Lean meat: Declining meat prices will hurt revenue, but consolidated efficient players will learn to adjust

While red meat demand has not been hindered as much as originally expected, alternative protein sources, such as poultry and seafood, have seen a relatively larger boost in demand. Furthermore, price decreases in red meat resulting from increased supplies in upstream livestock farms have hindered revenue growth prospects in the latter half of the period. As a result, IBISWorld estimates industry revenue will decrease at an annualized rate of 0.3% to $55.3 billion over the five years to 2018, including a 1.0% decline in 2018. Over the five years to 2023, demand is projected to rebound slightly as manufacturers' sales branches and offices (MSBOs) gain more of a foothold in the industry...purchase to read more.

Industry Statistics & Market Size
Revenue
$56bn
Annual Growth 13-18
-0.2%
Forecast Growth 18-23
Profit
Employment
45,449
Businesses
4,125

Industry Threats & Opportunities

  • Competition from alternative proteins hurts demand for beef and pork sales
  • Increased competition from the Frozen Food Wholesaling industry has hindered demand
  • More MSBOs are expected to enter the industry and capture market share
  • Industry Report - Industry Analysis Chapter

    The Beef and Pork Wholesaling industry is comprised of businesses that buy beef, pork and other red meat products from upstream cattle and hog industries, such as slaughterhouses and processors, and then resell these products to a variety of downstream markets. Over the past five years, the industry has experienced consolidation of industry operations as major processors have begun to take on a wholesaling role. This has been coupled with an increased downstream demand for beef and pork as US households have experienced an uptick in disposable income during this period. However, health concerns linked to beef consumption, such as heart disease and cancer, as well as a decrease in the price of red meat has cut into industry revenue over the five years to 2018...purchase to read more.

    Additional Insights for the Beef & Pork Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beef & Pork Wholesaling Industry are

  • Ability to distribute industry products to diverse locations
  • Delivering meat products to retailers promptly
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Per capita beef consumption and Per capita pork consumption in the Beef & Pork Wholesaling industry impact industry performance..

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    What's in this report

    What is the Beef & Pork Wholesaling Industry?

    Operators in this industry wholesale beef, pork and other red meat products. There are two types of wholesalers that execute the industry’s activities. One type is merchant wholesalers, which include independent wholesaling operations. The other includes manufacturers’ sales branches and offices, which represent the wholesale division of vertically integrated meat processors. Canned and packaged frozen goods are excluded from this industry, as are poultry and seafood products.

    Industry Products
  • Beef
  • Pork
  • Sausage and prepared meats
  • Other Meat Products, including deli meats
  • Veal and Lamb
  • Industry Activities
  • Wholesaling beef
  • Wholesaling pork
  • Wholesaling other meats, including deli meats
  • Wholesaling sausage and prepared meats
  • Wholesaling lamb
  • Wholesaling veal
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita beef consumption
  • Per capita pork consumption
  • Price of red meat
  • Threat of disease in livestock

  • Current Performance
  • Shifting industry
  • Competing industries
  • Meat and diesel prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Transportation costs and profit
  • Potential growth
  • Table: Beef & Pork Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beef & Pork Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Meat Markets
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Caterers

  • Key Selling Industries
  • Beef Cattle Production
  • Hog & Pig Farming
  • Meat, Beef & Poultry Processing
  • Sheep Farming

  • Products & Services
  • Beef
  • Other
  • Pork
  • Other Meat Products, including deli meats
  • Sausage and prepared meats
  • Veal and Lamb
  • Chart: Beef & Pork Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream demand and household disposable income
  • Price of meats
  • Health trends
  • Seasonality
  • Competition from substitutes

  • Major Markets
  • Other Wholesalers
  • Retailers
  • Foodservice outlets
  • All others
  • Chart: Major Market Segmentation for the Beef & Pork Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Beef & Pork Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beef & Pork Wholesaling Industry

  • Industry Globalization
    Tyson Foods Inc., US Foods Holding Corp., Smithfield Foods Inc., Hormel Foods Corporation, JBS USA Holdings,
  • Table: Tyson Foods Inc. - financial performance
  • Table: US Foods Holding Corp. - financial performance
  • Table: Smithfield Foods Inc. - financial performance
  • Table: Hormel Foods Corporation - financial performance
  • Table: JBS USA Holdings - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beef & Pork Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Beef & Pork Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Price of Red Meat (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Broadline
  • A distributor technique that services a wide variety of accounts with a wide variety of products.
  • Economies Of Scale
  • The increase in efficiency of production as the number of goods being produced increases.
  • Merchant Wholesaler
  • A third-party wholesaler, commonly known as a middleman.
  • Supply Chain
  • A network of entities, including primary producers, processors, wholesalers, retailers and other agents, engaged in delivering products to the consumer or customer.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, thus eliminating traditional merchant wholesalers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Beef & Pork Wholesaling contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Beef & Pork Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Beef & Pork Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Beef & Pork Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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