Going cold: Falling commodity prices are expected to lead to a second year of declining revenue

The industry imports and distributes important grocery staples, including tea, coffee, cocoa and spices. According to the UK Tea and Infusions Association, Britain is the world’s third largest consumer of tea per person and the largest drinker of instant coffee in Europe, with an average of 165 million cups of tea and 70 million cups of coffee consumed daily. Additionally, the United Kingdom ranks in the top 10 countries globally for per capita consumption of chocolate, and the UK’s taste for curry, Asian cuisine and new types of food maintains demand for spices.Over the past five years, volatile commodity prices and changing consumer preferences have affected the industry. Black tea consumption has declined as many drinkers switched to coffee...read more.

Industry Statistics & Market Size
Revenue
£2.4bn
Annual Growth 13-18
7.9%
Forecast Growth 18-23
Profit
Employment
2,651
Businesses
466

Industry Threats & Opportunities

  • Revenue has been highly volatile over the past five years due to fluctuating commodity prices
  • Operators use financial derivatives and futures to ensure commodity prices do not unduly affect profit
  • The coffee market has potential to growth, as does the market for speciality teas
  • Industry Report - Industry Key Buyers Chapter

    The Coffee, Tea and Spices Wholesaling industry is subject to a high level of concentration, since the top four players are estimated to account for 72.4% of industry revenue in 2017-18.Both the coffee and cocoa product markets are dominated by multinational players that compete for market share and have well-established relationships with clients, especially in the food processing sector, and producers. They also have access to high levels of capital, which means that they can invest in expensive brand promotion and advertising initiatives. In addition, these large firms benefit from large cash reserves which helps them to mitigate against commodity and exchange rate volatility...purchase to read more.

    Additional Insights for the Coffee, Tea & Spices Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coffee, Tea & Spices Wholesaling Industry are

  • Guaranteed supply of key inputs
  • Having an extensive distribution/collection network
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Exchange rate - US dollar per pound and World price of cocoa in the Coffee, Tea & Spices Wholesaling industry impact industry performance..

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    What's in this report

    What is the Coffee, Tea & Spices Wholesaling Industry?

    This industry wholesales coffee, tea, cocoa and spices. Wholesalers perform no additional processing beyond repackaging, instead focusing on storing and distributing products.

    Industry Products
  • Tea
  • Coffee
  • Cocoa
  • Spices
  • Industry Activities
  • Coffee and coffee substitute wholesaling
  • Tea wholesaling
  • Cocoa, cocoa butter, cocoa fat and cocoa oil wholesaling
  • Spices wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Exchange rate - US dollar per pound
  • World price of cocoa
  • World price of coffee
  • Demand from cafes and coffee shops
  • Demand from coffee processing
  • Demand from supermarkets
  • Demand from chocolate and confectionery production

  • Current Performance
  • Challenging environment
  • Hot commodities
  • Demand trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading uncertainty
  • Hot coffee, tepid tea
  • Wholesale bypass continues
  • Table: Coffee, Tea & Spices Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coffee, Tea & Spices Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Chocolate & Confectionery Production
  • Coffee Processing
  • Supermarkets
  • Full-Service Restaurants
  • Food-Service Contractors

  • Key Selling Industries
  • Condiments & Seasoning Manufacturing
  • Freight Forwarding & Customs Agents
  • Tea Processing
  • Warehousing & Storage

  • Products & Services
  • Coffee
  • Cocoa
  • Tea
  • Spices
  • Chart: Coffee, Tea & Spices Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food processors
  • Food-service providers
  • Major retailers
  • Specialty stores
  • Chart: Major Market Segmentation for the Coffee, Tea & Spices Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Coffee, Tea & Spices Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee, Tea & Spices Wholesaling Industry

  • Industry Globalization
    Ecom Agrotrade Ltd, Olam Europe Ltd, Jacobs Douwe Egberts GB Ltd, R Twining & Company Limited,
  • Table: Ecom Agrotrade Ltd - financial performance
  • Table: Olam Europe Ltd - financial performance
  • Table: Jacobs Douwe Egberts GB Ltd - financial performance
  • Table: R Twining & Company Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coffee, Tea & Spices 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 Coffee, Tea & Spices Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Soft Commodity
  • A term describing commodities that are grown rather than mined.
  • Vertically Integrated
  • Where a firm owns its upstream suppliers and/or its downstream buyers. Manufacturers and retailers commonly own their own wholesaling division.
  • Wholesale Bypass
  • The process by which manufacturers bypass wholesalers in order to establish direct relationships with retailers such as supermarkets.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coffee, Tea & Spices Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Coffee, Tea & Spices 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 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 Coffee, Tea & Spices 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 Coffee, Tea & Spices Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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