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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 | Apr 2016

Missing link: Wholesale bypass forces industry to consolidate and seek new markets

IBISWorld’s Grocery Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Industry Statistics & Market Size
Revenue
$202bn
Annual Growth 11-16
4.7%
Annual Growth 16-21
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Profit
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Employment
155,846
Businesses
5,116
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

 


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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