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.
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Number of Businesses statistics on the Supermarkets & Grocery Stores industry in the US
Walmart was far and away the leader of the grocery industry in the United States in 2017, controlling over ********* of the market. Kroger, the next largest grocer, was a distant second with a ** percent market share. Over ** 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 *** 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 *** 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 ** percent.
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
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 captured a **** 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 *** 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 ***** 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 *** 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 *** percent. U.S. Supermarkets As of 2018, there were about ****** 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 ** percent of all U.S. supermarket sales are attributed to the perishables department. This department includes meat, fresh produce, and dairy, among other categories.
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.
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.
https://www.cognitivemarketresearch.com/privacy-policyhttps://www.cognitivemarketresearch.com/privacy-policy
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.
Key Trends for
Grocery Stores
Sustainability and Eco-Friendly Initiatives: Consumers are increasingly favoring retailers that are dedicated to minimizing plastic consumption, food waste, and carbon emissions. Grocery stores are embracing sustainable packaging, providing locally sourced produce, and establishing recycling initiatives to resonate with eco-conscious consumer values and ESG (Environmental, Social, Governance) criteria.
Personalization Through Data Analytics and Loyalty Programs: Retailers are utilizing purchase hist...
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
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.
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.
https://www.futuremarketinsights.com/privacy-policyhttps://www.futuremarketinsights.com/privacy-policy
The global food and grocery retail market is expected to grow from USD 12.8 trillion in 2025 to USD 17.7 trillion by 2035, reflecting a CAGR of 3.3%. The food and grocery retail market is growing rapidly due to several important factors. Increasing urbanization is a major driver as more people move to cities, which boosts demand for organized retail formats like supermarkets and hypermarkets.
Attributes | Description |
---|---|
Estimated Global Industry Size (2025E) | USD 12.8 Trillion |
Projected Global Industry Value (2035F) | USD 17.7 Trillion |
Value-based CAGR (2025 to 2035) | 3.3% |
Country wise Insights
Countries | CAGR 2025 to 2035 |
---|---|
USA | 2.7% |
Germany | 2.2% |
India | 4.2% |
https://www.mordorintelligence.com/privacy-policyhttps://www.mordorintelligence.com/privacy-policy
The Zero Waste Grocery Stores Market is Segmented by Store Format (Stand-Alone Zero-Waste Stores, In-Store Refill Corners and More), Product Category (Food Staples, Fresh Produce and More), Packaging Model (Bulk Dry Dispensing, Liquid Refill Stations and More), Distribution Channel (Offline and Online), Consumer Demographic ( Millennials, Generation Z and More), Geography ( North America, South America, and More).
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
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.
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Market Size statistics on the Ethnic Supermarkets 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 **** percent share of the ** billion U.S. dollar Southern California grocery market.
India Grocery Market Size 2025-2029
The India grocery market size is forecast to increase by USD 352.8 billion, at a CAGR of 8.5% between 2024 and 2029.
The India Solar Power Market is segmented by Platform (Offline, Online), product (Food Grains, Bread Bakery and Dairy Products, Fruits and Vegetables, Personal Care, Others), Method (Online Payments, Cash on Delivery), and Geography (APAC: India). This segmentation reflects the market's diversity, driven by increasing demand for food grains and fruits and vegetables in India, growing adoption of online platforms with online payments for convenience, and the continued reliance on Cash on Delivery for offline purchases to meet regional consumer preferences across the APAC region.
The grocery market is experiencing a significant shift towards online shopping, with m-commerce seeing particularly rapid growth. This trend is driven by the convenience and time savings offered by online platforms, as well as the increasing availability of delivery and pick-up options. Convenience stores and convenience-focused grocery stores offer a wide range of household goods and quick meal solutions. However, end-users exhibit mixed perceptions towards this mode of shopping, with some expressing concerns over product quality and freshness. Another key trend in the market is the rising demand for functional foods and beverages, as consumers prioritize health and wellness. This shift is expected to continue, with an increasing number of players introducing new product offerings to cater to this demand.
Despite these opportunities, challenges remain, including the need to ensure product quality and freshness in the online channel, as well as the increasing competition and pressure to differentiate offerings. Companies seeking to capitalize on market opportunities and navigate challenges effectively must focus on delivering high-quality products, providing excellent customer service, and leveraging technology to enhance the shopping experience. Machine learning and artificial intelligence are being integrated to improve product placement, customer segmentation, and demand forecasting.
What will be the size of the India Grocery Market during the forecast period?
Request Free Sample
In the dynamic grocery market, store formats continue to evolve, with local sourcing gaining traction as consumers seek fresher produce and reduced food miles. Grocery pickup and delivery services, including online ordering and same-day delivery, are increasingly popular, driven by consumer convenience and the ongoing pandemic. Food waste management and safety are top priorities, with voice ordering and precision agriculture technologies helping to minimize waste and ensure food safety. Virtual reality shopping and augmented reality experiences enhance the customer experience, while retail analytics and customer insights provide valuable data for pricing strategies and product assortment decisions. The circular economy is a growing trend, with emphasis on food security, automated checkout, and alternative protein sources.
Urban farming and labor shortages are also influencing market dynamics, as retailers explore innovative solutions to meet demand. Plant-based foods and pricing strategies remain key areas of competition, with retailers leveraging digital shelves and retail analytics to optimize offerings and stay competitive.
How is this market segmented?
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
Platform
Offline
Online
Product
Food grains
Bread bakery and dairy products
Fruits and vegetables
Personal care
Others
Method
Online payments
Cash on delivery
Geography
APAC
India
By Platform Insights
The offline segment is estimated to witness significant growth during the forecast period. The grocery market in the US is witnessing significant trends and advancements, enhancing the shopping experience for consumers. Grocery pickup and delivery services, such as click and collect and food delivery, are increasingly popular, offering convenience and time savings. Price transparency is a key focus, with many retailers employing competitive pricing strategies to attract customers. Store layouts are evolving, with an emphasis on fresh produce, household goods, and meal kits. In-store kiosks and mobile apps enable customers to access predictive analytics and personalized product recommendations. Supply chain optimization and inventory management are essential for maintaining product availability and reducing food waste.
Specialty stores catering to health and wellness, natural foods, and organic produce are growing in popularity. Private label products and subscription services are also gaining
https://www.mordorintelligence.com/privacy-policyhttps://www.mordorintelligence.com/privacy-policy
North America Online Grocery Delivery Market Segmented by Product Type (Retail Delivery, Quick Commerce and More), Delivery Speed (Standard, Same-Day and More), Platform Type (Mobile App, Web Portal and More), Customer Type (Household, Corporate), and Geography. The Market Forecasts are Provided in Terms of Value (USD).
https://www.cognitivemarketresearch.com/privacy-policyhttps://www.cognitivemarketresearch.com/privacy-policy
Global Grocery Retail market size 2025 was XX Million. Grocery Retail Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.
https://www.factmr.com/privacy-policyhttps://www.factmr.com/privacy-policy
Valuation of the global food retail market is estimated at US$ 12,588.8 billion in 2024 and has been evaluated to rise at a CAGR of 5.5% to reach US$ 21,503.5 billion by the end of 2034. The market is projected to expand at a steady rate over the coming years as food retail companies opt for innovative strategies to expand their customer base and increase their investment budgets.
Report Attribute | Detail |
---|---|
Food Retail Market Size (2024E) | US$ 12,588.8 Billion |
Forecasted Market Value (2034F) | US$ 21,503.5 Billion |
Global Market Growth Rate (2024 to 2034) | 5.5% CAGR |
Canada Market Growth Rate (2024 to 2034) | 6% CAGR |
China Market Value (2034F) | US$ 2,359.5 Billion |
North America Market Share (2024E) | 23.9% |
East Asia Market Share (2034F) | 23.1% |
Key Companies Profiled | The Kroger Company; Amazon.com Inc.; 7-Eleven; The Schwarz Group; Tesco Plc; Target Corporation; Costco Wholesale Corporation; Amartex Family Mart; Walmart Inc.; Anay Groceries. |
Country-wise Evaluation
Attribute | United States |
---|---|
Market Value (2024E) | US$ 1,338.9 Billion |
Growth Rate (2024 to 2034) | 5.9% CAGR |
Projected Value (2034F) | US$ 2,382.8 Billion |
Attribute | South Korea |
---|---|
Market Value (2024E) | US$ 626 Billion |
Growth Rate (2024 to 2034) | 6.2% CAGR |
Projected Value (2034F) | US$ 1,147.4 Billion |
Category-wise Evaluation
Attribute | Convenience Stores |
---|---|
Segment Value (2024E) | US$ 2,882.8 Billion |
Growth Rate (2024 to 2034) | 6.4% CAGR |
Projected Value (2034F) | US$ 5,354.4 Billion |
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Supermarkets and grocery store outcomes have been a tale of dealing with volatile prices at their purchase and sales points. The continued expansion of Aldi and Amazon has forced the two established industry giants, Woolworths and Coles, to remain price-competitive on both the physical store and online service fronts. To differentiate themselves from low-cost supermarkets, Coles and Woolworths have leant into attracting customers with convenient locations and expanded online shopping capabilities. These supermarket giants also rely on loyalty programs and promotions. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics firms like Palantir to optimise their marketing and operational processes. The ACCC and Treasury have taken the lead on addressing supplier and customer concerns relating to deceptive discounting practices and supplier contract bargaining exploitation. Supermarket and grocer revenue rose significantly following the COVID-19 outbreak. Household expenditure shifted towards retail industries amid restrictions on many services industries, with this imbalance remaining as high costs limit eating out. A combination of panic buying, along with the suspension of many specials and promotions in supermarkets, boosted grocery turnover at the beginning of the period, spiking revenue for 2019-20. This high benchmark at the start of the period has resulted in an industry correction and an annualised revenue decline of 0.6% to $148.7 billion over the five years to 2024-25. However, stores have largely managed to pass on upstream costs to customers, steadying their profit margins while suppliers and consumers bear the brunt of inflation-driven costs. Revenue is estimated to climb by 0.2% in 2024-25, reflecting the price-driven industry growth more indicative of the overall revenue trend that was drowned out by the pandemic revenue spike and correction. Supermarkets and grocery stores are set to continue performing well with industry revenue slated to climb at an annualised 0.4% over the five years through 2029-30 to $142.8 billion. Population growth and stubborn inflationary pressures, despite rate hikes, are set to keep store prices inching upwards. The results of the Treasury and the ACCC's investigations will shine a light on new regulations and potential penalties in store for large supermarkets. Eventually, when inflationary pressures subside and consumer sentiment returns to a positive level, supermarkets and grocers will be well-positioned to take advantage of consumer appetite for value-added and premium goods. Strong growth in online sales is set to continue.
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.