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Supermarkets have maintained stable volume-driven business strategies amid a pricing environment that has been in the spotlight. Conflict in the Middle East, avian flu outbreaks and other inflationary pressures have driven prices up, with many stores passing on these costs to consumers. While consumers are paying more for groceries and upstream suppliers are seeing their margins shrink, supermarkets Coles and Woolworths have maintained relatively stable profit margins, among the highest in the world. The continued expansion of Aldi and Amazon has forced the two established industry giants to shift gears recently to remain price-competitive on both the physical store and online service fronts, launching short-term price discounting initiatives. These supermarket giants also rely on loyalty programs and promotions. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics data giants like Palantir to optimise their marketing and operational processes. The ACCC's landmark supermarkets inquiry, while not finding evidence of price gouging, identified 20 key recommendations that would ensure a more sustainable market and avoid oligopolistic exploitation.
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IBISWorld's research coverage on the Supermarkets and Grocery Stores industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
The Supermarkets and Grocery Stores industry in Australia operates under the ANZSIC industry code G4111. 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. Related terms covered in the Supermarkets and Grocery Stores industry in Australia include app, meal kit and private-label.
Products and services covered in Supermarkets and Grocery Stores industry in Australia include Dry and packaged foods, Bread and bakery products and Meat products.
Companies covered in the Supermarkets and Grocery Stores industry in Australia include Woolworths, Coles Group and Aldi.
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Supermarkets and Grocery Stores industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Supermarkets and Grocery Stores industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Supermarkets and Grocery Stores industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Supermarkets and Grocery Stores industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
The Companies chapter covers Key Takeaways, Market Share and Companies in the Supermarkets and Grocery Stores industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Supermarkets and Grocery Stores industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Supermarkets and Grocery Stores industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Supermarkets and Grocery Stores industry in Australia.
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The market size of the Supermarkets and Grocery Stores industry in Australia is $144.3bn in 2026.
There are 2,432 businesses in the Supermarkets and Grocery Stores industry in Australia, which has grown at a CAGR of 2.9 % between 2020 and 2025.
The Supermarkets and Grocery Stores industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
The Supermarkets and Grocery Stores industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
The market size of the Supermarkets and Grocery Stores industry in Australia has been declining at a CAGR of 0.4 % between 2020 and 2025.
Over the next five years, the Supermarkets and Grocery Stores industry in Australia is expected to grow.
The biggest companies operating in the Supermarkets and Grocery Stores industry in Australia are Woolworths, Coles Group and Aldi
Dry and packaged foods and Bread and bakery products are part of the Supermarkets and Grocery Stores industry in Australia.
The company holding the most market share in the Supermarkets and Grocery Stores industry in Australia is Woolworths.
The level of competition is high and increasing in the Supermarkets and Grocery Stores industry in Australia.