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Grocery Wholesaling in the US - Industry Market Research Report

  • September 2016
  • 39 pages
  • ID: 198865

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



Abstract

Grocery Wholesaling in the US

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. Consequently, growth will remain marginal as wholesalers seek new markets and opportunities to mitigate their diminishing role in the grocery supply chain.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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