Business World

Which AU Companies Have the Lion’s Share on the Fresh Bread Market?

freshly baked bread Supermarkets in Australia represent a significant share of the fresh bread market, but two companies account for the lion’s share of this $2.9 billion sector. Coles and Woolworths own almost 52 per cent of the market based on analysis that covered the 12 months to June. Specialty bake shops, such as Bakers Delight and Brumby’s Bakery, account for a 31 per cent share, while the remainder is split among other supermarkets.

Bigger Market Share

If you want your business to generate more fresh bread sales, it starts with having the right deli display equipment. Roy Morgan’s analysis showed that Coles and Woolworths have been the dominant players in the fresh bread business, but that does not mean other competitors should just step aside. Aldi and Bakers Delight’s success proves that small businesses could be the next stand-out performer if there is a good business strategy and the right selection of resources. For instance, Aldi slowly increased its market share by prioritising their corporate image among customers, aside from offering discounts.

Marketing Strategies

Consumer trust remains important and without it, a supermarket’s sales will slow down in a short period. In the case of Aldi, the German supermarket chain has been one of the most trustworthy brands recently. On the other hand, Woolworths has struggled with its overall grocery sales even if it enjoys a leading position on fresh bread market. The company’s new policy on single-use plastic bags became effective in late June. Australian state governments have banned such bags. Other companies, including Coles, have complied with the change. However, Coles has offered free replacement bags for a limited time to soften the impact on shoppers. Coles and Woolworths may continue to be the leading companies in terms of fresh bread sales in the near future. It’s up to their competitors who want to replace them to take that as an inspiration or see it as an insurmountable challenge.