Amazon grabs $16B in CPG

Amazon has become a bigger force in U.S. consumer packaged goods at a moment when American households are spending more carefully on food and household basics. Store Brands reported on August 5, citing Numerator tracking data, that Amazon now accounts for about $16 billion in U.S. CPG spending and sits just 0.1 share points behind Costco in the rankings. The same report said Amazon gained one percentage point of CPG share year over year, with Whole Foods Market making a significant contribution. Food inflation helps explain why those categories matter. NPR reported on August 5, citing federal data analyzed by the Associated Press, that U.S. food prices are up 33% since 2019, pushing some shoppers to change diets, switch stores or draw on savings. That backdrop has made staples a more contested part of retail competition. ### How close is Amazon to Costco in packaged goods? (storebrands.com) Store Brands said Amazon is now challenging Costco for second place among U.S. retailers in consumer packaged goods, behind Walmart. The publication said Numerator’s study showed Amazon’s share gain left it only 0.1 points behind Costco. Whole Foods was cited as an important part of that advance. The same report said Amazon’s growth was driven by broader household adoption in the United States. (storebrands.com) That matters in CPG because the business depends on frequent purchases of items such as pantry goods, cleaning supplies and other repeat-buy categories, rather than occasional discretionary spending. ### Why are staples becoming more important now? NPR said rising food costs have changed how Americans shop for groceries. (storebrands.com) Its August 5 report said prices were up 33% since 2019 and that some consumers were switching stores, changing what they buy and leaning harder on savings to cover everyday costs. That is the kind of environment in which price visibility and convenience can become deciding factors. Store Brands has separately reported that private-label sales in the United States reached a record $282.8 billion in 2025, while national-brand unit sales declined. That broader trade-down pattern gives added context to Amazon’s gains in staples and household goods, where shoppers are often comparing value across pack sizes, brands and delivery options. (storebrands.com) ### What does repeat buying have to do with Amazon’s position? Amazon’s CPG gains matter because these are high-frequency categories. A shopper who uses Amazon for detergent, paper goods, packaged food or health items can return many times a month, and those purchases are easier to routinize than one-off electronics or apparel orders. Numerator data cited by Store Brands pointed to broader household adoption as a driver of Amazon’s rise. In practical terms, a larger base of households buying staples gives Amazon more chances to convert occasional orders into recurring ones through subscriptions, saved baskets and Prime-linked promotions. (storebrands.com) ### Where does Prime fit into this? Amazon is still using membership perks to pull purchases forward. News18 reported on August 5 that Prime members in India received a 24-hour head start for the Great Freedom Sale 2026, with early access opening on August 6 before the broader sale starts on August 7. The event is not a U.S. grocery promotion, but it shows how Amazon continues to use time-limited access as a conversion tool. (storebrands.com) The same tactic can be more effective when shoppers are already focused on essentials and value. In categories where purchases happen often, a small discount window or early-access offer can be enough to shift where the order is placed. That is one reason Amazon’s rising share in staples is being watched closely by rivals in grocery and household goods. ### What should readers watch next? (news18.com) August 7 is the next clear date in view, when Amazon’s Great Freedom Sale opens to all customers after Prime early access began on August 6, according to News18. In the United States, the next evidence of whether Amazon can keep building share in packaged goods is likely to come through future Numerator retail tracking and retailer disclosures on grocery and household spending. (news18.com) (storebrands.com)