Mystery shopping research conducted by consumer advocacy group CHOICE has named ALDI as the cheapest super market, clearing Coles and Woolworths by around 25% on a basket of 14 comparable items.

The research, funded by the Australian government, comes as as CHOICE's latest Consumer Pulse Survey has revealed that 87% of Australian households have concerns about the rising cost of food and groceries.

Concerns over price-gouging have seen consumer trust in supermarkets plummet over the last 12 months. According to CHOICE, 39% of respondents stated they do not trust supermarkets to provide the best service and products. It's another inditement against the standing of the supermarket duopoly in the Australian market, which CHOICE last year awarded a Shonky for announcing massive profits amidst the cost-of-living crisis in 2023.

In response to these concerns, CHOICE has received federal government funding to conduct quarterly supermarket price research for the next three years.

"Our latest report shows that Aldi continues to offer the best value for Australian shoppers on a range of groceries," said CHOICE CEO Ashley de Silva.

"We sent mystery shoppers to regional and metropolitan supermarkets nationwide to record prices for 14 grocery items, and we'll continue to deliver quarterly price analysis reports so Australians can stay on top of where they can find the cheapest groceries, to help relieve some of the pressure on household budgets."

The research recorded regular prices and special prices from 81 supermarkets across the country. IGA was also included where there were no Aldi supermarkets to compete with Coles and Woolies.

The 14 items compared were milk, butter, bread, apples, carrots, peas, weetbix, minced meat, penne pasta, dice tomatoes, a block of cheese, flour, tea bags and sugar.

The average cost of the basket of those 14 grocery items across the supermarkets surveyed by CHOICE was $63.74. Coles was the most expensive, coming in at $69.33, but on 75 cents more than Woolworths, which cost $68.58. ALDI's basket came in well under, at $51.51.

Coles and Woolworths hold a combined 65% market share in Australia. Woolworths Group held the largest share of the grocery retail market in Australia in 2023, with a 37% share, followed by Coles Group with 28%, Aldi with 10%, and IGA with 7%.

The report also highlighted the regional disparities in grocery prices, with shoppers in Tasmania and the Northern Territory paying more due to lack of access to Aldi. "On average, shoppers in Tasmania and the Northern Territory are paying more for their groceries because they don't have the option to shop at Aldi instead of Coles and Woolworths," the CHOICE report stated. IGA was found to be a significantly more expensive option than Coles or Woolworths in these communities.

Meanwhile, people in capital cities are also paying slightly more than shoppers in regional areas.