Meat, Poultry and Smallgoods Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) March 21, 2015 -- The Meat, Poultry and Smallgoods Wholesaling industry is feeling pressure from structural changes in upstream industries and ongoing wholesale bypass by retailers. As larger wholesalers diversify their product ranges to benefit from economies of scale, they enter the General Line Grocery Wholesaling industry, leaving a highly fragmented market for meat wholesaling. Industry revenue is projected to grow at an annualised 0.3% over the five years through 2014-15, to reach $12.5 billion. Industry revenue is forecast to grow 2.2% in 2014-15. This growth will largely stem from increasing meat prices, rather than volume or market growth. Domestic production and consumption of meat products dictate industry activity, as they influence the amount of meat wholesalers can sell. Increased meat production over the past five years has largely been destined for export markets. This has limited increased volumes of meat available for the domestic market, thus constraining volumes carried by wholesalers. Additionally, vertically integrated meat processors have accounted for the bulk of increased meat exports. Consequently, wholesalers that act as trade agents have had minimal benefit from increased trade. Domestic consumption of red meat has fallen over the past five years. According to IBISWorld industry analyst Brooke Tonkin, “rising health consciousness and negative health associations with red meat among consumers have contributed to this decline.”
As the relationship between manufacturers and product retailers rapidly evolves, wholesalers are being bypassed more often. Consolidation along the supply chain has aided vertical integration of upstream and downstream operators. Supermarkets, which account for half of retail meat, poultry and smallgoods sales, frequently deal directly with vertically integrated meat processors. This contributes to the trend of wholesale bypass, as independent wholesalers are left out of the supply chain. The next five years will continue to challenge wholesalers. Marginal meat consumption and price growth will help to lift industry revenue. “As consumers continue to seek out healthier protein alternatives, industry operators will increasingly focus on healthier red meat products, such as leaner cuts, organic meats and premium brands”, says Tonkin. However, wholesalers will continue to face downward price and profit pressure from supermarkets and other retailers.
The Meat, Poultry and Smallgoods Wholesaling industry is characterised by a low level of market share concentration with no one player commanding a significant portion of the market. Over the past five years, the level of concentration within the industry has remained unchanged. The increased level of vertical integration has allowed upstream producers to reduce costs for customers by operating wholesale functions or developing direct supply to clients. This function acts as a major point of competition for the wholesaling industry, often rendering them superfluous or unable to compete on price.
For more information, visit IBISWorld’s Meat, Poultry and Smallgoods Wholesaling industry in Australia report page.
Industry operators primarily engage in the purchase and sale of fresh or frozen meat, bacon, ham, smallgoods, poultry and rabbit meat. Businesses generally purchase meat and meat products from abattoirs and sell these products to retailers with minimum further processing. The industry excludes the wholesale of canned meat and the wholesale of industry products in conjunction with a variety of other grocery products.
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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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