Amazon launches a grocery brand with most products under $5

Amazon is launching its own private label brand, Amazon Grocery, a move to challenge Costco and Walmart in the growing cost-conscious sales competition.

Shoppers have continued to opt for more private label, or store brands, over name brands, with private label brands accounting for about one out of every four grocery products purchased in the U.S. last year, according to the Private Label Manufacturers Association.

Amazon, which had already been selling its own Amazon Fresh and Happy Belly brand products on Amazon.com and in Amazon Fresh stores, said consumers purchased 15% more private-brand products in 2024, compared to the previous year. That also includes the 365 brand items sold at Whole Foods Market, the company said in a news release.

Amazon says the Amazon Grocery line includes new items such as fresh bakery cinnamon rolls, refrigerated pizza dough, bottled spring water, and more. In the coming months, Amazon will debut new frozen pasta meals, pie fillings, granola, sliced loaf cakes, expanded selections of deli meat, and more.

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