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

IBISWorld’s Dairy Produce Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


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 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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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 Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
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

Jargon & Glossary

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