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 Key Buyers Chapter
Overall, the Grocery Wholesaling industry has a moderate level of concentration. In this already mature environment, industry firms are striving to gain every possible growth opportunity. For the most part, large companies have fared better than the overall declining industry, leading to a steady rise in market share concentration. Though the number of enterprises in the industry has grown quickly, this growth is coming off a low during the recession. From 2007 to 2008, the number of industry players fell more than 20.0% due to high fuel prices and a recession-induced dip in demand. Enterprise numbers have been growing since then, but have still not reached 2007 levels.
Minor growth in concentration is occurring as large companies acquire smaller distributors to gain market share... purchase to read more