According to the latest findings from Roy Morgan in the year leading up to December 2022, Woolworths Group and Coles Group, the two major supermarket chains, have a combined market share of 60.4% in Australia’s fresh bread market, which is valued at $2.5 billion.
Although the overall size of the fresh bread market has decreased over the past five years from $2.9 billion in mid-2018 to $2.5 billion currently, the dominance of these two supermarket giants has continued to grow. In 2018, their combined market share was just over half at 51.9%.
Woolworths remains the leading retailer in the fresh bread market, accounting for 30.6% of total spending, closely followed by Coles Group at 29.8%.
Supermarkets now make up over three-quarters (78.2%) of the entire fresh bread market, while the remaining 21.8% is divided among specialty bread shops like Bakers Delight and Brumby’s Bakery, other bread shops, delicatessens, milk bars, convenience stores, and other retailers.
In the past eight years, the three largest supermarkets have experienced notable growth in their market shares. Coles Group has seen an impressive increase of 7.4% points to 29.8%, Woolworths Group is up by 4.4% points to 30.6%, and Aldi has gained 1.4% points, reaching 6.8%.
Woolworths and Coles clearly have the highest customer penetration among Australian fresh bread shoppers, with 39.1% and 37.6% respectively buying their bread from these supermarkets on a weekly basis. Aldi follows at 10.1%, trailed by Bakers Delight at 8%, and IGA at 6.3%.
Despite having a lower customer penetration rate (8.0%) compared to Aldi (10.1%), Bakers Delight holds a significantly higher share of the overall market spending, accounting for 9.3% compared to Aldi’s 6.8%.
These results indicate that, on average, consumers spend more on fresh bread at Bakers Delight than at competing supermarket chains such as Coles Group, Woolworths Group, Aldi, and IGA.
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