According to a new economic impact analysis released today by the National Grocers Association, independent supermarket operators generate $557.5 billion in total annual economic activity, representing nearly 2 percent of U.S. gross domestic product.
The report, conducted by Arizona State University using store-level retail sales data from NielsenIQ’s TDLinx platform, found that independent grocers account for $353.5 billion in direct retail sales — 38.4 percent of the $920 billion U.S. food retailing sector. That market share is up from 33 percent in the association’s previous report, released in 2021, when independent grocery sales totaled $253.6 billion.
“Independent grocers are helping power the American economy from the ground up,” said Greg Ferrara, NGA president and CEO. “A strong independent grocery sector means stronger local economies, stronger supply chains, and stronger communities across America.”
The Multiplier Effect
Beyond direct sales, the industry generates an additional $204 billion in economic activity — $97.7 billion through indirect supply chain transactions and $106.3 billion induced through spending by employees across the independent grocery ecosystem. That translates to a 1.58x multiplier effect, meaning every dollar in independent grocery sales generates an additional $0.58 in economic activity.
The ripple effect extends to wholesalers, truck drivers, food producers, equipment vendors, farmers, ranchers and small businesses that support independent grocery operations. Approximately one-third of the industry’s total economic impact comes from this indirect and induced activity.
Jobs, Wages and Tax Revenue
The sector supports 1.48 million American jobs — 1.14 million directly employed and another 340,000 through supply chain and induced activity. Workers employed directly by independent grocers earn an average of $69,359 per year, nearly matching the national median income of $68,500. When indirect and induced employment is included, average earnings across the ecosystem rise to $77,628.
Independent grocers and their supply chains generate $27.3 billion in combined annual tax revenue: $4.7 billion federal, $10.2 billion state and $12.4 billion local. Roughly 80 percent of that revenue is generated directly by independent retailers, with the remaining 20 percent coming from indirect and induced economic activity. Those tax dollars fund schools, public safety, roads and recreation in communities nationwide.
Growing Market Share
Ferrara said the updated figures demonstrate a clear consumer preference for local and regional grocers. “Accounting for nearly 39 percent of the total U.S. food retail sector, up from 33 percent in 2021, our data clearly shows consumers’ increased preference for local and regional independent grocers,” he said. “This data reinforces the opportunity for suppliers to increase their engagement with this growing segment.”
The analysis also quantifies the independent grocery industry’s impact at the congressional district level, providing data that can support local advocacy efforts.
NGA is the national trade association representing the retail and wholesale community grocers that make up the independent sector of the food distribution industry.