“The battle to be Australia’s ‘fresh food’ leader has hotted up in recent years as Coles has mounted a challenge to the traditional ‘fresh food people’ at Woolworths. For the first time the ‘Big Two’ supermarket chains Woolworths and Coles now capture over 50% of Australia’s $40+ billion fresh food market.
"In recent years the Big Two have been moving to consolidate their market shares in various fresh food markets including fresh fruit & veg, fresh meat, fresh bread, fresh deli and fresh seafood. The growing market concentration of the Big Two has been built on increasing shares of the fresh fruit & veg market and the fresh meat market.
“The bulk of Australia's fresh food market comprises either fresh fruit and vegetables (45.6%) or fresh meat (33.7%). The success of their push into fresh food means Woolworths and Coles captured a majority of these two key markets for the first time in 2017. Further details on developments in Australia's fresh meat market were covered extensively last week here.
“The disruption to Australia’s supermarket duopoly caused by the entrance of new competitors including Aldi, and in the coming years Kaufland and Lidl, is driving the current market leaders Coles & Woolworths to step up their game and increase their market share ahead of the intense competition these new ‘cashed-up’ rivals will bring to the broader Australian supermarket retailing landscape and will intensify the pressures on smaller specialist retailers.
“To stay ahead of the game and be fully prepared for the competitive pressures in a fast changing industry the extensive analysis available in the Roy Morgan Supermarket & Fresh Food Currency Reports which covers all food retailers, including products purchased and dollars spent is essential. The combination of the large annual sample collected over more than a decade enables a unique in depth trend analysis of this very significant market.”