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Beef & Pork Wholesaling in the US Industry Market Research Report Now Available from IBISWorld
Date:6/17/2012

Los Angeles, CA (PRWEB) June 17, 2012

The business of wholesaling has undergone some structural changes during the past decade. Vertical integration among producers and manufacturers has caused a decline in traditional wholesaling, thus making way for a new wholesaling generation made up of manufacturers' sales branches and offices (MSBOs). An MSBO in the Beef and Pork Wholesaling industry consists of a wholesaling division within a meat-processing company. According to IBISWorld industry analyst Josh McBee, “Downstream demand and the price of red meat have also driven industry growth, although nutrition trends and consumer sentiment have limited expansion.” Health concerns have put the industry in a predicament with increasingly health-conscious consumers reducing their fat intake and lower their perceived risk of heart disease. Because lower-quality red meat options are considered especially unhealthy, consumers have been opting for protein sources outside of this industry, such as poultry and seafood.

Despite the changing nutritional landscape, high meat prices and stable downstream demand from retailers and food-service industries have helped offset declining beef consumption. “Revenue has fallen a marginal 0.5% per year on average during the five years to 2012,” added McBee. Slowly recovering per capita disposable income has increased demand from supermarkets and grocery stores, and revenue is expected to grow 1.9% in 2012, eventually totaling an estimated $41.7 billion. The MSBO structure will continue to solidify and benefit from economies of scale. Consolidation, additional resources and increased technological advances will maintain positive gains through the next five years, with revenue forecast to increase through to 2017.

The concentration of ownership in the Beef and Pork Wholesaling industry is high, largely due to increasing vertical integration and wholesale bypass. Both of these trends are causing an increase in MSBOs. As beef and pork processing companies increasingly take on distribution and sales roles, the need for a third-party wholesaler dwindles. Also, the MSBO channel benefits downstream clients, in that they avoid the potential mark-ups incurred when purchasing from a traditional merchant wholesaler. Many meat-processing companies are combining their activities to cover all phases of the production, processing and distribution chain in order to gain all possible profit prior to retail. The four major companies in the industry are Tyson Foods, Sysco Corporation, Cargill and US Foods. For more information, visit IBISWorld’s Beef & Pork Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes wholesalers of beef, pork and other red meat products (except canned and packaged frozen). There are three types of wholesalers: merchant wholesalers, which include independent wholesale operations; manufacturers' sales branches and offices, which represent the wholesale division of vertically integrated meat processors; and agents and brokers that act on behalf of buyers and sellers in the distribution of goods. Poultry and seafood are excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Read the full story at http://www.prweb.com/releases/2012/6/prweb9608478.htm.


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