Fruitful future: An increased demand from downstream markets is expected to aid revenue growth

The Fruit and Vegetable Wholesaling industry in Canada experienced moderate revenue growth over the five years to 2018, primarily as a result of increasing food prices over the five years to 2018. With increasing fruit and vegetable prices, industry operators are taking in more revenue, but also increasing their absolute purchase costs. As a share of revenue, however, purchase costs have declined. Despite the threat of wholesale bypass, industry establishments and enterprises have exhibited slight growth during the five-year period. However, due to the homogenous nature of industry products, it is very difficult for one operator to control a significant share of the market, somewhat insulating industry operators from internal competition...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
11,924
Businesses
1,288
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Downstream demand from supermarkets, restaurants, hotels and specialty food stores have driven revenue growth
  • Grocery stores hold the largest share of produce sales at the retail level and are also the largest threat to wholesalers
  • Industry purchase costs are anticipated to increase somewhat, which will place pressure on operators' profit margins
  • Industry Report - Industry SWOT Analysis Chapter

    The Fruit and Vegetable Wholesaling industry in Canada is in the mature phase of its life cycle. Industry value added (IVA), a measure of an industry's contribution to the overall economy, is projected to increase at an annualized rate of 2.1% over the 10 years to 2023. In contrast, Canada's GDP is expected to increase at an annualized rate of 1.9% during the same period. IVA growth that tracks GDP growth is a significant indicator of industry maturity. However, a mature industry is further characterized by factors such as stable entry and exit of establishments, low rates of technological advancement and wholehearted market acceptance of product segments.The industry has experienced little technological innovation over the past five years. Whi...purchase to read more.

    Additional Insights for the Fruit & Vegetable Wholesaling Industry

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

  • Ability to alter goods and services produced in favour of market conditions
  • Ability to avoid wholesale bypass
  • Ability to forward sell production when appropriate
  • IBISWorld analysts also discuss how external factors such as Demand from full-service restaurants and Demand from supermarkets and grocery stores in the Fruit & Vegetable Wholesaling industry impact industry performance..

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    What's in this report

    What is the Fruit & Vegetable Wholesaling Industry?

    This industry wholesales a range of fresh fruit and vegetables to supermarkets, delis, restaurants, cafes and institutions such as hospitals and retirement homes. This industry does not include wholesalers of processed fruits and vegetables.

    Industry Products
  • Vegetables
  • Fruits
  • Industry Activities
  • Wholesaling fruits
  • Wholesaling vegetables
  • Storing fruits
  • Storing vegetables
  • Transporting fruits
  • Transporting 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 full-service restaurants
  • Demand from supermarkets and grocery stores
  • Demand from hotels and motels
  • Demand from specialty food stores
  • Per capita meat consumption

  • Current Performance
  • Premium products boost demand
  • External competition on the rise
  • Wholesalers fight back
  • Chart: Revenue Growth

  • Industry Outlook
  • Higher incomes garner value-added purchases
  • Profit and industry landscape
  • Table: Fruit & Vegetable Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Vegetable Farming in Canada
  • Fruit & Nut Farming in Canada

  • Key Selling Industries
  • Canned Fruit & Vegetable Processing in Canada
  • Dollar & Variety Stores in Canada
  • Food Service Contractors in Canada
  • Full-Service Restaurants in Canada
  • Hotels & Motels in Canada
  • Specialty Food Stores in Canada
  • Supermarkets & Grocery Stores in Canada

  • Products & Services
  • Vegetables
  • Fruits
  • Chart: Fruit & Vegetable Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Food service providers
  • Hospitality businesses
  • Other wholesalers for resale
  • Chart: Major Market Segmentation for the Fruit & Vegetable Wholesaling Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit & 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 & 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 & 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)
  • Consumer price index for food (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cooperative
  • Also referred to as a co-op, it is an association of trade professionals who are united voluntarily to meet a common economic goal.
  • Supply Chain
  • A network of entities, including primary producers, processors, wholesalers, retailers and other agents, engaged in delivering products to the consumer or customer.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit & Vegetable 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 Fruit & 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 & 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 & 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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