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Grocery Wholesaling in the UK - Market Research Report (2016-2031)

Matthew Quail Matthew Quail London, United Kingdom Last Updated: January 2026 SIC G46.390

Revenue

£49.3bn

2026-27

£51.0bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

81,190

Businesses

3,862

Wages

£X.Xbn

Grocery Wholesaling in the UK industry analysis

The Grocery Wholesaling industry has rebounded following the impact of the pandemic, with revenue expected to swell at a compound annual rate of 5.4% to £49.3 billion over the five years through 2025-26. A surging interest in new and exciting grocery products, including innovative variants of savoury snacks and low-sugar condiments, is supporting industry revenue by opening up new sales channels. Additionally, wholesalers are benefitting from the growth in on-the-go lifestyles among consumers, as it has led to a significant expansion in their order volumes from convenience stores. The heightened interest in top-up shopping is also leading to an uptick in the number of convenience stores being built, which is benefitting the industry. The renewed activity of catering in the past year, as economic headwinds have begun to subside, has provided grocery wholesalers with a notable income boost. Expanding activity in the catering and convenience store markets, coupled with gradually improving consumer confidence, is expected to lead to a climb in revenue of 0.8% in 2025-26.

Trends and Insights

  • Larger wholesalers are prioritising acquisitions and launching new brands. In an effort to expand into new markets, larger wholesalers are acquiring specialist competitors or launching new labels to enhance their reach in niche markets.
  • Prepared meals are benefitting from shifts in consumer lifestyles. With consumers spending more time at home and seeking to save time, prepared meal consumption is climbing, with premium frozen meals proving particularly popular as consumers demand restaurant-quality experiences from home.
  • London's market density attracts grocery wholesalers. High average incomes and an abundance of retail stores, restaurants and convenience stores create the perfect platform for strong sales.
  • SMEs are joining buying groups. In an effort to expand their negotiating power, many SMEs in the industry are forming buying groups, pooling their resources to gain bulk purchasing power.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2016-2031)

Industry revenue has grown at a CAGR of 5.4 % over the past five years, to reach an estimated £49.3bn in 2026.

Trends and Insights

Economic headwinds have reshaped grocery buying habits

  • The cost-of-living crisis, which began in 2022-23, has fundamentally altered consumption habits. Consumers have been contending with high levels of inflation that have led to real disposable income falling. According to ONS data, the mean household disposable income shrank by 5.9% over the two years through the end of 2024. At the same time, food prices have surged, peaking at a 19.2% rise in the year through March 2023, according to ONS data.
  • Additional trends and insights available with purchase
Grocery Wholesaling in the UK
Revenue (2016-2031)
IBISWorld Logo Source: IBISWorld

Industry outlook (2026-2031)

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

Trends and Insights

New regulations to tackle obesity will impact grocery orders

  • UK grocery products will be subject to mounting regulations in the coming years. As part of the government’s strategy to tackle obesity, new regulations are being introduced to influence consumption behaviour for High Fat, Sugar, or Salt (HFSS) products. From October 2025, there has been a ban put in place on volume promotions, like buy one get one free and from January 2026, there will be a 9pm watershed on TV and online advertising for HFSS goods.

Biggest companies in the Grocery Wholesaling in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
Booker Group Ltd
4,941.8
Costco Wholesale UK Ltd
3,142.2
Bestway Wholesale Ltd
1,020.8

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Grocery Wholesaling in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Prepared meals, Bread and Dips and condiments. Prepared meals is the largest segment of the Grocery Wholesaling in the UK.

Trends and Insights

Processed grains and cereals hit by health consciousness trends

  • Processed grains and cereals distribute processed grain products like breakfast cereals, rice and pasta. These convenient, pre-packaged foods cater to the fast-paced lifestyles of consumers.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Businesses in the Grocery Wholesaling industry wholesale a range of food products, including prepared meals, bread, dips and condiments, food spreads, savoury snacks, sandwich fillings, tinned goods and processed grain and cereal.

What's included in this industry?

Products and services covered in the Grocery Wholesaling industry in the United Kingdom include Prepared meals, Bread, Dips and condiments, Tinned goods, Savoury snacks, Food spreads, Processed grains and cereals and Sandwich fillings.

Companies

Companies covered in the Grocery Wholesaling industry in the United Kingdom include Booker Group Ltd, Costco Wholesale UK Ltd and Bestway Wholesale Ltd.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Grocery Wholesaling industry in the United Kingdom include specialised wholesaler, cash-and-carry and cash on delivery.

Industry Code

SIC 2007

SIC 46.39 - Grocery Wholesaling in the UK

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

Larger wholesalers are prioritising acquisitions and launching new brands. In an effort to expand into new markets, larger wholesalers are acquiring specialist competitors or...

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 (2016-2025) and forecast (2026-2031)
  • Employees, including historical (2016-2025) and forecast (2026-2031)
  • Businesses, including historical (2016-2025) and forecast (2026-2031)
  • Profit, including historical (2016-2026)
  • 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

Prepared meals are benefitting from shifts in consumer lifestyles. With consumers spending more time at home and seeking to save time, prepared meal consumption is climbing, ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2026
  • Product innovation level

Charts

  • Products & services segmentation in 2026
  • Major market segmentation in 2026

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

London's market density attracts grocery wholesalers. High average incomes and an abundance of retail stores, restaurants and convenience stores create the perfect platform f...

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 2026

Tables

  • Number and share of establishments in each region in 2026
  • Number and share of revenue each region accounts for in 2026
  • Number and share of wages each region accounts for in 2026
  • Number and share of employees in each region in 2026

Detailed analysis

  • Geographic spread of the industry across Europe, 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

SMEs are joining buying groups. In an effort to expand their negotiating power, many SMEs in the industry are forming buying groups, pooling their resources to gain bulk purc...

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 2021-2026
  • 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

Booker Group is transforming its digital presence. The company launched a new delivery app, Scoot, in February 2025 and revamped its website in September 2025, with AI featur...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2022 through 2026
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2026
  • Overview of Booker Group Ltd's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of Costco Wholesale UK Ltd's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of Bestway Wholesale Ltd's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Booker Group Ltd, and factors influencing its performance in the industry
  • Description and key data for Costco Wholesale UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Bestway Wholesale Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

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

Analyst insights

Grocery wholesalers are bound by food safety laws. The Food Safety and Hygiene Regulations require wholesalers to implement controls to ensure the food they sell is free from...

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 (2016-2031) 
  • Assistance historical data and forecast (2016-2031) 

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

Wage costs are climbing. A continuously rising National Living Wage (NLW) is putting pressure on grocery wholesalers, with much of the industry's warehousing staff paid the N...

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 2026
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2020-2024)
  • Coverage Ratios (2020-2024)
  • Leverage Ratios  (2020-2024)
  • Operating Ratios (2020-2024)
  • Assets (2020-2024)
  • Liabilities (2020-2024)
  • Cash Flow & Debt Service Ratios (2016-2031)
  • Revenue per Employee (2016-2031)
  • Revenue per Enterprise (2016-2031)
  • Employees per Establishment (2016-2031)
  • Employees per Enterprise (2016-2031)
  • Average Wage (2016-2031)
  • Wages/Revenue (2016-2031)
  • Establishments per Enterprise (2016-2031)
  • IVA/Revenue (2016-2031)
  • Imports/Demand (2016-2031)
  • Exports/Revenue (2016-2031)

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 (2016-2031)
  • IVA (2016-2031)
  • Establishments (2016-2031)
  • Enterprises (2016-2031)
  • Employment (2016-2031)
  • Exports (2016-2031)
  • Imports (2016-2031)
  • Wages (2016-2031)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Grocery Wholesaling industry in the United Kingdom in 2026?

The market size of the Grocery Wholesaling industry in the United Kingdom is £49.3bn in 2026.

How many businesses are there in the Grocery Wholesaling industry in the United Kingdom in 2026?

There are 3,862 businesses in the Grocery Wholesaling industry in the United Kingdom, which has grown at a CAGR of 2.0 % between 2021 and 2026.

How may import tariffs affect the Grocery Wholesaling industry in the United Kingdom?

The Grocery Wholesaling industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Grocery Wholesaling industry in the United Kingdom?

The Grocery Wholesaling industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Grocery Wholesaling industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Grocery Wholesaling industry in the United Kingdom has been growing at a CAGR of 5.4 % between 2021 and 2026.

What is the forecast growth of the Grocery Wholesaling industry in the United Kingdom over the next 5 years?

Over the next five years, the Grocery Wholesaling industry in the United Kingdom is expected to grow.

What are the biggest companies in the Grocery Wholesaling industry in the United Kingdom?

The biggest companies operating in the Grocery Wholesaling industry in the United Kingdom are Booker Group Ltd, Costco Wholesale UK Ltd and Bestway Wholesale Ltd

What does the Grocery Wholesaling industry in the United Kingdom include?

Prepared meals and Bread are part of the Grocery Wholesaling industry in the United Kingdom.

Which companies have the highest market share in the Grocery Wholesaling industry in the United Kingdom?

The company holding the most market share in the Grocery Wholesaling industry in the United Kingdom is Booker Group Ltd.

How competitive is the Grocery Wholesaling industry in the United Kingdom?

The level of competition is high and steady in the Grocery Wholesaling industry in the United Kingdom.

Methodology

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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 the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

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.

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