Specialized demand will lead smaller companies to carve out niche markets
New York, NY (PRWEB) February 08, 2015
The Grocery Wholesaling industry largely fluctuates with food product prices and consumer spending. Coming off a recessionary year in 2009, when both of these measures were slumped, the industry has realized strong growth in the five years to 2014. An initial rebound in 2010 revenue put the industry mostly back on track after the dip in 2009, and continually strengthening demand has continued to push revenue upward. Overall, industry revenue is expected to increase in the five years to 2014, including an expected gain in 2014.
Nevertheless, the Grocery Wholesaling industry has faced some challenges. The industry is mostly split between two extremes: very large operators and very small operators. While the top four players account for about half the market, 80.5% of industry establishments employ fewer than 10 people. As larger players continue to make an effort to expand their geographical reach, by both acquisitions and organic growth, smaller players continue to get pushed out of the industry. In the past five years, the number of companies in the industry has fallen in 2014.
Despite continued pressure from industry major players, small companies will come into potential new growth opportunities over the next five years. Specialized demand from myriad stores and restaurants will lead smaller companies to carve out niche markets for themselves, supplying locally-produced foods, ethnic foods and specialty imported foods. Still, companies that cannot find a way to adapt to the competition will have trouble beating out the big players, and consolidation will continue. The number of companies in the industry is forecast to fall 0.1% per year on average in the next five years. As a whole, the industry will experience relatively stable demand for food products as disposable income increases and consumers continue to spend on food purchases at both restaurants and grocery stores. IBISWorld forecasts that revenue will grow in the five years to 2019.
For more information, visit IBISWorld’s Grocery Wholesaling in Canada industry report page.
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IBISWorld industry Report Key Topics
Industry operators are intermediaries in merchandise distribution and do little to transform products. Wholesalers sell and distribute all general-line grocery products. Establishments do not specialize. Trade usually includes dry groceries, perishable food and nonfood products found in grocery stores.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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