Showing the cracks: Downward pricing pressure has weighed on the industry

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 industry 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 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Rising health consciousness has led to the introduction of new products, limiting decline
  • A rise in the domestic price of milk is expected to allow revenue to return to growth in the current year
  • Operators are expected to focus on the growing food-service sector as a key market
  • Industry Report - Industry Products Chapter

    Milk productsMilk products, including both liquid and powdered milk, are expected to account for the largest share of industry revenue, at an estimated 30.3% in 2017-18. While major retailers are the most important channel in the supply chain, wholesale distributors also form a critical link between the manufacturer and consumer. This segment includes all of the different varieties of liquid milk, ranging from skimmed to condensed milk. It also includes powdered milk, such as skimmed milk powder and whole milk powder, of which the former accounts for the majority of revenue. The milk product segment is estimated to have fallen as a share of industry revenue over the past five years, due to declining levels of liquid milk consumption and weak growth in milk prices...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 Real household disposable income 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
  • Real household disposable income
  • Domestic price of milk
  • Demand from full-service restaurants
  • Liquid milk consumption per capita

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

  • Industry Outlook
  • Industry growth
  • Revenue restraints
  • Supply troubles
  • 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
  • Hotels
  • Consumers

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

  • Products & Services
  • Milk products
  • Cheese
  • Eggs
  • Yoghurt
  • Edible oils
  • Butter and cream
  • Other dairy-based products
  • 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
  • Speciality stores
  • Convenience 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
  • Profit
  • Purchases
  • Wages
  • Distribution, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Product, Egg & Edible Oil Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Product, Egg & Edible Oil Wholesaling Industry

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

    The Dairy Product, Egg & Edible Oil 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.

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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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