With a total value of around USD 618.5 million in 2023, the global catering services market is observed to be growing lucratively. FMI predicts the market to follow an average annual growth rate of 4.4% over the next ten years from 2023 to 2033. Finally, by the conclusion of this forecast period, the overall valuation of the market is projected to reach USD 951.5 million.
For all types of meetings, conventions, celebrations, as well as other events, catering services have become an important part to make it a success. The provision of hot food catering for establishments like institutions, universities, and commercial entities may also fall under the purview of these services. These establishments either employ in-house chefs or have a contract with a third-party business to maintain healthy meal catering services.
Corporate and social establishments are growing fast and their owners are organizing events such as parties and ceremonies as an integral team-building activity therein. The lack of sufficient resources and dedicated personnel to arrange such requirements makes it daunting for organizations to get it done within time. As a result, the adoption of outsourcing catering services is increasing with a general concern for food safety thus boosting the market worldwide.
To persuade and retain professionals, more businesses are now promoting their campus dining as a perk by adopting third-party catering packages. Over the years, such popular catering service providers have advanced remarkably by offering party food catering services during corporate events and celebrations. As more corporate offices utilize food as a tactic to recruit and retain talent, the demand for catering services is projected to grow at a faster rate than earlier.
Given the significant presence of many international firms and specialized catering service providers, Europe and North America are leading the industry. While Asian, African, and Latin American countries are considered low-opportunity zones and are anticipated to develop gradually over the coming years.
The overall food catering services market is also being affected by shifts in consumer tastes or preferences and improving economic structure, especially in emerging nations. Additionally, owing to the growing demand for clean and a healthy diet, commercial catering services are also becoming popular in the healthcare industry. Moreover, contract food catering services are now being stimulated by the rise in demand for nutritious meals across schools, colleges, and geriatric care facilities.
| Attributes | Details |
|---|---|
| Catering Services Market Share (2022) | USD 592.5 million |
| Catering Services Market Size Value (2023) | USD 618.5 million |
| Catering Services Market Size Value (2033) | USD 951.5 million |
| Catering Services Market Growth Rate (2023 to 2033) | 4.4% |
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The net worth of total catering services adopted worldwide was formerly assessed to be around USD 565 million in 2018. By the year 2022, the overall valuation of the market reached USD 592.5 million by registering a CAGR of only 1.2% due to pandemic restrictions. The lockdowns and restrictions over public life had a devastating impact on the global catering services businesses that thrived on public activities.
But the global catering business is now expected to expand at a CAGR of 4.4%, in the new post-COVID-19 business environment. As per the estimates for the mid-term period, by 2027, the demand for catering services is expected to reach around USD 733.7 billion.
Some recent food safety-related accidents and mishaps regarding the quality of food served at events have impacted the studied market negatively. Following rules and guidelines for food catering services by the United States FDA are a few challenges faced by the market players.
Nevertheless, the emergence of cloud kitchens or online food delivery services can restrict the catering services market trends and opportunities in the coming days. Likewise, the growing popularity of packaged and convenience food items is also anticipated to limit the market to some degree in the future. However, the demand for fresh and prepared food items for a large customer base is expected to drive the market against these odds. Moreover, the natural preference for dishes of choice that can be availed from a dedicated food catering service is anticipated to give the market an edge over other sectors.
According to the application, the contract catering services for the corporate segment held a significant revenue share as per the 2022 market survey report. The ‘Corporate Town Hall Concept’ is getting quite popular on a larger scale and is considered to be the key driving factor for the segment. Meanwhile, the catering service for the hospitality sector has retained its market position nearly constant over the last few years. Recent growth in international trade and tourism is anticipated to boost this market segment at a higher rate than in earlier years.
On the other hand, food catering services for educational institutions and healthcare sectors are growing rapidly nowadays. As per the FMI market report, both these segments may witness a steep growth trend during the forecast years.
The standalone food catering services market segment held the dominant position in 2022 and the preceding years and is anticipated to hold this position in near future. Given the variety of variables, including the flexibility to set prices and sole control over the presentation the standalone category is becoming more popular.
However, the experts at FMI predict that the companies having food catering service chains have also garnered sufficient traction in the last few years. Food catering service chains have acquired fame through market penetration as well as advertising on social media platforms and in print media.
In the United States, the demand for catering services is estimated to be USD 152 million in 2023 in terms of value. Over the coming years, the year-on-year growth rate of the United States catering services market is expected to remain slightly lower than other countries.
On the other hand, the demand for catering services in the country of Canada is projected to grow at a rate of 3.5% through 2033. Additionally, Latin American nations like Brazil are expected to present appealing chances for market players during the projection period with supportive government policies and extensive privatization.
In western European nations including the United Kingdom, Germany, and France, the food catering sector has reached a high service maturity level. Yet, the Eastern and Middle Eastern European nations are predicted to still have a huge scope for the sector to grow further. Due to the expansion of the tourist sector and rising income levels, the catering and food service contract business in Middle Eastern European nations has experienced enormous growth in the last few years.
In comparison to all other nations, Germany is anticipated to expand at a higher growth rate of around 3.2% within the European region. Given the economic development and presence of many multinational companies, the demand for catering services in the country is surging fast. Likewise, the United Kingdom, known for its rich culture of partying and eating away, is projected to remain a lucrative market for regional as well as global players.
Due to the growing population along with the growing workforce in the organized sector, catering services are now in great demand throughout the Asia Pacific region. In the Asia Pacific region, China is expected to acquire the top position in the adoption of catering services with a market valuation of around USD 115 million (2023). China's catering service market is anticipated to grow at a 7.1% annual growth rate which is considered to be higher than any other country.
Japan and India are the other two notable regional catering services markets that are expected to follow China closely in adoption and development. All nations in the Asia Pacific region together account for nearly 45% of the revenue generated by the global catering service business. However, Japan, with an anticipated growth rate of 2.5% during the forecast years is expected to lag in terms of the overall progress of the market.
Regional catering service providers dominate all types of food service businesses in any given area with greater access among natives. So, given the huge presence of local catering service providers, the global catering services market is highly fragmented and competitive. Further, established catering service companies are providing lucrative discounts to their customers to retain their customers making it very challenging for new market players.
Integration of exotic products and aesthetically pleasing delicacies is an emerging trend in the food catering services market getting readily adopted by leading players. Additionally, a variety of caterers are deeply committed to offering premium tabletop services, and live food catering kiosks, profoundly changing their market position.
The existence of a sizable workforce base, rising family incomes, and an increase in the percentage of middle-class residents are the primary drivers supporting market expansion. For instance, the Whole-of-Government (WOG) Healthier Catering Policy was implemented by the Singaporean authorities in the country back in April 2017. As a result of the policy's introduction, the adoption of catering services and food preparation contracts has increased in Singapore's homes, organizations, and corporates.
The catering services market value reaches USD 618.5 million in 2023.
The catering services market is anticipated to surpass USD 951.5 million by 2033.
Corporate catering services are poised to remain the lucrative segment for catering service providers.
The market discovers profitable prospects within the United States, reaching USD 152 million in 2023.
Key catering services market players are Aramark Corp., Compass Group PLC, and Bartlett Mitchell Ltd.
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Catering Services Market
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