Undernourished operators: Wholesale bypass puts pressure on industry revenue

The Grocery Wholesaling industry has faced challenging operating conditions over the past five years. Downward pricing pressures and wholesale bypass have constrained industry revenue over the period. To some extent, however, the staple nature of the industry has supported demand for a number of its products. Additionally, the industry has benefited from changing consumer trends, such as rising health consciousness and an increase in the number of time-poor consumers. Rising health concerns have increased demand for the industry's healthier products, whereas busier lifestyles have increased demand for prepared meals.Over the five years through 2018-19, industry revenue is expected to decline at a compound annual rate of 0.9%, reaching £41.2 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Wholesale bypass has reduced demand for the industry, weighing on revenue performance
  • Consolidation among grocery manufacturers and supermarkets has led to wholesale bypass
  • Demand from time-poor consumers with busier lifestyles should support sales of ready meals
  • Industry Report - Industry Locations Chapter

    Establishments in the Grocery Wholesaling industry are largely concentrated in London and the South East. The distribution of industry activity is determined by factors such as the location of downstream industries, which roughly follows the spread of the population and income levels. The smallest regions for the industry are Wales and the North East.LondonThe most important region for the Grocery Wholesaling industry is London, which is estimated to account for 25.5% of industry establishments in 2018-19. London has the largest share of retail stores and is home to a major share of the population and gross domestic household income. London is also a key location for important downstream markets such as convenience stores and supermarkets. Con...purchase to read more.

    Additional Insights for the Grocery Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Grocery Wholesaling Industry are

  • Ability to avoid wholesale bypass
  • Ability to pass on cost increases
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Demand from full-service restaurants in the Grocery Wholesaling industry impact industry performance..

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    What's in this report

    What is the Grocery Wholesaling Industry?

    Businesses in the Grocery Wholesaling industry wholesale a range of food products, including prepared meals, bread, dips and condiments, food spreads, savoury snacks, sandwich fillings, tinned goods and processed grain and cereal. The industry excludes the wholesale of fresh or frozen meat and fresh, frozen or processed vegetables. It also excludes the sale of beverages, dairy products, eggs, tobacco and confectionery.

    Industry Products
  • Prepared meals
  • Bread
  • Dips and condiments
  • Food spreads
  • Savoury snacks
  • Processed grains and cereal
  • Sandwich spreads
  • Tinned goods
  • Industry Activities
  • prepared meals
  • bread
  • dips and condiments
  • tinned goods (excluding tinned fruit and vegetables, and unprocessed meat)
  • savoury snacks
  • sandwich spreads and fillings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Demand from full-service restaurants
  • Real household disposable income
  • Demand from food-service contractors
  • Health consciousness

  • Current Performance
  • Supermarket price war
  • Shortening supply chains
  • Product varieties
  • Chart: Revenue Growth

  • Industry Outlook
  • Taste for growth
  • Referendum effects
  • Wage changes
  • Table: Grocery Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Grocery Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Fruit & Vegetable Retailers
  • Newsagents & Stationery Stores
  • Full-Service Restaurants
  • Catering Services

  • Key Selling Industries
  • Bread & Bakery Goods Production
  • Pasta Product Manufacturing
  • Seafood Processing

  • Products & Services
  • Prepared meals
  • Tinned goods
  • Bread
  • Processed grains and cereal
  • Dips and condiments
  • Savoury snacks
  • Food spreads
  • Sandwich spreads
  • Chart: Grocery Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and convenience stores
  • Restaurants and takeaways
  • Caterers
  • Specialised food stores
  • Department stores
  • Chart: Major Market Segmentation for the Grocery Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Grocery Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grocery Wholesaling Industry

  • Industry Globalization
    Booker Group Ltd,
  • Table: Booker Group Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Grocery Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Grocery Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cash On Delivery
  • When a buyer pays the wholesaler upon delivery of goods as opposed to in advance.
  • Cash-And-Carry
  • A type of wholesale operation where consumers go to the wholesaler's store to purchase products.
  • Specialised Wholesaler
  • Wholesalers that specialise in the sale of one type of product, such as fruit and vegetables.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Grocery Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Grocery Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Grocery Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Grocery Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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