Amazon's online grocery market is expected to surpass Walmart's by 2026, reaching $26.7 billion

On July 18, according to data provided by the global trend forecasting department Edge Retail Insight, by 2026, Amazon's online grocery sales business is expected to double, surpassing Walmart, the largest retailer in the United States, to reach US$26.7 billion.

During the COVID-19 pandemic, the demand for online groceries has surged, which has strongly promoted the expansion of Amazon's online grocery market. David Gray, senior retail analyst at Edge by Ascential, said: Amazon has been consciously developing its online grocery business, and its fresh food service has continued to expand in international markets.

In addition, survey data shows that in the next few years, Amazon will become the fastest growing major retail platform in the online grocery market. Currently, Amazon's online grocery business will have a compound annual growth rate of 13%, and is expected to reach a compound annual growth rate of 14.1% in the future.

The study shows that third-party sellers perform best in the grocery business on the Amazon platform. In the fourth quarter of last year alone, Amazon's third-party sellers' online grocery sales increased by 20% to $2.2 billion. In addition, the survey also found that 53% of Amazon's online grocery sales were completed by third-party sellers.

In this regard, analyst David Gray added: The online grocery market has become a new business growth channel for Amazon. They have reached cooperation with different retailers around the world, such as Morrisons in the UK and Dia in Spain.

It is worth noting that although Amazon is expected to surpass Walmart, the largest retailer in the United States, in the grocery sector, this is full of variables because Walmart is constantly increasing its logistics investment, which has enabled Walmart's online grocery business to grow rapidly.

Moreover, although Amazon and Walmart are in a competitive relationship, they also complement each other. Many of their businesses are overlapping and intertwined. For example, Amazon acquired Whole Foods to enter the grocery field, while Walmart increased its investment in the online retail market.

At present, the online grocery market still has great potential. Both Amazon and Walmart are working hard to get a share of the pie. I hope that all merchants will not miss the business opportunities in the online market, seize the opportunities, and actively deploy related products.

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