next 5 years?
Over the next five years, the Supermarkets and Grocery Stores industry in Australia is expected to grow.
What are the biggest companies in the Supermarkets and Grocery Stores market in Australia?
The biggest companies operating in the Supermarkets and Grocery Stores market in Australia are Woolworths, Coles and Aldi
What does the Supermarkets and Grocery Stores in Australia include?
Dry and packaged foods and Bread and bakery products are part of the Supermarkets and Grocery Stores industry.
Which companies have the highest market share in the Supermarkets and Grocery Stores in Australia?
The company holding the most market share in Australia is Woolworths.
How competitive is the Supermarkets and Grocery Stores industry in Australia?
The level of competition is high and increasing in the Supermarkets and Grocery Stores industry in Australia.
