Expect Amazon-based retail sales to keep growing at a double-digit pace in the United States, retail consultancy Momentum Commerce stated, singling out big Amazon sales gains in categories such as food and other day-to-day needs.
The latest model estimates from Momentum Commerce indicate Amazon U.S. retail sales should arrive at $641.3 billion in 2024, an increase of 19.9% or $106.6 billion year over year.
Even in the age of downloads, physical conveyors of music should continue to lead Amazon growth, with CDs and vinyl records gaining 29.6% in the U.S. to reach $607.5 million in 2024. Just trailing that top rate of gain are beauty and personal care, collectively up 26% to $36 billion and pet supplies, up 25.3% to $22.6 billion. Even slow growth categories have some significance. Third slowest in the Momentum Commerce assessment, ahead of books and video games, are handmade products, estimated by the consultancy to grow at a 3% clip to reach $606.6 million.
What’s critical to understand, according to Momentum, is Amazon’s steep growth in its everyday needs categories, including pet care and beauty and personal care, suggesting Amazon is incorporating itself into the daily lives of consumers in the U.S. more deeply than ever. Momentum Commerce forecasts grocery and gourmet food to grow collectively by 8.9% year over year in 2024. Within that category, the consultancy expects beverages sales to gain 27.3% to reach $9 billion, a growth rate of 27.3%, reaching 45% of category sales, up from 38.3% in 2023. With consumers accessing the e-tailer for everyday needs, it seems clear that Amazon will have a greater chance to add sales in other categories through advertising and recommendations but also because it will simply be convenient for shoppers to make ancillary purchases.
“Amazon’s overall retail growth within the U.S. 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. “U.S. 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.”
