Grocery Wholesaling in Texas - Industry Market Research Report

Cash Crops: Rebounding Food Prices and Stronger Demand Will Aid Industry Growth

Grocery Wholesaling in Texas

The Grocery Wholesaling industry acts as the middleman between food producers and end-use customers, playing an essential role in the broader agribusiness sector supply chain within Texas. Industry revenue has grown modestly over the five years to 2017, with rising consumer spending and other favorable economic conditions partly offset by sharp declines in the agricultural price index. Falling food prices have reduced selling prices for products this industry distributes, in turn placing downward pressure on industry performance. Despite challenges associated with volatile purchase costs, rising demand from both retail and foodservice markets has ultimately helped the industry grow during the period. Over the five years to 2022, the Grocery Wholesaling industry in Texas is expected to grow more quickly, driven by rebounding food prices and stronger demand from the industry's two key markets: retailers and foodservice. Favorable shifts in regional macroeconomic conditions, most notably an increasing population and rising incomes, will help grow the industry's consumer base.

Grocery wholesalers act as the middlemen between food producers and retailers. They do little to transform products and are intermediaries in merchandise distribution. Wholesalers sell and distribute all general-line grocery products, and industry establishments generally do not specialize. Distributed products usually include dry groceries, perishable food and nonfood products found in grocery stores.

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.