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 SWOT Analysis Chapter
The Grocery Wholesaling industry is in the mature phase of its life cycle. Overall, the industry has shrunk since 2007, with lower revenue and fewer companies in the industry. Still, increasing wage costs suggest that industry companies are expecting to perform better with a more advanced workforce. As a result, industry value added, a measure of the industry's contribution to the economy, is expected to grow an annualized 2.6% in the 10 years to 2019. This growth is in line with anticipated annualized GDP growth of 2.5% during the same period.
Overall industry changes, such as increased mergers and greater integration of wholesaling activities and retail operations, have weakened sales and increased competitive pressure for companies and their customers... purchase to read more