Johann Hunt
Your grocery bill keeps climbing, but it’s not just inflation doing the damage. Retailers have identified specific items where they can charge outrageous markups while shoppers remain blissfully unaware. Everyday products generate massive profits because most people never bother checking the actual cost breakdown. Here are the biggest markup culprits hiding in plain sight on store shelves.
Energy Drinks
According to H&S Energy Group, energy drinks are among the biggest profit-makers in stores, with sales surpassing $21 billion in 2024. Even though production costs are low, each can sell for $2.50 to $5. By 2025, output hit $21.6 billion, and up to half of U.S. teens buy them regularly.
Cheese Slices & Shreds (Pre-Packaged)
You’re paying extra for convenience with pre-sliced or shredded cheese—usually 20–50% more than a regular block, FoodProcessing reports. Some brands even label theirs “cheese food” because less than half is real cheese. And those pre-shredded bags? They’ve got 2–4% cellulose to stop clumping, but it messes with melting.
Bottled Water
Retailers charge steep premiums on bottled water, largely due to its convenience and easy accessibility. The International Bottled Water Association highlights that it has overtaken soda as the most consumed packaged beverage in the U.S. In 2023, Americans spent $48.8 billion on bottled water, paying up to 2,000 times more than tap water, even though many brands use filtered municipal sources.
Cold Cereals
Cold cereals carry hefty retail markups—typically around 28% and sometimes over 40%, according to Mashed. Despite their convenience, many varieties rival desserts in sugar content, proving that breakfast often costs more and nourishes less than it should.
Coffee Pods (K-Cups)
Single-serve coffee pods provide convenience but come with a steep markup. CoffeeGeek notes that pods cost $21–$43 per pound compared to $9–$22 for bagged coffee, usually double the price or more. They also pose an environmental challenge, as most standard recycling facilities can’t process them, thereby sending the majority to landfills.
Bottled Salad Dressings
Ranch remains America’s top choice; however, the convenience comes at a high price. Retailers mark up bottled salad dressings by 200–300% over their ingredient costs. Making your own dressing at home with oil, vinegar, and seasonings costs only a fraction and can save money on every salad.
Granola Bars
Granola bars often sell for about $0.75 each—a steep markup considering their simple, low-cost ingredients. First created for hikers in the 1970s, they’ve since become everyday snacks with prices that far exceed their actual value, and some even now contain as much sugar as candy.
Spices And Seasonings
Spices and seasoning often carry huge retail markups, sometimes exceeding 100%. The global spice market thrives on premium pricing, but buying from bulk bins or local ethnic stores can save substantially compared to the overpriced branded jars found in supermarkets.
Movie Theater Popcorn Bags In Stores
Movie-style popcorn bags lure buyers with nostalgic butter flavor, but they come at a steep price—often marked up over 200% compared to plain kernels. Despite the cost, their convenience and flavor keep them flying off grocery store shelves.
Pre-Cut Fruits And Vegetables
Pre-sliced fruits and vegetables sell for 40–300% more than whole produce, with the markup fueled by convenience. Shoppers are paying for a few minutes of chopping work, and the $231.66 billion industry profits heavily from turning this simple task into big retail gains.