Industry · 1 min read
Industry Average Gross Margin Table (2026 Reference)
Industry average gross margin benchmarks — SaaS 70–90%, restaurants 55–70%, apparel 45–60%, grocery 20–30% and more — plus how to benchmark your own margin properly.
“Is my gross margin good?” — it depends on the industry. This table compiles approximate ranges from public industry data.
Gross margin by industry
| Industry | Typical gross margin |
|---|---|
| Software / SaaS | 70–90% |
| Beauty & personal care | 60–80% |
| Restaurants & catering | 55–70% |
| E-commerce: apparel | 50–65% |
| Apparel & footwear (retail) | 45–60% |
| Toys & hobbies | 40–60% |
| Food processing | 25–40% |
| General manufacturing | 20–35% |
| Grocery / supermarkets | 20–30% |
| E-commerce: consumer electronics | 8–15% |
How to use the table
- Pick the right peer group: a 50% margin is low for restaurants but excellent for electronics e-commerce
- Compute your own first: the margin calculator gives it in 30 seconds; e-commerce sellers should deduct platform fees first — try the Amazon FBA profit calculator
- Read ranges, not points: business model (owned inventory vs consignment, online vs offline) moves margins 10+ points within one industry
- Trend beats level: a sliding margin usually means costs are outrunning prices or competition is intensifying — more actionable than any absolute number
Common mistakes
- Comparing gross margin to net margin: this table is gross-margin only; for net see how to calculate profit percentage
- Ignoring product mix: loss-leader electronics plus profitable accessories drags blended margin down — segment before judging
- Copying a competitor’s report: accounting treatments (rebates, shipping allocation) differ; use filings as direction only
Data note
Ranges are compiled from public industry reports and listed-company filings for orientation only; for precise benchmarks use your trade association or national statistics office.