Report shows Woolworths has the largest share of the fresh meat market

Shoppers are buying more meat at supermarkets, as butchers lose out, a recent report shows.

BUTCHERS continue to lose market share for fresh meat sales to the major supermarkets, new research shows.

And while butchers believe convenience plays a part in where consumers shop, the supermarkets believe they are on the front foot due to their relationships with farmers.

Roy Morgan’s recent Fresh Food and Grocery report shows Woolworths has the largest share of the fresh meat market, taking 27.5 per cent of the more than $13 billion spent on fresh meat in Australia each year.

Coles is in second place, with 22.6 per cent of the fresh meat market, followed by specialist butchers at 20.9 per cent, Aldi at 10.6 per cent, other non-supermarkets at 6.6 per cent, IGA at 5.1 per cent, other supermarkets at 4.3 per cent, and produce markets at 2.3 per cent.

Roy Morgan chief executive Michele Levine said the changing way Australians purchased fresh meat was having a big impact.

“Supermarkets now account for 70.2 per cent of the meat market,” she said.

While Woolworths’ market share has remained steady during the past eight years, declining only 0.1 per cent since 2011, butchers have declined in market share by 8.6 per cent.

Ms Levine said the “big winners in scooping up” customers from butchers were Aldi, up 6.9 per cent since 2011 and Coles, up 3.8 per cent.

Healesville butcher Stephen Hollis, who has owned the Healesville Main Street butcher shop for about 19 years, said the market share had only “got worse”.

To differentiate themselves, Mr Hollis said they specialise in smallgoods and smoked meats, winning regular awards “but people still go back to the supermarket”.

Mr Hollis said he believes it is for convenience and laziness from shoppers.

“People used to go to the baker, then the butcher and green grocer, then go to the supermarket, now they just go to one shop,” he said.

Slice of the action: Healesville Main Street butcher Steve Hollis has noted a customer drift from independent butchers to supermarkets.

While Mr Hollis said meat prices had gone up across the board in the past few years, independent butchers were often cheaper than supermarkets so price wasn’t the problem.

Woolworths head of livestock buying and processing Brett Thompson said it is only through the partnerships with “some of Australia’s best meat producers and processors” that they’ve been able to maintain such a high quality and consistent supply of fresh meat.

“We believe this is the key reason we’ve been able to earn the right to our customers’ repeat business over the years,” he said.