Industry Overview

US food and grocery retail market was valued at $1,657.1 billion in 2025 and is projected to reach $2,462.3 billion by 2035, growing at a CAGR of 4.1% from 2026 to 2035. The market remains one of the largest retail industries globally, comprising supermarkets, hypermarkets, warehouse clubs, discount stores, specialty grocery retailers, and rapidly expanding online grocery platforms. Rising urbanization, evolving consumer lifestyles, and increasing preference for convenience-oriented shopping are continuously transforming the retail landscape across the United States. Retailers are actively integrating digital commerce technologies, AI-powered inventory management systems, automated fulfillment centers, and contactless payment solutions to improve operational efficiency and customer experience. Additionally, growing consumer demand for healthier food products, organic groceries, and private-label offerings is reshaping merchandising and product development strategies among leading grocery retailers.

The rapid expansion of e-commerce and quick commerce platforms is significantly influencing competition and innovation in the market. In September 2025, Target expanded its “stores-as-hubs” strategy to strengthen next-day grocery and retail delivery services across major U.S. metropolitan regions. The initiative utilizes retail stores as mini fulfillment centers to improve supply chain efficiency, same-day pickup, and rapid grocery delivery capabilities, supporting rising digital grocery demand nationwide. Similarly, in July 2024, Albertsons Companies expanded its partnership with Instacart to introduce nationwide pickup services and rapid grocery delivery across more than 2,000 store locations in the United States. The collaboration includes same-day and 30-minute convenience delivery services aimed at enhancing omnichannel grocery shopping experiences and improving customer convenience. These developments reflect the increasing adoption of digital grocery retail platforms and rapid fulfillment solutions across the U.S. food and grocery retail market.

Market Dynamics

Rapid Grocery Delivery Reshaping Digital Retail

Online grocery retail is rapidly transforming the US food and grocery retail market due to rising consumer demand for home delivery, app-based shopping, and contactless purchasing experiences. Retailers are increasingly investing in automated fulfillment centers, AI-enabled logistics, and digital commerce infrastructure to improve operational efficiency and delivery speed. In September 2025, The Kroger Co. expanded its partnership with DoorDash to offer fast grocery delivery services across nearly 2,700 stores nationwide. The collaboration enables consumers to access fresh food products, household essentials, and private-label groceries with delivery in as little as one hour. The initiative strengthens omnichannel retail capabilities while improving customer convenience across urban and suburban regions. Growing integration of rapid delivery technologies and digital fulfillment solutions continues to accelerate the adoption of online grocery retail channels throughout the United States.

Rapid Grocery Delivery Reshaping US Retail

Quick commerce is rapidly transforming the U.S. food and grocery retail market due to rising consumer demand for faster delivery services and convenience-driven shopping experiences. Retailers are increasingly collaborating with logistics providers and digital commerce platforms to strengthen last-mile delivery infrastructure and improve order fulfillment efficiency. In September 2025, DoorDash expanded its grocery commerce operations through DashMart Fulfillment Services and partnered with Kroger to integrate nearly 2,700 Kroger stores onto its delivery platform across the United States. The company also introduced AI-powered retail technologies, autonomous delivery robots, and advanced fulfillment solutions to accelerate grocery delivery operations. These innovations are improving delivery speed, enhancing customer convenience, and strengthening the growth of online grocery retail and quick commerce nationwide.

Market Segmentation

• Based on product category, the market is segmented into food products, beverage products, and non-food grocery.
• Based on store format, the market is segmented into hypermarkets, supermarkets, convenience stores, discount stores, warehouse clubs/cash & carry, traditional grocery stores, specialty food stores, online grocery retail, and quick commerce.
• Based on distribution channel, the market is segmented into offline retail and online retail.

Smart Retail Expansion Reshaping U.S. Grocery Shopping

Supermarkets and hypermarkets continue to strengthen their dominance in the U.S. food and grocery retail market due to wide product assortments, competitive pricing, and growing consumer preference for one-stop shopping destinations. Retailers are increasingly investing in store modernization, self-checkout technologies, and digital retail solutions to enhance operational efficiency and customer convenience. In May 2026, Meijer opened a new 47,000-square-foot grocery-focused retail store in Rochester Hills, Michigan, to expand its organized retail footprint and improve accessibility to fresh grocery products. The store integrates digital shopping features and home delivery services, reflecting the rising demand for omnichannel grocery retailing across the United States. The expansion highlights the increasing focus on compact grocery store formats and technology-enabled retail infrastructure to support evolving consumer shopping behavior.

Market Players Outlook

The major companies operating in the US food and grocery retail market include Walmart, The Kroger Co., Costco Wholesale, Albertsons Companies, and Target, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Development

• In December 2025, Amazon expanded its same-day fresh grocery delivery service to more than 2,300 cities and towns across the United States to strengthen rapid grocery fulfillment and digital retail operations. The expansion includes a broader selection of fresh produce, dairy, meat, seafood, and frozen foods through Amazon’s same-day delivery network and Whole Foods Market integration. The initiative reflects rising consumer demand for convenience-driven grocery shopping and the growing adoption of online grocery and quick commerce services in the U.S. food and grocery retail market.
• In November 2025, BJ's Wholesale Club announced new warehouse club locations in Texas and Alabama as part of its broader U.S. expansion strategy to strengthen grocery retail operations and membership-based shopping services. The expansion includes new stores in Mesquite, Texas, and Foley, Alabama, aimed at improving consumer access to bulk grocery products, fresh food offerings, and value-focused retail solutions. The initiative reflects rising investments in organized grocery retail infrastructure and growing demand for warehouse club shopping formats across the U.S. food and grocery retail market.
• In January 2025, Sprouts Farmers Market announced plans to expand its Florida footprint with more than seven new grocery stores across the state during 2025. The expansion is expected to create over 650 jobs while strengthening access to fresh, organic, and health-focused food products for consumers across Florida. The initiative reflects the growing investment in specialty grocery retail formats and the rising demand for convenience-driven and wellness-oriented food retailing in the U.S. market.

The Report Covers

• Market value data analysis for 2025 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Key companies operating in the US food and grocery retail market
• Based on the availability of data, information related to new protections and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who stands where’ in the market.