Industry Analysis & Industry Trends
Growth in the Grocery Wholesaling industry has been inconsistent over the past five years as intense competition and rising production costs drive food manufacturers and supermarkets to bypass middlemen. In addition to rising external competition from wholesale bypass, weak economic conditions during the recession led consumers to purchase more low-margin food products, reducing profitability and forcing the exit of some companies from the industry. This, in turn, has resulted in a continued trend toward consolidation among grocery wholesalers. Growth will remain marginal in the coming five years as wholesalers seek new markets and opportunities to mitigate their diminishing role in the grocery supply chain... purchase to read more
Industry Report - Industry Products Chapter
Two types of wholesalers provide services in this industry. Merchant wholesalers buy and resell goods from their own warehouse facilities, while manufacturers who sell goods at the wholesale level maintain manufacturers' sales branches and offices (MSBO). Merchant wholesalers account for the majority of industry sales, but this share is sharply decreasing because large MSBOs are gaining market share with their streamlining capabilities.
Fresh meat and produce
Fresh meat and meat products (including poultry and poultry products), account for the largest share of industry revenue. These products are often the most costly for consumers because they must go from meat processing plants to grocery store shelves very quickly to avoid expiration... purchase to read more