Stocking up: Growing demand from food-service establishments has supported the industry

Downstream industries have strongly influenced the General Line Grocery Wholesaling industry over the past five years. Competition from the major supermarket chains, Coles, Woolworths and ALDI, has created difficulties for operators that cater to supermarkets and grocery stores. However, stronger demand from food-service establishments has offset this trend and assisted industry growth. Industry revenue is expected to grow at an annualised 0.6% over the five years through 2018-19, to $21.5 billion. This includes an anticipated revenue decline of 0.7% in 2018-19.Heavy discounting by the major supermarket chains has negatively affected wholesalers that cater to food more.

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

Industry Threats & Opportunities

  • Heavy discounting by the major supermarkets has hurt wholesalers that cater to food retailers
  • Price pressures have decreased profit margins for operators servicing retail grocery stores
  • Demand from food-service establishments is projected to grow over the next five years
  • Industry Report - Industry Investment Chapter

    Capital intensity in the General Line Grocery Wholesaling industry is moderate. For every dollar spent on capital, an estimated $7.43 is spent on wages. This reflects the industry's strong reliance on labour. Labour is required for most operational tasks, such as contacting suppliers and coordinating orders with downstream demand, and stocking and transporting goods. Over the past five years, increased automation of inventory control, order taking and customer service has increased wholesaling efficiency. Consequently, the industry became increasingly capital intensive...purchase to read more.

    Additional Insights for the General Line Grocery Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the General Line Grocery Wholesaling are:

  • Ability to control stock on hand
  • Guaranteed supply of key inputs
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Demand from accommodation and food services and Demand from supermarkets and grocery stores in the General Line Grocery Wholesaling industry impact industry performance..

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    What's in this report

    What is the General Line Grocery Wholesaling Industry?

    Industry operators wholesale a range of general groceries to a variety of markets, including supermarkets, convenience stores and food-service establishments. The industry includes firms that wholesale at least three of the following grocery lines: meat, poultry and smallgoods; dairy produce; fish and seafood; fruit and vegetables; liquor or tobacco; and confectionery or soft drinks.

    Industry Products
  • Meat, poultry, fish and smallgoods
  • Dairy produce
  • Fruit and vegetables
  • Liquor and tobacco
  • Pre-packaged foods
  • Beverages
  • Other products
  • Bread and bakery products
  • Industry Activities
  • Meat, poultry and smallgoods wholesaling
  • Dairy produce wholesaling
  • Fish and seafood wholesaling
  • Fruit and vegetable wholesaling
  • Liquor or tobacco wholesaling
  • Confectionery or soft drink wholesaling
  • 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 accommodation and food services
  • Demand from supermarkets and grocery stores
  • Population
  • Real household disposable income
  • Domestic price of meat
  • Domestic price of vegetables

  • Current Performance
  • Revenue and profitability
  • Industry structure
  • Consumer trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Industry structure
  • Innovation
  • Table: General Line Grocery Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Fuel Retailing
  • Accommodation and Food Services
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Cake and Pastry Manufacturing
  • Cereal, Pasta and Baking Mix Manufacturing
  • Chocolate and Confectionery Manufacturing
  • Egg Farming
  • Seafood Processing
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • Meat, poultry, fish and smallgoods
  • Pre-packaged foods
  • Fruit and vegetables
  • Liquor and tobacco
  • Bread and bakery products
  • Beverages
  • Dairy produce
  • Other products
  • Chart: General Line Grocery Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food-service establishments
  • Supermarkets and grocery stores
  • Convenience stores and other retailers
  • Chart: Major Market Segmentation for the General Line Grocery 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 General Line Grocery Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the General Line Grocery Wholesaling Industry

  • Industry Globalization
    Metcash Limited, Bidfood Australia Limited, PFD Food Services Pty Ltd,
  • Table: Metcash Limited - financial performance
  • Table: Bidfood Australia Limited - financial performance
  • Table: PFD Food Services Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the General Line 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 General Line 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
    Food-Service Establishments
  • Establishments such as cafes, restaurants and caterers that sell food and beverages ready-to-eat.
  • Independent Retailer
  • A supermarket or grocer that is independently owned and incorporated. Independent retailers may (or may not) operate under a banner network or franchising agreement.
  • Wholesale Bypass
  • A trend within retail and manufacturing industries where producers supply goods directly to stores, bypassing the wholesaler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s General Line Grocery 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.

    IBISWorld industry market research reports enable you to:
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    This report on General Line 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 General Line 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 General Line 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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