Amazon launches Amazon Grocery brand with 1,000+ low-cost items under $5
Amazon is expanding its footprint in the grocery sector with the launch of Amazon Grocery, a new private-label brand announced on Wednesday. The line combines the company’s existing Amazon Fresh and Happy Belly products into a single collection, offering more than 1,000 grocery items — most priced under $5.
One Brand, Everyday Essentials
The Amazon Grocery collection spans categories from fresh produce, meat, and seafood to pantry staples and snacks. The brand is positioned as a value-driven alternative for price-conscious shoppers, competing directly with Walmart’s Great Value and Target’s Favorite Day private-label lines.
“During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality grocery items across all categories that don’t compromise on quality or taste,” said Jason Buechel, Vice President of Amazon Worldwide Grocery Stores and CEO of Whole Foods Market. “Our goal is to help customers stretch their grocery budgets further.”
What’s New on the Shelves
Amazon says the new brand introduces a variety of fresh and packaged items, including:
- Bakery cinnamon rolls
- Refrigerated pizza dough
- Bottled spring water
In the coming months, the selection will expand to include:
- Frozen pasta meals
- Pie fillings
- Granola
- Sliced loaf cakes
- More deli meats
Amazon Grocery items are available both online and in Amazon Fresh stores.
Building on Momentum
The launch follows Amazon’s push into budget-friendly groceries with the Amazon Saver brand in 2024. Private-label brands have become increasingly important to the company, with sales growing 15% year-over-year in 2024 across Amazon.com, Whole Foods Market, and Amazon Fresh.
In parallel, Amazon is expanding its grocery distribution network. Last month, it rolled out perishable grocery delivery to 1,000 U.S. cities through its Same-Day Delivery service, enabling customers to order fresh food alongside household goods and electronics.
The Bigger Picture
By consolidating its grocery brands under Amazon Grocery, the company is sharpening its value proposition against retail giants Walmart and Target. For Amazon, the move signals a strategy to capture budget-conscious shoppers while expanding its influence in both physical and digital grocery markets.
With affordability as a hook and delivery convenience as a differentiator, Amazon is betting that private-label groceries can become a bigger part of household shopping baskets — whether customers stock up online or in-store.
