Lactose tolerant: Despite wholesale bypass, steady consumption of dairy will keep demand high

The Dairy Wholesaling industry experienced stable but diminished revenue growth over the five years to 2017 as a result of growth in per capita disposable income, increased per capita dairy consumption, and growing downstream demand. Even with stable growth in recent years, dairy wholesalers have struggled with the growing trend of wholesale bypass; retailers have increasingly purchased dairy products directly from manufacturers instead of traditional merchant wholesalers, raising external competition and limiting industry expansion. The Dairy Wholesaling industry is expected to accelerate over the five years to 2022. Consistent growth in per capita consumption of dairy products, coupled with steady and increasing milk prices, will enable industry revenue to increase...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

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
  • Industry Report - Industry Investment Chapter

    The Dairy Wholesaling industry has a medium level of capital intensity, measured by the ratio of depreciation as a proxy for capital and wages as a proxy for labor. Overall, for every dollar spent on wages, industry operators typically spend $0.20 on capital investment. While neither wages nor depreciation charges represent large costs for the industry (both costs together comprise less than 7.0% of industry revenue), capital investment is high when compared to wage costs, 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...purchase to read more.

    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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    What's in this report

    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 MSBOs is included in the Dairy Product Production industry (IBISWorld report 31151).

    Industry Products
  • Cheese
  • Ice cream and frozen dairy products
  • Packaged fluid milk and cream
  • Raw milk and cream
  • Butter, yogurt 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Demand and price
  • Profit and input price volatility
  • MSBOs cause industry consolidation
  • Trade spat sours milk
  • Chart: Revenue Growth

  • Industry Outlook
  • Churning up 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

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

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Wholesaling

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Wholesaling Industry

  • Industry Globalization
    Dean Foods Company, Sysco Corporation, Land O'Lakes,
  • Table: Dean Foods Company - financial performance
  • Table: Sysco Corporation - financial performance
  • Table: Land O'Lakes - financial performance

  • 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
    Table: Industry Data for the Dairy Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita dairy consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Electronic Data Interchange (Edi)
  • Allows for the instant electronic transfer of data between customers and wholesalers.
  • Radio-Frequency Identification (Rfid)
  • Technology that allows for noncontact 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Dairy Wholesaling can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

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    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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