Grocery Wholesaling in the US - Industry Market Research Report

Grocery Wholesaling in the US - Industry Market Research Report

  • July 2021 •
  • 47 pages •
  • Report ID: 198865 •
  • Format: PDF
Fresh is best: Growing demand for specialized goods will likely lead to niche markets

Abstract

Grocery Wholesaling in the US
The Grocery Wholesaling industry, which acts as the middleman between food producers and retailers, has exhibited growth in recent years. Revenue tends to fluctuate with variable fuel costs, food product prices and consumer spending. As per capita disposable income increases, consumers often trade up to more expensive options at grocery stores or switch to dining out at food service establishments. Nonetheless, grocery wholesalers distribute in both markets and, therefore, benefit either way. As demand from these downstream retailers increased over the past five years, the industry grew. The industry is mostly split between large operators and small operators. As larger players continue to make an effort to expand their geographical reach through both acquisitions and organic growth, favorable economic conditions facilitated the entrance of smaller players. When fuel prices rise, industry operators are able to charge downstream customers higher prices through fuel surcharges, bolstering profit margins. Over the five years to 2024, demand for specialized goods will lead smaller companies to carve out niche markets, supplying locally produced foods, ethnic foods and specialty imported foods.

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.

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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