NAICS 424480 Quarterly Industry Report
Fresh Fruit and Vegetable Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 424480Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 424480 draws on verified data from the U.S. Census Bureau[6], Bureau of Labor Statistics[7], and Small Business Administration[5] to profile the fresh fruit and vegetable wholesale distribution sector. Our research team analyzes seasonal sourcing patterns, perishable logistics requirements, and food safety regulations to provide accurate market intelligence for business valuation purposes. The report covers SBA size standards, related NAICS classifications, and the regulatory environment governing fresh produce distribution. Fair Market Value updates this NAICS 424480 profile quarterly to reflect new Census releases and industry developments.
Industry Snapshot
Key metrics for the fresh fruit and vegetable merchant wholesalers industry.
Industry Definition & Overview
Fresh Fruit and Vegetable Merchant Wholesalers (NAICS 424480) encompasses establishments primarily engaged in the merchant wholesale distribution of fresh fruits and vegetables. These wholesalers operate at the center of the perishable produce supply chain, purchasing from domestic farms, produce shippers, and importers, then distributing to grocery retailers, restaurants, institutional food service operations, and secondary wholesalers. Product lines span the full range of fresh produce including tree fruits, berries, citrus, leafy greens, root vegetables, tropical fruits, and specialty organic items.
Perishability drives every operational decision in this industry. Produce wholesalers must manage rapid inventory turnover, typically moving products within 24 to 72 hours of receipt to maintain freshness and minimize shrinkage losses. Cold chain logistics, ripening room management, and quality inspection at receiving docks form the operational backbone. The FDA Food Safety Modernization Act (FSMA) Produce Safety Rule imposes growing, harvesting, packing, and holding standards that affect wholesaler sourcing decisions and supplier qualification programs. Country-of-origin labeling requirements apply to fresh produce sold at retail.
The SBA[5] sets the size standard at 100 employees for this industry. According to the U.S. Census Bureau[6], merchant wholesalers must take ownership title to qualify under this classification. Terminal markets in major metropolitan areas remain important distribution hubs, though direct-to-retailer distribution models have grown as large grocery chains consolidate purchasing. Seasonal domestic production patterns create shifting sourcing requirements, with winter months relying heavily on imports from Mexico, Chile, and Central America to maintain year-round supply.
What's Included in This Industry
- Wholesale distribution of fresh tree fruits and citrus
- Distribution of fresh leafy greens and salad vegetables
- Wholesale of fresh berries and small fruits
- Distribution of root vegetables and tubers
- Wholesale of tropical and exotic fresh fruits
- Distribution of fresh herbs and specialty produce
- Wholesale of organic and locally grown fresh produce
- Distribution of fresh melons and vine-ripened products
- Wholesale of pre-cut and value-added fresh produce
- Distribution of imported fresh fruits and vegetables
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 | Fresh Fruit and Vegetable Merchant Wholesalers | 42448 |
| National Industry | Fresh Fruit and Vegetable Merchant Wholesalers | 424480 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 424410 | General Line Grocery Merchant Wholesalers | Distributes general line groceries including some produce items, operating broader food distribution networks that overlap with fresh fruit and vegetable channels |
| 424420 | Packaged Frozen Food Merchant Wholesalers | Handles packaged frozen food wholesale including frozen fruits and vegetables that compete with fresh produce distributed under this classification |
| 424460 | Fish and Seafood Merchant Wholesalers | Distributes fish and seafood through similar cold chain wholesale infrastructure, sharing perishable logistics requirements and food service customer bases |
| 424470 | Meat and Meat Product Merchant Wholesalers | Handles meat and meat product wholesale distribution, sharing cold chain logistics capabilities and serving many of the same restaurant and grocery customers |
| 424490 | Other Grocery and Related Products Merchant Wholesalers | Covers other grocery and related products wholesale distribution, with overlap in dried fruits, nuts, and specialty produce-adjacent food items |
| 424510 | Grain and Field Bean Merchant Wholesalers | Distributes grain and field beans through wholesale channels, representing another agricultural commodity distribution category with similar seasonal dynamics |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 24.7% | 1,215 |
| 2 | New York | 10.7% | 528 |
| 3 | Florida | 10.6% | 522 |
| 4 | Texas | 9.2% | 453 |
| 5 | New Jersey | 4.0% | 196 |
| 6 | Arizona | 3.5% | 173 |
| 7 | Washington | 3.3% | 160 |
| 8 | Georgia | 3.0% | 149 |
| 9 | Illinois | 3.0% | 149 |
| 10 | Pennsylvania | 2.7% | 134 |
% Of Establishments
0%
25%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
320
Total SBA Loans
$191.2M
Total Loan Volume
$598K
Average Loan Size
10 yrs
Average Loan Term
11.10%
Average Interest Rate
3,056
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[5] classifies NAICS 424480 under nondurable goods merchant wholesale trade with a size standard of 100 employees. Businesses at or below this threshold qualify as small for federal contracting preferences and SBA loan programs. Fresh produce wholesalers can access SBA 7(a) loans[8] for cold storage equipment, refrigerated fleet expansion, and working capital during peak procurement seasons. Firms purchasing warehouse or terminal market facilities may qualify for 504 loans[9]. FSMA compliance infrastructure and food safety system investments represent common financing needs in this classification.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 56 | $52.8M | $944K |
| 2 | U.S. Century Bank | 8 | $32.0M | $4.0M |
| 3 | City National Bank of Florida | 8 | $25.9M | $3.2M |
| 4 | FFB Bank | 8 | $14.6M | $1.8M |
| 5 | Harvest Small Business Finance, LLC | 8 | $14.3M | $1.8M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 424480?
NAICS 424480 covers merchant wholesalers that purchase and resell fresh fruits and vegetables. These businesses take ownership title and distribute to grocery retailers, restaurants, institutional food service, and secondary wholesalers from terminal markets and distribution centers. Source: U.S. Census Bureau[6]
What is the SBA size standard for NAICS 424480?
The SBA sets the size standard at 100 employees for fresh fruit and vegetable merchant wholesalers. Businesses at or below this employee count qualify as small for federal contracting preferences and SBA financing programs. Source: SBA Size Standards[5]
What regulations affect fresh produce wholesalers?
Fresh produce wholesalers must comply with the FDA Food Safety Modernization Act (FSMA) Produce Safety Rule, maintain cold chain temperature controls, follow country-of-origin labeling requirements, and meet import inspection standards for foreign-sourced produce. State agricultural department regulations add local requirements. Source: FDA FSMA[10]
How does NAICS 424480 differ from produce farming?
NAICS 424480 covers wholesale distribution of fresh produce, while codes in the 111xxx range cover growing and harvesting. Wholesalers purchase harvested products for resale and distribution, while farms cultivate, grow, and harvest the raw agricultural products.
What NAICS codes are related to fresh produce wholesalers?
Related wholesale codes include 424410 (general line groceries), 424420 (packaged frozen foods), 424460 (fish and seafood), 424470 (meat products), and 424490 (other grocery products). Agricultural supply codes include 111219 (vegetable farming) and 111331 (apple orchards). Source: Census NAICS[6]
Can fresh produce wholesalers get SBA loans?
Yes, small businesses under NAICS 424480 can access SBA 7(a) loans for cold storage equipment and working capital, 504 loans for warehouse facility purchases, and microloans for smaller needs. FSMA compliance investments and refrigerated fleet expansion are common financing purposes. Source: SBA Loan Programs[11]
How does seasonality affect fresh produce wholesaling?
Domestic production follows growing seasons, creating shifting sourcing requirements throughout the year. Winter months rely heavily on imports from Mexico, Chile, and Central America. Wholesalers manage these transitions through diversified supplier networks and import programs to maintain year-round supply.
What role do terminal markets play in produce wholesale?
Terminal markets in major metropolitan areas serve as centralized distribution hubs where produce wholesalers, buyers, and brokers conduct business. While direct-to-retailer distribution has grown, terminal markets remain important for smaller retailers, restaurants, and specialty buyers needing access to diverse produce selections.
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]SBA sba.gov
- [6]U.S. Census Bureau census.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]FDA FSMA fda.gov
- [11]SBA Loan Programs sba.gov
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