Amazon launches grocery brand with products under $5

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Amazon is launching another private label brand of food products, joining the likes of Costco and Walmart in offering "store brand" groceries at lower prices. 

The new Amazon Grocery brand is available online now at Amazon and Amazon Fresh, and in Amazon Fresh stores nationwide. 

Amazon Grocery

Big picture view:

Amazon Grocery combines items already available under Amazon Fresh and Happy Belly brands, and adds several new items. The new brand will offer more than 1,000 grocery products, most of them priced under $5. Those include staples like eggs and ground beef, along with frozen meals, cinnamon rolls and other snacks. 

A shelf stocked with Amazon Grocery products (Amazon)

The company also sells food products through two other brands, Amazon Saver and 365 by Whole Foods Market. 

What they're saying:

Jason Buechel, CEO of Whole Foods Market, said the launch of Amazon Grocery comes at a time when "consumers are particularly price-councious."

The backstory:

Amazon has been growing its grocery footprint in recent years to compete with Target and Walmart: the online giant said it generated over $100 billion in gross sales of groceries and household essentials last year, not including sales from Whole Foods Market and Amazon Fresh.

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A year ago, Amazon launched Amazon Saver, another private label "no-frills" food brand with most items priced under $5. 

Last month, Amazon rolled out a service for Prime members to add grocery orders to other Amazon orders and get free same-day delivery on orders over $25. 

Store brands gaining popularity

By the numbers:

According to NielsenIQ research shared by USA Today, 31% of consumers surveyed in June said they were buying private label products more often amid economic uncertainty and higher grocery prices. 

Private label products – like Costco’s Kirkland, Walmart’s Great Value and Target’s Good & Gather line – accounted for 18.5% of all consumer package goods sales. 

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In 2024, total sales of store brands – both in-store and online – reached a record $271 billion -- an increase of $9 billion year-over-year, according to a report from the Private Label Manufacturers Association. 

Amazon says its customers bought 15% more private-brand products in 2024 than they did a year earlier.