Australia Grocery Retail Market

Australia Grocery Retail Market Overview:

The Australia grocery retail market size reached USD 49.64 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 77.67 Billion by 2032, exhibiting a growth rate (CAGR) of 4.70% during 2024-2032. Rapid population growth, rising consumer demand for convenience, the expansion of private-label brands, competitive pricing strategies, increasing health-consciousness, surging sustainability initiatives, rapid e-commerce expansion, technological innovations in-store, and supply chain optimization are some of the factors boosting the market growth.

Australia Grocery Retail Market Trends:

Population Growth and Urbanization

Rapid urban population growth is one of the key drivers for the market. This has further boosted the demand for basic food products and dairy in Australia. Urbanization has also resulted into the development of new residential areas, shopping malls, and supermarket, that supports large communities, which is further fueling the market growth. Moreover, a growing diverse population has considerable surged the demand for new product offerings, such as culture specific groceries, which is providing a thrust to the market growth. Furthermore, an increasing percentage of the population living in major metro areas and the burgeoning investments by key players in expanding their store networks are other growth-inducing factors.

Consumer Preference for Convenience

Consumer preference for convenience has significantly shaped the Australian grocery retail landscape. Shoppers are increasingly seeking easy and quick access to products, driving the popularity of online shopping and home delivery services. Busy lifestyles and time constraints make consumers more inclined toward services that save time, such as click-and-collect options and same-day deliveries. This shift has encouraged retailers to enhance their e-commerce platforms, streamline their delivery services, and improve the overall shopping experience. Additionally, the convenience trend extends to store formats, with smaller, more accessible locations in urban areas gaining popularity. Retailers are also focusing on ready-to-eat (RTE) meals and pre-packaged foods to meet the demands of time-pressed customers. 

Growth of Private-Label Brands

The growing popularity of private-label brands is a key factor influencing the Australian grocery retail market. Private-label products, often referred to as store brands, offer consumers a more affordable alternative to name-brand goods. As cost-consciousness rises, especially during economic uncertainty, many shoppers turn to these lower-priced options without compromising on quality. Major Australian grocery retailers, such as Woolworths and Coles, have significantly expanded their private-label offerings, covering a broad range of products, from household essentials to premium organic goods. Private-label brands allow retailers to control their supply chains better, reduce costs, and increase profit margins. 

Australia Grocery Retail Market News:

• In 2024, Woolworths launched a major price drop campaign, cutting prices on over 800 essential grocery items to help consumers cope with rising living costs. This move aimed to provide more budget-friendly options to households across Australia.
• In 2024, ALDI Australia opened a new store in Woolooware Bay, NSW, as part of the Bay Central shopping centre. This store is located in Southern Sydney and created 15-20 new jobs, offering ALDI’s trademark low prices and popular special buys to the local community. This opening was part of the larger billion-dollar Woolooware Bay Town Centre project, which included significant residential and commercial developments.

Australia Grocery Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on product and distribution channel.

Product Insights:

• Food and Beverages              
  • Fresh Food     
  • Packaged Food          
  • Beverages      
• Non-Food Items                     
  • Household Cleaning Products
  • Personal Care Products          
  • Pet Care Products
     

The report has provided a detailed breakup and analysis of the market based on the product. This includes food and beverages (fresh food, packaged food, and beverages) and non-food items (household cleaning products, personal care products, and pet care products).

Distribution Channel Insights:

• Hypermarkets and Supermarkets
• Convenience Stores
• Discount Stores
• Online
• Others
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes hypermarkets and supermarkets, convenience stores, discount stores, online, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Grocery Retail Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia grocery retail market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia grocery retail market?
• What is the breakup of the Australia grocery retail market on the basis of product?
• What is the breakup of the Australia grocery retail market on the basis of distribution channel?
• What are the various stages in the value chain of the Australia grocery retail market? 
• What are the key driving factors and challenges in the Australia grocery retail?
• What is the structure of the Australia grocery retail market and who are the key players?
• What is the degree of competition in the Australia grocery retail market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia grocery retail market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia grocery retail market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia grocery retail industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.