NAICS 424410 Quarterly Industry Report
General Line Grocery Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 424410Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 424410 synthesizes data from the U.S. Census Bureau[5], Bureau of Labor Statistics[7], and Small Business Administration[6] to profile the general line grocery wholesale sector. Our research team analyzes food distribution data and retail grocery supply chain patterns to provide accurate intelligence for business valuation. The report covers SBA size standards, related NAICS classifications, and competitive dynamics in full-service grocery distribution. Fair Market Value updates this NAICS 424410 profile quarterly to reflect new Census releases and grocery industry developments.
Industry Snapshot
Key metrics for the general line grocery merchant wholesalers industry.
Industry Definition & Overview
General Line Grocery Merchant Wholesalers (NAICS 424410) encompasses establishments primarily engaged in the merchant wholesale distribution of a wide range of grocery products. Unlike specialized food wholesalers that focus on single categories (dairy, meat, produce), general line grocery wholesalers carry broad product assortments spanning canned goods, dry groceries, frozen foods, beverages, snack foods, household paper products, cleaning supplies, and health and beauty items. This full-service distribution model allows independent grocery retailers to source most of their inventory from a single wholesale supplier.
General line grocery wholesalers serve as the supply chain backbone for independent supermarkets, convenience stores, food cooperatives, and small grocery chains that lack the purchasing volume to buy directly from food manufacturers. Many operate as cooperative wholesalers owned by their member retailers, pooling purchasing power to compete with large chains. Others function as voluntary wholesale groups offering advertising programs, store design services, and private-label brand programs alongside product distribution. According to the U.S. Census Bureau[5], establishments must take title to goods and carry a general (wide-range) grocery assortment to qualify under this classification.
The SBA[6] sets the size standard at 250 employees for this industry. Distribution centers operate with thin margins on high volumes, typically earning net profit margins in the low single digits. Perishable product handling requires temperature-controlled warehouse zones and refrigerated delivery fleets. Private-label programs generate better margins than national brands. E-commerce grocery ordering has created new distribution complexity, with some wholesalers offering online ordering platforms and last-mile delivery support for their independent retailer customers trying to compete against national grocery delivery services.
What's Included in This Industry
- Wholesale distribution of canned and dry grocery products
- Distribution of frozen foods across multiple categories
- Wholesale of beverages including juices and water
- Distribution of snack foods and confectionery items
- Wholesale of household paper products and cleaning supplies
- Distribution of health and beauty products for grocery channels
- Wholesale of private-label and store-brand grocery products
- Distribution of tobacco products through grocery wholesale channels
- Wholesale of pet food and pet care products
- Distribution of general merchandise for grocery store sections
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Nondurable Goods | 424 |
| Industry Group | Grocery and Related Product Merchant Wholesalers | 4244 |
| NAICS Industry | General Line Grocery Merchant Wholesalers | 42441 |
| National Industry | General Line Grocery Merchant Wholesalers | 424410 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 424420 | Packaged Frozen Food Merchant Wholesalers | Distributes packaged frozen foods through wholesale channels, handling a specialized product category that general line grocery wholesalers also carry within broader assortments |
| 424430 | Dairy Product (except Dried or Canned) Merchant Wholesalers | Covers dairy product wholesale distribution, a specialized category often handled by dedicated distributors rather than general line grocery wholesalers |
| 424440 | Poultry and Poultry Product Merchant Wholesalers | Handles poultry and poultry product wholesale distribution, representing another specialized food category that general line grocers may or may not carry |
| 424450 | Confectionery Merchant Wholesalers | Distributes confectionery products through wholesale channels, a category frequently included in general line grocery distribution product assortments |
| 424460 | Fish and Seafood Merchant Wholesalers | Covers fish and seafood wholesale distribution, a specialized perishable category requiring distinct cold chain infrastructure beyond typical grocery distribution |
| 424490 | Other Grocery and Related Products Merchant Wholesalers | Handles other grocery and related products wholesale distribution, covering specialty food items that complement the broad assortments of general line distributors |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 15.4% | 508 |
| 2 | New York | 13.7% | 450 |
| 3 | Florida | 9.1% | 298 |
| 4 | Texas | 6.0% | 196 |
| 5 | Illinois | 6.0% | 196 |
| 6 | New Jersey | 5.2% | 171 |
| 7 | Pennsylvania | 3.1% | 102 |
| 8 | Washington | 2.9% | 95 |
| 9 | Michigan | 2.6% | 87 |
| 10 | Georgia | 2.6% | 85 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
856
Total SBA Loans
$498.9M
Total Loan Volume
$583K
Average Loan Size
10 yrs
Average Loan Term
10.46%
Average Interest Rate
6,656
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[6] classifies NAICS 424410 under merchant wholesale trade with a size standard of 250 employees. Businesses at or below this threshold qualify as small for federal contracting preferences and SBA loan programs. Grocery wholesalers can access SBA 7(a) loans[8] for inventory financing and distribution operations. Firms expanding cold storage capacity or building new distribution centers may qualify for 504 loans[9]. High working capital requirements driven by thin margins and large inventory volumes make SBA-backed credit lines essential for growth-stage grocery distributors.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 40 | $45.6M | $1.1M |
| 2 | Newtek Bank, National Association | 48 | $39.2M | $817K |
| 3 | DFCU Financial | 8 | $38.5M | $4.8M |
| 4 | Wallis Bank | 8 | $32.0M | $4.0M |
| 5 | Northeast Bank | 136 | $31.3M | $230K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 424410?
NAICS 424410 includes merchant wholesalers distributing a wide range of grocery products including canned goods, dry groceries, frozen foods, beverages, snacks, household supplies, and health and beauty items. These firms serve independent supermarkets, convenience stores, and small grocery chains. Source: U.S. Census Bureau[5]
How is NAICS 424410 different from specialty food wholesalers?
NAICS 424410 covers general line distributors carrying a wide range of grocery products. Specialty food wholesalers focus on specific categories: 424420 (frozen foods), 424430 (dairy), 424470 (meat), or 424480 (produce). The general line distinction means these wholesalers provide one-stop sourcing across multiple food and non-food categories.
What is the SBA size standard for NAICS 424410?
The SBA sets the size standard at 250 employees for general line grocery merchant wholesalers. Businesses at or below this level qualify as small for federal contracting preferences and SBA financing programs. Source: SBA Size Standards[6]
What NAICS codes are related to grocery wholesaling?
Key related codes include 424420 (frozen food wholesalers), 424430 (dairy wholesalers), 424470 (meat wholesalers), 424480 (produce wholesalers), and 424490 (other grocery wholesalers). These represent specialized food categories that general line distributors may also handle. Source: Census NAICS[5]
What industries interact most with grocery wholesalers?
Primary customers include independent supermarkets, convenience stores, food cooperatives, small grocery chains, and institutional food buyers. Upstream partners include food manufacturers, beverage companies, and private-label producers. Transportation and cold chain logistics providers support the distribution infrastructure.
What products are included in NAICS 424410?
Products span the full grocery store assortment: canned goods, dry groceries, frozen foods, beverages, snacks, household paper products, cleaning supplies, health and beauty items, tobacco, pet food, and general merchandise. Private-label products are also included. Source: Census Bureau[5]
Can grocery wholesalers get SBA loans?
Yes, small businesses under NAICS 424410 can access SBA 7(a) loans for inventory and working capital, 504 loans for distribution center construction, and Express loans for faster approvals. Cold storage facility investments and fleet purchases are common uses for SBA financing. Source: SBA Loan Programs[10]
Where are grocery wholesalers concentrated?
General line grocery wholesalers operate distribution centers across all regions to serve local retail markets. Cooperative wholesalers like Associated Wholesale Grocers and Topco Associates maintain regional distribution networks. Major hubs include the Midwest, Southeast, and Northeast, with distribution centers positioned for efficient delivery within 200-300 mile radiuses. Source: BLS QCEW[11]
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SBA Loan Programs sba.gov
- [11]BLS QCEW bls.gov
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