Amazon.com has the clear lead on online food and beverage sales in the U.S., but there’s plenty of business to go around, according to a new study.
Seattle-based Amazon accounts for 18 percent of all online food and beverage sales in 2017, according to “Online Grocery Shopping in the U.S.: Food Industry Disruptor Series,” a report by Rockville, Maryland-based Packaged Facts.
Bentonville, Arkansas-based Wal-Mart Stores Inc. comes in second with a 9 percent share.
Despite Amazon’s strong market share in the category, the report recommends that companies “avoid trying to out-Amazon Amazon.” Online sales, which currently account for barely 1 percent of food and beverage sales, are set for huge growth, and there’s plenty of room for companies to grow without focusing on stealing Amazon’s share, according to Packaged Facts.
Traditional grocers have a head start on Amazon when it comes to perishables, for instance, according to the report.
"At this stage, it is too early to determine what percentage of overall food and beverage sales will eventually be made online, but it is not unreasonable to assume a 20 to 30 percent market share by the time the market reaches equilibrium over the next decade," says David Sprinkle, research director for Packaged Facts.