Catering Services Market

Catering Services Market Overview:

The global catering services market size reached US$ 148.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 220.0 Billion by 2032, exhibiting a growth rate (CAGR) of 4.5% during 2024-2032. There is a gradual increase in the reliance on the outsourcing of food services around the world. This, along with the growing number of social events, rising preferences for diverse cuisine options and customized menus, and changing lifestyles of individuals, is driving the overall market.

Catering Services Market Analysis:

• Major Market Drivers: The escalating demand for customized services. Moreover, there is an increase in the awareness about health and wellness, which is acting as another growth-inducing factor.
• Key Market Trends: The rising trend of outsourcing food services, along with increasing preferences for diverse food options are main trends in the market.
• Geographical Trends: North America exhibits a clear dominance, accounting for the biggest market share owing to the thriving hospitality sector.
• Competitive Landscape: Numerous market players in the catering services industry are Aramark, AVI Foodsystems, Inc, Bartlett 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., among many others.
• Challenges and Opportunities: High operational costs are presently one of the primary market challenges experienced by business investors. The introduction of cloud kitchens, coupled with innovations like online booking platforms, digital menus, and mobile apps to enhance user convenience and service efficiency, are however anticipated to overcome these challenges and offer market opportunities.
   

Catering Services Market Trends:

Increasing Trend of Outsourcing Food Services

The trend of outsourcing food services among individuals and businesses is propelling the market growth. People are hiring professional caterers to handle their events and gatherings. Catering services save hosts time and allow them to focus more on other parts of event organizing and preparing. Professional caterers provide high-quality food and beverage services to individuals. They can also accommodate a wide variety of visitors because of their expertise. Moreover, outsourcing food services to caterers often results in more efficient and streamlined event management. Outsourcing can handle all aspects of menu planning, food preparation, and service. This convenience factor, along with the assurance of a memorable dining experience, is catalyzing the catering services demand. Furthermore, top players are contracting out food services temporarily in order to appeal to a broader range of individuals. For example, the Noida International Airport (NIA) entered into a concession agreement with TajSATS, a top in-flight catering company owned by the Tata group on 27 October 2023 to establish an in-flight kitchen facility. TajSATS will build the facility using a design, finance, build, operate, and transfer (DBFOT) model for a duration of 37 years. It will provide meals for passengers and crew, handle in-flight catering equipment, and load and unload meals.

Growing Popularity of Social Events

The popularity of social events among the masses is propelling the catering services market growth. Parties, business get-togethers, and other social events are becoming more commonplace worldwide. In order to make these events successful and provide guests an unforgettable experience, hosts are turning to catering services. In line with this, Caterers bring specialized expertise in party planning, enhancing the dining experience and making events more enjoyable. Furthermore, the growing demand for customized menus is further driving the market expansion. On October 11, 2023, Aramark Sports + Entertainment declared a gameday hospitality experience for the 2023-24 season. This includes different kinds of menu items, local partnerships, premium club and suite upgrades, and advanced technology to expedite service.

Rising Preference for Diverse Cuisine Options

People are preferring a diverse range of food options, which is offering a favorable catering services market outlook. People nowadays are becoming open to trying cuisines from different countries for experiencing new and unique flavors. Caterers are consequently coming up with fusion dishes, global cuisines, and specialized menus like vegan or gluten-free options to capture a wider consumer base. Apart from this, various social media platforms are making exotic and diverse dishes more desirable to individuals. In addition, food bloggers and influencers play a crucial role in introducing and promoting new cuisines to the market. Their creativity has no bounds as they blend different cuisines and present unique food displays, captivating a diverse audience seeking fresh dining experiences. Cooks and catering businesses are now experimenting with ingredients and methods from various culinary traditions, enriching their offerings. SATS Ltd. and Mitsui & Co., Ltd. announced a Memorandum of Understanding (MoU) on April 5, 2023. This partnership will help these companies to expand their businesses and overall sales revenue. They are focusing on to exploring different opportunities such as diversifying supply sources to strengthen the food value chain, developing innovative products and services, and expanding their sales and distribution networks.

Catering Services Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. 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 service accounts for the majority of the market share

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

Contractual catering is primarily dependent on contracts or agreements. Securing long-term contracts enables gives catering companies a steady and predictable revenue. Their capacity to better manage resources, develop menus, and streamline operations can result in increased profitability. Contractual catering allows businesses to form a long-term connection with their clientele for obtaining repetitive business. It is also enabling people to get customized services from catering companies, which is expected to lead to a positive catering services market forecast.

Breakup by End User:

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

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

The industrial sector caters to the food needs of their employees in factories, construction sites, and other industrial settings. There is a rise in the focus on improving employee satisfaction and productivity by offering nutritious meals. Catering services are crucial in industrial settings as individuals work on different shifts round-the-clock.

In the hospitality sector, these services are provided to hotels and resorts. The thriving tourism sector is catalyzing the demand for diverse and high-quality catering services. The growing demand for high quality catering services on account of the increasing number of events, meetings, and conferences in hotels is influencing the market positively.

Educational catering services are offered to schools, colleges, and universities. The rising focus on providing healthy meals to students is impelling the market growth.

Healthcare catering services are provided in hospitals, nursing homes, and other healthcare facilities. Patients often require meals that are tailored to specific health conditions. This ensures that both patients and healthcare workers receive nutritious meals. Catering companies play a crucial role in delivering nutritious and well-balanced meals that meet dietary guidelines and cater to different age groups.

In-flight catering services focus on enhancing the overall travel experience for passengers. It involves the preparation, packaging, and delivery of meals that are specifically designed for consumption in an aircraft environment.

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 leads 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. According to the report, North America represents the largest regional market for catering services.

People in the North American region have hectic schedules and high income levels. They are conducting social events like parties, weddings, business gatherings, etc. to know people living around them and consequently willing to spend money on catering services. The market expansion is also accredited to the availability of expert catering services that can manage big events. Furthermore, numerous companies are collaborating and partnering with other companies to expand their offerings and overall market reach. For example, Sodexo acquired A.H. Management on 24 July 2023 to accelerate its food transformation model and expand development in the North American region. This latest move reflects Sodexo’s strategy to renew existing food models and reinvent on-site food offers. 

Competitive Landscape:

• The catering services market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the catering services industry include Aramark, AVI Foodsystems, Inc, Bartlett 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, and Sodexo S.A.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players are focusing on bringing innovations in menu planning and food presentation, offering unique and creative culinary experiences to attract individuals. These players are also engaged in the introduction of diverse menus and cuisines options, which are prepared using locally sourced and sustainable ingredients. Additionally, they are financing technology and digital platforms to streamline the entire ordering and delivery process while also offering convenience to individuals. Key players are expanding their service offerings beyond traditional events to include corporate catering, food truck services, and meal delivery for individuals. Moreover, catering companies are working closely with clients to understand their specific requirements and preferences while increasing catering services market revenue. They are also focusing on opening kitchen spaces to cater to the unique need of increasing population. For instance, on 22 January 2024, BM Caterers invested in a new 1,200 square foot offsite kitchen in London’s Millbank that will support businesses in the city that don’t have their own kitchen spaces. The kitchen, named Atelier, will expand the firm’s capacity to support building moves and openings where kitchen space is limited or delayed, as well as catering events and fine dining requests for clients with limited facilities.

Catering Services Market News:

• 4 April 2023: Olo, a leading open software as a service (SaaS) platform for restaurants, partnered with DeliverThat, an industry leader in catering delivery, to allow individuals to take their direct catering business to the next level. DeliverThat joined Olo's Dispatch network as a delivery service provider (DSP). Dispatch is Olo's direct delivery solution that automatically connects direct orders from a restaurant's mobile app or website with third-party DSPs for last-mile delivery.

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 market?
• What is the impact of each driver, restraint, and opportunity on the global market?
• What are the key regional markets?
• Which countries represent the most attractive market?
• What is the breakup of the market based on the service type?
• Which is the most attractive service type in the market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global catering services market?

Key Benefits for Stakeholders

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global 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 assists 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.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.