July 13, 2024
Contract Catering Market

Contract Catering Market Is Estimated To Witness High Growth Owing To Rising Demand For Outsourced Catering Services And Increasing Preference For Healthy Food Options.

The Contract Catering Market is estimated to be valued at US$ 215.9 billion in 2018 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Contract catering refers to the provision of food services by an external company to various organizations such as businesses, schools, hospitals, and other institutions. It involves the management of food production, presentation, and delivery, along with facilities management. Contract catering companies offer a wide range of services and customized menus to cater to the specific requirements of their clients. The market for contract catering is driven by the increasing demand for outsourced catering services as organizations focus on their core competencies and look to reduce costs. Moreover, the rising preference for healthy and nutritious food options among consumers is also contributing to market growth.

Market Dynamics:

The key drivers contributing to the growth of the contract catering market are the rising demand for outsourced catering services and the increasing preference for healthy food options. Outsourcing catering services allows organizations to focus on their core activities while ensuring that their employees are provided with high-quality and nutritious meals. Additionally, the increasing consumer awareness regarding the importance of maintaining a healthy lifestyle has led to a growing demand for fresh, organic, and locally sourced food options in contract catering services. The market is also driven by factors such as the growing number of corporate events, weddings, and other social gatherings that require catering services. Moreover, the adoption of new technologies such as online ordering and mobile payments is expected to enhance the efficiency and convenience of contract catering services, further driving market growth. Overall, the contract catering market is expected to witness high growth due to these drivers and presents lucrative opportunities for market players.

Segment Analysis:

The contract catering market can be segmented based on end-use sector, which includes corporate, schools and colleges, hospitals, senior living facilities, and others. Among these segments, the corporate sector dominates the market. The corporate segment includes office buildings, IT parks, and manufacturing units, which have a higher demand for contract catering services. This is primarily due to the large number of employees present in corporate establishments, leading to a higher demand for food services. Additionally, corporate clients often prefer outsourcing their catering requirements to specialized companies to focus on their core business. This has led to the domination of the corporate segment in the contract catering market.

PEST Analysis:

Political:

The contract catering market is influenced by political factors such as government regulations regarding food safety standards and labor laws in different countries.

Economic:

The contract catering market is driven by economic factors such as GDP growth, disposable income, and business activities. Economic fluctuations can impact the demand for contract catering services.

Social:

Changing lifestyles, increasing urbanization, and a growing focus on healthy eating habits are social factors that impact the contract catering market. Consumers are increasingly seeking diverse and nutritious food options.

Technological:

Technological advancements have had a significant impact on the contract catering market. The use of digital platforms for ordering, payment, and feedback has made catering services more convenient and efficient for consumers.

Key Takeaways:

The global contract catering market is expected to witness high growth, exhibiting a CAGR of 5.8% over the forecast period (2023-2030). This growth can be attributed to the increasing number of corporate establishments and the rising demand for outsourced catering services.

In terms of regional analysis, North America is the fastest-growing and dominating region in the contract catering market. The region’s strong economy, presence of multinational companies, and increasing focus on healthy food options are driving the demand for contract catering services.

Key players operating in the contract catering market include Compass Group PLC, United Enterprises Co. Ltd., Elior Group SA, Aramark Corporation, CH&Co Catering Group Limited, Mitie Group plc., Sodexo S.A., Westbury Street Holdings Limited, and Rhubarb Food Design Limited. These companies have a strong market presence and offer a wide range of catering services to various end-use sectors.