NGA report finds independent grocers generate $557.5B in annual economic activity

May 11, 2026 Washington, D.C. -The National Grocers Association (NGA) BB #:163424 today released a new Economic Impact Analysis quantifying the substantial role America’s independent supermarket operators play in the nation’s economy.

Conducted by Arizona State University, the report finds that the independent grocery industry generates $557.5 billion in total annual economic activity, representing nearly 2.0 percent of U.S. gross domestic product, even as community grocers contend with inflation, supply chain disruption, rising costs, and an increasingly uneven competitive landscape.

The report underscores the vital role independent grocers play as a strong and growing force in the American economy and in communities across the country. From supporting Main Street jobs to sustaining local supply chains, independent supermarkets continue to drive economic activity in every region of the nation while serving as trusted community anchors.

Independent grocers support nearly 1.5 million American jobs and generate billions in wages, tax revenue, and economic activity that flow directly back into local communities. Approximately one-third of the industry’s economic impact comes from indirect supply chain activity and employee spending, highlighting the powerful ripple effect these businesses create far beyond the grocery aisle.

When an independent grocer succeeds, so do the wholesalers, truck drivers, food producers, equipment vendors, farmers, ranchers, and small businesses that help keep local economies moving.

“Independent grocers are helping power the American economy from the ground up,” said Greg Ferrara, NGA president and CEO. “These are Main Street businesses creating jobs, supporting families, and reinvesting in the communities they serve every single day. A strong independent grocery sector means stronger local economies, stronger supply chains, and stronger communities across America. NGA will continue advocating for policies that help these businesses compete, grow, and continue delivering for the American people.”

By the Numbers: Independent Grocers’ National Footprint

Using store-level retail sales data, the analysis quantifies the direct, indirect, and induced economic impact of independent grocers across all U.S. Congressional Districts.

Key findings include:

• $557.5 billion in total annual economic output, representing nearly 2.0% of the entire U.S. economy.
• $353.5 billion in direct retail sales, accounting for 38.4% of the $920 billion U.S. food retailing sector.
• 1.58x multiplier effect, meaning every $1 in independent grocery sales generates an additional $0.58 in supply chain and household spending nationwide.
• 1.48 million American jobs supported, including 1.14 million directly employed, plus an additional 340,000 supported through supply chain and induced activity.
• $115.2 billion in annual worker income, with average industry-wide earnings of $77,628, well above the U.S. median wage.
• $191.3 billion in value-added economic activity, capturing the merchandising, logistics, and distribution services independents provide.
• $27.3 billion in combined annual tax revenue: $4.7 billion federal, $10.2 billion state, and $12.4 billion local. These dollars fund schools, public safety, roads, and recreation in communities nationwide.

The updated analysis reflects significant growth in the economic footprint of independent grocers over the past decade and highlights the continued support American consumers have for local, community-based businesses.

NGA’s previous economic impact report, released in 2021, found that independent grocery sales totaled $253.6 billion in 2020. The new report demonstrates that independent grocers have continued building on that momentum, now generating more than $350 billion in direct retail sales.

“This report confirms what our member companies see every day in the communities they serve: independent grocers are the economic backbone of Main Streets across America,” Ferrara added. “Accounting for nearly 39% of the total US food retail sector, up from 33% in 2021, our data clearly shows consumers increased preference for local and regional independent grocers. This data reinforces the opportunity for suppliers to increase their engagement with this growing segment while also demonstrating the important role these job creators play in the local economy.”

Download a free copy of the report here.

About the National Grocers Association
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers.

Contact: NGA Communications Office
communications@nationalgrocers.org