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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 | Dec 2014

Going hungry: More food manufacturers will distribute directly to markets, hurting the industry

The Grocery Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

Report Snapshot
Industry Statistics & Market Size
Revenue
$168bn
Annual Growth 09-14
2.9%
Annual Growth 14-19
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Profit
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Employment
131,880
Businesses
4,850
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 Investment Chapter

The Grocery Wholesaling industry has a low level of capital intensity. Expenditure on capital for this industry comes in the form of computerized inventory systems, shelves and refrigerators and freezers to store food items. The industry's use of capital has been increasing through technological advancements, which have enabled computers to take over tasks traditionally performed by labor, such as ordering. There will always be a need for some labor components to be involved in checking that orders are correct.

Labor costs are incurred through the transportation of products to customers, taking orders and maintaining inventory levels. The predominant function of the overall wholesaling industry is to get the product to the market... 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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