Importantly, while its growth curve is nothing to trifle with, estimated sales between 2018-2020 make only minor inroads into total food-at-home sales. Realistic projections for Amazon’s market share gains hardly equate to industry ownership, and the etail titan would still trail national chains such as Walmart and Kroger.

“Will Amazon overtake the food and beverage market? No, but perhaps most importantly, Amazon’s major foray into food will surely stretch margins in an industry where they are already notoriously thin. This will in turn likely result in additional industry mergers and alliances geared toward managing costs, as other retailers seek to stay in the game with a competitor long known to absorb heavy losses over time in its quest for market share,” says David Sprinkle, research director, Packaged Facts.

Moreover, Packaged Facts also anticipates that any success Amazon has with food will also translate to strengthening its Amazon Prime value proposition, giving more shoppers more reasons to buy three times products across categories. In this respect, food sales growth will contribute to sales growth in Amazon’s other retail categories.