Need to know
- Our latest grocery basket mystery shop has found once again that Aldi is the cheapest supermarket, followed by Coles, Woolworths and IGA. Aldi has been consistently cheaper than its competitors in our five surveys since 2015
- Between June and September 2024, the cost of our basket of 14 items with specials increased at Woolworths by $0.80. At IGA stores prices dropped by $5.15; at Aldi our basket cost $0.16 less, and at Coles, the basket was just $0.04 cheaper than in June
- One of our spotlight items, a leg of lamb, was more expensive at Aldi than at Woolworths and Coles when comparing special prices. Without specials, Woolies was the cheapest, followed by Aldi, then Coles
Since 2022, our quarterly Consumer Pulse surveys have consistently found that Australian household budgets are under pressure. Once again, our September 2024 survey revealed that the vast majority of people (93%) reported that bills and expenses have increased in the previous 12 months.
Amidst these pressures, the cost of food and groceries remains a cause of concern for 87% of households. This figure has remained high since March 2022 when the percentage of people expressing concern jumped above 80% for the first time since we began surveying in 2015.
The cost of food and groceries remains a cause of concern for 87% of households
These findings underline the need to continue monitoring supermarket prices. Our regular examination of prices across the country will continue to hold supermarkets to account and help shoppers save money on groceries.
In this, the third wave of our quarterly grocery basket surveys, we have again sent mystery shoppers to 104 Coles, Woolworths, Aldi and IGA supermarkets around the country to record the prices of our 14 standard basket items.
We have also included two spotlight items: a leg of lamb with the bone in and 2L of ice cream.
On this page:
- The cheapest supermarket in Australia
- How does IGA compare?
- Does where you live make a difference to grocery prices?
- September spotlight: Leg of lamb and ice cream tubs
- What this means for consumers
- What's in our basket?
- How we survey supermarkets
Our basket of item (with specials) cost $73.80 at IGA, $69.17 at Woolworths, $66.18 at Coles and $50.63 at Aldi.
The cheapest supermarket in Australia
For the third time, our price analysis found that Aldi has the cheapest groceries in Australia, based on a basket of 14 commonly bought grocery items including milk, bread, sugar, pasta and tea bags and two fresh fruits and vegetables (you can see our full shopping list below).
In September our mystery shoppers visited 104 supermarkets across the country and recorded the prices of 14 popular grocery items. We shopped at Woolworths, Coles and IGA at each location and at Aldi in the states where they are found.
Prices including specials
Based on prices including specials and compared to our first wave of research, both Aldi and Coles basket costs have dropped since our first quarterly survey in March, while Woolworths has increased.
Our basket cost on average $66.18 at Coles (compared to $68.52 in March), and $69.17 at Woolworths (compared to $64.93 in March), while a comparable basket with both national and house brands purchased from Aldi was just $50.63 (compared to $51.51 in March)
The comparable basket of goods at IGA cost $73.80. We didn't include IGA stores in our March survey, but IGA's prices have dropped significantly since our June survey, where the same basket cost $78.95.
Prices without specials
As noted in previous research, buying items on special can make a significant difference to overall grocery costs, underlining the benefits of shopping around.
When you look at our baskets without specials the picture changes slightly.
While the price remains the same at Aldi, at Coles the basket cost $67.90 (compared to $69.33 in our first survey in March), and at Woolworths $69.29 (compared to $68.58 in March).
At IGA the same basket without specials cost $77.57.
The gap between Coles and Woolies widens
In the first round of our quarterly supermarket research, we noted that Coles and Woolworths were very closely matched in prices.
While just $0.75 separated the average prices of our baskets without specials when we surveyed in March, the difference between the two stores in June increased to $1.21, with Woolworths again the cheaper of the two.
In September, Coles outperformed Woolworths on price for the first time
But in September, Coles outperformed Woolworths on price for the first time.
Without specials, our Coles basket averaged $67.90, while Woolies came in at $69.29, a gap of $1.39.
With specials taken into account the gap was even wider at nearly $3, with Coles coming in at $66.18 and Woolies at $69.17.
How does IGA compare?
IGA is an independent grocery brand, which means that rather than following the chain store model of Aldi, Coles and Woolworths, individual stores operate as franchises and are owned and operated independently.
We introduced IGA stores in our second survey back in June. Then and in our latest survey, we've found IGA to be more expensive than other supermarkets. But we've also found that prices vary greatly between stores – mainly due to the variation in store sizes and the effect this has on ranges.
Nationwide, from June to September, average IGA prices for this basket dropped considerably
In June, prices in the Northern Territory, where stores are smaller, were substantially higher: $105.18, compared to just $74.76 in Queensland, which had the cheapest of the IGA baskets in that survey.
This time around we still noted differences between states, but those differences had become less pronounced, with the NT basket dropping from $105.18 to $91.26.
Nationwide, from June to September, average IGA prices for this basket dropped considerably from $78.95 to $73.80.
Does where you live make a difference to grocery prices?
Regional vs capital cities
When we compared prices in capital cities to those in the regional centres we visited, we found very little difference – just a few cents – between the baskets of groceries for people who can access an Aldi, Coles or Woolworths. That has been consistent throughout all three surveys.
We did note one interesting change. In our second survey we found IGA shoppers spend on average $2 more per basket in capital cities compared to regional areas. In our September survey there was just 15 cents of a difference between the two.
Across the states
Our analysis found that which state you live in does make a difference to how much you pay for groceries. When we compare baskets from the same stores, prices change across states and specials can vary from location to location.
Aldi
In September, shoppers at Aldi in NSW, ACT, Victoria and South Australia were getting the best prices across the country. But the additional cost in Queensland and WA was fairly minimal – we're talking 40 and 60 cents of a difference, due to the variation in price of fresh produce items.
Woolworths
At Woolworths, we again found that shoppers in WA were paying more than other states and territories for the same basket of goods, both with and without specials. Including specials, Woolies shoppers in WA are paying $3.60 more for their basket than folks in Tasmania, who paid the least of anyone in Australia.
Coles
WA is also the most expensive state for Coles shoppers, while Tasmania is the cheapest. With specials, folks in Tasmania were paying $4 less per basket than those in WA.
IGA
When it comes to IGA stores, the size of the store makes a big difference to the price you'll pay. The same basket of goods is vastly more expensive for shoppers at the smaller IGA stores in the NT (noting that there are no larger IGA supermarkets in the areas we surveyed): $89.53, contrasted with the $68.25 in Victoria.
September spotlight: Leg of lamb and ice cream tubs
In each quarterly survey, we'll add one or two spotlight items to our basket. These items will be based on feedback from our audience about product categories they'd like us to look at.
In the September survey, we looked at a leg of lamb and ice cream.
Price comparison on lamb legs
For this comparison, our shoppers bought a leg of lamb with the bone in and we recorded the price per kilo. IGA was excluded from this price comparison as we were unable to consistently find a comparable item in the stores we visited.
Taking into account specials, Coles and Woolworths were equal-first nationwide at an average of $12.89 per kilo, while Aldi trailed at $13.99/kg.
Taking specials out of the equation complicated things a little.
There was a special on lamb legs at most Coles stores we visited, reducing the price by $3 per kilo. So when we look at the average regular price for a leg of lamb, Coles is pushed into third place at $14.89 per kilo.
Price comparison on 2L ice-cream tubs
We compared Streets Blue Ribbon 2L vanilla ice cream at Coles, Woolworths and Aldi, with the closest comparable product at IGA.
Prices were extremely tight, with the differences almost negligible.
On average and without specials, Aldi was the cheapest at $6.49, but we only paid a single cent more at Coles and Woolworths ($6.50), and 10 cents extra at IGA ($6.60).
With specials added the prices remained the same at Coles, Woolworths and Aldi. At IGA, the average price with specials was $6.53.
The price of ice cream, it seems, is incredibly consistent across the board.
One of our spotlight items in this survey, lamb, was cheapest at Coles and Woolworths when you included specials at an average of $12.89 per kilo, while Aldi trailed at $13.99/kg. Without specials, Woolworths was cheapest at $12.89, followed by Aldi at $13.99 and Coles at $14.89.
What this means for consumers
Our baskets of goods give us a way to get a general picture of prices in the different stores and locations we visit, but it can't reveal the whole picture.
Smaller ranges, as we saw at some IGA stores, and special pricing can make a big difference to overall costs.
Nevertheless, our findings highlight several small changes you can make that can help save you money on your weekly shop.
Here are three of our top tips to help you reduce what you're paying at the checkout.
- Check the unit pricing: It can be hard to compare prices of different-sized products from different brands, but unit pricing lets you compare prices based on the price per unit, e.g. 100g or 1L. All supermarkets are required by law to include this information in labelling, both online and instore.
- Shop around: Switching between stores and shopping at different supermarkets to take advantage of specials can deliver significant savings.
- Change your routine: Swap expensive cuts of meat for cheaper alternatives; look at frozen fruit and veg, particularly if shopping for produce out of season; and give the ugly fruit and veg a go. Also, don't be afraid to try house brand products. Our expert testing often finds these ranges outperform more expensive options at all the supermarkets.
It won't change the fact that we're still paying more for our groceries than we were just a few years ago, but making these small changes can add up.
For example, we calculated that when comparing loose vs packaged groceries, choosing the cheapest format can save around $1900 a year.
For people who are concerned about their weekly supermarket bills, some of these small changes can help you save money, making it easier to manage budgets.
What's in our basket?
Our basket included a mix of both house-brand and national-brand items. This was true for Aldi as well as Coles, Woolworths and IGA.
We compared five supermarket own-brand products across ALL stores.
We compared two national-brand products at all supermarkets (including Aldi).
We compared Aldi house brand vs a national brand for seven products.
When we compared national brand products to house brands we chose products that were neither the cheapest nor the most expensive.
For all items we compared, we considered a range of factors such as ingredient lists, country of origin, and packaging similarities to ensure we made fair comparisons. We also drew upon the experience we've gained from many years of this type of work to compile our list.
We strive to be as open and transparent as possible while at the same time maintaining the highest standards in mystery shopping and research
While we could have made the baskets cheaper at all of the supermarkets we surveyed (including Aldi), we wanted to accurately reflect the way people shop, which means including a mix of house brand and national-brand items. This means that our basket for each store was neither the cheapest nor the most expensive it could be.
We strive to be as open and transparent as possible while at the same time maintaining the highest standards in mystery shopping and research. As we will track these products in the future, revealing the exact items and stores would compromise the study, which is why we don't list the exact products we compare.
How we survey supermarkets
Supermarkets and locations
We sent undercover shoppers into 104 supermarkets – 27 Woolworths, 27 Coles, 23 Aldi and 27 IGA stores – in 27 locations across Australia in September 2024. Supermarket locations were chosen to give good coverage of socio-economic status based on ABS Indexes and geographic spread across the country. We surveyed supermarkets in clusters so that each store has local competition.
Grocery basket items
Our grocery basket consisted of 14 items, 12 of which were packaged products, either national brand or comparable supermarket brand/budget brand options (including beef mince and milk), with two fresh fruit and vegetable items (apples and carrots) completing the list. We also included two spotlight items, a leg of lamb with the bone in and 2L of ice cream, in this quarter's survey.
For more details on how we survey, see How we survey supermarket grocery prices.
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Stock images: Getty, unless otherwise stated.