Which supermarket has the cheapest groceries?

September spotlight: Leg of lamb and ice cream tubs

In September 2024 (reported in December) 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.

June 2024

In June 2024 (reported in September) our spotlight item was washing powder. In choosing which 2kg washing powders to survey, we selected similar house brand products from Woolworths, Coles and Aldi. As there was no house brand product available at IGA we chose a similar national brand product. 

We found that Aldi had the cheapest product, but only by $0.01 – Aldi’s washing powder was $5.49 compared to the Woolworths product, which cost $5.50. The Coles product was $6.20 and the national brand product at IGA was $10.30 on average, based on the prices we recorded at stores across the country.

Since 2022, our quarterly Consumer Pulse surveys have consistently found that Australian household budgets are under pressure. In our most recent survey, conducted in January, a huge majority of Australians (96%) 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 84% of households, a slight easing from our last survey. 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. 

We began our quarterly tracking of basket prices in March 2024. As we conclude the first year of our quarterly basket surveys, a few trends have become apparent: 

• Coles and Woolies are very closely matched on price. 
• Specials can really help you save.
• Aldi continues to be the cheapest supermarket if you have the option to shop there.

The cheapest supermarket in Australia

For the fourth 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 December our mystery shoppers visited 104 supermarkets around 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. 

We also included a spotlight basket focusing on six fresh foods: apples, carrots, cucumbers, bananas, milk and beef mince. This is in response to feedback requesting we provide more insight on the cost of fresh items. 

Prices including specials

Based on prices including specials, both Aldi and Coles basket costs have dropped since our first quarterly survey in March 2024, while Woolworths has increased. 

Our basket cost on average $66.84 at Coles (compared to $68.52 in March), and $67.34 at Woolworths (compared to $64.93 in March, but a decrease from a September high of $69.17). 

A comparable basket with both national and house brands purchased from Aldi was $51.36 (compared to $51.51 in March). 

The comparable basket of goods at IGA cost $74.90. 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 $67.84 (compared to $69.33 in our first survey in March), and at Woolworths $69.63 (compared to $68.58 in March). At IGA the same basket without specials costs $78.20.

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 $67.84 (compared to $69.33 in our first survey in March), and at Woolworths $69.63 (compared to $68.58 in March). At IGA the same basket without specials costs $78.20.

How closely matched are Coles and Woolies?

In the first round of our quarterly supermarket research in March 2024, 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 – without specials – Coles outperformed Woolworths on price for the first time. 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.

In our fourth quarterly survey, Coles remained cheaper than Woolworths when comparing baskets without specials: $67.84 vs $69.63. While a difference of $1.79 might not seem like much, over the course of a year of weekly shops, that difference would add up to more than $90.

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. 

In June, prices in the Northern Territory, where stores are smaller, were substantially higher: $105.18 for the basket (with specials), compared to just $74.76 in Queensland, which had the cheapest of the IGA baskets in that survey. 

In September we still found differences between states, but those differences had become less pronounced, with the NT basket dropping from $105.18 to $89.53. In our most recent December survey the price fell again to $87.59.

Nationwide, from June to December, average IGA prices for this basket dropped considerably from $78.95 to $74.90.

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 capital city shoppers paid slightly less at the three biggest supermarkets – $0.07 at Aldi, $0.61 at Coles and $0.23 at Woolworths. Our analysis has found that the price difference of carrots and apples in Aldi, Coles and Woolworths is responsible for the difference.

However, in our most recent survey we found that shoppers at IGA paid more than $0.69 more for their basket (with specials) if they lived in a capital city compared to regional stores.

Across the states

Our analysis found that which state you live in does make a difference to how much you pay, with Western Australians usually paying more than their eastern states counterparts. 

The prices varied very little between Aldi stores, but because shoppers in our largest state paid up to $2.70 more for one of our staple items (apples) than in other Aldi locations, their basket was more expensive. Western Australians also paid more at Woolworths and Coles. At IGA, however, Western Australia was the third cheapest state behind NSW and Victoria. 

Victorians paid less than other states at Woolworths; South Australians got the best deal at Aldi; and in Tasmania, shoppers paid less than their fellow Australians at Coles. 

Interesting anomalies show up when we dig into the data. For example, at the four Woolworths and Coles stores we visited in NT, the cost of most grocery items is the same as at other stores around Australia, yet the penne pasta is priced at exactly $0.15 more – by both Woolies and Coles. 

Spotlight: The top-up shop and the fresh foods basket

It’s the middle of the week and you’ve run out of some of your staples. Which supermarket should you call into on your way home from work to get the best deal?

In a separate analysis we looked at a small basket of perishable goods, picking up apples, bananas, bread and milk. Once again, Aldi came out on top: you’d pay $15.23 for these items (without specials). That’s $1.97 less than you would have paid at Woolworths, $2.11 less than at Coles and $4.79 less than at IGA.

When we focused more particularly on fruit and veg, dairy and meat, Aldi again came out on top. In a basket comparing prices without specials for apples, carrots, cucumbers, bananas, milk and beef mince, we found you’d pay $24.11 on average. Woolworths came in second ($26.35), Coles were a close third ($26.86) and IGA fourth ($31.53). Specials did make a small difference, saving you $0.27 at Woolworths and $1.45 at IGA. There was no difference at Coles or Aldi.

What our results 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. 

1. 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.
2. Shop around: Switching between stores and shopping at different supermarkets to take advantage of specials can deliver significant savings. 
3. 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.

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 December 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. This quarter’s survey included a focus on fresh foods. 

For more details on how we survey, see How we survey supermarket grocery prices.

What’s in our basket?

As this is the end of our first year of quarterly surveying and we’ll be changing our basket in year two, we can now reveal what was in our basket of 14 items in year one. 

Six supermarket own-brand products across ALL stores.

1kg white flour

400g tomatoes, canned (diced, Italian)

2L full cream milk

1kg Royal Gala apples

1kg carrots

500g beef mince

Two national-brand products at all supermarkets (including Aldi).

Sanitarium Weetbix 

Lipton tea bags

Six Aldi house-brand products to national brand products.

White sandwich bread with vitamins and minerals

1kg full-fat tasty cheese

1kg frozen garden peas 

500g penne pasta

2kg white sugar

500g salted butter.

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. 

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. 

All the results from Year 1