Procurement Market Intelligence Report
Food Distribution Services
Sourcing Guide & Market Intelligence
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Food Distribution Services Global Overview
Definition
Summary
Food distribution service providers handle the transportation and storage of food products from producers to retailers and other downstream buyers. These services differ from other freight transportation services because of the specialized equipment and facilities required to meet food safety standards and prevent spoilage during distribution. Typical buyers of food distribution services include food producers and food service operations.
This Report Includes:
- Broadline Food Distributors
- Specialty Food Distributors
- Food Redistributors
Not in this Report:
- Food Wholesalers
- Freight Transportation Services
Global Food Distribution Services Procurement Trends
Discover the top international trends affecting procurement in the global Food Distribution Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Food Distribution Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 2,397,880 |
| #2 Africa & Middle East | 2,056,140 |
| #3 India | 1,861,845 |
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2
Geography Drilldown - US
Average Cost of Food Distribution Services
United States
2026 Market Pricing$1.46 to $X.XX
per mileAverage Price
Prices in the Food Distribution Services market range from $1.46 to $X.XX, depending on Truck Type, Product Type and Additional Services. For example, lower prices are associated with Enclosed van, whereas higher prices are associated with Refrigerated truck (20% more expensive per mile).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Food Distribution Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Food Distribution Services market, prices in the US have declined -3.1% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Food Distribution Services
Total cost of ownership is Low in the Food Distribution Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Spoilage may raise the total cost of ownership unexpectedly.
Billed During
Fuel
Handling
Unforeseen
Spoilage
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.9 in the United States. Buyer power is most positively impacted by Price Driver Volatility. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
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Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Gasoline & Petroleum Wholesaling
- Storage & Warehouse Leasing
- Truck & Bus Manufacturing in the US
2nd
Tier Suppliers
- Gasoline & Petroleum Bulk Stations
- Commercial Real Estate
- Auto Parts Manufacturing
Biggest Food Distribution Services Suppliers in the US by Revenue
The largest Food Distribution Services vendors by revenue in the US are Ben E. Keith Company, DOT Transportation, Inc. and KeHE Distributors, LLC. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Sysco Corporation | Global | HOUSTON, TX | >10,000 | 10-15 | ||||
| Performance Food Group Co | Global | RICHMOND, VA | >10,000 | 10-15 | ||||
| Us Foods Holding Corp. | National | ROSEMONT, IL | >10,000 | 5-10 | ||||
| McLane Company, Inc. | National | Carrollton, TX | >10,001 | 5-10 | ||||
| Reyes Holdings, LLC | International | Rosemont, IL | >10,001 | 5-10 | ||||
| Gordon Food Service | International | Wyoming, MI | >10,001 | < 5 | ||||
| Lineage Logistics, LLC | Global | Novi, MI | >10,000 | < 5 | ||||
| Shamrock Foods Company | Regional | Phoenix, AZ | >10,001 | < 5 | ||||
| Ben E. Keith Company | Regional | Fort Worth, TX | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Food Distribution Services market is 9.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Average vendor risk in the food distribution services market is moderate as vendors tend to have relatively narrow profit margins but fairly consistent demand for their services both from new customers and existing customer relationships, which are often long lasting.
Market share concentration is moderate for food distributors as most vendors are smaller regional operations. As a result, buyers benefit from greater leverage when negotiating with potential vendors.
Because of the unstable cost of key inputs and equipment such as fuel and trucks, supply chain risk is high for food distribution vendors. Therefore, buyers face a higher risk of price changes or limited capacity from a vendor due to upstream supply issues.
The United States is a net exporter of trailers and semi-trailers, indicating that domestic suppliers may have a greater ability to meet demands.
Supplier Information
Performance Food Group Co
Performance Food Group Co is a public company operating globally. The company's offerings include food distribution services. Founded in 2015, the company is currently headquartered in RICHMOND, Virginia, United States of America with an estimated 35000 employees. Subscribe to learn more
Sysco Corporation
Sysco Corporation is a public company operating globally in the manufacturing, wholesale trade and healthcare and social assistance sectors. The company's offerings include paper cups, paper bags, small kitchen appliances, food distribution services and natural disaster & emergency relief services. Founded... Subscribe to learn more
McLane Company, Inc.
McLane Company, Inc. is a private company operating nationally. The company's offerings include food distribution services. Founded in 1894, the company is currently headquartered in Carrollton, Texas, United States of America with an estimated employee count of over 10,000. Subscribe to learn more
Reyes Holdings, LLC
Reyes Holdings, LLC is a private company operating internationally. The company's offerings include food distribution services. Founded in 1976, the company is currently headquartered in Rosemont, Illinois, United States of America with an estimated employee count of over 10,000. Subscribe to learn more
Us Foods Holding Corp.
Us Foods Holding Corp. is a public company operating nationally in the manufacturing and manufacturing sectors. The company's offerings include paper cups, restaurant furniture and food distribution services. Founded in 2007, the company is currently headquartered in ROSEMONT, Illinois, United States of America... Subscribe to learn more
Ben E. Keith Company
Ben E. Keith Company is a private company operating regionally. The company's offerings include food distribution services. Founded in 1906, the company is currently headquartered in Fort Worth, Texas, United States of America with an estimated 5500 employees. Subscribe to learn more
DOT Transportation, Inc.
DOT Transportation, Inc. is a private company operating nationally. The company's offerings include food distribution services. Founded in 1960, the company is currently headquartered in Mt. Sterling, Illinois, United States of America with an estimated 5500 employees. Subscribe to learn more
Gordon Food Service
Gordon Food Service is a private company operating internationally. The company's offerings include food distribution services. Founded in 1897, the company is currently headquartered in Wyoming, Michigan, United States of America with an estimated employee count of over 10,000. Subscribe to learn more
KeHE Distributors, LLC
KeHE Distributors, LLC is a private company operating internationally. The company's offerings include food distribution services. Founded in 1953, the company is currently headquartered in Naperville, Illinois, United States of America with an estimated 5500 employees. Subscribe to learn more
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Procurement Management KPIs for the Food Distribution Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Delivery and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time |
|
Average time from initial contact by the buyer to the response from the vendor |
As clear communications are important for managing the logistics of food distribution, buyers should pay close attention to how quickly a vendor can respond to inquiries. Typically, vendors in this market will track response time statistics and should be able to provide them upon the buyer's request. |
| Customer Satisfaction (CSAT) |
|
Client referrals Internal stakeholder feedback |
To gain a general view of the quality, responsiveness, timeliness, and safety of a vendor's food distribution services buyers can use customer satisfaction data. Before contracting a vendor, buyers can request client referrals to gauge customer satisfaction. After contracting a vendor, buyers can periodically poll internal stakeholders that interact with the vendor or receive the deliveries to gain ongoing insight into service quality. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided food distribution services to customers in my market?
How long has your longest-tenured client been with you?
Logistics
How many drivers do you employ and what are their credentials and histories?
What is your driver safety record and turnover rate?
Customer Service
What is the average wait time to speak with a customer service representative?
How many customer service representatives are on call during business hours? Outside of business hours?
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Food Distribution Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and explain why they are contracting food distribution services.
Buyers should detail the locations to which they require cargo transportation.
Statement Of Need
Buyers should identify the types of food to be distributed, as well as the estimated volume of deliveries they will require.
Buyers should outline the types of delivery they will require, such as bulk deliveries of a single product, mixed deliveries of various products, or less-than-truckload deliveries.
Project Budget
Buyers should indicate whether they wish to enter into a continuous contract or purchase services on an ad hoc basis.
Buyers should request a detailed breakdown of the vendor’s base rate, fuel surcharge schedule and other mandatory fees applied to each shipment.
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Our Reports include:
- Opportunity assessment
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- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
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