Amazon is estimated to have 18% of the US online grocery market, which is double the second place share held by Walmart.
Establishing market share now is important because it will make it easier to capitalize on the potentially immense value of the US online grocery industry in the future: It is projected to be worth as much $100 billion by 2025.
Most of Amazon’s US online grocery sales came from packaged food products. The e-commerce titan’s top five US online grocery categories in 2017 were packaged products, like cold beverages and snack foods, One Click Retail estimates. Each of these categories is estimated to have grown over 30% YoY to bring in a combined $1.1 billion. However, Amazon likely isn’t satisfied with the performance of its nonpackaged grocery categories, like fresh fruit and dairy. Sales in these categories pale in comparison to those of packaged goods.
In fact, dairy, Amazon’s top selling fresh product category online in the US, brought in just $85 million in 2017. The discrepancy is likely due to consumers’ interest in picking out their own fresh products.
The acquisition of Whole Foods may already be making a difference for Amazon in grocery. One Click Retail’s data suggests that the acquisition gave AmazonFresh a boost in sales, even before Whole Foods products became available through the service. This could mean that consumers are increasingly thinking of Amazon as a grocery destination because of Whole Foods, and given Whole Foods’ reputation for organic and local products, consumers may become more open to buying fresh products through Amazon.
Source: Business Insider