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Market Structure of the Food Industries

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  • Economic Research Service, Marketing Economics Division

Abstract

This report describes and assesses significant structural changes in the food marketing industries during the past two decades. Chapters are included on processing; retailing; wholesaling; away-from-home eating; particular commodities, such as livestock and meat, and fruits and vegetables; and transportation. A total of 604,000 establishments were primarily engaged in marketing food products in 1967, consisting of 23,000 food processing plants, 50,000 assemblers and wholesalers, 294,000 foodstores, and 237,000 eating places. In nearly all commodity industries, processing plants are becoming fewer in number and larger. Total food processing plants declined a fourth between 1958 and 1967, while value of shipments per plant nearly doubled. The level of industry concentration varied widely among food processing industries. In nine of 30 industries, the four largest firms in each industry accounted for over half that industry's value of shipments in 1967. Number of grocery stores fell 16 percent between 1958 and 1967, practically all of the decrease among small stores. Number of stores run by firms operating 101 or more units rose a fourth between 1963 and 1967. Growth in both number and sales of merchant wholesale establishments affiliated with retail foodstores has been the principal development in the wholesale grocery trade. Sales of eating places have been growing much faster than those of foodstores. Number of eating places has increased slightly.

Suggested Citation

  • Economic Research Service, Marketing Economics Division, 1972. "Market Structure of the Food Industries," Marketing Research Reports 313362, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    • Handle: RePEc:ags:uamsmr:313362
    DOI: 10.22004/ag.econ.313362
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