Berry good: Healthy economic activity will aid industry revenue growth

The Grocery Wholesaling industry in Canada, which acts as the middleman between food producers and retailers, has grown strongly in recent years as a result of favourable economic conditions and food price inflation. Strong consumption in the economy has fuelled the performance of downstream operators in the industry's major markets and has supported the expansion of demand for wholesaling services. Downstream operators, such as restaurants, rely on wholesale products and services to supply their operations. As a result, industry revenue tends to move in parallel with the performance of these downstream operators because demand for wholesale products grows as consumption increases...read more.

Industry Statistics & Market Size
Revenue
$53bn
Annual Growth 13-18
3.9%
Forecast Growth 18-23
Profit
Employment
32,194
Businesses
2,325

Industry Threats & Opportunities

  • Solid growth in disposable income has driven revenue growth
  • Technological developments have increased worker productivity
  • Consumer spending is anticipated to slow
  • Industry Report - Starting a New Business Chapter

    The Grocery Wholesaling Industry in Canada has moderate barriers to entry which are expected to increase over the next five years. The largest barrier to entry is the level of competition. Existing competition is quite high, given the number of operators in the industry and its increasing concentration. It’s difficult for a new company to enter industry since operators have signed supply contracts with large retail chains and food service providers to guarantee themselves a market for their products. The only opportunities lie with newly opened restaurants and grocery stores, many of which may choose a larger wholesaler that can offer incentives and discounts due to economies of scale...purchase to read more.

    Additional Insights for the Grocery Wholesaling Industry

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

  • Having contacts within key markets
  • Prompt delivery to market
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer price index for food in the Grocery Wholesaling industry impact industry performance..

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    What's in this report

    What is the Grocery Wholesaling Industry?

    Industry operators are intermediaries in merchandise distribution and do little to transform products. Wholesalers sell and distribute all general-line grocery products. Establishments do not specialize. Distributed products usually include dry groceries, perishable food and nonfood products found in grocery stores.

    Industry Products
  • Fresh and frozen meats, poultry and seafood
  • Canned and dry products
  • Frozen fruits, vegetables and bakery products
  • Dairy products
  • Fresh produce
  • Beverage products
  • Paper products and disposables
  • Industry Activities
  • Wholesaling dry groceries
  • Wholesaling perishable food products
  • Wholesaling nonfood products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer price index for food
  • Population
  • World price of crude oil

  • Current Performance
  • Favourable economic conditions
  • Technology and profit
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic conditions
  • Specialized markets and customer centricity
  • Industry structure
  • Table: Grocery Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Specialty Food Stores in Canada
  • Pharmacies & Drug Stores in Canada
  • Accommodation and Food Services In Canada

  • Key Selling Industries
  • Bottled Water Production in Canada
  • Bread Production in Canada
  • Canned Fruit & Vegetable Processing in Canada
  • Dairy Product Production in Canada
  • Meat, Beef & Poultry Processing in Canada
  • Soda Production in Canada
  • Vegetable Farming in Canada

  • Products & Services
  • Fresh and frozen meats, poultry and seafood
  • Canned and dry products
  • Frozen fruits, vegetables and bakery products
  • Dairy products
  • Fresh produce
  • Paper products and disposables
  • Other
  • Beverage products
  • Chart: Grocery Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Restaurants and foodservice establishments
  • Other
  • Healthcare institutions
  • Educational and governmental institutions
  • Travel, leisure and retail sectors
  • Chart: Major Market Segmentation for the Grocery Wholesaling Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grocery Wholesaling Industry

  • Industry Globalization
    Gordon Food Service, Sysco Corporation,
  • Table: Gordon Food Service - financial performance
  • Table: Sysco Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the 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 Grocery 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
    Broadline
  • a term used to describe wholesalers that sell a wide variety of items rather than focusing on a singular food product, e.g. seafood or fresh produce.
  • Electronic Data Interchange (Edi)
  • The transmission of electronic documents between businesses from one computer system to another.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers.)
  • 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?

    The Grocery Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 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 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 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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