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Soft Drink and Pre-Packaged Food Wholesaling in Australia - Market Research Report (2014-2029)

Kathrina Gonzales Kathrina Gonzales Melbourne, Australia Last Updated: December 2024 ANZSIC F3609

Revenue

$21.2bn

2024-25

$21.2bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

33,387

Businesses

5,295

Wages

$X.Xbn

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

The Soft Drink and Pre-Packaged Food Wholesaling industry is navigating a landscape marked by significant challenges and transformative shifts. Major supermarket chains are increasingly adopting aggressive pricing strategies, implementing ongoing price cuts to remain competitive against new entrants. This trend is pressuring wholesalers as they struggle to maintain profitability. Supermarkets are favouring direct sourcing from manufacturers, bypassing traditional wholesalers and altering their roles in the supply chain. This focus on low prices creates a highly competitive environment, forcing smaller wholesalers to adapt quickly or risk exiting the market. Also, heightened consumer awareness of health issues is shifting demand away from high-fat and sugary products, further challenging wholesalers of traditional items. Industry revenue is expected to have contracted at an annualised 2.7% over the five years through 2024-25, to $21.2 billion. This includes an anticipated drop of 1.8% in 2024-25, driven by fluctuating trends in downstream markets and retailing industries, as well as retailers bypassing wholesalers as they focus on cost-cutting measures to enhance profitability.

Trends and Insights

  • Revenue is declining as wholesalers contend with heightened competition from supermarkets, which are increasingly bypassing traditional distribution. With consumer preferences shifting towards healthier options, sales of high-fat and sugary products are falling, tightening profit for wholesalers reliant on these items.
  • Health trends have led to a decline in the snacks and confectionery segment as consumers opt for healthier options. Meanwhile, the dry goods segment has grown because consumers have stockpiled staple products and shown increased interest in herbs and spices.
  • Wholesalers are primarily located in New South Wales and Victoria because of their high population densities, which creates significant customer bases. This enables wholesalers in these states to offer diverse, health-focused products that cater to various tastes, enhance their competitiveness.
  • Wholesalers distributing well-known or exclusive brands gain a competitive edge by expanding their product range, including low-sugar and natural options that align with consumer preferences. Factors like prompt deliveries, brand reputation and proximity to retailers also enhance wholesalers’ competitiveness.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.7 % over the past five years, to reach an estimated $21.2bn in 2024.

Trends and Insights

Supermarkets and retailers are increasingly bypassing wholesalers, undermining industry revenue

  • Major supermarket chains are increasingly managing their supply chains and using direct sourcing from manufacturers. As supermarkets streamline operations to cut costs and improve efficiency, wholesalers’ role has been reduced.
  • Additional trends and insights available with purchase
Soft Drink and Pre-Packaged Food Wholesaling in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

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

Trends and Insights

Major supermarket chains are likely to maintain aggressive pricing strategies

  • Major supermarket chains will likely implement ongoing price cuts to remain competitive against emerging competitors. This strategy will pressure wholesalers, as supermarkets seeking to streamline operations and cut costs will continue to bypass wholesalers.

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

Company
Market Share (%)
2025
Revenue ($short_0)
2025

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

Health trends have led to a decline in snacks and confectionery sales

  • 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

Wholesalers specialise in specific grocery or food items not classified elsewhere. Wholesalers act as intermediaries, purchasing goods from manufacturers and selling them to downstream buyers like supermarkets, convenience stores and food-service businesses. The industry excludes wholesalers handling three or more grocery lines and vertically integrated manufacturers.

What's included in this industry?

Snacks and confectioneriesDry goodsBeveragesCanned foodOils and saucesPrepared mealsJamMarmaladeHoneySyrup

Companies

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

Related Terms

WHOLESALE BYPASSSPECIALISED WHOLESALERGENERAL LINE WHOLESALERSFUNCTIONAL DRINKS

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 is declining as wholesalers contend with heightened competition from supermarkets, which are increasingly bypassing traditional distribution. With consumer preference...

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 (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • 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

Health trends have led to a decline in the snacks and confectionery segment as consumers opt for healthier options. Meanwhile, the dry goods segment has grown because consume...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

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

Wholesalers are primarily located in New South Wales and Victoria because of their high population densities, which creates significant customer bases. This enables wholesale...

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 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

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

Wholesalers distributing well-known or exclusive brands gain a competitive edge by expanding their product range, including low-sugar and natural options that align with consu...

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 2019-2024
  • 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

The industry is highly fragmented, with most wholesalers being small businesses. Many major manufacturers, like Coca-Cola Amatil and Nestle Australia, are adopting vertical i...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

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

    Analyst insights

    The industry operates under light regulation, primarily governed by the Competition and Consumer Act 2010, which promotes fair trading and consumer protection. The Australia ...

    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 (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    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

    Mounting competition and direct contracts between retailers and manufacturers are pressuring wholesalers’ profitability. At the same time, wage costs have decreased as automa...

    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 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    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 (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    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 $21.2bn in 2024.

    How many businesses are there in the Soft Drink and Pre-Packaged Food Wholesaling in Australia industry in 2024?

    There are 5,295 businesses in the Soft Drink and Pre-Packaged Food Wholesaling industry in Australia, which has grown at a CAGR of 0.2 % between 2019 and 2024.

    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 2.7 % between 2019 and 2024.

    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.

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    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    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.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

    Learn more about our methodology and data sourcing on the Help Center.