T. Ozbun
Research expert covering food retail and all food topics for Italy and Brazil
Get in touch with us nowHow big is the U.S. food retail industry?
The food retail industry in the United States comprises foods sold at grocery stores, convenience stores, drug stores, mass merchandisers, and foodservice facilities. Major players in the industry include Walmart, Kroger, and Walgreens. However, despite the growth of such major supermarket chains and the emergence of online food purchases, there is still a significant network of specialty food and convenience stores meeting the needs of local neighborhoods. In the United States, retail and food services sales amounted to over eight trillion U.S. dollars in 2022, an increase of more than nine percent from the previous year. The total number of supermarkets and other grocery stores in the U.S. has declined slightly to about 63 thousand, with sales of that format hitting an estimated 810 billion U.S. dollars in 2022, which accounted for 85 percent of the U.S. food and beverage retail market a year earlier.Online developments in the food retail industry
Shoppers in the United States tend to favor supermarkets as their go-to source for everyday food and products. While physical stores continue to dominate edible grocery sales, the digital segment is expected to experience significant growth in the coming years, building on the already substantial growth experienced during the pandemic. More and more Americans are turning to online channels to fulfill their grocery needs, with online sales projected to account for 13.5 percent of the total grocery market in 2023. Greater convenience and improved delivery options are among the reasons why online grocery shopping sales in the country are projected to reach nearly 190 billion U.S. dollars by 2024. Consumers now have a plethora of platforms and channels through which they can purchase groceries online, including online services offered by traditional food retailers such as Walmart. Despite growing competition, the company still captures around 28 percent of grocery delivery and pickup sales.
