Catering Services Market

Catering Services Market Outlook (2023-2033)

The global catering services market is expected to secure a valuation of US$ 585.2 billion in 2023. During the forecast period of 2023-2033, the market for catering services is expected to exhibit a CAGR of 4.5% and reach US$ 908.8 billion by the end of 2033.

There are over 50K catering service providers in the world, of which the top 5 catering service providers hold 18% of the total industry wealth.

Report Attributes	Details
Catering Services Market Size in 2022	US$ 560.0 Billion
Estimated Market Value (2023E)	US$ 585.2 Billion
Forecasted Market Value (2033F)	US$ 908.8 Billion
Global Market Growth Rate (2023-2033)	~4.5% CAGR
North America Market Share (2022)	~32.0%
East Asia Market Growth Rate (2023-2033)	~5.3% CAGR
United States Market Growth Rate (2023-2033)	~4.4% CAGR
Key Companies Profiled	ANN SATHER Aramark Corporation ARIA CATERING AVI Foodsystems, Inc. Bartlett mitchell Ltd. BLACK OLIVE CATERING BLUE PLATE CH and Co Catering Group Ltd. Compass Group plc Delaware North Companies Inc. Dine Contract Catering Ltd. DO & CO Aktiengesellschaft DoorDash Inc. Elior Group SA ISS Facility Services Inc. Mitie Group plc Sodexo S.A The Emirates Group Other Key Players

Demand Analysis of Catering Services (2018-2022) Vs. Market Forecast Outlook (2023-2033)

The catering service market is gaining substantial demand from different end-use verticals like corporate, hospitality, industrial, and others. The corporate sector is expected to have significant demand for these services due to the surging demand for healthy food meals in the corporate sector. Also, western countries account for the significant utility of these services with the increasing trend of food-away-from-home.

Although, the market is expected to have huge potential during the assessment years in East and South Asian economies with rising population, and urbanization. Development in the corporate and hospitality sector will create lucrative opportunities for market development during the assessment years (2023-2033).

• Short Term (2023 Q1-2026): The demand for catering services is projected to grow with the resumption of various business organizations and surging awareness among people regarding healthy and hygienic food consumption.
• Medium Term (2025-2028): The industry will see the entry of a new set of businesses with more advanced and cost-efficient services. In India companies like Zomato, an online food ordering company has entered the corporate catering services market.
• Long Term (2028-2032): Growing in corporate and private events and rapid urbanization will boost the trend of food-away-from-home, thereby escalating the overall market development of catering services during 2028-2032.

East Asia is projected to rise with the fastest CAGR of 5.3% during the forecast period (2023-2033). However, North America and Europe hold more than 50% of the share of the global catering services market.

The image represents market bifurcation in region and type segment. Corporate catering holds more than one-third of the market revenue share, followed by social events and wedding catering.

Key elements driving the demand for catering services

“Surging demand for healthy food meal in corporate”

Companies worldwide are focused efficiently on the health of their employees. They are putting concern towards providing healthy meals prepared from fresh ingredients to the employees and avoiding excessive dependency on frozen food. Owing to this factor, demand for catering services is rising worldwide in the corporate sector.

Also, well-maintained and healthy meal services are one of the strategies corporates are using to attract fresh talent and as a retention tool. By offering a delightful dining experience and employee-centric customized menus from catering services provided at a subsidized rate, corporates tremendously benefited from establishing market good meals, employee retention, and talent acquisition.

“Surging demand for food-away-from-home”

The potential shift of people from one place to another for jobs and educational purposes is creating a lucrative demand for food-away-from-home services. With the increasing demand for food-away-from-home services, the demand for catering services is expected to rise significantly worldwide.

It is projected that more than 20% of millennials worldwide during 2021 has switched to a job and more than 50% are open to a different opportunity. With an increase shift in millennials from homes to other work locations, demand for food-away-from-home services is expected to have significant growth globally. Also, with increasing disposable income, demand for these services is growing and resulting in the potential rise of catering services.

Factors impeding the growth of catering services market

“Higher initial investment in catering services business”

High cost incurred during the initial stage of starting a catering business is one of the major factors restraining market growth. Catering services are majorly used for events like corporate parties, weddings, and others. Therefore, there is huge sum of money is required in buying food, and ingredients, prepare food, transport, and other.

Moreover, the catering service market is majorly dependent on the taste of the meal the service provider offers. Therefore, the divergence in the taste of people will be a major factor hampering the growth of catering service providers.

Country-wise Insights

United States to secure largest revenue share in global catering service market

US accounts for a leading share of 32.0% in the global catering services market. With the presence of a potential number of restaurants in the region, food & related industries contribute around 4-5% of countries GDP. About 90% of restaurant owners who offer catering services have stated that catering contributes about 18% of a restaurant's overall revenue.

Additionally, a substantial rise in investment by restaurant owners in catering services is escalating the market growth. The economy is also witnessed people with a higher interest in junk food along with the presence of a large number of the expatriate population in the country is projected to escalate the demand for catering services in the region.

China to witness the fastest growth during the forecast period

Chinese catering services market has faced an extreme challenge during the COVID-19 pandemic where small and medium enterprises faced a sharp decline in customer base and a shortage of supply chain. However, the market is projected to see huge potential to rise in the forthcoming period.

Once the businesses resume their operation, it is expected that the demand for catering services especially from the corporate end will grow manifold. During the forecast period of 2023-2033, China’s catering services market will grow at a CAGR of 6.1%. Given its large population of working class along with its growth rate of employment and business growth, the catering service providers are betting high on the China market.

Category-wise Insights

Contract Catering Services to exhibit a leading share in the catering service market

The contract catering service providers offer catering services to a business or organization including workplace canteen, school, college, and others for a specific period. Contract catering services is beneficial for these industry verticals over noncontract catering service provider, as they can focus on their area of expertise and hand over the responsibility of these services to the specialist and professionals.

Additionally, contract catering services are cost-efficient for both the service provider and consumer, where service charges could be negotiated to favour both parties. However, noncontract catering services are projected to have an expansion in market share during the assessment year due to the high cost associated with contract catering services.

Corporate sector is the leading consumer of catering services

The corporate sector is projected to have a leading share of 48.0% in demand for catering services. Catering services play an essential role in the corporate sector in attracting fresh talent and retention of employees. Having a contract with the catering service provider corporate helps in establishing a positive reputation for the company, by offering a high-end experience to the employees.

Hiring a catering service provider during corporate parties could be advantageous for the company in establishing a positive impression for the business. Professional catering service providers offer a wide variety of options in the corporate to take care of the taste of people from different countries.

Competitive Landscape

Key market players in the global catering services market are ANN SATHER, Aramark Corporation, ARIA CATERING, AVI Foodsystems, Inc., Bartlett mitchell Ltd., BLACK OLIVE CATERING, BLUE PLATE, CH and Co Catering Group Ltd., Compass Group plc, Delaware North Companies Inc., Dine Contract Catering Ltd., DO & CO Aktiengesellschaft, DoorDash Inc., Elior Group SA, ISS Facility Services Inc., Mitie Group plc, Sodexo S.A, The Emirates Group and other key players.

The catering service market is highly fragmented with the presence of various large and small market players in the industry. Favourable move like merger & acquisition by these market players to enhance their global presence and strengthen their foothold in the industry is fuelling the market growth.

For instance :

• In January 2022, Sodexo agreed to acquire Frontline Food Services a major player in the convenience market in North America.
• In October 2022, The Compass Group India, has acquired Elior India Catering Business. The acquisition is aimed towards expanding company’s service offerings and strengthening its foothold in the Indian market.

Fact.MR has provided detailed information about the players of Catering Services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Catering Services Market

• By Service :

  • Contract Catering Services
  • Non-Contractual Catering Services

• By Type :

  • Wedding Catering
  • Social Event Catering
  • Corporate Catering
  • Others (Not Mentioned Elsewhere)

• By End-user :

  • Corporate
  • Industrial
  • Hospitality
  • Healthcare
  • Educational
  • Sports & Leisure
  • Others (Not Mentioned Elsewhere)

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa