Supermarkets and grocery retail in Australia - statistics & facts
Australia’s supermarket giants were thrown into the public eye in 2024, as the government and the Australian Competition and Consumer Commission (ACCC) launched their inquiry into grocery retailer pricing and competitive practices among major supermarkets. Households countrywide have , with budgets becoming increasingly strained by the unaffordability of necessities, while major brands’ revenues and profit margins rise. Alongside this, farmers and suppliers have expressed discontent with dealings with retailers and the disproportionate market power held by supermarkets and food processors. As essential products, , with the sector’s lack of competition giving major chains few incentives to charge less. Nonetheless, could the ACCC’s recommended reforms stimulate a more competitive grocery landscape, patch up supermarket-supplier relationships, and create more transparent retailer-to-consumer interactions?
Seeking to bring balance and fairness to Australia’s supermarket sector, the ACCC conducted an inquiry from January 2024 to March 2025 following price gouging allegations against major retailers. Its key recommendations for better-regulated and more competitive conditions included publishing requirements for major chains regarding pricing, promotions, shrinkflation, and loyalty program benefits to offer shoppers more transparency, as well as curb misleading promotional tactics. Still, the regulator’s findings were inconclusive on whether price gouging was occurring and noted that profitability was not prohibited.
As limited market access for smaller supermarkets and independent grocers outside Australia’s big four persists, whether , from farm to consumer, remains dependent on major chains’ engagement with the ACCC’s recommendations.
Australia’s grocery retail market leaders
over the past decade. The sector has long been dominated by two major retailers, Woolworths and Coles, with discount competitor Aldi, and Metcash, which operates Independent Grocers of Australia (IGA) and Foodland, holding the next largest market shares. As of 2024, over 80 percent of sits with the top four companies, with around 65 percent of the market attributable to Woolworths and Coles alone. Woolworths has enjoyed rising ²¹²Ô»å  recently, with Coles experiencing a similar trend.Online grocery: growing in popularity or fading out?
While physical stores remain the favored grocery shopping channel, online ordering has become a convenient way for Australians to pick up groceries from the comfort of their homes. Woolworths and Coles dominate , with e-commerce platform Amazon the next largest competitor. While successful in Australia’s offline grocery scene, Aldi has yet to introduce online ordering, thus remaining behind its rivals; however, it does not intend to offer this to uphold its low-cost market position. The online grocery sector also endures competition from and meal kit services, offering short delivery times and convenience. Woolworths and Coles’ ongoing dominance
Owing to the oligopolistic nature of Australia’s grocery retail environment, it is challenging for new players to enter and deconcentrate the sector to grant customers greater choice and the chance to balance their budgets. Previously among the most trusted brands, the two supermarket giants’ reputations are on the line, with Australian consumer confidence sinking due to their limited response to address public concern over .Seeking to bring balance and fairness to Australia’s supermarket sector, the ACCC conducted an inquiry from January 2024 to March 2025 following price gouging allegations against major retailers. Its key recommendations for better-regulated and more competitive conditions included publishing requirements for major chains regarding pricing, promotions, shrinkflation, and loyalty program benefits to offer shoppers more transparency, as well as curb misleading promotional tactics. Still, the regulator’s findings were inconclusive on whether price gouging was occurring and noted that profitability was not prohibited.
As limited market access for smaller supermarkets and independent grocers outside Australia’s big four persists, whether , from farm to consumer, remains dependent on major chains’ engagement with the ACCC’s recommendations.
