Food retail in the U.S. - statistics & facts
Substantial transformations, driven by a combination of minor and major trends, have affected one of the United States’ largest sectors, food retail. These include the impact of the pandemic, food inflation, and shifts in consumer behavior that have shaped the industry landscape. For example, increased demand for online shopping has had a major impact, with food and beverage sales as a percentage of total retail e-commerce sales increasing from 12.8 percent in 2017 to more than 28.1 percent in 2025, and projected to reach 31 percent by 2029. In addition, the recent inflationary pressure is adding further challenges to the industry, and driving the need for change and evolution in both retailers and consumer behavior. Despite these hurdles, retail and food services sales in the country have remained strong and continue to experience steady growth.
How 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. Leading grocery retailers include Walmart, which generated close to 483 billion dollars in 2025, along with Kroger and Costco. Despite the growth of such major chains and the emergence of online food purchases, there's still a significant network of specialty food and convenience stores meeting local needs. Supermarket and other grocery store sales reached roughly 881 billion dollars in 2025, accounting for about 87 percent of food and beverage retail in the United States.
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 household products. While physical stores continue to dominate 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 over 148 million consumers using grocery delivery in 2025, which was nearly half of the country's population. Consumers now have a wide range of methods through which they can purchase groceries online, including online services offered by traditional food retailers such as Walmart, which leads online grocery sales by a wide margin.
The U.S. food retail industry is poised for ongoing growth, and the convergence of generational shifts and digital convenience could further reshape how Americans buy their groceries.Â
