In 2025, the leading grocery stores in the United States held close to two thirds of the total industry market share. Walmart held the top position with **** percent, followed by Kroger at just under **** percent. Kroger Co. As one of the leading supermarket chains, Kroger has been become a favorite among consumers. Founded by Bernard Kroger in 1883, the company opened its first store in Cincinnati, Ohio and now operates more than ***** grocery retail stores in the United States. Grocery shopping behavior Among the diverse options for food acquisition, supermarkets and superstores are the preferred for consumers. Even though online grocery shopping is on the rise, it is still not up to par with warehouse clubs or discount stores. When it comes to frequency, grocery shopping trips have decreased since the early 2000s, perhaps to adapt to economic pressures like inflation, which has drastically changed the way consumers shop.

Number of Businesses statistics on the Supermarkets & Grocery Stores industry in United States

Supermarkets and grocery stores have significantly transformed in recent years, driven by technological advancements and shifting consumer preferences. E-commerce has become a cornerstone of the industry, with over 70.0% of grocery retailers integrating online ordering and fulfillment into their operations in 2025. This shift has been fueled by consumer demand for convenience and efficient shopping experiences, prompting retailers to invest heavily in curbside pickup and home delivery services. Major players like Kroger have leveraged these innovations to maintain a competitive edge, while third-party delivery platforms like Instacart have enabled smaller grocers to compete with larger chains. The adoption of "dark stores" and AI-driven technologies has further optimized operations but heightened competition has limited revenue expansion. Over the past five years, revenue has been slipping at a CAGR of 0.1%, reversing course in 2025 to climb 1.1%, reaching $883.1 million. Over the past five years, the industry has faced rising labor costs and competition from discount grocers and private-label products. Automation has played a crucial role in managing these pressures, with more than 50.0% of transactions in major chains processed through self-checkout systems in 2025. Despite these advancements, wages have continued to rise, accounting for an estimated 10.7% of revenue. This has led retailers to focus on strategic pricing and the promotion of high-margin private-label products to sustain profit. The proliferation of discount grocers like Aldi and Lidl has intensified competition, forcing traditional supermarkets to innovate and adapt to retain market share. Looking ahead, supermarkets and grocery stores are likely to endure steady but marginal revenue growth over the next five years, influenced by economic and demographic factors. Increases in per capita disposable income and consumer spending suggest a stable economic environment that could bolster sales of premium and specialty grocery items. However, declines in the agricultural price index may pressure revenue growth, as lower prices could reduce sales value. Urban population growth will continue to drive demand for grocery products, encouraging retailers to adopt urban-centric strategies. Upcoming FDA regulations on product labeling and ongoing geopolitical tensions will present challenges and opportunities for the industry. Retailers that can navigate these complexities and align with evolving consumer preferences, such as the rise of functional foods and the "quiet luxury" trend, will be well-positioned to thrive in a rapidly changing market landscape. Revenue is anticipated to expand marginally over the next five years at a CAGR of less than 0.1%, totaling $883.3 million in 2030.

Walmart was far and away the leader of the grocery industry in the United States in 2017, controlling over a quarter of the market. Kroger, the next largest grocer, was a distant second with a 10 percent market share. Over 40 percent of the grocery market is occupied by smaller retailers.

Retail giant

Walmart, headquartered in Bentonville, Arkansas, was founded by Sam Walton in 1962. The company not only has the largest share of the U.S. grocery market but is the largest retailer overall in the world. In 2017, Walmart’s revenue exceeded 500 billion U.S. dollars.

E-commerce giant

Second only to Amazon, a recent survey shows that Walmart is a leading player in the online grocery market space. Food and beverage e-commerce sales of the retailer topped out at over 1 billion dollars for the U.S. market in 2018. Growth of the company’s e-commerce sales have been extremely strong. Average quarterly growth over the last fiscal year was 40 percent.

Grocery sales through e-commerce channels are expected to increase, due to changing consumer behavior after the pandemic. By 2026, projections for the United States showed that e-grocery will account for **** percent of total grocery sales.

Walmart captured a 17.3 percent share of the U.S. food and beverage market, making it the top food and beverage retailer in the United States in 2016. Kroger came in second place, with an 8.9 percent share of the market.

Walmart in the United States

Walmart is by far the biggest retailer in the United States. In 2017, the company generated about 374.8 billion U.S. dollars in retail sales in the United States. To put that figure in perspective, the e-commerce giant Amazon.com only had retail sales of about 103 billion U.S. dollars. Between 2015 and 2019, the U.S. segment of Walmart has experienced positive and increasingly larger sales growth rates. Between 2018 and 2019, Walmart U.S. sales increased by 3.7 percent.

U.S. Supermarkets

As of 2018, there were about 38,307 supermarkets in the United States. Most of these supermarkets are categorized as conventional supermarkets. Some other common types of supermarkets are supercenters, limited assortment supermarkets, and natural/gourmet food markets. About 50 percent of all U.S. supermarket sales are attributed to the perishables department. This department includes meat, fresh produce, and dairy, among other categories.

This statistic depicts the market share of supermarkets and grocery stores in the U.S. retail industry in 2015, by category. In that year, fresh and frozen meat had a share of 8.4 percent of the U.S. supermarket and grocery store segment.

Online grocery sales have surged as online shopping has shot up. The surge in the popularity of online shopping, along with an increase in per capita disposable income and consumer spending, contributed to significant revenue growth for the industry. Overall, industry revenue will climb at a CAGR of 16.3% over the five years to 2024 to reach an estimated $43.3 billion in 2024, including expected growth of 4.3% in 2024. Over the past five years, strengthening incomes and climbing food prices have benefited online grocery sales. Sensing heightened demand for internet-based delivery services, major companies like Amazon and Walmart have scaled up their industry-relevant operations and captured much of this rising demand. Meanwhile, a new group of highly focused online grocers, including Door-to-Door Organics, have targeted niche markets across the United States by selling organic and other specialty groceries online. Moving forward, online grocery services will continue to enjoy revenue growth through the end of 2029, though at a muted pace when compared to the previous five years. Competition from brick-and-mortar grocery stores will continue to pressure the industry as many consumers prefer to shop for groceries, specifically produce, in person to assess the quality. Online grocers will invest in advanced technology to attempt to strengthen operational efficiency and reduce consumer hesitations. The use of drones for delivery and virtual reality will be key trends over the next five years. Price competitiveness will also climb, contributing to declining profit. Over the five years to 2029, industry revenue will expand at a CAGR of 3.5% to reach an estimated $51.5 billion in 2029.

According to Cognitive Market Research, the global Grocery Store market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
The Retail Chain category is the fastest growing segment of the Grocery Store industry

Market Dynamics of Grocery Store Market

Key Drivers for Grocery Store Market

Growing Consumer Interest in Organic and Fresh Foods to Boost Market Growth

The market for grocery stores is significantly influenced by consumers' increased interest in fresh and organic foods. Organic vegetables, dairy, meats, and other minimally processed foods are becoming more and more popular among health-conscious consumers because of their perceived quality, environmental impact, and health benefits. Growing consumer awareness of pesticide use, genetically modified organisms, and additives has led them to favour products with organic labels and those supplied locally. In response, grocery stores have increased the variety of organic products they provide and established special areas, which draw in a devoted clientele and strengthen their brand identity. This change further supports the expansion of the grocery business by being in line with trends toward eco-friendly and sustainable practices.

Growth of Private Label Goods to Drive Market Growth

As private label items provide merchants with larger profit margins and competitive pricing, their expansion is a key factor in the grocery store industry. Store-branded private labels are popular among budget-conscious shoppers seeking high-quality substitutes for national brands. More control over pricing and production allows supermarkets and grocery stores to customize products to consumer tastes and new trends, such as organic or gluten-free options. Because consumers are drawn to unique products that aren't found anywhere else, private labels also encourage customer loyalty, which eventually improves store distinction and boosts total grocery sector sales.

Restraint Factor for the Grocery Store Market

Increasing Online Retailer Competition Will Limit Market Growth

The grocery store sector is being restrained by the growing competition from online retailers, as customers are attracted to the ease of online shopping and doorstep delivery. With their extensive assortment, affordable costs, and easy-to-use platforms that simplify shopping, e-commerce behemoths and grocery delivery services are alluring substitutes for conventional grocery stores. Due to this change, fewer people are visiting physical businesses, particularly younger, tech-savvy shoppers. Online merchants also frequently provide subscription-based discounts and tailored promotions, which help them gain market share. Digital trends are difficult for traditional grocery stores to adopt, which may hinder their expansion and financial success.

Impact of COVID-19 on the Grocery Store Market

The market for grocery stores was significantly impacted by the COVID-19 epidemic, which also accelerated the trend toward online grocery shopping and fundamentally altered consumer behaviour. The stockpiling of necessities caused temporary increases in demand due to lockdowns and health concerns. As more people cooked at home, sales of cleaning goods, personal care items, and pantry items climbed in many establishments. However, physical retailers had to deal with issues like labour shortages, supply chai...

In 2024 in the U.S., traditional grocery shares held the highest market share for fresh foods. Traditional grocery stores held 44.4 percent of the market share, compared to mass and supercenter stores with only about 17 percent of the market share.

Employment statistics on the Supermarkets & Grocery Stores industry in United States

This statistic shows the market share of Southern California's leading grocery retailers as of 2017. As of 2017, Albertsons had a 20.6 percent share of the 45 billion U.S. dollar Southern California grocery market.

The Zero Waste Grocery Stores Market Report is Segmented by Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, and Online Stores) and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The Report Offers Market Size and Forecasts for the Zero Waste Grocery Stores Market in Value (USD) for all the Above Segments.

In 2018, supermarkets in the United States enjoyed an approximate ** percent share of the grocery market. Warehouse stores and superstores accounted for about ********** of the market, putting this store type in second place. Food shopping behavior in the U.S. On average, the American household spent an annual amount of just under ***** thousand U.S. dollars on food in 2018. Food expenditures in the United States have gone up by almost *** thousand U.S. dollars since 2010. In 2018, as well as 2019, the average U.S. household made an average of ************** grocery shopping trips per week. The approximate number of trips per week has decreased slightly in recent years. Between 2006 and 2010, consumers in the United States went shopping for groceries ***** per week on average. Online groceries The online grocery store is a relatively new concept that is becoming increasingly popular around the world. U.S. online grocery shopping sales amounted to almost ** billion U.S. dollars in 2018, a number that is expected to double by 2022. In 2018, most American consumers (roughly ** percent) only purchased small grocery amounts, while less than ** percent did (almost) all of their shopping online.

The global Food and Grocery Retail Market Market will grow to a value of USD 12.8 Trillion during 2025 and it is expected to reach USD 17.7 Trillion by 2035 with a projected compound annual growth rate of 3.3% throughout 2025 to 2035.

Country wise Insights

Category-wise Insight

United States - Producer Price Index by Industry: Supermarkets and Other Grocery Stores: Supermarket and Other Grocery Store Services was 288.74100 Index Dec 1999=100 in April of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Supermarkets and Other Grocery Stores: Supermarket and Other Grocery Store Services reached a record high of 290.16800 in February of 2025 and a record low of 100.00000 in December of 1999. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Supermarkets and Other Grocery Stores: Supermarket and Other Grocery Store Services - last updated from the United States Federal Reserve on June of 2025.

North America Online Grocery Delivery Market is Segmented by Product Type (Retail Delivery, Quick Commerce, Meal Kit Delivery) and Country (United States, Canada). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Graph and download economic data for Producer Price Index by Industry: Supermarkets and Other Grocery Stores (PCU445110445110) from Dec 1999 to May 2025 about groceries, PPI, industry, inflation, price index, indexes, price, and USA.

Market Size statistics on the Ethnic Supermarkets industry in United States

Grocery wholesalers act as a middleman between food producers and retailers. Improving per capita disposable income has allowed consumers to trade up to more expensive options at grocery stores or switch to dining out. Grocery wholesalers benefit either way as they distribute products to both markets. However, the growing trend of eliminating the middleman has pressured revenue expansion during the period. Still, grocery wholesalers' revenue shrunk at an estimated 1.7% CAGR to $298.2 billion over the past five years, including an anticipated 0.8% gain in 2025 alone. Although grocery wholesalers have a moderate market share concentration, businesses vary in size depending on their target market and geographical scope. The disproportionate size of grocery wholesalers has contributed to industry consolidation over the past decade as large wholesalers constantly seek new inorganic expansion opportunities. Grocery wholesalers' profit is also susceptible to change depending on the size of an organization and relevant industry prices such as produce and fuel. During the five years, significant disruptions in the supply chain and increases in the price of gas and energy pushed up transportation costs and contributed to decreasing profit. Over the next five years, grocery wholesalers' revenue expansion is anticipated to expand. The industry will be impacted by strengthened economic uncertainty and changes in downstream consumer preferences. Recent hikes in inflation will negatively impact grocery wholesalers' performance as consumers are forced to change their purchasing habits to manage expenses. However, growing per capita disposable income and a boost in the number of households will drive industry expansion. Moreover, agricultural product prices are expected to dwindle during the same period. Also, rising demand for specialized goods will lead smaller companies to carve out niche markets, supplying locally produced foods, ethnic foods and specialty imported foods. As a result, industry revenue will climb at an expected CAGR of 0.4% over the next five years to reach $303.6 billion in 2030.