Competition squeezes butchers share of meat sales
For the first time ever Australia’s two largest supermarkets have more than 50 per cent of Australia’s fresh meat market.
In a new research conducted by Roy Morgan, it was reported that ten years ago, Australian butchers had nearly a third (32 per cent) share of Australia’s fresh meat market. Now they only have just under a quarter (24 per cent).
Today, Woolworths has a 26.5 per cent share of Australia’s fresh meat sales, up 1.1 per cent on 2016 figures.
Coles has a 24.3 per cent share, up 2 per cent on 2016 figures. Aldi gas 9.6 per cent, up 0.9 per cent.
In the last 12 months, fresh meat market share for butchers and markets dropped 3 per cent.
The study was based on a survey of over 50, 00 people.
Roy Morgan CEO, Michele Levine, said Australia’s increasingly competitive fresh meat market is squeezing the market share of butchers.
“Australia’s ‘Big Two’ supermarket chains Woolworths and Coles now capture over 60 per cent of Australia’s $100b+ grocery 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.
“In just the past year Coles and Woolworths achieved a milestone, capturing a majority of the fresh meat market for the first time and now hold 50.8 per cent of Australia’s fresh meat market between them. Woolworths’ fresh meat market share of Woolworths has increased 1.1 per cent points over the past year to 26.5 per cent while Coles has continued a decade long-trend by increasing its market share by 2 per cent to 24.3 per cent.
“Against the increasing concentration of the fresh meat market with the two big supermarket chains the decline in market share for butchers and markets has been consistent over the past decade. Butchers and markets held around a third of Australia’s fresh meat market in 2010 however this share has now dropped to just under a quarter.
“Unfortunately for butchers and markets, the decline in fresh meat market share appears to be accelerating with butchers and markets now holding only 24 per cent of Australia’s fresh meat market share. This represents a decline of over 3 per cent points over the past 12 months – the largest yearly drop in fresh meat market share for butchers and markets recorded in the past decade.
“As we’ve noted previously Australia’s supermarket duopoly has been disrupted in recent years by the arrival of Aldi which has captured a significant market share across categories and in addition to Aldi other foreign entrants are already on the lookout for supermarket locations including giant European supermarket chains Kaufland and Lidl.
“The arrival of new ‘cashed-up’ competitors keen to make a sizeable dent in Australia’s supermarket retailing landscape means the pressure on smaller specialist retailers including butchers and markets will only increase in coming years.
“However other trends identified by Roy Morgan and deeper analysis of consumer preferences shows those specialists who understand their customers are still well placed to capitalise on the ‘hidden value’ in the discretionary end of their market.”
- Woolworths cuts out in-store butchers, shift to centralised processing
- Aussie NZ rivalry leads to global butcher competition
- Australia’s shifting meat buying patterns: Roy Morgan Research
Woolworths’ BWS has started delivering alcohol in Sydney with plans to expand the service into other...
Niska, an Australian based start-up company has opened a world-first retail robotics ice-cream stor...
Giant Australian cattle property, Tipperary Station, has planted 3500 lemon trees as part of a majo...
A United States company has launched a new sweetener made from sweet potato, pitching it as a “clean...
Another death has been linked to Australia’s recent rockmelon listeria outbreak, resulting in a tota...
The milkman might be a thing of the past for many Australians but the service has made a comeback in...
Feeding dairy cows microalgae may be the answer to adding more omega-3 to dairy products a PhD stude...
Byron Bay Cookie has launched its first marketing campaign.