Milking it: Rising demand for industry products will prompt continued production growth

Operators in the Dairy Wholesaling industry in Canada wholesale a variety of dairy products, including raw milk, processed milk, butter, cheese, cream, ice cream and yogourt, to downstream customers such as grocery stores and food service establishments. Over the five years to 2018, the industry has experienced solid growth, as consumers have increased consumption of a variety of dairy products, resulting in increased demand for such products from downstream customers and rising production of many industry goods. Changing demand trends for dairy products have influenced revenue over the last five years. While per capita consumption of milk has declined, demand for products such as yogourt, butter and cheese have all experienced growth...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
3.9%
Forecast Growth 18-23
Profit
Employment
7,382
Businesses
603
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Changing demand trends for dairy products have influenced revenue over the last five years
  • The price of domestic milk was lowered to Canadian dairy processors
  • While milk has fallen out of favour, consumers have increasingly switched to other forms of dairy
  • Industry Report - Starting a New Business Chapter

    This industry is subject to low barriers to entry, with the biggest impediment to entry being the initial cost of establishing warehousing and distribution systems. The major capital cost to enter the industry is the purchase of refrigerated vans and storage facilities to store and transport dairy products. Moreover, the cost of a diversified inventory can be difficult to overcome, considering established companies have the benefit of knowing what industry products move quickly and those that do not. Refrigeration is essential because of the highly perishable nature of most dairy products. New entrants also need to invest in electronic inventory systems and computerized tracking software to remain competitive...purchase to read more.

    Additional Insights for the Dairy Wholesaling Industry

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

  • Having a cost effective distribution system
  • Prompt delivery to market
  • Strong link with dairy farms and dairy product producers
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from dairy product production in the Dairy Wholesaling industry impact industry performance..

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    What's in this report

    What is the Dairy Wholesaling Industry?

    Operators in this industry wholesale dairy products (except dried or canned), including butter, cheese, cream, ice cream, milk and yogourt. This industry does not include manufacturers’ sales branches and offices (MSBOs) where the wholesaling and production of dairy products occur as one undifferentiated operation. Revenue from such MSBOs are included under the scope of the Dairy Product Production industry in Canada (IBISWorld 31151CA).

    Industry Products
  • Milk products (class 1A)
  • Cream products (class 1B)
  • Cheese products (class 3)
  • Butter (class 4A)
  • Yogourt (class 2A)
  • Ice cream products (class 2B)
  • All other products
  • Industry Activities
  • Raw milk and cream wholesaling
  • Cheese wholesaling
  • Fluid milk wholesaling
  • Ice cream and frozen dairy products wholesaling
  • Yogourt wholesaling
  • Butter 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 supermarkets and grocery stores
  • Demand from dairy product production
  • Demand from food services and drinking places
  • Consumer price index for food
  • Per capita disposable income

  • Current Performance
  • Downstream demand and dairy trends
  • Industry structure and threats
  • Wholesaler bypass
  • Trade complications
  • Chart: Revenue Growth

  • Industry Outlook
  • Dairy trends
  • Churning industry competition
  • Slow profit growth
  • Table: Dairy Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Dairy Product Production in Canada
  • Ice Cream Production in Canada
  • Dairy Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Warehouse Clubs & Supercentres in Canada
  • Full-Service Restaurants in Canada
  • Coffee & Snack Shops in Canada

  • Key Selling Industries
  • Dairy Farms in Canada
  • Dairy Product Production in Canada
  • Dairy Wholesaling in Canada
  • Ice Cream Production in Canada

  • Products & Services
  • Cheese products (class 3)
  • Milk products (class 1A)
  • Butter (class 4A)
  • Cream products (class 1B)
  • All other products
  • Yogourt (class 2A)
  • Ice cream products (class 2B)
  • Chart: Dairy Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Income and price
  • Health and nutrition

  • Major Markets
  • Retailers
  • Other wholesalers
  • Food manufacturers and processors
  • Restaurants, hotels, food services and contract feeding
  • Other
  • Chart: Major Market Segmentation for the Dairy Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesLabourOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy 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 Dairy 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 Dairy Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer price index for food (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Manufacturers' Sales Branches And Offices
  • Also known as MSBOs, manufacturers' sales branches and offices are wholesaling operations owned and operated by manufacturers but are physically separated from manufacturing plants.
  • Radio-Frequency Identification (Rfid)
  • Technology that allows for non-contact reading and real-time data collection, and lasts longer in difficult conditions that would cause regular bar codes to deteriorate.
  • Wholesale Bypass
  • Practice in which retailers purchase goods directly from manufacturers instead of through wholesalers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Dairy 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.

    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
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    This report on Dairy 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 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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