Egg & Poultry Wholesaling in the US
Shifting health trends have challenged the Egg and Poultry Wholesaling industry over the five years to 2022. Egg and poultry products' popularity has been slowed due to changing health-conscious trends; growing health awareness has encouraged consumers to opt for plant-based diets. According to...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | Shifting health trends have challenged the Egg and Poultry Wholesaling industry over the five years to 2022. Egg and poultry products' popularity has been slowed due to changing health-conscious trends; growing health awareness has encouraged consumers to opt for plant-based diets. According to a study conducted by Ipsos Retail Performance, between 2004 and 2019, there was a 30-fold increase in vegans in the United States. The industry has also contended with intense competition from broadline wholesalers that have the facilities and relationships with many retailers to cut into the industry's presence. Overall, IBISWorld estimates industry revenue has decreased at an annualized rate of 1.2% to $12.4 billion over the five years to 2022. However, due to economic recovery following the COVID-19 (coronavirus) pandemic, industry revenue is expected to rise 3.9% in 2022 alone.
Per capita egg consumption has risen an annualized 1.3% over the five years to 2022, while per capita poultry consumption has increased at annualized rate of 0.8% during the same period; this growth has driven demand for industry services. Profit, measured as earnings before interest and taxes, is expected to increase, accounting for 2.1% of revenue in 2022. Additionally, many egg and poultry wholesalers have operated at a loss during the current period, causing some enterprises to consolidate their operations by closing distribution facilities. Intense competition from broadline wholesalers has forced several operators out of the market. Accordingly, the number of industry enterprises has decreased over the five years to 2022.
Demand for industry services is expected to increase over the five years to 2027. Increased consumption of eggs, strong sales of premium eggs and higher-margin chicken products and consumers dining out more frequently will drive demand for industry services. Even so, specialty wholesalers of poultry products will likely continue to contend with intensifying competition from large broadline distributors that participate in the Grocery Wholesaling industry (IBISWorld report 42441), which also sell industry products to the same markets. These factors will likely constrain revenue growth, despite steady demand for industry products from key markets. Industry revenue is forecast to grow an annualized 1.4% to $13.3 billion over the five years to 2027. |
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