by The global contract catering market is estimated to be valued at US$ 245.1 billion in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The contract catering market refers to the provision of catering services to businesses and organizations on a contractual basis. These services can include meal planning, food preparation, and food delivery for events, corporate cafeterias, healthcare facilities, educational institutes, and other establishments. Contract catering offers several advantages such as cost-effectiveness, access to skilled chefs, and customized menu options. The increasing need for outsourcing catering services by companies and organizations, due to the rising focus on core business activities, is driving the growth of the contract catering market.
Market Key Trends:
One key trend in the Contract Catering Market Size is the growing demand for healthy and sustainable food options. With increasing awareness about health and wellness, consumers are seeking nutritious and ethically sourced food. As a result, contract caterers are expanding their menu offerings to include organic, plant-based, and locally sourced ingredients. The incorporation of sustainable practices such as food waste management and eco-friendly packaging is also gaining traction in the market. This trend is driven by the rising preference for healthier lifestyles and environmentally conscious consumption patterns among consumers.
Key Players: 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.
Porter’s Analysis
The contract catering market is projected to witness high growth with a CAGR of 5.1% over the forecast period (2023-2030). This growth can be attributed to several factors such as the increasing trend of outsourcing food services by companies, organizations, and institutions. With the rising demand for catering services, the threat of new entrants into the market is relatively high. However, the barriers to entry such as high initial investment costs and the need for established networks can deter new players from entering the market.
The bargaining power of buyers in the contract catering market is moderate. Buyers, such as corporate clients, educational institutions, and healthcare facilities, have the ability to negotiate competitive pricing and service offerings from catering companies. However, the wide range of services offered by contract caterers and the need for specialized expertise in managing food services can limit the bargaining power of buyers.
The bargaining power of suppliers in the contract catering market is relatively low. Catering companies have access to multiple suppliers, ensuring a steady flow of ingredients and resources. This allows them to maintain competitive pricing and quality standards. Additionally, contract caterers can negotiate preferable terms and conditions with suppliers due to their large-scale purchasing power.
The threat of new substitutes in the contract catering market is low. The unique value proposition offered by contract caterers, such as customized menus, dietary restrictions accommodation, and on-site management, make it difficult for substitutes to compete effectively. Furthermore, the expertise and knowledge required to provide catering services act as a barrier to substitute services.
The competitive rivalry in the contract catering market is intense. The market is dominated by key players such as Compass Group PLC, United Enterprises Co. Ltd., and Elior Group SA. These companies have established strong brand recognition, extensive service portfolios, and widespread global presence. As a result, the competition for market share among these players is fierce, leading to continuous innovation and service enhancements.
Key Takeaways
The global contract catering market is expected to witness high growth, exhibiting a CAGR of 5.1% over the forecast period, due to increasing outsourcing of food services by companies, organizations, and institutions. This trend is driven by the desire to focus on core competencies while leaving non-core functions to specialized service providers. Additionally, the growing demand for catering services in events, such as weddings, parties, and corporate gatherings, is contributing to market growth.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the contract catering market. The region has a well-established corporate sector and a high demand for contracted food services in educational institutions and healthcare facilities. Moreover, the presence of key players in the region, along with their extensive service offerings and customer base, further strengthens the market in this region.
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 players have a significant market presence and offer a wide range of services to cater to the diverse needs of their clients. Their competitive strategies include mergers and acquisitions, partnerships, and continual investments in research and development to stay ahead in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
