Got milk: Despite wholesale bypass, steady consumption of dairy will keep demand high

IBISWorld’s Dairy Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.


Industry Threats & Opportunities

  • Consistent consumption of dairy products, coupled with steady milk prices, will keep industry demand high
  • The growing trend of wholesale bypass has limited industry profit margins
  • Internal competition among dairy wholesalers is expected to continue increasing

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    Industry Analysis & Industry Trends

    Over the past five years, per capita dairy consumption remained strong, keeping demand high for Dairy Wholesaling operators. Overall, the industry rebounded from recessionary lows and revenue grew over the five-year period. Moving forward, the industry is expected to continue growing over the next five years. The improving economic climate and rising levels of per capita disposable income is expected to drive demand for industry products. However, despite improving conditions, wholesale bypass will continue to offset some earnings from traditional merchant wholesalers as manufacturers' sales branches and offices (MSBOs) increase in scope and market share...

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    Industry Report - Industry Investment Chapter

    The Dairy Wholesaling industry has a medium level of capital intensity as measured by the ratio of capital to labor. Overall, for every dollar spent on wages, industry operators typically spend $0.30 in capital investment. While neither wages nor capital investment represent large costs for the industry (both costs together comprise less than 7.0% of industry revenue), capital investment is high compared to wage cost, leading the industry to have a medium level of capital intensity.

    Capital expenditure for the industry comes in the form of warehouses, refrigeration units and refrigerated trucks (for storing and delivering dairy products) and computerized inventory systems. The..

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    Additional Insights for the Dairy Wholesaling Industry

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

  • Having a cost-effective distribution system
  • Prompt delivery to market
  • Use of specialist equipment or facilities
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from dairy product production in the Dairy Wholesaling industry impact industry performance..

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    Industry Products

    What is the Dairy Wholesaling Industry?

    This industry wholesales dairy products (except dried or canned), including butter, cheese, cream, ice cream, milk and yogurt. This industry does not include manufacturers’ sales branches and offices (MSBOs) where the wholesaling and production of dairy products occur as one undifferentiated operation; revenue from such MSBO’s are included under the scope of the Dairy Product Production industry (IBISWorld 31151).

    Industry Products
    Ice cream and frozen dairy products
    Packaged fluid milk and cream
    Raw milk and cream
    Butter and other dairy products
    Industry Activities
    Cheese wholesaling
    Ice cream and frozen dairy products wholesaling
    Packaged fluid milk and cream wholesaling
    Raw milk and cream wholesaling
    Butter wholesaling
    Other dairy products wholesaling
    Yogurt wholesaling

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Demand from dairy product production
  • Demand from food services and drinking places
  • Per capita dairy consumption
  • Price of milk

  • Current Performance
  • Downstream demand
  • Wholesale bypass erodes profit
  • MSBOs cause industry consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Churning industry competition
  • Demand abroad and at home
  • Slow profit growth
  • Table: Dairy Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Wholesaling Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Dairy Product Production
  • Ice Cream Production
  • Dairy Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Specialty Food Stores
  • Warehouse Clubs & Supercenters
  • Chain Restaurants
  • Caterers

  • Key Selling Industries
  • Dairy Farms
  • Dairy Product Production
  • Dairy Wholesaling
  • Ice Cream Production

  • Products & Services
  • Cheese
  • Butter and other dairy products
  • Raw milk and cream
  • Ice cream and frozen dairy products
  • Packaged fluid milk and cream
  • Yogurt
  • Chart: Dairy Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Income and price
  • Health and nutrition
  • Wholesale bypass
  • Downstream conditions
  • Seasonality

  • Major Markets
  • Retailers
  • Food manufacturers and processors
  • Food service outlets
  • Other markets
  • Other wholesalers
  • Chart: Major Market Segmentation for the Dairy Wholesaling Industry

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

  • Basis of Competition
    Internal CompetitionExternal Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Wholesaling Industry

  • Industry Globalization
    Major Companies
    Dean Foods CompanySYSCO CorporationLand O'Lakes
  • Table: Dean Foods Company - financial performance
  • Table: SYSCO Corporation - financial performance
  • Table: Land O'Lakes - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Dairy Wholesaling Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Per capita dairy consumption (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Electronic Data Interchange (Edi)
  • Allows for the instant electronic transfer of data between customers and wholesalers.
  • Radio-Frequency Identification (Rfid)
  • Technology that allows for non-contact reading and real-time data collection, and lasts longer in difficult conditions that would cause regular bar codes to deteriorate.
  • Wholesale Bypass
  • Practice in which retailers purchase goods directly from manufacturers instead of through wholesalers.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Dairy 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 Dairy 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 Dairy Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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