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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 | Jan 2017

Missing link: Wholesale bypass forces industry to consolidate and seek new markets

IBISWorld’s Grocery Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Industry Statistics & Market Size
Revenue
$191bn
Annual Growth 11-16
3.4%
Annual Growth 16-21
Annual Growth
Profit
Profit
Employment
142,354
Businesses
5,367
Industry Threats & Opportunities
  • Low oil prices and growing demand from downstream retailers will support industry revenue growth
  • Shopping patterns changed with the expansion of food-retailing operations
  • Wholesale bypass will accelerate, forcing wholesalers to seek other growth opportunities
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Industry Analysis & Industry Trends

The hearty revenue growth for the Grocery Wholesaling industry in the five years to 2016 can be attributed to the high price increases in several key food categories. These higher commodity prices led to higher product prices in grocery stores, which helped generate more revenue for the industry. However, the industry's recent growth is expected to slow over the next five years. The world price of crude oil is expected to rise, significantly raising transport costs. Additionally, large grocery stores are seeking 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 Report - Industry Key Buyers Chapter

The Grocery Wholesaling industry has a moderate level of market share concentration. The top four major companies generate 61.0% of industry revenue. In this already mature environment, industry operators are striving to gain every possible growth opportunity. For the most part, large companies have fared better than the overall industry, leading to a steady rise in market share concentration. Though the number of enterprises in the industry has grown at an annualized rate of 0.4% in the previous five years, and is expected to increase at an annualized 0.8% in the next five years to 2021, this growth is coming off a low during the recession, and have still not reached prerecession levels.

.. ... 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... purchase to read more

     


    Industry ProductsRelated Reports

    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


    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
  • Per capita disposable income
  • Number of households
  • Agricultural price index
  • World price of crude oil
  • Current Performance
  • Bypassing the middleman
  • Nontraditional food retailers enter
  • Survival of the fittest
  • Chart: Revenue Growth
  • Industry Outlook
  • Transportation costs
  • 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
  • Products & Markets
    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
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Grocery Wholesaling
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grocery Wholesaling Industry
  • Industry Globalization
    Major Companies
    SYSCO Corporation
    C&S Wholesale Grocers Inc.
    US Foods Holding Corp.
    Wakefern Food Corporation
    Performance Food Group
  • 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 - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Grocery Wholesaling Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Consumer Food Expenditure (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    Agflation
  • A combination of agriculture and inflation occurring when increased demand from human consumption increases the price of food.
  • 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, allowing for 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.

  • 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 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 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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