6 Statistics That Show the Growth of the Wholesale Industry
The wholesale industry has become one of the biggest parts of the world economy. A company that sells items wholesale might have significant challenges, such as logistical problems and/or dealing with excessive waste in the supply chain, but the entire industry is a good way to build and maintain market share. The model of “buying in bulk” for less money appeals to consumers, and by focusing on that, you can increase your overall income. In fact, “getting more for less” is such a powerful incentive for consumers that you almost don’t have to do any marketing. The process sells itself as it were.
1. Continued Growth
From 2023 to 2024, the worldwide wholesale market grew from roughly $50 trillion to $53 trillion. Since the crash of 2020, the wholesale market has been growing, and it is poised to continue to grow into the future. In fact, by 2028, the wholesale market is anticipated to reach nearly $70 trillion.
2. E-Commerce Wholesale Flourishing
The growth of the e-commerce industry is largely at the forefront of the wholesale industry. As per the Research and Markets, the e-commerce growth for the second half of 2023 was 7.5%. Because the corresponding overall growth of the wholesale industry during the same period was 6%, $50 trillion to $53 trillion, it’s obvious that the e-commerce was an integral part of that growth.
3. Top 5 Countries From Asia
The Top Five Wholesale Companies in the World are all Asian: Mitsubishi, Sinochem, COFCO, Mitsui, and Itochu. Moreover, Asian companies make up most of the Top 15 as well. Edenka Zentrale at 12 and Sysco at 8 are the only two companies that aren’t Asian, being German and American, respectively.
4. Drop in Consumer Confidence
Consumer confidence in the American wholesale market dipped in June 2024, brought on by wholesale inflation. A month later, the consumer confidence index increased despite pessimistic prognostic projections. This information comes from the University of Michigan’s Survey of Consumers. The level of consumer confidence was 66.4.
5. Online Growth After Pandemic
The most popular wholesale products of all time are clothes and clothing accessories. Being able to order wholesale online obviates the need to go to the store and try clothes on. You can try them on in the privacy of your own home and then simply return them using the provided return labels if they don’t fit. During the pandemic, people got used to not going into the store to shop for most things, and a lot of them decided that it was worth it to order online. The growth rate of e-commerce shares in total retail after the pandemic was 6 percentage points. The other most popular products to order wholesale online include pet food, beauty products, stationery, and home decor.
6. Growth in Abandoned Inventory
Since 2020, with its obstacles to the supply chain, more than $160 billion of inventory winds up as waste annually. As the wholesale industry is heavily based and invested in inventory, this is an alarming fact. Between 2020 and 2022, the chief reason for the waste was ordering too much during a time when getting material was dodgy at best. Now, in 2024, the process continues despite supply-chain improvements.
