Soft performance: Slow demand, rising health consciousness and structural shifts limit growth

The Soft Drink and Pre-Packaged Food Wholesaling industry's fortunes are closely linked to trends in upstream and downstream manufacturing and retailing industries. Overall, industry revenue is expected to grow at an annualised 1.7% over the five years through 2018-19, to be worth $20.6 billion. This includes an expected 0.7% rise in the current year, which is anticipated to be due to modest price increases for industry products, rather than increased demand.The big supermarkets have not been major customers of the industry for decades, so their moves to exert further control over the supply chain have had a minimal direct influence on industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Food-service businesses have been the industry's only growing market over the past five years
  • Wholesale bypass has not had a direct effect on the industry over the past five years
  • Increasing prices are expected to be the major driver of revenue growth over the next five years
  • Industry Report - Industry Locations Chapter

    The industry is concentrated along the eastern seaboard in New South Wales, Victoria and Queensland. These states collectively account for 84.1% of industry establishments, and approximately 78% of the population. This indicates that the spread of industry establishments is closely correlated with population numbers among Australian states, with a slightly larger proportion directed towards the more populous states.Wholesalers are typically strategically located close to the retail environment to reduce transportation costs and inventory turnover times. Thi...purchase to read more.

    Additional Insights for the Soft Drink and Pre-Packaged Food Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Soft Drink and Pre-Packaged Food Wholesaling are:

  • Guaranteed supply of key inputs
  • Ability to avoid wholesale bypass
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Demand from cafes, restaurants and takeaway food services and Demand from supermarkets and grocery stores in the Soft Drink and Pre-Packaged Food Wholesaling industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Soft Drink and Pre-Packaged Food Wholesaling Industry?

    Industry companies wholesale specific grocery or food items that are not classified elsewhere. Wholesalers generally operate as an intermediary in the supply chain by purchasing a range of goods from manufacturers, which they onsell to downstream buyers such as supermarkets, convenience stores and food-service establishments. The industry does not include operators that wholesale three or more grocery lines or manufacturers that are vertically integrated.

    Industry Products
  • Snacks and confectionery
  • Beverages
  • Dry ingredients
  • Canned foods
  • Oils and sauces
  • Other products
  • Industry Activities
  • Beverage wholesaling, including aerated water, bottled water, cordial, fruit juice and soft drink
  • Confectionery wholesaling, including chocolate products and chewing gum
  • Snack food wholesaling, including chips, biscuits, nuts and healthy snacks
  • Dry ingredients wholesaling, including tea, coffee, yeast, rice, herbs, spices and cereals
  • Canned food wholesaling, including shelf-stable vegetables and fruits, soups, seafood and condiments
  • Cooking oil or fat wholesaling, including cooking oil, margarine and animal fats
  • 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 cafes, restaurants and takeaway food services
  • Demand from supermarkets and grocery stores
  • Health consciousness
  • Real household disposable income

  • Current Performance
  • The bypass problem
  • Health concerns and competition
  • Profitability and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply chain strains
  • Price growth
  • Increasing scale
  • Product innovation
  • Table: Soft Drink and Pre-Packaged Food Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soft Drink and Pre-Packaged Food Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets and Grocery Stores
  • Restaurants
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Chocolate and Confectionery Manufacturing
  • Cooking Oil and Margarine Manufacturing
  • Fruit and Vegetable Processing
  • Fruit Juice Drink Manufacturing
  • Snack Food Manufacturing
  • Soft Drink Manufacturing
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • Snacks and confectionery
  • Dry ingredients
  • Other products
  • Beverages
  • Canned foods
  • Oils and sauces
  • Chart: Soft Drink and Pre-Packaged Food Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food-service establishments
  • Supermarkets and grocery stores
  • Businesses and government institutions
  • Convenience stores and service stations
  • Chart: Major Market Segmentation for the Soft Drink and Pre-Packaged Food Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Soft Drink and Pre-Packaged Food Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soft Drink and Pre-Packaged Food 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 Soft Drink and Pre-Packaged Food 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 Soft Drink and Pre-Packaged Food Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Radio-Frequency Identification (Rfid)
  • The use of a tag that is applied to a product, person or animal for the purpose of tracking and identification using radio waves.
  • Specialised Wholesaler
  • A wholesaler selling products within two or less product categories.
  • Wholesale Bypass
  • The trend of supermarkets and grocery stores bypassing wholesalers to directly purchase their products from the manufacturers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Soft Drink and Pre-Packaged Food 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:
    • 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 Soft Drink and Pre-Packaged Food 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 Soft Drink and Pre-Packaged Food 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 Soft Drink and Pre-Packaged Food Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.