Catering Services and Food Contractors Market

Catering Services and Food Contractors Market Size (2023-2028)

The Global Catering Services and Food Contractors Market size is estimated at USD 266.62 billion in 2022 to reach a valuation of USD 412.19 billion by 2028 and is predicted to register a CAGR of 7.76% throughout the projection period 2023 - 2028.

The catering services and food contractors market consists of the provision of services related to food based on unique events in institutional, government, commercial, or other sites, on the basis of contractual agreements with these types of organizations for a period specified by the entities. The catering services and food contractors market is studied separately for two categories of food contractors and catering services.

Market Drivers:

The rapidly growing tourism industry around the world is a key factor that is expected to drive the growth of the global catering services and food contractors market during the forecast period. Additionally, growing consumer preference for mini buffets is another factor that is estimated to drive growth in the target market over the foreseen period. Since mini meals are convenient and packed in disposable trays, this type of meal is preferred for small gatherings or functions where space is limited. Also, the increasing industrialization of various industries is another factor that is predicted to drive the growth of the target market during the conjecture period. In addition, the establishment of various medical and educational institutes is also likely to support the growth of the world market.

Market Restraints:

However, the growing preference of consumers for online food delivery services is a major factor that is determined to slow the growth of the global market over the outlook period. The online food service offers a simple and convenient ordering process through a mobile app. The continued trend observed in the market is that air travel around the world is anticipated to support the growth of the target market in the coming years. Technological advancements and innovative product launches are the main factors that can create potential revenue opportunities for players operating in the target market during the conjecture period. In addition, intensified collaboration, merger, and acquisition activities by manufacturers operating in the target market to enhance the company's product portfolio and sales are supposed to support global market growth during the envisioned period.

CATERING SERVICES AND FOOD CONTRACTORS MARKET REPORT COVERAGE:

Market Segmentation:

Catering Services and Food Contractors Market – By Type:

• Mobile Food Services
• Buffets
• Cafeterias
• Limited-Service Restaurants
• Full-Service Restaurants

Catering Services and Food Contractors Market – By Ownership:

• Economy
• High-End

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

The European market is expected to register significant growth in terms of revenue during the forecast period, due to the increasing number of M&A activities among manufacturers operating in the region's target market. The Asia-Pacific region market is foreseen to experience the fastest growth rate during the predicted period, due to strict government food safety regulations and a growing preference for promoting healthy eating in several countries in this region. For example, in April 2017, the Singapore government introduced a Comprehensive Government Food Service Healthier Policy (WOG) to encourage healthier eating in Singapore's homes, workplaces, and communities. In accordance with this policy, Singaporean government entities have provided healthy food and beverages at government events, training, meetings, and conferences.

Impact of COVID-19 on Catering Services and Food Contractors Market

The outbreak of the coronavirus disease acted as a massive strain on the market for catering services and food contractors in 2020, with governments globally imposing restrictions on domestic and international travel limiting the need for the services offered by these establishments. Measures taken by national governments to contain transmission have led to a decline in economic activity, with countries entering a state of lockdown, and the outbreak is expected to continue to negatively affect businesses through 2020 and into 2021. However, catering services and the food contractors market are expected to rebound from the shock over the projection period as this is not linked to permanent or fundamental weaknesses in the global economy.

Market Key Players

The Catering Services and Food Contractors Market is concentrated with a few well-established players, Some of those players in the market include

1. Delaware North
2. Compass Group plc
3. Elior Group
4. Aramark Corporation
5. Sodexo

Market Recent Developments

• SAirGroup Holding AG, Swissair's parent company, agreed to acquire Dobbs International Services Inc. in the United States for $ 780 million in cash, creating a world leader in airline catering in response to customer demands for global services from a single source. Dobbs, the world's third-largest airline catering company, wholly owned by US finance company VIAD Corp., will merge with Sair's airline catering division, Gate Gourmet International, the world's second-largest airline.
• Compass Group would acquire Nordic catering service Fazer Food Services in a € 475 million deal, expanding the northern European reach of the world's largest contract food service company. London-listed Compass, which serves more than 5.5 billion meals a year in 45 countries, will make an initial cash payment of € 420 million to the Nordic group, with the remaining € 55 million to be paid out over seven years under certain conditions.
• Fazer Food Services operates catering services in the Nordic region, Finland, Sweden, Norway, and Denmark, and in various sectors, including trade and industry, education, health, and defense. Dominic Blakemore, CEO of Compass Group, said it was a "very interesting acquisition" for Compass, which already has a presence in the region.