Industry Analysis & Industry Trends
The hearty revenue growth for the Grocery Wholesaling industry in the five years to 2016 can be attributed to the high price increases in several key food categories. These higher commodity prices led to higher product prices in grocery stores, which helped generate more revenue for the industry. However, the industry's recent growth is expected to slow over the next five years. The world price of crude oil is expected to rise, significantly raising transport costs. Additionally, large grocery stores are seeking to cut costs by eliminating wholesalers, as purchasing food and nonfood items from wholesalers adds to the final cost of goods... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry for this industry are currently moderate and are expected to remain at that level during the next five years. The largest barrier to entry is the level of competition. Existing competition is quite high, given the number of players operating in the industry and increasing concentration. With so many firms, it's difficult for a new company to start in this industry especially because many existing industry players have signed supply contracts with large retail chains and food service providers, guaranteeing themselves a market for their products.
The cost of establishing a warehouse and distribution system is also a major barrier, as firms will need a large amount of space to store goods before distribution... purchase to read more