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Fresh Bread and Bakery Goods Wholesaling in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Jul 16, 2014, 10:00 ET

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Wholesale bypass has begun to pose an existential threat to industry distributors

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New York, NY (PRWEB) July 16, 2014 -- Fresh bread and bakery goods wholesalers distribute breads, rolls, cakes, cookies, crackers and baking supplies to retail and food service customers across the United States. The staple nature of some of these products in the American pantry has historically protected the industry somewhat from fluctuations in consumer disposable income. However, in recent years, two major trends have significantly threatened the Fresh Bread and Bakery Goods Wholesaling industry. As retail and food service customers have increasingly consolidated and been able to take advantage of their large-scale operations, wholesale bypass, wherein these customers directly establish supply contracts with bread and bakery goods producers, has begun to pose an existential threat to industry distributors. At the same time, dietary trends discouraging the consumption of gluten and carbohydrates has reduced overall demand for the goods this industry wholesales. Due to this decreased demand and increasing competition, Fresh Bread and Baked Goods Wholesaling industry revenue is expected to fall an annualized 1.1% during the five years to 2014, to $29.8 billion. Dietary trends and wholesale bypass will contribute to revenue loss of 1.3% in 2014 alone.

According to IBISWorld Industry Analyst Jocelyn Phillips, “Profit margins, however, have increased slightly during the past five years, largely as a result of companies across the industry engaging in cost-cutting measures and reducing their spending on labor and wages accordingly.” Major industry acquisitions (such as industry leader Sysco acquiring its largest competitor, US Foods) have also buoyed industry profit, as merged companies are able to reduce redundancies, corner a larger share of the market and enjoy higher margins. Nonetheless, heightened pricing competition has made it increasingly difficult for smaller companies to survive, and the total number of industry enterprises is expected to fall 1.9% over the five years to 2014.

“Demand for bread and bakery goods is projected to grow somewhat in the five years to 2019, which is expected to drive slight revenue growth during the period,” says Phillips. A growing number of US households (who drive grocery consumption) and an expected uptick in wheat consumption are expected to contribute to this slow growth. Wholesale bypass will likely continue to plague industry operators, but margins are expected to continue slowly increasing, and industry revenue will likely grow 0.4% per year on average, to nearly $30.3 billion in the five years to 2019.

For more information, visit IBISWorld’s Fresh Bread and Bakery Goods Wholesaling in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
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IBISWorld industry Report Key Topics

The Fresh Bread and Bakery Goods Wholesaling industry includes firms that primarily perform merchant wholesale distribution of fresh bread and bakery products.

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.

Gavin Smith, IBISWorld, +1 310-866-5042, [email protected]

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