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Soft Drink and Pre-Packaged Food Wholesaling in Australia - Market Research Report (2013-2028)

Matthew Reeves Matthew Reeves Melbourne, Australia Last Updated: October 2023 ANZSIC F3609

Revenue

$20.6bn

2023-24

$21.0bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

35,312

Businesses

5,671

Wages

$X.Xbn

Soft Drink and Pre-Packaged Food Wholesaling in Australia industry analysis

Soft drink and pre-packaged food wholesaling's fortunes are closely linked to trends in downstream food-service and retailing industries. Demand from food-service establishments has been volatile, with downstream demand growing strongly prior to the COVID-19 pandemic. Food-service establishments are vital to industry performance, as they tend to trust specialised wholesalers to provide high-quality and niche products. For example, coffee shops tend to prefer a specialised coffee bean wholesaler due to their detailed product knowledge and variety of beans available. Restrictions on the operations of food-service establishments constrained demand from this key market during the COVID-19 pandemic. Consequently, revenue is expected to decline at an annual average rate of 2.2% over the five years through 2022-23, to $20.6 billion. This includes an anticipated increase of 0.5% in the current year, as these restrictions continue to ease.Food retailers also account for a large share of revenue. While the big supermarket chains have not been major customers of the industry for decades due to ongoing wholesale bypass trends, soft drink and pre-packaged food wholesalers supply a range of independent supermarkets and grocery stores across the country. These smaller players are important customers for soft drink and pre-packaged food wholesalers. Demand from food retailers was boosted COVID-19 pandemic, as consumer purchases of dry and canned goods at food retailers increased, but demand has since switched back towards food-service establishments. Higher input costs and increasing bypass trends have reduced profitability over the past five years.Soft drink and pre-packaged food wholesaling revenue is forecast to rise. As consumers increasingly eat meals outside the home, demand from food-service establishments is likely to increase. This trend is projected to be fuelled by growth in disposable incomes over the next five years. Growing demand and increased efficiency through automation is projected to support rising profit margins. However, demand from food retailers is likely to be limited by larger retailers increasingly bypassing wholesalers. Overall, revenue is projected to grow at an annual average rate of 1.5% over the five years through 2027-28, to $22.2 billion.

Trends and Insights

  • Revenue and profitability have declined over the past five years. Soft drink and pre-packaged food wholesalers have faced greater competition from general line grocery wholesalers and increased wholesale bypass altogether.
  • Consumer food tastes and preferences are expanding, boosting demand for herbs, spices and sauces. Consequently, dry goods and oils and sauces have expanded as a share of revenue.
  • Most soft drink and pre-packaged food wholesalers are located in the New South Wales and Victoria. These states have the largest populations and are therefore key locations for downstream markets.
  • Market share concentration is low. These wholesalers are by nature smaller businesses that focus on one or two food and beverage product lines.

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Industry Statistics and Trends

Market size and recent performance (2013-2028)

Industry revenue has declined at a CAGR of 2.2 % over the past five years, to reach an estimated $20.6bn in 2023.

Trends and Insights

The COVID-19 pandemic impaired demand conditions

  • Demand from the industry's largest market, food-service establishments, is expected to be severely constrained by the COVID-19 pandemic.
  • Additional trends and insights available with purchase
Soft Drink and Pre-Packaged Food Wholesaling in Australia
Revenue (2013-2028)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Soft drink and pre-packaged food wholesalers are set to ramp up investment in warehouse automation

  • Greater investment in warehousing and distribution technologies will help improve wholesaler efficiency.

Biggest companies in the Soft Drink and Pre-Packaged Food Wholesaling in Australia

Company
Market Share (%)
2023
Revenue ($short_0)
2023

There are no companies that hold a large enough market share in the Soft Drink and Pre-Packaged Food Wholesaling in Australia industry for IBISWorld to include in this product.

Products & Services Segmentation

Soft Drink and Pre-Packaged Food Wholesaling in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Snacks and confectionery , Beverages and Dry goods. Snacks and confectionery is the largest segment of the Soft Drink and Pre-Packaged Food Wholesaling in Australia.

Trends and Insights

A growing focus on healthy eating has reduced demand for snacks and confectionery

  • Snacks include biscuits, chips, nuts and dried fruit, and nutritious snacks. Confectionery includes chocolate, lollies, chewing gum and mints.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry companies wholesale specific grocery or food items that are not classified elsewhere. Wholesalers generally operate as an intermediary in the supply chain by purchasing a range of goods from manufacturers, which they onsell to downstream buyers such as supermarkets, convenience stores and food-service establishments. The industry does not include operators that wholesale three or more grocery lines or manufacturers that are vertically integrated.

What's included in this industry?

Snacks and confectioneriesDry goodsBeveragesCanned foodOils and saucesPrepared mealsJamMarmaladeHoney

Companies

Purchase this report to view all major companies in this industry.

Related Terms

RADIO-FREQUENCY IDENTIFICATION (RFID)WHOLESALE BYPASSSPECIALISED WHOLESALER

Industry Code

ANZSIC 2006

ANZSIC 3609 - Soft Drink and Pre-Packaged Food Wholesaling in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Revenue and profitability have declined over the past five years. Soft drink and pre-packaged food wholesalers have faced greater competition from general line grocery wholes...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2013-2022) and forecast (2023-2028)
  • Employees, including historical (2013-2022) and forecast (2023-2028)
  • Businesses, including historical (2013-2022) and forecast (2023-2028)
  • Profit, including historical (2013-2023)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Consumer food tastes and preferences are expanding, boosting demand for herbs, spices and sauces. Consequently, dry goods and oils and sauces have expanded as a share of reve...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2023
  • Product innovation level

Charts

  • Products & services segmentation in 2023
  • Major market segmentation in 2023

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most soft drink and pre-packaged food wholesalers are located in the New South Wales and Victoria. These states have the largest populations and are therefore key locations f...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2023

Tables

  • Number and share of establishments in each region in 2023
  • Number and share of revenue each region accounts for in 2023
  • Number and share of wages each region accounts for in 2023
  • Number and share of employees in each region in 2023

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Market share concentration is low. These wholesalers are by nature smaller businesses that focus on one or two food and beverage product lines.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2018-2023
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the Soft Drink and Pre-Packaged Food Wholesaling industry. Around 45.0% earn under $200,000 in annual revenue according to the latest data from ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2019 through 2023
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2023

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Soft drink and pre-packaged food wholesalers must abide by the Competition and Consumer Act 2010. The act sets out standards relating to competition and fair trading that is ...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2013-2028) 
    • Assistance historical data and forecast (2013-2028) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Profit margins have declined over the past five years. Increasing wholesale bypass trends have weakened price growth, while input costs have risen.

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2013-2028)
    • Revenue per Employee (2013-2028)
    • Revenue per Enterprise (2013-2028)
    • Employees per Establishment (2013-2028)
    • Employees per Enterprise (2013-2028)
    • Average Wage (2013-2028)
    • Wages/Revenue (2013-2028)
    • Establishments per Enterprise (2013-2028)
    • IVA/Revenue (2013-2028)
    • Imports/Demand (2013-2028)
    • Exports/Revenue (2013-2028)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2013-2028)
    • IVA (2013-2028)
    • Establishments (2013-2028)
    • Enterprises (2013-2028)
    • Employment (2013-2028)
    • Exports (2013-2028)
    • Imports (2013-2028)
    • Wages (2013-2028)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia in 2024?

    The market size of the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia is $20.6bn in 2024.

    How many businesses are there in the Soft Drink and Pre-Packaged Food Wholesaling in Australia industry in 2023?

    There are 5,671 businesses in the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia, which has grown at a CAGR of 1.6 % between 2018 and 2023.

    Has the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia grown or declined over the past 5 years?

    The market size of the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia has been declining at a CAGR of 2.2 % between 2018 and 2023.

    What is the forecast growth of the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia over the next 5 years?

    Over the next five years, the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia is expected to grow.

    What does the Soft Drink and Pre-Packaged Food Wholesaling in Australia include?

    Snacks and confectioneries and Dry goods are part of the Soft Drink and Pre-Packaged Food Wholesaling industry.

    How competitive is the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia?

    The level of competition is high and increasing in the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • Dairy Produce Wholesaling in Australia
    • Fruit and Vegetable Wholesaling in Australia
    • General Line Grocery Wholesaling in Australia

    Complementors

    • Meat, Poultry and Smallgoods Wholesaling in Australia

    International industries

    • Frozen Food Wholesaling in the US
    • Confectionery Wholesaling in the US
    • Soft Drink, Baked Goods & Other Grocery Wholesaling in the US
    • Fresh Bread & Bakery Goods Wholesaling in the US
    • Soft Drink and Pre-Packaged Food Wholesaling in New Zealand

    View all industries in Australia

    Methodology

    How are IBISWorld reports created?

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    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in Australia include:

    • Australian Bureau of Statistics
    • Australian Taxation Office
    • Australian Securities & Investments Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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