United States
US 63591991 | Procurement

Food Distribution Services in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
Food distribution service providers handle the transportation and storage of food products from producers to retailers and other downstream buyers. These services differ from other freight transportation services because of the specialized equipment and facilities required to meet food safety standards and prevent spoilage during distribution. Typical buyers of food distribution services include food producers and food service operations.

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What’s included in this market coverage

IBISWorld's research coverage on the Food Distribution Services procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the Food Distribution Services market in the United States includes Specialty Food Distributors, Food Redistributors and Broadline Food Distributors. Standard coding in this coverage includes ISIC-4923-Freight transport by road, NACE-49.41-Freight Transport By Road, NAICS-484220-Specialized Freight (except Used Goods) Trucking, Local and UNSPSC-93131607-Food distribution services.

What common market terminology is included?

Common market terminology included in the Food Distribution Services procurement coverage includes Broadline Food Distributor (Food distributors capable of handling large volumes and wide ranges of food products), Fuel Surcharge (A charge added to transportation fees to cover the cost of fuel) and Demurrage (A charge for detaining a truck beyond the free time stipulated for loading or unloading.).

What companies are included as top suppliers?

The top companies covered in the Food Distribution Services procurement report as suppliers are DOT Transportation, Inc., Ben E. Keith Company, Shamrock Foods Company, Gordon Food Service and Reyes Holdings, LLC.

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the Food Distribution Services market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per mile, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the Food Distribution Services market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting Food Distribution Services procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on Food Distribution Services market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the Food Distribution Services market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for Food Distribution Services?

The 2026 benchmark market price for Food Distribution Services is $3.55 per mile. Prices have increased at a CAGR of 2.05 from 2023-26.

Who are the top vendors in the Food Distribution Services market?

The top vendors in the Food Distribution Services market include DOT Transportation, Inc., Ben E. Keith Company, Shamrock Foods Company, Gordon Food Service and Reyes Holdings, LLC.

What industries supply the Food Distribution Services market?

The top industries supplying the Food Distribution Services market are Gasoline & Petroleum Wholesaling in the US, Gasoline & Petroleum Bulk Stations in the US, Storage & Warehouse Leasing in the US, Commercial Real Estate in the US, Truck & Bus Manufacturing in the US and Auto Parts Manufacturing in the US.

What is the supply chain risk for Food Distribution Services?

Low market share concentration enables buyers to maximize leverage in cost and service negotiations. The food distribution services market is highly fragmented, with many local, regional, and national suppliers all vying for market share through price-based competition. This environment gives buyers substantial pricing power, as suppliers must compete for contracts and often tailor service levels to client requirements. Procurement teams can use competitive bidding and supplier benchmarking to drive down costs, negotiate favorable terms, and optimize service offerings—reducing reliance on any single distributor while remaining agile in response to business needs.

What factors affect the price of Food Distribution Services?

Truck type significantly affects pricing in food distribution services due to factors such as capacity, specialized equipment, and operational efficiency. For instance, refrigerated trucks, essential for transporting perishable goods, typically command higher rates than standard dry vans due to their higher operating costs and the need for compliance with food safety regulations.

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