Dairy Wholesaling in the US
The Dairy Wholesaling industry experienced stable revenue growth over the five years to 2018, a result of increased per capita dairy consumption and industry consolidation. However, despite favorable conditions, retailer behavior and downstream demand have a significant effect on industry performance. Retailers have been increasingly purchasing dairy products directly from manufacturers instead of traditional merchant wholesalers, raising external competition and limiting industry expansion. As a result, many operators struggled to remain relevant within the supply chain, and the number of dairy wholesalers has steadily decreased over the past five years. The industry is susceptible to profit margin volatility. Profits are largely determined by input costs of dairy and nondairy commodities, which industry players may be unable to pass on to customers. The positive effects of lower dairy prices are reflected in an increase in the average industry profit margin. The Dairy Wholesaling industry is expected to grow slowly over the five years to 2023.
This industry wholesales dairy products (except dried or canned), including butter, cheese, cream, ice cream, milk and yogurt. This industry does not include manufacturers’ sales branches and offices (MSBOs) where the wholesaling and production of dairy products occur as one undifferentiated operation; revenue from MSBOs is included in the Dairy Product Production industry (IBISWorld report 31151).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.