Amazon has introduced a new private-label grocery brand called Amazon Grocery. Amazon Grocery is formed from the merges of Amazon's existing Amazon Fresh and Happy Belly offerings into one unified “grocery essentials” line.
The line comprises over 1,000 food items—everything from staples (milk, rice, olive oil) to fresh produce, meat, and snacks. Most items in the new Amazon Grocery line are priced under $5.
These products are now available online via Amazon e-commerce website (amazon.com) and in Amazon Fresh physical stores. Amazon says the launch of its new grocery line comes at a time when shoppers are increasingly focused on affordability.
With this move, Amazon is placing itself in direct competition with private-label staples from major retailers like Walmart’s Great Value and Target’s Favorite Day.
Why Amazon is doing this?
Inflation and rising grocery costs are pressing on household budgets. By offering a large set of grocery items at relatively low prices, Amazon aims to position itself as a value option.
In addition to that, Amazon has seen growth in private-label product purchases. In fact, private-brand purchases increased about 15% year-over-year in 2024 across Amazon platforms like Amazon.com, Whole Foods, and Amazon Fresh.
Furthermore, consolidating and expanding under a unified Amazon Grocery identity can boost visibility, streamline branding, and reduce customer confusion.
The lower-price angle is especially relevant when consumers are seeking cheaper alternatives.
Merging multiple brands into one means simplification in marketing, packaging, and logistics. It helps customers know, “This is Amazon’s go-to grocery line.”
Also, Amazon says they’ve reduced plastic usage in packaging (e.g. their apple packaging now uses 50% less plastic) to align with sustainability goals.
It’s worth noting that this isn’t the first time that Amazon has rolled out a price-conscious brand, as the company launched its “Amazon Saver” brand last year to offer budget-friendly staples like canned goods and condiments at low prices.
Meanwhile, many retailers already push private-label lines (e.g., Walmart’s Great Value, Target’s house brands). Amazon is stepping up to compete more directly in the grocery space, not just in general retail.
