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Retail food industry of the Australia has been changing over recent decades, affecting consumers, suppliers and traders. These changes have increased the efficiency of different aspects of the retail food industry. Shifts in market power, change in customer’s preference and taste, change in demographic population and industry concentration in food retailing could also have an influence on further capturing the potential efficiencies in this sector. The Study conducted by Andrew J and Don G (2005) shows that retailing food industry in Australia covers roughly 46 per cent of the food industry
Australian food industry was stimulated after the Second World War. The industry advanced rapidly due to the new and urgent demand for unfamiliar service rations to precise specifications. Existing technologies were reorganized and additional ones developed. Scientific wartime innovation gave rise to improved processes, products and product applications.
Today the food industry is a vital component of the Australian economy. The industry makes a significant contribution to the economies through employment, business and service opportunities. Many new industries were inaugurated in the late 1980s and 1990s to take benefit of emerging market opportunities.

The trends on Supermarket and grocery store market concentration
The Australian Competition and Consumer Commission (2005) reported that the national grocery market shares of Woolworths, Coles and Franklins raised 40 per cent in 1975 to approximately 80 per cent in 1998. In 2002, Woolworths and Coles had a combined market share of 76 per cent, based on the additional stores that the two chains acquired from the breakup of the Franklins supermarket chain. Given the Australian market share estimate and the series of global retail food market share, Australia has one of the most concentrated retail food

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