Egg & Poultry Wholesaling in the US Industry Market Research Report from IBISWorld has Been Updated

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The face of the industry is changing, as large manufactures’ sales branches and offices increasingly replace traditional wholesalers. For these reasons, industry research firm IBISWorld has updated a report on the Egg & Poultry Wholesaling industry in its growing industry report collection.

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As staples of the American diet, eggs and poultry have enjoyed stable demand, even during the recession

While wholesalers in all industries are struggling to compete after the recession, the health benefits and low prices of eggs and poultry products are particularly appealing to today's consumer, keeping the Egg and Poultry Wholesaling industry afloat. With red meat markets consistently underachieving because of higher prices and nutritional bias, alternative sources of protein continue to capitalize on market conditions. According to IBISWorld industry analyst Josh McBee, “Chicken is the most-consumed meat in America, having outstripped beef of the title over a decade ago, and eggs are the main source of protein as a substitute for meat.” As a result, the Egg and Poultry Wholesaling industry has enjoyed steady growth during the past five years, aside from 2009 at the height of the recession. IBISWorld estimates revenue to grow at an average annual rate of 1.4% during the five years to 2012. From 2011 to 2012, revenue is expected to rise 3.1% and total an estimated $18.7 billion.

During the difficult economic climate, rising costs and dips in revenue had firms scurrying for ways to maintain profitability. Many major meat processors are now doing business directly with retailers, essentially eliminating the need for third-party wholesalers. Such processing companies operate on a large-enough scale to maintain their own wholesaling divisions, known as manufacturers' sales branches and offices (MSBOs). “MSBOs, which are also included in this industry, are much more profitable than traditional merchant wholesalers, causing the entire wholesaling sector to shift toward these operations,” says McBee. This trend will lead the charge in increasing the industry’s market share concentration. As vertical integration becomes more crucial to succeed in this industry, large-scale firms, like Pilgrim’s Pride and Tyson, will control the majority of the Egg and Poultry Wholesaling industry, while smaller players look to be acquired or consolidate in an attempt to remain competitive.

Since poultry and eggs are staple products in today's culture, wholesaling is expected to steadily grow, largely through the expanding operations of vertically integrated producers and distributors and at the expense of smaller establishments. Independent players in the industry will continue to consolidate to keep up with the more efficient MSBOs. Meanwhile, MSBOs will look to capture a greater share of the market through further growth, allowing them to cover a larger delivery area. Through 2017, revenue in the Egg and Poultry Wholesaling industry is forecast to grow steadily. For more information, visit IBISWorld’s Egg & Poultry Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry purchase processed egg and poultry products from manufacturers and sell them to retailers, generally with no further product development. Businesses include third-party wholesalers and manufacturers' sales branches and offices, which are the wholesaling divisions of processing companies. Products bought and sold in this industry include live, fresh and frozen chicken and turkey products plus eggs. Canned and packaged-frozen items are excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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