Amazon gains grocery market share as fresh food sales rise in the U.S.

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Amazon gains grocery market share

Highlights

Amazon's perishable grocery sales, including fresh shrimp, berries, and dairy, increased severalfold between June and August after expanding same-day delivery to thousands of U.S. locations.
Nielsen IQ data show Amazon gained U.S. food market share through late August as traditional grocers lost ground, with consumers increasingly trusting Amazon for fresh categories.
High-income and older households are driving fresh grocery growth on Amazon, supporting its strategy to boost overall platform shopping frequency and spend.

Perishable sales accelerate with delivery expansion

As reported by Business Insider, citing Nielsen IQ, Amazon's sales of perishable groceries including fresh shrimp, berries, dairy and other produce increase severalfold between June and August, following its expansion of same-day fresh grocery delivery to thousands of cities and towns across the U.S.

The market research firm's data also show Amazon gains food market share for the year through late August as traditional grocery retailers lose ground. Nielsen says shoppers are increasingly turning to Amazon for categories that historically have been among the biggest obstacles to wider online grocery adoption.

Amazon has spent years trying to build scale in grocery through moves including its Whole Foods acquisition, private-label food offerings, and experiments with physical grocery chains. The latest results suggest its more recent focus on faster fresh-food delivery is producing traction in a highly competitive segment.

Higher-income households support broader retail strategy

According to Nielsen IQ, many shoppers buying fresh foods on Amazon come from households earning more than $100,000 a year and also tend to be older than the average customer. They are also frequent Amazon users who place more orders and spend more on the platform than typical shoppers.

That dynamic makes fresh groceries strategically important for Amazon because food is one of the most frequent household purchases in the U.S. Nielsen says the category can serve as an important lever to increase shopping frequency and overall spending across Amazon's wider retail business.

Amazon still faces strong competition from Walmart, which already uses its store network and gig-worker delivery model to offer same-day grocery service. Business Insider reported in September that Amazon is considering opening about 1,000 same-day fulfillment centers across the U.S. by 2031, a move that could help it place inventory closer to customers and narrow Walmart's operational advantage.

Walmart’s market share gains amid persistent inflation were the focus of our earlier coverage, noting how its value proposition is pulling in budget-conscious shoppers and keeping investor attention on share growth. We also outlined how Walmart is leaning on higher-margin businesses, automation, and digital services—including its expanding e-commerce and delivery push and AI tools like the Sparky assistant—to support sales and profitability improvements.

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