NZ grocery prices higher than OECD average, Commerce Commission says
New Zealand's grocery prices stabilised last year, but remained higher than in many many other developed nations, according to the Commerce Commission.
The Annual Grocery Report for 2024 also highlighted "geographic inequities", where areas like Auckland enjoyed more competition, compared to less populated regions.
"In 2024, retail grocery prices appeared to have stabilised after years of significant growth, which was reflected in a slowing of the major supermarket's gross margin growth, however, grocery prices remain higher than the OECD average," grocery commissioner Pierre van Heerden said.
However, he noted recent 2025 data showed retail prices rising, highlighting the need for more work to improve competition.
The Commission said the most recent data from 2023 showed New Zealand prices were three percent higher than the OECD average, although the gap has narrowed.
It was nine percent higher in 2022, and 14 percent higher than the OECD average in 2021.
The commission said major supermarkets maintained their national market share of 82 percent, but there had been some movement within the group.
"Pak'nSave has increased its market share while Woolworths has had a continued decline in market share over the past five years," van Heerden said.
However, he highlighted geographical differences in supermarkets' dominance.
"Consumers in Auckland and other main cities have a range of options, but consumers in smaller towns and rural areas typically have minimal to no choice within their locality, with some stores in small towns functioning as a localised monopoly," van Heerden said.
The report said in Auckland major supermarkets held 71 percent of the market, compared to 88 percent in the rest of the country.
It also found 90 percent of New Zealanders were within a 10-minute drive from a major supermarket.
The top of the South Island, West Coast, Otago, Waikato and Taranaki were where the major chains held the most dominance.
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