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NAICS Code 424420-05 Description (8-Digit)

Food Products (Wholesale) is an industry that involves the distribution of packaged food products to retailers, food service providers, and other businesses. This industry includes a wide range of food products such as canned goods, snacks, beverages, condiments, and more. Companies in this industry typically purchase food products in bulk from manufacturers and then sell them to their customers at a markup.

Hierarchy Navigation for NAICS Code 424420-05

Tools

Tools commonly used in the Food Products (Wholesale) industry for day-to-day tasks and operations.

  • Pallet jacks
  • Forklifts
  • Conveyor belts
  • Barcode scanners
  • Refrigerated trucks
  • Hand trucks
  • Packaging machines
  • Scales
  • Wrapping machines
  • Inventory management software

Industry Examples of Food Products (Wholesale)

Common products and services typical of NAICS Code 424420-05, illustrating the main business activities and contributions to the market.

  • Canned vegetables
  • Snack foods
  • Beverages (non-alcoholic)
  • Sauces and condiments
  • Baked goods
  • Spices and seasonings
  • Frozen foods (excluding meats)
  • Dairy products
  • Pasta and grains
  • Candy and sweets

Certifications, Compliance and Licenses for NAICS Code 424420-05 - Food Products (Wholesale)

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

  • Safe Quality Food (SQF): A food safety management system that ensures the quality and safety of food products. It is recognized by the Global Food Safety Initiative (GFSI) and is required by many retailers and foodservice providers. The certification is provided by the Safe Quality Food Institute (SQFI).
  • Hazard Analysis and Critical Control Points (HACCP): A food safety management system that identifies and prevents hazards in the food production process. It is required by the FDA and USDA for seafood, juice, and meat processing plants. The certification is provided by various organizations, including the National Registry of Food Safety Professionals (NRFSP).
  • Good Manufacturing Practices (GMP): A set of guidelines for ensuring the quality and safety of food products during the manufacturing process. It is required by the FDA for food processing facilities. The certification is provided by various organizations, including NSF International.
  • Organic Certification: A certification that ensures that food products are produced without the use of synthetic pesticides, fertilizers, or genetically modified organisms (GMOs). It is required for products labeled as "organic" by the USDA. The certification is provided by various organizations, including the USDA-accredited certifying agents.
  • Kosher Certification: A certification that ensures that food products meet Jewish dietary laws. It is required for products labeled as "kosher" by the Orthodox Union (OU) or other kosher certifying agencies.

History

A concise historical narrative of NAICS Code 424420-05 covering global milestones and recent developments within the United States.

  • The "Food Products (Wholesale)" industry has a long and rich history worldwide. The earliest form of food wholesaling can be traced back to ancient Rome, where merchants would buy food in bulk from farmers and sell it to retailers. In the 19th century, the industrial revolution led to the development of large-scale food processing and packaging, which in turn created a need for wholesale distribution. In the United States, the industry grew rapidly in the early 20th century, with the advent of refrigerated rail cars and the expansion of the national highway system. In recent years, the industry has seen significant consolidation, with large companies acquiring smaller ones to gain market share and increase efficiency. For example, in 2015, Sysco Corporation acquired US Foods for $8.2 billion, creating the largest food distributor in the United States.

Future Outlook for Food Products (Wholesale)

The anticipated future trajectory of the NAICS 424420-05 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Stable

    The future outlook for the Food Products (Wholesale) industry in the USA is positive. The industry is expected to grow due to the increasing demand for organic and natural food products. The industry is also expected to benefit from the growing trend of online grocery shopping. The COVID-19 pandemic has also increased the demand for food products, which is expected to continue in the future. The industry is also expected to benefit from the increasing demand for private label products. However, the industry is also facing challenges such as increasing competition and rising transportation costs. Overall, the industry is expected to grow at a steady pace in the coming years.

Industry Innovations for NAICS Code 424420-05

Recent groundbreaking advancements and milestones in the Food Products (Wholesale) industry, reflecting notable innovations that have reshaped its landscape.

  • Automation: The Food Products (Wholesale) industry is increasingly using automation to improve efficiency and reduce costs. Automation is being used in various areas such as order processing, inventory management, and transportation.
  • Private Label Products: Many companies in the Food Products (Wholesale) industry are focusing on private label products to increase their profit margins. Private label products are also becoming increasingly popular among consumers.
  • Online Ordering: The industry is increasingly using online ordering systems to improve efficiency and reduce costs. Online ordering systems are also becoming increasingly popular among customers.
  • Sustainable Packaging: Many companies in the industry are focusing on sustainable packaging to reduce their environmental impact. Sustainable packaging is becoming increasingly important for customers.
  • Health and Wellness Products: The industry is increasingly focusing on health and wellness products to meet the growing demand for healthy food products. Many companies are also focusing on organic and natural food products.

NAICS Code 424420-05 - Food Products (Wholesale)

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