CPG Companies See Benefit From Prime Early Access Sale

As Amazon prepares for their annual Prime Early Access Sale, CPG companies (grocery, household products, health and beauty care, pet supplies and baby care) gear up for a healthy spike in sales as they see online shopping increase. Numerator estimates CPG companies are seeing share jumps four to five-fold during Prime Day, with grocery coming in sixth among the top 10 categories purchased. The consumer market data estimated an over 20% growth from the last Prime Day in July 2022. Research has shown “In 2022, the e-tail giant’s CPG share stood at 4.9% in the month before Prime Day, 5.6% the month of Prime Day and 21.7% on Prime Day itself — representing more than $1 in $5 of U.S. spending on consumer goods.” In addition to the data, additional research has shown that CPG share has increased, showing 18.3% on Prime Day 2020 to 19.1% on Prime Day 2022. 

Prime Days have always been known for their amazing electronic sales but are now becoming a consumer goods holiday with 17% of shoppers purchasing groceries during the Prime Day Sale. The second week of October is perfect timing, capturing shoppers looking to save on seasonal grocery items. Numerator notes “If deals are available, consumers are likely to use this Prime event to stock up on Halloween candy, Thanksgiving non-perishables and holiday baking ingredients,”.

The Amazon Prime Early Access event is ready to set new records this fall season, in both household penetration and average household spend. The numbers are going up every year, with a reported 27% of Americans shopping Prime Day in 2020, 27.4% in 2021 and 29.9% in 2022. For the first time, the average household spend is expected to hit $200 as compared to 2020’s average of $158.55. The projected $200 will be reflective of the early access and higher prices due to inflation.

What does the increase of Amazon Prime Day household penetration and sales mean for other retailers (small and large). The research shows that “smaller retailers collectively saw an 11.8% CPG share decrease compared with the previous month. Walmart saw a total store decline of 3%, followed by Kroger (-1.5%) and Costco Wholesale (-1%). Target, which runs its Deal Days event at the same time, saw a 0.5% share uptick on Prime Day.” Even with Amazon providing early access to holiday shopping and an uptick in CPG sales, Amazon doesn’t see these events slowing down sales for the remainder of the year. Previous Prime events have seen shoppers returning to Amazon, with 90% planning to shop Amazon again prior to the holidays.