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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.

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