Woolies, Coles dominate $2.9bn Aussie bread market

bread5Supermarket giants Woolworths and Coles continue to dominate Australia’s A$2.9 billion fresh bread market.

Roy Morgan Research’s latest study found that for the past eight years, Coles has taken the lead with 6.2% to 25.3%.

It is followed by the German discount grocer ALDI which has increased its market share by 3.1% to 7.1% and specialty bread shop Bakers Delight which holds 13.6%.

Meanwhile Woolworths has maintained its title of the country’s largest retailer of fresh bread, capturing 26.6% of the fresh bread market. The latest study found out that the “big two” represent a combined 51.9% of the fresh bread market in 2018.

“The dominance of Australia’s two supermarket giants Woolworths and Coles is well known with the two now comprising over half the Australian markets for fresh food including fresh meat, fresh fruit and vegetables and fresh bread. Between them Woolworths and Coles now have nearly 52% of the Australian fresh bread market,” Michele Levine, CEO, Roy Morgan, said.

Roy Morgan also analysed the status of the over A$100 billion per annum grocery market in Australia. The latest results showed grocery giants Woolworths and ALDI were the best performers in the last year with both gaining significant market share.

“German discount supermarket chain ALDI has made a huge impression on the Australian marketplace since opening its first store just over 15 years ago in 2001 and now captures 7.1% of the fresh bread market, up 3.1% since 2010. [Its] success has been built upon not only discount prices but also a reputation for reliability, meeting the needs of consumers and being honest about what it has to offer. Aldi has consistently rated as one of Australia’s most trustworthy brands including retaining its spot as Australia’s most trusted brand in this week’s Roy Morgan Net Trust Score survey for July,” added Levine.

“However, although the two clearly dominate Australia’s fresh bread market, the growth this decade has been led by Coles Group which has significantly increased its market share by 6.2% to 25.3% while Woolworths is little changed with 26.6% of the fresh bread market. There are two competitors in particular outside the ‘Big 2’ who have grown their share of the fresh breadmarket and they come from very different origins.”

Australian fresh bread market share – 2010 vs 2018

Source: Roy Morgan Single Source Australia, July 2009 – June 2010, n=11,911 & July 2017 – June 2018, n=9,066. Base:Last 7 day fresh bread purchasers aged 14+ weighted to Australian households.

In total, supermarkets now comprise over two-thirds of the entire fresh bread market with the remaining 31% split between specialty bread shops including Bakers Delight, Brumby’s Bakery and other bread shops and between delicatessens, milk bars, convenience store and other stores.

Roy Morgan said IGA and other supermarkets in the country, including Brumby’s Bakery and other smaller bread shops and delicatessens, milk bars, convenience stores and other stores have also suffered declines in the fresh bread market of between 1% – 2.4%.

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