The battle for the $ 2.9 billion fresh bread market

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Source: Roy Morgan Single Source Australia, July 2009 – June 2010, n = 11,911 and July 2017 – June 2018, n = 9,066. Base: Last 7-day fresh bread buyers aged 14 and over weighted by households Australian.

Australia’s $ 2.9 billion fresh bread market is dominated by the two supermarket giants Woolworths Group and Coles Group which together account for 51.9% of the fresh bread market according to Roy Morgan’s latest results through June 2018 .

In total, supermarkets now represent more than two-thirds of the entire fresh bread market, with the remaining 31% being split between specialty bakeries, including Bakers Delight, Brumby’s Bakery and other bakeries, and between delicatessens, bars milk, mini markets and other stores.

Over the past eight years, three players have stood out in the fresh bread market. Coles Group increased its market share from 6.2% to 25.3%, the German supermarket chain Aldi increased its market share from 3.1% to 7.1% and the specialty bakery Bakers Delight now has a 13.6% market share, up 0.5%. from June 2010.

Despite Coles’ resurgence in recent years, Woolworths has retained its title as Australia’s largest fresh bread retailer, capturing 26.6% of the fresh bread market.

Other fresh bread outlets, including IGA and other supermarkets, as well as Brumby’s Bakery and other small bakeries and delicatessens, dairy bars, convenience stores and other stores also experienced a decline in their market share in the market. fresh bread between 1% and 2.4%. .

These results come from Roy Morgan’s single-source survey of over 50,000 people per year, including over 12,000 grocery shoppers and covered in the latest. Roy Morgan Supermarket Grocery Currency Reports.

Australian fresh bread market share – 2010 vs 2018

Source: Roy Morgan Single Source Australia, July 2009 – June 2010, n = 11,911 and July 2017 – June 2018, n = 9,066. Base: Last 7-day fresh bread buyers aged 14 and over weighted by households Australian.

Roy Morgan recently analyzed the state of the overall Australian grocery market, which is valued at over $ 100 billion annually. The latest results show that Woolworths and Aldi were the two best performers last year, both gaining significant market shares. A more in-depth analysis, including the shares of major supermarkets in the overall fresh food market, can be found here.

Michele Levine, CEO of Roy Morgan, says that although Woolworths and Coles have now accounted for over 50% of the fresh bread market for more than five years, the success of Bakers Delight and Aldi in increasing market share shows that there is room for agile competitors:

“The dominance of the two Australian supermarket giants Woolworths and Coles is well known, with the two now accounting for more than half of Australia’s fresh food markets, including fresh meat, fresh fruit and vegetables and fresh bread. Between them, Woolworths and Coles now hold nearly 52% of the Australian fresh bread market.

“However, although both clearly dominate the Australian fresh bread market, this decade’s growth has been led by Coles Group which significantly increased its market share from 6.2% to 25.3% while Woolworths did hardly changed with 26.6% of the fresh bread market.

“There are in particular two competitors outside of the ‘Big 2’ that have increased their share of the fresh bread market and they come from very different origins.
German discount supermarket chain Aldi has made a strong impression in the Australian market since opening its first store just over 15 years ago in 2001 and now captures 7.1% of the growing fresh bread market 3.1% since 2010.

“Aldi’s success is based not only on discounted prices, but also on a reputation for reliability, responding to consumer needs and being honest about what it has to offer. Aldi has consistently been ranked as one of Australia’s most trusted brands, most notably maintaining its place as Australia’s most trusted brand in this week’s Roy Morgan Net Trust Score survey for July. Learn more about Aldi’s success here, what Australian brands need to do to gain their trust.

“Besides Aldi and Coles, the other success story in the fresh bread market over the past eight years has been the Australian bakery chain Bakers Delight. Bakers Delight weathered stiff competition in the fresh bread market to grow its share from 0.5% to 13.6%.

“Bakers Delight only follows the ‘Big 2’ as an outlet for fresh bread and this shows that a well-run business can face and beat more heavily capitalized competitors with a well-defined strategy in a” niche “market. providing excellent customer service and excelling in their core competency.

“To stay one step ahead and be fully prepared for competitive pressures in a rapidly changing industry, the in-depth analysis available in the Roy Morgan Supermarket and Fresh Food Currency Reports that covers all grocery retailers including products purchased and dollars spent is essential. The combination of the large annual sample collected over more than a decade allows for a unique and in-depth analysis of trends in this very important market.

For comments or more information, please contact:
Roy Morgan – Inquiries

Office: +61 (03) 9224 5309
[email protected]


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