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Grocery Wholesaling in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Grocery Wholesaling Market Research Report | SIC G46.390 | May 2017

Slim pickings: Margins have been narrow, while revenue has fluctuated over the past five years

IBISWorld’s Grocery Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Market Share of Companies
Booker Group plc Booker Group plc market share
Industry Statistics & Market Size
Annual Growth 13-18
Annual Growth 18-23
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Industry Threats & Opportunities
  • The supermarket price war has squeezed profit margins and constrained industry revenue
  • Consumers’ attentiveness to health and convenience has led to the introduction of a number of products
  • The loss of CAP funding for UK producers could have significant knock-on effects on industry operators
  • ... purchase to read more

Industry Analysis & Industry Trends

Over the five years through 2017-18 the industry has had to contend with slow growth in real disposable income and volatile consumer confidence. Since 2014, the industry has been affected by the supermarket price war, which has suppressed selling prices across the industry. It has also had to adapt to the rising incidence of wholesale bypass, which has also damaged operations as large supermarkets circumvented wholesalers by establishing direct relationships with manufacturers.

However, steady demand for the staple and inexpensive products offered by the industry has prevented revenue from contracting significantly over the past five-year period. The strong performance of other downstream industries also supported grocery wholesalers... purchase to read more

Industry Report - Starting a New Business Chapter

IBISWorld estimates that barriers to entry in the industry are at a medium level. New companies need funds available to set up operations including warehouses, refrigeration and transportation fleets. Furthermore, establishing links with upstream manufacturers and downstream customers can prove difficult for prospective entrants. Potential industry players may also find it difficult and costly to establish a large enough distribution network to compete with major rivals, both within and external to the industry. Competition is high in the industry, particularly from specialised food wholesalers. Wholesale bypass is also a major issue for the industry, with larger retailers frequently buying some products directly from manufacturers. Est.. 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... purchase to read more


    Industry ProductsRelated Reports

    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 mealsBreadDips and condimentsFood spreadsSavoury snacksProcessed grains and cerealSandwich spreadsTinned goods
    Industry Activities
    prepared mealsbreaddips and condimentstinned goods (excluding tinned fruit and vegetables, and unprocessed meat)savoury snacks sandwich spreads and fillings

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • A convenient truth
  • 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
  • Products & Markets
    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 takeaway stores
  • Caterers
  • Specialised food stores
  • Department stores
  • Chart: Major Market Segmentation for the Grocery Wholesaling Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities and depreciation
  • Other
  • 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
    Major Companies
    Booker Group plc
  • Table: Booker Group plc - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Grocery Wholesaling Industry
  • Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • A type of cornbread traditionally produced in Brazil and Portugal.
  • 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.

  • Why Buy this Report?
    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
    • Quickly build competitive intelligence
    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 of 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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