Amazon's US operation is set to see grocery and gourmet food sales increase by 8.9% this year, a new study by Momentum Commerce has found, although beverage sales are likely to see significant growth.
According to the study, beverage sales through Amazon's US channels will grow by 27.3% over the coming year, to record sales of $9 billion (€8.32 billion).
In 2024, beverage sales are likely to account for 45% of total grocery and gourmet foods revenue on Amazon US, up from 38.3% in 2023, Momentum Commerce noted.
Overall Sales
Overall, Momentum Commerce is expecting Amazon's US retail sales to reach $641.3 billion (€592.7 billion) in 2024, an increase of 19.9%, or $106.6 billion (€98.5 billion).
The highest growth rates are expected in macro categories including CDs & Vinyl (estimated sales $607.5 million, up 29.6%), Beauty & Personal Care (estimated sales $36 billion, up 26%) and Pet Supplies (estimated sales $22.6 billion, up 25.3%).
At the same time, slow rates are expected in Books (estimated sales $9.1 billion, up 0.9%), Video Games (estimated sales $5.6 billion, up 2.8%) and handmade products (estimated sales $606 million, up 3.0%).
In terms of subcategories, Janitorial & Sanitation Supplies is expected to be the fastest growing, with 176% growth expected year-on-year, to sales of $1.6 billion (€1.48 billion).
'Rapid Expansion Of Sales'
"Amazon's overall retail growth within the US is driven primarily by the rapid expansion of sales across a number of CPG categories, rather than luxury, apparel, or electronics, and that's going to continue over the next year," said Andrew Waber, director of market research at Momentum Commerce.
"US consumers are clearly growing more comfortable and accustomed to purchasing grocery, health, and beauty products from Amazon despite emerging platforms like TikTok Shop focusing on these segments."
