Skimmed off: Volatile milk prices have heavily affected revenue, while profit has declined

The Dairy Product, Egg and Edible Oil Wholesaling industry plays an important role in the food supply chain. Wholesalers buy milk, cheese, yoghurt, cream, butter, eggs and oil from farmers and producers, then deliver them to retailers for sale to consumers. During the past five years, conditions in the industry have been challenging. Intensifying downward pricing pressures from supermarkets have long threatened the industry's performance, as operators have been forced to cut prices to vie for clients. Dairy and dairy product processors with integrated wholesale functions, such as Arla Foods, Muller UK & Ireland Group, Meadow Foods and Danone, have changed the industry's competitive landscape and given further momentum to wholesale bypass, stunting industry more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Vertical integration among operators limited revenue by encouraging wholesale bypass
  • Growing ethnicity in the United Kingdom has contributed towards a decline in milk consumption
  • New products aimed at consumers’ desire for health and convenience are expected to support demand
  • Industry Report - Industry Investment Chapter

    The industry is characterised by a moderate level of capital intensity. Using wages as a proxy for labour and deprecation as a proxy for capital, the industry has a capital-to-labour ratio of 1:3.81. This suggests that the average operator spends £3.81 on labour for every £1.00 of capital invested.Key areas of capital expenditure include refrigerated warehousing and delivery vehicles. Automation and the introduction of IT systems are becoming increasingly important and prominent in the industry, as operators have sought to reduce labour costs. Investment in IT infrastructure tends to raise the rate of depreciation, as high-tech equipment is usually depreciated over a much shorter time than buildings, leasehold improvements and capital equipment. How...purchase to read more.

    Additional Insights for the Dairy Product, Egg & Edible Oil Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Product, Egg & Edible Oil Wholesaling Industry are

  • Access to high quality inputs
  • Having an extensive distribution/collection network
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Domestic price of milk in the Dairy Product, Egg & Edible Oil Wholesaling industry impact industry performance..

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    What's in this report

    What is the Dairy Product, Egg & Edible Oil Wholesaling Industry?

    The industry includes the wholesale of dairy produce such as liquid and powdered milk, cheese, yoghurt, butter, cream and other dairy products. It also includes the wholesale of eggs, edible oils and fats of animal and vegetable origin.

    Industry Products
  • Milk products
  • Eggs
  • Cheese
  • Yoghurt
  • Edible oils
  • Butter and cream
  • Other dairy-based products
  • Industry Activities
  • Wholesaling liquid and powdered milk
  • Wholesaling cheese
  • Wholesaling butter
  • Wholesaling eggs
  • Wholesaling edible oils and fats
  • Wholesaling yoghurt
  • Wholesaling other dairy products
  • 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
  • Domestic price of milk
  • Liquid milk consumption per capita
  • Demand from full-service restaurants
  • Real household disposable income

  • Current Performance
  • Pricing pressures and wholesale bypass
  • Churned up
  • Consumption patterns
  • Expansion opportunities
  • Growing markets
  • Profit and market structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry growth
  • Revenue restraints
  • Future supply
  • Table: Dairy Product, Egg & Edible Oil Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Product, Egg & Edible Oil Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Full-Service Restaurants
  • Convenience Stores
  • Cafes & Coffee Shops

  • Key Selling Industries
  • Butter & Cheese Production
  • Milk & Cream Production
  • Oil & Fat Production
  • Poultry Raising

  • Products & Services
  • Milk products
  • Cheese
  • Butter and cream
  • Eggs
  • Other dairy-based products
  • Edible oils
  • Yoghurt
  • Chart: Dairy Product, Egg & Edible Oil Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Substitute goods
  • Real household disposable income
  • Health consciousness
  • Seasonality
  • Wholesale bypass

  • Major Markets
  • Supermarkets
  • Food-service industry
  • Food processors
  • Convenience stores
  • Speciality stores
  • Chart: Major Market Segmentation for the Dairy Product, Egg & Edible Oil Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Product, Egg & Edible Oil Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Product, Egg & Edible Oil Wholesaling Industry

  • Industry Globalization
    Arla Foods Ltd, Meadow Foods Ltd, Muller UK & Ireland Group LLP,
  • Table: Arla Foods Ltd - financial performance
  • Table: Meadow Foods Ltd - financial performance
  • Table: Muller UK & Ireland Group LLP - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Product, Egg & Edible Oil 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 Product, Egg & Edible Oil Wholesaling Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A soft, whole-milk cheese with a white rind.
  • Vertical Integration
  • The degree of vertical integration is the extent to which a firm owns its upstream suppliers and its downstream buyers. Manufacturers or retailers commonly own wholesale operations.
  • 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 Dairy Product, Egg & Edible Oil 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.

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    This report on Dairy Product, Egg & Edible Oil 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 Dairy Product, Egg & Edible Oil 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

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