NAICS Code 425120-58 - Food Service-Distributors (Wholesale)

Marketing Level - NAICS 8-Digit

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NAICS Code 425120-58 Description (8-Digit)

Food Service-Distributors (Wholesale) is an industry that involves the wholesale distribution of food and related products to various food service establishments such as restaurants, hotels, hospitals, schools, and other institutions. These distributors purchase food products from manufacturers and sell them to food service establishments in bulk quantities. The industry plays a crucial role in the food supply chain by ensuring that food service establishments have access to a wide range of food products to meet their needs.

Hierarchy Navigation for NAICS Code 425120-58

Tools

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

  • Refrigerated trucks
  • Pallet jacks
  • Hand trucks
  • Forklifts
  • Conveyor belts
  • Barcode scanners
  • Inventory management software
  • Order management software
  • Temperature monitoring devices
  • Packaging equipment

Industry Examples of Food Service-Distributors (Wholesale)

Common products and services typical of NAICS Code 425120-58, illustrating the main business activities and contributions to the market.

  • Meat products
  • Dairy products
  • Frozen foods
  • Fresh produce
  • Baked goods
  • Beverages
  • Snacks
  • Condiments
  • Cleaning supplies
  • Disposable food service items

Certifications, Compliance and Licenses for NAICS Code 425120-58 - Food Service-Distributors (Wholesale)

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

  • Servsafe Food Protection Manager Certification: This certification is required for food service managers and ensures that they have the knowledge and skills to handle food safely. It is provided by the National Restaurant Association and can be obtained through an online course and exam.
  • Hazard Analysis and Critical Control Points (HACCP) Certification: This certification is required for food service businesses that handle and prepare food. It ensures that the business has a food safety management system in place to prevent foodborne illness. It is provided by the International HACCP Alliance and can be obtained through training and an exam.
  • Good Manufacturing Practices (GMP) Certification: This certification is required for food manufacturers and ensures that they have a system in place to produce safe and high-quality food products. It is provided by the NSF International and can be obtained through an audit of the manufacturing facility.
  • Safe Quality Food (SQF) Certification: This certification is required for food manufacturers and distributors and ensures that they have a food safety management system in place to prevent foodborne illness. It is provided by the Safe Quality Food Institute and can be obtained through an audit of the manufacturing or distribution facility.
  • Organic Certification: This certification is required for food products that are labeled as organic and ensures that they meet the USDA's organic standards. It is provided by USDA-accredited certifying agents and can be obtained through an inspection of the farm or facility.

History

A concise historical narrative of NAICS Code 425120-58 covering global milestones and recent developments within the United States.

  • The "Food Service-Distributors (Wholesale)" industry has a long history dating back to the early 20th century when the first food distributors emerged in the United States. These distributors were primarily focused on delivering fresh produce to restaurants and hotels. In the 1950s, the industry experienced significant growth due to the rise of fast-food chains and the increasing demand for processed foods. The industry continued to expand in the 1970s and 1980s, with the introduction of new technologies such as computerized inventory management systems and the use of refrigerated trucks for transportation. In recent years, the industry has faced challenges due to the COVID-19 pandemic, which has disrupted supply chains and caused a decline in demand for food service products. In the United States, the "Food Service-Distributors (Wholesale)" industry has experienced steady growth over the past decade. According to data from the U.S. Census Bureau, the industry generated $303 billion in revenue in 2019, up from $269 billion in 2010. This growth can be attributed to several factors, including the increasing popularity of eating out and the rise of online food ordering and delivery services. However, the industry has also faced challenges such as rising labor costs and increased competition from retailers who are expanding their food service offerings. Despite these challenges, the industry is expected to continue growing in the coming years, driven by factors such as the growing demand for organic and locally sourced foods and the increasing popularity of plant-based diets.

Future Outlook for Food Service-Distributors (Wholesale)

The anticipated future trajectory of the NAICS 425120-58 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Growing

    The food service-distributors (wholesale) industry in the USA is expected to grow in the coming years due to the increasing demand for food products from various sectors such as restaurants, hotels, and hospitals. The industry is also expected to benefit from the growing trend of online food ordering and delivery services. The COVID-19 pandemic has also led to an increase in demand for food products, which has positively impacted the industry. However, the industry may face challenges such as rising transportation costs and increasing competition from other distribution channels. Overall, the industry is expected to continue to grow in the coming years due to the increasing demand for food products and the growing trend of online food ordering and delivery services.

Industry Innovations for NAICS Code 425120-58

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

  • Automation Of Warehouse Operations: Food service-distributors (wholesale) are increasingly using automation to improve their warehouse operations. This includes the use of robots and automated storage and retrieval systems to improve efficiency and reduce costs.
  • Use Of Data Analytics: Food service-distributors (wholesale) are using data analytics to improve their operations and better understand customer demand. This includes the use of predictive analytics to forecast demand and optimize inventory levels.
  • Expansion Of Product Offerings: Food service-distributors (wholesale) are expanding their product offerings to meet the changing needs of their customers. This includes offering more organic and locally sourced products, as well as expanding into new categories such as plant-based foods.
  • Investment In Sustainability: Food service-distributors (wholesale) are investing in sustainability initiatives to reduce their environmental impact. This includes the use of electric vehicles and renewable energy sources, as well as reducing food waste through better inventory management.
  • Adoption Of Blockchain Technology: Food service-distributors (wholesale) are exploring the use of blockchain technology to improve supply chain transparency and traceability. This includes using blockchain to track the origin and movement of food products from farm to table.

NAICS Code 425120-58 - Food Service-Distributors (Wholesale)

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