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Grocery Wholesaling in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Grocery Wholesaling Market Research Report | NAICS 42441 | Aug 2014

Going hungry: More food manufacturers will distribute directly to markets, hurting the industry

IBISWorld’s Grocery Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Industry Statistics & Market Size
Revenue
$137bn
Annual Growth 09-14
1.4%
Annual Growth 14-19
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Profit
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Employment
131,880
Businesses
4,850
Industry Analysis & Industry Trends

Growth in the Grocery Wholesaling industry has been slow as intense competition and rising production costs drive food manufacturers and supermarkets to cut out the middleman. This strategy, known as wholesale bypass, has become more prevalent after high production costs and recession-induced slow demand forced both ends of the grocery-supply chain to cut costs. In the coming years, the industry's current low-performing condition is not expected to change much as the persisting wholesale bypass trend contributes to slow growth in industry revenue... purchase to read more

Industry Report - Industry Investment Chapter

The Grocery Wholesaling industry has a low level of capital intensity. Expenditure on capital for this industry comes in the form of computerized inventory systems, shelves and refrigerators and freezers to store food items. The industry's use of capital has been increasing through technological advancements, which have enabled computers to take over tasks traditionally performed by labor, such as ordering. There will always be a need for some labor components to be involved in checking that orders are correct.

Labor costs are incurred through the transportation of products to customers, taking orders and maintaining inventory levels. The predominant function of the overall wholesaling industry is to get the product to the market... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Grocery Wholesaling Industry?

Grocery wholesalers act as the middlemen between food producers and retailers. They do little to transform products and are intermediaries in merchandise distribution. Wholesalers sell and distribute all general-line grocery products, and industry establishments generally do not specialize. Distributed products usually include dry groceries, perishable food and nonfood products found in grocery stores.

Industry Products
Fresh meat and meat productsCanned foodFrozen foodDairy productsSpecialty foodFresh fruits and vegetablesPaper and plastic products
 
Industry Activities
Wholesaling general-line groceriesWholesaling dry groceriesWholesaling perishable food productsWholesaling nonfood products


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