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Wholesale Trade

Abstract Wavy Lines

Performance Highlights

The sector has experienced revenue growth at a CAGR of 1.6% from 2018 to 2023, reaching $11.3 trillion. Profit margins in the sector have increased slightly by 0.2 percentage points to 4.5%. Key external drivers influencing the sector include GDP growth, total trade value, consumer confidence index, and business sentiment index.

Geographic Distribution

The highest concentrations of businesses are in California, Texas, Florida, and New York, driven by large populations and economic activity. The Southeast, West, and Great Lakes regions have large manufacturing hubs and provide access to consumer bases.

Industry Outlook

Revenue is expected to grow at a CAGR of 2.2% from 2024 to 2028, reaching $12.6 trillion. The sector will continue to reflect broader economic patterns, with nondurable goods comprising the majority of revenue. High inflation and elevated commodity prices will persist, affecting the sector's dynamics.

Competitive Forces

The industry is characterized by low concentration and moderate competition. Barriers to entry are low, but companies must navigate significant start-up costs and maintain strong relationships with suppliers and customers.

Major Companies

Notable players include McKesson Corporation (2.2% market share), AmerisourceBergen Corp (2.2% market share), Cardinal Health, Inc. (1.4% market share), Sysco Corporation (0.4% market share), Ford Motor Co. (0.2% market share), and General Motors Company (0.2% market share).
Revenue

$11.3 trillion

Employees

7 million

Businesses

679,000

Wages

$615.5 billion

Economic and External Factors

The sector is not heavily regulated, but policies affecting key upstream markets indirectly impact wholesalers. The sector does not receive direct government assistance, but benefits from regulations that affect manufacturers.
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