Grocery growth: Rising per capita disposable income and emerging niche markets to help support revenue

The Grocery Wholesaling industry, which acts as the middleman between food producers and retailers, has exhibited growth over the five years to 2017. Revenue tends to fluctuate with variable fuel costs, food product prices and consumer spending. Over the past five years, rising levels of per capita disposable income and a growing population, in addition to growing interest in emerging market segments, supported industry growth. However, this growth is expected to slow over the next five years. Large grocery stores are expected to continue to seek to cut costs by eliminating wholesalers, as purchasing food and nonfood items from wholesalers adds to the final cost of goods...purchase to read more.

Industry Statistics & Market Size
Revenue
$191bn
Annual Growth 12-17
1.9%
Forecast Growth 17-22
Profit
Employment
147,413
Businesses
5,448

Industry Threats & Opportunities

  • Revenue tends to fluctuate with variable fuel costs, food product prices and consumer spending
  • The most pressing threat to the industry’s overall growth is wholesale bypass
  • As demand for ethnic foods increases, it will provide an opportunity for grocery wholesalers
  • Industry Report - Industry Products Chapter

    Two types of wholesalers provide services in this industry. Merchant wholesalers buy and resell goods from their own warehouse facilities, while manufacturers that sell goods at the wholesale level maintain manufacturers' sales branches and offices (MSBO). Merchant wholesalers account for the majority of industry sales, but this share is sharply decreasing because large MSBOs are gaining market share with their streamlining capabilities.Fresh meat and produceFresh meat and meat products (including poultry and poultry products), account for the largest share of industry revenue. These products are often the costliest for consumers because they must go from meat processing plants to grocery store shelves very quickly to avoid expiration. Mea...purchase to read more.

    Additional Insights for the Grocery Wholesaling Industry

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

  • Having contacts within key markets
  • Prompt delivery to market
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Number of households in the Grocery Wholesaling industry impact industry performance..

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    What's in this report

    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 are not specialized. Distributed products usually include dry groceries, perishable food and nonfood products found in grocery stores.

    Industry Products
  • Fresh meat and meat products
  • Canned food
  • Frozen food
  • Dairy products
  • Specialty food
  • Fresh fruits and vegetables
  • Paper and plastic products
  • Industry Activities
  • Wholesaling general-line groceries
  • Wholesaling dry groceries
  • Wholesaling perishable food products
  • Wholesaling nonfood products
  • 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 disposable income
  • Number of households
  • Agricultural price index
  • World price of crude oil

  • Current Performance
  • Industry structure
  • Bypassing the middleman
  • Survival of the fittest
  • Chart: Revenue Growth

  • Industry Outlook
  • Catering to the customer
  • Food service demand
  • Increased competition
  • Table: Grocery Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Meat Markets
  • Fish & Seafood Markets
  • Fruit & Vegetable Markets
  • Specialty Food Stores
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Food Service Contractors
  • Caterers

  • Key Selling Industries
  • Bottled Water Production
  • Bread Production
  • Canned Fruit & Vegetable Processing
  • Coffee Production
  • Dairy Product Production
  • Juice Production
  • Snack Food Production
  • Soda Production
  • Tea Production
  • Vegetable Farming

  • Products & Services
  • Other
  • Fresh meat and meat products
  • Canned food
  • Frozen food
  • Dairy products
  • Specialty food
  • Fresh fruits and vegetables
  • Paper and plastic products
  • Chart: Grocery Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream demand and household disposable income
  • Price of food and health trends
  • Wholesale bypass

  • Major Markets
  • Food service outlets
  • Supermarkets and other grocery retailers
  • Other wholesalers
  • Other
  • Chart: Major Market Segmentation for the Grocery 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 Grocery Wholesaling

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

  • Industry Globalization
    Sysco Corporation, C&S Wholesale Grocers Inc., US Foods Holding Corp., Wakefern Food Corporation, Performance Food Group Company,
  • Table: Sysco Corporation - financial performance
  • Table: C&S Wholesale Grocers Inc. - financial performance
  • Table: US Foods Holding Corp. - financial performance
  • Table: Wakefern Food Corporation - financial performance
  • Table: Performance Food Group Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Grocery 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 Grocery Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer Food Expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Cooperative
  • A jointly owned, vertically integrated organization, also referred to as a co-op, that produces and distributes goods for the benefit of the owners.
  • Electronic Data Interchange (Edi)
  • The transmission of electronic documents between businesses from one computer system to another.
  • Hypermarket
  • A superstore that combines a supermarket and a department store.
  • Manufacturers' Sales Branches And Offices (Msbo)
  • A wholesaling divisions of large manufacturers, facilitating sales directly to retailers and bypass of third-party wholesalers.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • 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, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Grocery Wholesaling Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Grocery Wholesaling industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Grocery 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 Grocery 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 Grocery Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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