In financial year 2023, the Woolworths Group held the largest share of the grocery retail market in Australia, with a share of 37 percent. Woolworths' major competitor, the Coles Group, came in second with a little over a quarter of the market share. Aldi and IGA remain behind their competitors, with shares of 10 percent or less of the market.
Growth of online grocery shopping in Australia
Online grocery shopping has become increasingly popular across Australia in recent years as consumers and grocery retailers were forced to adapt to the pandemic. In 2022, in-store grocery shopping remained the most prevalent. Nonetheless, online grocery shopping has gained momentum, with around one-third of Australian consumers reporting shopping for groceries mainly in-store and partly online and just over 13 percent mainly online or exclusively online. The most common online grocery purchases made by consumers in Australia in 2022 included dry goods, such as pasta and rice, sweets and snacks, and dairy products.
Grocery price inflation in Australia
In 2022, price rises were witnessed across many grocery product categories in Australia, with dairy and related products accounting for the largest annual price increase. As a result of rising grocery costs, an increasing number of Australian households cite grocery expenses as a major source of stress. To lessen the impact of cost-of-living pressures, many shoppers are adopting strategies to reduce their grocery bills, such as searching for deals and specials when shopping. Grocery prices are expected to continue to inflate throughout the first half of 2023 but slowly start to ease off towards the end of the year. Nevertheless, prices are not likely to deflate significantly to previous levels witnessed.
