United States Food and Grocery Retailing Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook 2025-2034

The United States food and grocery retailing market was valued at USD 1.74 Billion in 2024. The industry is expected to grow at a CAGR of 3.30% during the forecast period of 2025-2034 to attain a valuation of USD 2.41 Billion by 2034.

United States Food and Grocery Retailing Market Outlook

One significant driver contributing to growth of the United States food and grocery retailing market is advancements in technologies and adoption of ethical practices. Retails are using AI-powered inventory management systems and launching their mobile apps to improve customer satisfaction. Walmart’s recent collaboration with Microsoft showcases retailer initiatives to develop cloud-based retail systems to streamline operations. Additionally, U.S. Department of Energy’s Better Buildings Initiative has prompted grocery retailers to adopt sustainable practices, such as using LED lightings, for improving energy efficiency in their stores.

Another key trend in the United States food and grocery retailing market is the rapid shift towards online grocery shopping, which has led several retailers to expand their presence on e-commerce platforms to offer food and grocery delivery. As per U.S. Census Bureau, online grocery sales reached USD 147.5 billion in 2022, marking a 14.5% increase from the previous year. Similarly, Walmart, a significant player in the US market, captured around 37% of the total online grocery sales in Q2 of 2024, up from 28.2% in Q2 of 2021. These rising sales are reshaping the market.

Far West Region Holds a Larger United States Food and Grocery Retailing Market Share as Compared to Rocky Mountain and Southwest

• In the market from 2024 to 2032, the Far West region is expected to lead with the highest CAGR of 3.8%, driven by a strong e-commerce infrastructure, high consumer spending, and the growing preference for online shopping, particularly for groceries and household products.
• The Rocky Mountain region follows with a CAGR of 3.6%, supported by increased internet penetration and expanding online retail options in the area.
• As per United States food and grocery retailing industry analysis, the Southwest, with a CAGR of 3.4%, benefits from an expanding consumer base and rising adoption of online retail platforms.
• The Southeast region, growing at a CAGR of 3.3%, shows steady growth due to increasing consumer preference for convenience and time-saving shopping methods.
• New England and the Mideast regions exhibit moderate growth with CAGRs of 3.1% and 2.8%, respectively, reflecting stable but slower adoption of online retail compared to the leading regions.
• The Plains and Great Lakes regions, with CAGRs of 2.6% and 2.5%, respectively, experience slower growth due to smaller populations and less robust e-commerce infrastructures.

Rising Consumer Demand for Packaged Food and Shift Towards Online Grocery Platforms are Factors Driving United States Food and Grocery Retailing Market Growth

• In the market from 2024 to 2032, online retail is anticipated to experience the highest growth, with a CAGR of 3.8%, driven by the increasing shift towards digital shopping platforms, especially for non-perishable items.
• Beverages, with a CAGR of 3.5%, continue to show strong growth as online platforms become more popular for purchasing drinks and related products.
• Packaged food, with a CAGR of 3.4%, also shows steady growth due to the convenience and variety offered by online retailers.
• Fresh food, with a CAGR of 3.1%, experiences moderate growth as consumers are gradually shifting towards buying perishables online, resulting in several United States food and grocery retailing market opportunities.
• Household products and personal care products, with CAGRs of 3.0% and 2.6% respectively, show slower growth, reflecting their lower priority for online shopping compared to other product types.

Integration of Online Delivery Services and Hypermarkets is One of the Major United States Food and Grocery Retailing Market Trends

• In the market from 2024 to 2032, online retail is expected to lead with a CAGR of 3.6%, driven by the rapid expansion of e-commerce platforms and growing consumer preference for online shopping across various product categories.
• Hypermarkets/supermarkets, with a CAGR of 3.5%, continue to show strong growth as they increasingly integrate online shopping options and delivery services.
• Convenience stores, with a CAGR of 3.2%, show steady growth as they adapt to changing consumer preferences with expanded product offerings and localised services.
• The 'others' category, with a CAGR of 3.0%, includes various additional distribution channels contributing to overall United States food and grocery retailing market dynamics and trends at slower pace.

Key Questions Answered in the Report:

• How has the United States food and grocery retailing market performed historically, and what are the growth expectations for the future?
• What are the primary factors influencing demand and growth in the United States food and grocery retailing market?
• What are the key segments within the United States food and grocery retailing market, and how are they expected to evolve over the forecast period?
• What are the major challenges and opportunities facing stakeholders in the United States food and grocery retailing market?
• Who are the key players in the United States food and grocery retailing market, and what strategies are they employing to maintain a competitive edge?
• What are the regulatory and policy factors influencing the United States food and grocery retailing market globally or regionally?
• How competitive is the United States food and grocery retailing market according to Porter's five forces analysis, including factors like bargaining power of buyers and suppliers?
• What are the current trends shaping the United States food and grocery retailing market landscape, and how are they expected to evolve in the future?
• How are technological advancements impacting the United States food and grocery retailing market, and what role do innovation and R&D play in driving growth?
• What are the consumer preferences and buying behavior trends influencing the United States food and grocery retailing market?
• How sustainable are current growth rates in the United States food and grocery retailing market, and what factors could potentially disrupt these trends?
• What are the regional dynamics within the United States food and grocery retailing market, and how do they contribute to overall market growth?
• What are the economic factors influencing the United States food and grocery retailing market, such as GDP growth, inflation rates, and currency fluctuations?
• How are demographic shifts, such as aging populations or urbanization trends, affecting demand in the United States food and grocery retailing market?
• What are the key strategic partnerships, mergers, and acquisitions shaping the competitive landscape of the United States food and grocery retailing market?
• What are the regulatory and legal frameworks impacting the United States food and grocery retailing market globally or in key regions?
• How are changing consumer lifestyles and preferences influencing product or service demand within the United States food and grocery retailing market?
• What are the emerging market trends and niche opportunities within the United States food and grocery retailing market that stakeholders should be aware of?
• How resilient is the United States food and grocery retailing market to external shocks or disruptions, such as geopolitical tensions or natural disasters?
• What are the potential barriers to market entry and growth for new players in the United States food and grocery retailing market?

Key Benefits for Stakeholders:

Expert Market Research's industry report provides a comprehensive quantitative analysis of various market segments, historical and current market trends, and forecasts the dynamics of the United States food and grocery retailing market spanning from 2018 to 2034.

The research report delivers up-to-date insights into the market drivers, challenges, and opportunities shaping the United States food and grocery retailing market.

Stakeholders can leverage Porter's five forces analysis to assess the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. This analysis aids in evaluating the competitiveness and attractiveness of the United States food and grocery retailing market.

The competitive landscape section enables stakeholders to gain a deep understanding of their competitive environment. It offers insights into the current market positions of key players, their strategies, and their market shares.

Additionally, the report highlights emerging trends, regulatory influences, and technological advancements that are pivotal for stakeholders navigating the United States food and grocery retailing market landscape.