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Amazon Poised to Grow CPG Market Share This Prime Day

Millennial and Gen Z shoppers will likely make biggest impact, according to Numerator
Emily Crowe, Progressive Grocer
Prime Day
Amazon's CPG market share is expected to jump during this year's Prime Day.

Amazon is setting itself up for success during this year’s Prime Day sales event, set to take place July 12-13. Data and tech company Numerator has found that nearly half of consumers were aware of Prime Day within eight days of it being announced, and the retailer is expected to capture more than 20% of CPG share during the promotion.

Amazon’s day-of CPG share was 16.2% on Prime Day in 2019, rising to 18.3% in 2020 and to 19.1% in 2021. On average, the retailer’s CPG share sees a four- to five-fold boost above its average each Prime Day.

"Consumers are more accustomed to buying their everyday goods online," said Eric Belcher, CEO of Chicago-based Numerator. "This year on Prime Day, consumers will be looking for deals on essential goods in addition to electronics and gifts. Successful brands will leverage timely consumer data to meet the consumer where they are." 

During Prime Day 2021, both large and small retailers saw their own CPG share fluctuate. Smaller retailers collectively experienced a 10.5-point CPG share decline over the previous month, while Walmart saw an in-store decline of 2.1 points, Kroger experienced a 1.4-point decline and Costco’s decline was 1.2 points.

Generationally, Millennial and Gen Z shoppers contribute most to Amazon’s boost in CPG share, while Gen X is expected to see declining share. For household items, Amazon’s share increases by 3.8 points on Prime Day, while baby items see a 3.7-point increase. 

When it comes to awareness, 47% of Amazon shoppers knew the dates of Prime Day 2022 more than two weeks in advance, and 28% said they knew about it the day it was announced. Some 22% of respondents who weren’t alerted to the sale by Amazon found out about it on social media platforms.

Some 65% of Amazon shoppers who are aware of this year’s Prime Day are expected to participate. About one in five consumers plan to use Prime Day sales to purchase big ticket items, while 22% plan to buy gifts for birthdays, anniversaries, and other special occasions. Back-to-school items were noted by 10% of buyers and 18% plan to buy gifts for the holiday season. 

New to Prime Day this summer is a 20% discount for Prime members to use on select everyday items at Amazon Fresh stores. Members can enjoy this benefit year-round by scanning their Amazon app at the register or purchasing with a credit card that’s registered to their Prime account.

Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.

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