Bearing fruit: Demand from cafes, restaurants and takeaway outlets has boosted revenue

The Fruit and Vegetable Wholesaling industry has benefited from rising health consciousness over the past five years. Increases in household disposable income have also contributed to rising sales of higher value fruit and vegetables, such as organic produce. Demand from cafes, restaurants and takeaway outlets has risen as consumer preferences have shifted towards convenience and dining-out experiences. However, the major supermarkets are increasingly dominating all levels of the supply chain, challenging the industry. Overall, industry revenue is expected to grow at an annualised 2.6% over the five years through 2017-18, to reach $12.1 billion. This includes a forecast revenue increase of 1.8% in the current year...read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 13-18
2.6%
Forecast Growth 18-23
Profit
Employment
13,926
Businesses
2,119
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increasing demand from restaurants, cafes and takeaway outlets has aided industry growth
  • Food processors have becoming increasingly vertically integrated, negatively affecting wholesalers
  • Consumers are shifting towards premium products, which is expected to boost revenue
  • Industry Report - Industry Key Buyers Chapter

    Due to the industry's many small and mid-size businesses, the industry displays a low level of market share concentration. The four largest businesses are estimated to account for less than 10% of industry revenue, so they have a minimal influence over the industry. The industry is therefore highly price competitive and has low profit margins. Almost 90% of industry operators employ fewer than 20 workers.Concentration is higher among players that have contracts with the major supermarkets. Players with these contracts are subject to much scrutiny, given the high level of diligence expected. These players must deliver quality produce in large quantities. Sec...purchase to read more.

    Additional Insights for the Fruit and Vegetable Wholesaling Industry

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

  • Having contacts within key markets
  • Guaranteed supply of key inputs
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Demand from fruit and vegetable retailing and Demand from supermarkets and grocery stores in the Fruit and Vegetable Wholesaling industry impact industry performance..

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    What's in this report

    What is the Fruit and Vegetable Wholesaling Industry?

    Businesses in the industry wholesale fresh fruit and vegetables. Produce can be brushed, washed or packaged by either producers or packaging companies. The industry excludes the sale of canned or processed fruit and vegetables.

    Industry Products
  • Citrus fruits
  • Fruit vegetables
  • Grapes
  • Other fruits and nuts
  • Other vegetables
  • Pome and stone fruits
  • Root vegetables
  • Industry Activities
  • Wholesaling fruit
  • Wholesaling vegetables
  • 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 fruit and vegetable retailing
  • Demand from supermarkets and grocery stores
  • Real household disposable income
  • Demand from cafes, restaurants and takeaway food services
  • Domestic price of fruit
  • Domestic price of vegetables

  • Current Performance
  • Consumption patterns
  • Integration and bypass
  • Other markets
  • Supply factors
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand factors
  • Supermarket dominance
  • Supply-side factors
  • Table: Fruit and Vegetable Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fruit and Vegetable Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Retailing
  • Accommodation and Food Services
  • General Hospitals
  • Nursing Homes
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Apple, Pear and Stone Fruit Growing
  • Citrus Fruit, Nut and Other Fruit Growing
  • Grape Growing
  • Under Cover Vegetable Growing
  • Vegetable Growing

  • Products & Services
  • Other fruits and nuts
  • Other vegetables
  • Grapes
  • Pome and stone fruits
  • Root vegetables
  • Fruit vegetables
  • Citrus fruits
  • Chart: Fruit and Vegetable Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Grocery retailers
  • Supermarkets
  • Cafes and restaurants
  • Fast-food outlets
  • Other markets
  • Chart: Major Market Segmentation for the Fruit and Vegetable Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Fruit and Vegetable Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit and Vegetable Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit and Vegetable 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 Fruit and Vegetable 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
    Central Market
  • A large market typically located near the capital city of each state where a large number of wholesalers set up stalls to sell produce.
  • Horticulture Code Of Conduct
  • A code of conduct introduced in 2007 and updated in 2017 to improve efficiency and transparency in the dealings of growers, wholesalers and other buyers in the horticultural supply chain.
  • Vertical Integration
  • The extent to which a firm owns its upstream suppliers and its downstream buyers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit and Vegetable 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
    • Quickly build competitive intelligence
    This report on Fruit and Vegetable 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 Fruit and Vegetable 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 Fruit and Vegetable Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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