Catering Services Market

Market Overview:

The global catering services market size reached US$ 141 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 187.4 Billion by 2028, exhibiting a growth rate (CAGR) of 5.00% during 2023-2028. The increasing trend of outsourcing food services, growing popularity of social events, rising preference for diverse cuisine options and customized menus, and the increasing disposable income level and changing lifestyles of individuals represent some of the key factors propelling the catering services market.

Catering services refer to the provision of food and beverage services for various events and occasions, typically delivered by professional catering companies or individuals. These services encompass a range of activities, including menu planning, food preparation, cooking, presentation, and serving. Catering companies work closely with clients to understand their specific requirements, preferences, and budget, ensuring that the food and beverages provided align with the event's theme or purpose. Catering services relieve clients from the burden of food preparation and allow them to focus on hosting and enjoying their event.

The global catering services market is driven by the increasing trend of outsourcing food services by organizations and individuals. Numerous organizations prefer to hire professional caterers to handle their events, as it saves time and effort in menu planning, food preparation, and other services. Additionally, the growing popularity of social events, such as parties and corporate gatherings, contributes to the expansion of the catering industry. These occasions require specialized catering services to ensure a memorable dining experience for attendees. Other than this, the rising preference for diverse cuisine options and customized menus has fueled the demand for catering services. Furthermore, the convenience and flexibility offered by catering services, such as on-site cooking or delivery options, have made them a preferred choice for time-constrained hosts. Moreover, the increasing disposable income and changing lifestyles of individuals have led to a higher propensity to spend on outsourcing food services, further contributing to the catering services market growth.

Catering Services Market Trends/Drivers

Increasing Trend of Outsourcing Food Services

The increasing trend of outsourcing food services has played a pivotal role in propelling the catering services market. Businesses and individuals are increasingly opting to hire professional caterers to handle their events and gatherings. These services save valuable time and effort for the hosts, allowing them to focus on other aspects of event planning and organizing. Additionally, professional caterers bring expertise and culinary skills to the table, ensuring high-quality food and beverage offerings. They have the knowledge and resources to cater to diverse dietary requirements and preferences, accommodating a wider range of guests. Moreover, outsourcing food services to caterers often results in more efficient and streamlined event management, as they handle all aspects of menu planning, food preparation, and service. This convenience factor, combined with the assurance of a memorable dining experience, has fueled the demand for catering services.

Growing Popularity of Social Events

The growing popularity of social events has significantly impacted the catering services market. The increased frequency of parties, corporate gatherings, and other social occasions has created a higher demand for professional catering services. As hosts aim to create memorable experiences for their guests, they often turn to catering companies to ensure the success of their events. Caterers also provide specialized expertise in organizing parties, allowing hosts to offer a delightful dining experience for their guests. Moreover, the rising expectation for diverse cuisine options, personalized menus, and professional services has encouraged businesses and individuals to opt for catering services worldwide.

Rising Preference for Diverse Cuisine Options

The rising preference for diverse cuisine options has been a significant driver in impelling the catering services market. As people become more adventurous in their culinary tastes and seek unique dining experiences, catering services have adapted to meet these demands. Caterers now offer a wide array of cuisine options, ranging from international and fusion cuisines to specialized dietary choices like vegan or gluten-free menus. This expanding menu diversity allows hosts to cater to the preferences and dietary requirements of their guests, thus enhancing the overall event experience. Moreover, with the ability to provide an extensive selection of culinary delights, catering services have positioned themselves as the go-to choice for those seeking diverse and memorable dining experiences for their events.

Catering Services Industry Segmentation

IMARC Group provides an analysis of the key trends in each segment of the global catering services market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on service type and end user.

Breakup by Service Type:

• Contractual Catering Service
• Non-contractual Catering Service
   

Contractual catering represent the most popular service type

The report has provided a detailed breakup and analysis of the catering services market based on the service type. This includes contractual and non-contractual catering services. According to the report, contractual catering services represented the largest segment. 

Contractual catering involves entering into agreements or contracts with organizations or institutions to provide catering services on an ongoing basis. This can include catering for corporate events, educational institutions, healthcare facilities, and other large-scale establishments. By securing long-term contracts, catering companies benefit from a stable and predictable revenue stream. They can allocate resources, plan menus, and streamline operations more efficiently, leading to improved profitability. Contractual catering also allows companies to build strong relationships with clients, resulting in potential referrals and repeat business. Furthermore, contractual catering offers the opportunity for customization and specialization. Catering companies can tailor their services to meet the specific needs and preferences of their clients, such as dietary requirements or themed events. This flexibility and personalized approach help catering companies differentiate themselves in the market and attract more clients.

Breakup by End User:

• Industrial
• Hospitality
• Educational
• Healthcare
• In-flight
• Others
   

A detailed breakup and analysis of the catering services market based on the end user has also been provided in the report. This includes industrial, hospitality, educational, healthcare, in-flight and others.

Industrial facilities, such as factories, manufacturing plants, and construction sites, often require catering services to provide meals and refreshments to their employees. These sites may have limited access to food outlets or lack the infrastructure to prepare meals on-site. Catering companies specializing in industrial catering are adept at serving large groups efficiently, ensuring timely delivery of meals and accommodating specific dietary needs. The reliance of the industrial sector on catering services for employee meals and event catering contributes to the growth of the market.

The hospitality sector, including hotels, resorts, and event venues, plays a significant role in driving the catering services market. These establishments frequently host events such as weddings, conferences, banquets, and parties that require catering services. Hotels and resorts often have their in-house catering departments, while others partner with external catering companies to provide high-quality food and beverage services. The demand for catering services in the hospitality sector is fueled by the need to offer exceptional dining experiences to guests, personalized menu options, and professional service.

The educational sector, comprising schools, colleges, and universities, is a key driver of the catering services market. Many educational institutions provide catering services to students, faculty, and staff through cafeteria-style dining or specialized meal plans. Catering companies play a crucial role in delivering nutritious and well-balanced meals that meet dietary guidelines and cater to different age groups. These services ensure that students and staff have access to convenient, healthy, and diverse food options on campus. The growing emphasis on the quality and variety of school and college meals, as well as the rising demand for specialized dietary needs, including vegetarian, vegan, or allergen-free meals, drives the catering services market in the educational sector.

The healthcare sector has been increasingly adopting catering services to enhance the overall patient experience and improve the quality of care. Catering services meet the specific dietary restrictions and provide nutritionally balanced meals for patients. This is crucial for patients with allergies, intolerances, or specific medical conditions that require specialized diets. By offering a wide range of meal options, healthcare facilities can ensure that patients receive appropriate nutrition while accommodating their individual needs. Healthcare facilities also partner with catering services to offer nutritious meals that align with wellness goals. This can include sourcing local and organic ingredients, reducing the use of processed foods, and incorporating fresh and healthy options into the menu.

Catering services play a crucial role in the in-flight sector by providing meals and beverages to passengers during their flights. In-flight catering services involve the preparation, packaging, and delivery of meals that are specifically designed for consumption in an aircraft environment. These meals are often pre-cooked, individually packaged, and sealed to maintain quality and hygiene standards. Catering companies work closely with airlines to create menus that cater to different dietary preferences and restrictions, ensuring there are options available for passengers with special dietary needs.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market, accounting for the largest catering services market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

North America is known for its relatively high levels of disposable income among its population. This translates into increased spending on various services, including catering. Individuals and businesses in North America are willing to invest in catering services for events, parties, weddings, corporate functions, and other special occasions. The higher spending capacity of consumers in the region contributes to the growth of the catering services market. Additionally, it has a vibrant event and hospitality industry, with a multitude of conferences, trade shows, conventions, and social events taking place throughout the year. These events often require catering services to provide food and beverage options for attendees. North America is home to numerous hotels, resorts, and event venues that frequently rely on catering services to enhance their offerings. Other than this, the fast-paced lifestyle in the region often leads individuals and businesses to seek convenient solutions for their catering needs. Outsourcing catering services allows hosts to focus on other aspects of event planning or business operations, thus saving time and effort. Furthermore, the availability of professional catering services that can handle large-scale events or provide efficient corporate catering solutions acts as another major growth-inducing factor.

Competitive Landscape

The key players are focusing on bringing innovations in menu planning and food presentation, offering unique and creative culinary experiences to attract customers. This includes the introduction of diverse cuisine options, fusion menus, and the incorporation of locally sourced and sustainable ingredients. Additionally, key players have invested in technology and digital platforms to streamline the ordering and delivery process, providing convenience to customers. They have also expanded their service offerings beyond traditional events to include corporate catering, food truck services, and meal delivery for individuals. Moreover, catering companies have prioritized customer service and customization, working closely with clients to understand their specific requirements and preferences. These efforts, combined with efficient logistics, professional service staff, and a strong reputation for quality, have helped key players propel the catering services market by meeting the evolving needs of customers and delivering exceptional dining experiences.

The report has provided a comprehensive analysis of the competitive landscape in the global catering services market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include: 

• Aramark
• AVI Foodsystems Inc.
• Barlett Mitchell Ltd.
• Compass Group Plc
• Dine Contract Catering
• DO & CO Aktiengesellschaft
• Elior Group
• Emirates Flight Catering
• Entier Limited
• ISS A/S
• Newrest Group Services SAS
• Sodexo S.A.

Recent Developments

• Elior Group has partnered with Winnow Solutions to introduce artificial intelligence in kitchens to help its operational teams reduce food waste. In Italy, Winnow is a connected scale that makes it possible to weigh and identify discarded food. This connected scale reduced food waste by 60% during the first test and is now being rolled out in Elior’s kitchens.
• Sodexo S.A. launched a beta-stage robotic busser, named “LUFTH-I”, which assists employees by quickly collecting dirty dishes and glassware.
• Foodcraft, established in April 2020, by Emirates Flight Catering, has joined forces with noon Daily, noon.com’s dedicated grocery platform, to further their delivery reach in time for Eid.

Catering Services Market Report Scope:

Key Questions Answered in This Report:

• How has the global catering services market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global catering services market?
• What is the impact of each driver, restraint, and opportunity on the global catering services market?
• What are the key regional markets?
• Which countries represent the most attractive catering services market?
• What is the breakup of the market based on the service type?
• Which is the most attractive service type in the catering services market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the catering services market?
• What is the competitive structure of the global catering services market?
• Who are the key players/companies in the global catering services market?

Key Benefits for Stakeholders

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the catering services market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global catering services market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the catering services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.