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General Line Grocery Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Dec 23, 2014, 14:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Competition from the major supermarket chains has created operating difficulties for some players.

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Melbourne, Australia (PRWEB) December 24, 2014 -- Downstream industries have strongly influenced the fortunes of the operators in the General Line Grocery Wholesaling industry in Australia over the past five years. Competition from the major supermarket chains has created operating difficulties for some players. According to IBISWorld industry analyst Brooke Tonkin, “demand from accommodation and food-service industries has assisted industry growth.” Industry revenue is projected to post annualised growth of 1.4% over the five years through 2014-15, to reach $20.4 billion. This includes forecast revenue growth of 1.5% in 2014-15.

Heavy discounting by major supermarket chains has taken its toll on wholesalers that cater to food retailers. Players such as Metcash have suffered weak revenue growth, as independent supermarkets have lobbied for lower prices so they can compete with discounted prices at Coles, Woolworths and ALDI. Furthermore, wholesale bypass has hampered growth among wholesalers, as Coles and Woolworths have their own supply chains and ALDI has increased its vertical integration, reducing its reliance on wholesalers. “Consequently, food retailer-focused wholesalers have suffered slow revenue growth and falling profit margins over the past five years,” says Tonkin. The industry's growth has been supported by general line grocery wholesalers that cater to accommodation and food-service industries. Players such as Bidvest and PFD Food Services, whose major clients include Hungry Jacks, KFC and Boost Juice, have enjoyed modest revenue growth over the past five years. These players have remained isolated from supermarket-driven competition, and have capitalised on growing demand from accommodation and food-service industries. Profit margins among these players have remained steady over the past five years. The industry displays a medium level of market share concentration. Major players include Metcash Limited, Bidvest Australia Limited and PFD Food Services Pty Ltd.

The future remains bright for the General Line Grocery Wholesaling industry. Over the next five years, more players are anticipated to shift their focus towards accommodation and food-service industries to make the most of growing demand and stronger profit margins in this market. Increasingly busy consumer lifestyles will contribute to growth in demand from convenience stores, which will present an opportunity for some wholesalers. There will be some room for medium-size wholesalers to enter the industry with niche products, such as organic produce, but this will be distributed within a smaller geographical area.

For more information, visit IBISWorld’s General Line Grocery Wholesaling industry in Australia report page.

Operators in this industry wholesale a wide range of general groceries to a variety of markets, including supermarkets, convenience stores and food-service establishments. To be included in the industry, a firm must wholesale at least three of the following grocery lines: meat, poultry and smallgoods; dairy produce; fish and seafood; fruit and vegetables; liquor or tobacco; and confectionery or soft drinks.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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