What is the cheapest supermarket in Australia?

ALDI is the cheapest supermarket in Australia for most shoppers. But the answer depends on what you buy. Here is the full breakdown.

ALDI is the cheapest supermarket in Australia for a typical basket of staples, sitting 15-25% below Coles and Woolworths. But the real answer is more complicated: no single supermarket is cheapest for everything.

The overall ranking

If you want one number: ALDI wins on price. Here is how the chains stack up:

  1. ALDI: Cheapest on pantry staples, frozen food, meat, bread, and cleaning products. Lowest price variance week to week.
  2. Coles and Woolworths (tied): Depends which week you shop. Both run alternating specials on meat, produce, and branded goods. Over a month, they trade places. No genuine price advantage between them.
  3. Harris Farm: Cheaper on fresh produce (especially their Imperfect Picks range). More expensive on pantry items. Better if you prioritise vegetables.

Who wins in each category

Where you save the most money depends on what fills your trolley.

Pantry staples (rice, pasta, flour, sugar, oil): ALDI. By a significant margin. A 2kg bag of flour at ALDI costs 30-40% less than at Coles or Woolworths.

Fresh produce: Harris Farm has the edge on leafy greens and root vegetables, especially through their Imperfect Picks program. But ALDI's produce prices are competitive for the items they stock (not as wide a range).

Meat: Varies weekly. Coles and Woolworths run weekly specials that rotate. ALDI's meat pricing is consistently low, with less volatility. If you buy meat every week, ALDI saves money over time.

Dairy (milk, cheese, yogurt): ALDI. Home-brand milk at ALDI is cheaper than both Coles and Woolworths every week.

Bread: ALDI. Their baked goods are priced 20-30% below major chain bread.

Frozen food: ALDI. Home-brand frozen vegetables and meals are substantially cheaper.

Cleaning and personal care: ALDI. Home-brand cleaners, laundry powder, and personal care items are 40-50% cheaper than branded equivalents at other chains.

Branded products: Coles or Woolworths. ALDI doesn't stock most mainstream brands (Arnott's biscuits, branded cereals, etc.). If you buy specific brands, you'll pay full price or find cheaper specials at Coles or Woolworths.

Specialty and international food: Coles or Woolworths. ALDI's range is narrower.

What CHOICE found

CHOICE, Australia's peak consumer advocacy organisation, runs an annual supermarket basket survey. The results are consistent: ALDI is cheapest.

Their 2025 survey found that a typical basket of 50 everyday items cost $50-60 less at ALDI than at Coles or Woolworths. That is around 12-15% cheaper. Over a year, a family shopping the same list at ALDI instead of Coles or Woolworths saves between $2,600 and $3,100.

Why the answer changes every week

Coles and Woolworths run weekly specials. One week, Coles might discount milk by 30%. The next week, Woolworths does the same. In any single week, you might find individual items cheaper at Coles or Woolworths than at ALDI.

But those specials are tactical: they rotate to draw shoppers in. Over a month or quarter, they average out to the same price. ALDI doesn't chase specials. Their everyday price is their lowest price. That consistency adds up.

The real cheapest approach: split your shop

Most Australian households do not stick to a single supermarket. The cheapest approach is to split:

Shop ALDI first: Load your trolley with pantry staples, bread, dairy, frozen, and meat. This is where ALDI's advantage is largest.

Top up elsewhere: If Coles or Woolworths have a special on something you need that week, buy it there. If you want branded products ALDI does not stock, buy them at Coles or Woolworths (or accept the ALDI home-brand equivalent).

Buy produce strategically: Harris Farm if you are in Sydney and want fresh leafy greens or root vegetables. ALDI or Coles/Woolworths specials for other produce.

This approach requires discipline and planning, but it is where most Australian families find the biggest savings.

How much you can save by switching

If your household currently shops at Coles and Woolworths for everything, switching your staples to ALDI saves:

  • Single person: $300-500 per year
  • Couple: $600-1,000 per year
  • Family of four: $1,500-3,000 per year

Those numbers assume you buy home-brand equivalents at ALDI (which are genuinely good quality). If you stick to branded products only, savings drop to 5-10%.

The trade-offs

ALDI is not perfect. Considerations before you switch:

Limited range: ALDI stock fewer lines per category. You will not find 15 types of pasta. You will find three. If you have strong brand preferences, you will be frustrated.

Produce quality is variable: ALDI buys daily stock but rotates quickly. You need to inspect produce carefully. Harris Farm and Coles/Woolworths are more reliable if you shop less frequently.

Stock gaps: Popular items can sell out. If you need something specific, there is no guarantee ALDI will have it.

No loyalty scheme: Coles and Woolworths offer Flybuys and Everyday Rewards. ALDI does not. You miss out on points or digital specials tied to membership (though ALDI's base prices are low enough to offset this).

Track your own prices to find your cheapest shop

Every family shops differently. Your cheapest supermarket might not be ALDI if you buy mostly branded products or specialty food. The best way to know: track what you buy across the chains and compare.

Download Pinch (free on iOS, Android coming soon). No ads. No data selling. Scan prices at every supermarket you visit and compare your total bill week to week. You will know exactly which chain is cheapest for your household in weeks, not months.