Put out to pasture: Increasing wholesale bypass is damaging industry revenue growth

IBISWorld’s Dairy Produce Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
2012 - 2017
Annual Growth
2017 - 2022

Industry Threats & Opportunities

  • A substantial shift in the dairy supply chain has hurt the industry over the past five years
  • The consolidation and vertical integration of dairy product manufacturers has hurt revenue
  • Wholesalers are expected to increasingly target the growing food-service establishments market

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    Industry Analysis & Industry Trends

    A substantial shift in the dairy supply chain has hurt the Dairy Produce Wholesaling industry over the past five years. Wholesalers were once an integral part of the chain, acting as a key link between manufacturers and retailers. The increasing dominance of the major supermarkets and rising consolidation among dairy manufacturers have created a major problem for the industry. Wholesale bypass and downward price pressure are expected to cause industry revenue to decline at an annualised 1.9% over the five years through 2016-17, to total $3.0 billion. Revenue is forecast to contract by a further 2.1% during 2016-17, due to falling domestic milk prices and a marginal contraction in milk consumption.

    The major supermarkets, Coles and Woolworths, have immense operating scale...

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    Industry Report - Industry SWOT Analysis Chapter

    The Dairy Produce Wholesaling industry is in the decline life cycle phase. This is indicated by the industry's falling revenue, declining enterprise and establishments and the waning importance of dairy wholesalers in the supply chain.

    Industry value added (IVA), a key measure of an industry's contribution to the wider economy, is projected to fall at an annualised 0.3% over the 10 years through 2021-22. This is a substantial underperformance relative to the economy, with GDP projected to grow at an annualised 2.5% over the period. This underperformance is typical of industries that are contracting as a share of the economy.

    Along with falling revenue, the industry has also suffered falling profitability over the past five years. Thi..

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    Additional Insights for the Dairy Produce Wholesaling Industry

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

  • Guaranteed supply of key inputs
  • Having an extensive distribution/collection network
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Real household disposable income in the Dairy Produce Wholesaling industry impact industry performance..

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    Industry Products

    What is the Dairy Produce Wholesaling Industry?

    The Dairy Produce Wholesaling industry consists of businesses that primarily wholesale dairy products, acting as the intermediary between manufacturers and retailers. Dairy products include milk, cheese, cream, butter, yoghurt, powdered milk, dairy desserts and ice cream.

    Industry Products
    Drinking milk
    Milk powder
    Cream and ice cream
    Other dairy products
    Industry Activities
    Butter wholesaling
    Cheese wholesaling
    Cream wholesaling
    Dairy products wholesaling
    Ice cream wholesaling
    Milk wholesaling (except canned)
    Yoghurt wholesaling

    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
  • Domestic price of milk
  • Real household disposable income
  • Cheese, butter and yoghurt consumption
  • Demand from supermarkets and grocery stores
  • Milk consumption

  • Current Performance
  • Wholesale bypass
  • Food services
  • Dairy prices
  • Consumption trends
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Market landscape
  • Changing focus
  • Consumer preferences
  • Prices and profit
  • Table: Dairy Produce Wholesaling Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Pubs, Bars and Nightclubs
  • Supermarkets and Grocery Stores
  • Fast Food and Takeaway Food Services
  • Restaurants
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Butter and Dairy Product Manufacturing
  • Ice Cream Manufacturing
  • Milk and Cream Processing

  • Products & Services
  • Other dairy products
  • Cheese
  • Drinking milk
  • Butter
  • Cream and ice cream
  • Yoghurt
  • Milk powder
  • Chart: Dairy Produce Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Substitutable goods
  • Wholesale bypass
  • Seasonality

  • Major Markets
  • Major supermarkets
  • Other retailers
  • Food-service industries
  • Food manufacturers
  • Chart: Major Market Segmentation for the Dairy Produce 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, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Produce Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Produce 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 Dairy Produce Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • Dietary supplements of live microorganisms that are thought to be healthy for the host organism.
  • Vertical Integration
  • The degree of vertical integration is the extent to which a firm owns its upstream suppliers and its downstream buyers. Wholesale activities are commonly owned by manufacturers or retailers.
  • Wholesale Bypass
  • The process by which manufacturers bypass wholesalers to establish direct relationships with retailers such as supermarkets.
  • 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 Dairy Produce 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 Dairy Produce 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 Dairy Produce Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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