by The global Contract Catering Market is estimated to be valued at US$ 257.28 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Contract catering refers to the services provided by independent contractors to cater workplace or institutional cafeterias and dining areas. Contract caterers are responsible for the entire food production and supply chain including menu planning, food procurement, preparation of meals, staff recruitment and training. They deliver hot and fresh meals to outlets within scheduled timelines. Contract catering provides convenience to institutions and workplaces to outsource their catering needs while focusing on core business operations. It ensures hygienic preparation and delivery of customized meals according to the tastes and preferences of the clients.
Market key trends:
One of the key trends in the contract catering market is the rising demand for healthy and nutritious food options. With growing health consciousness, people are increasingly preferring whole grains, lean proteins, fresh fruits and vegetables in their meals. Contract caterers are innovating their menus to include low-calorie, low-fat, gluten-free, vegan and organic food choices. They are launching balanced meal plans tailored to meet dietary restrictions and requirements. Moreover, the trend of outsourcing non-core business functions is gaining traction among corporates and institutions to reduce operational costs. This is expected to drive the demand for contract catering services over the forecast period.
Porter’s Analysis
Threat of new entrants: Low threat as the market requires high capital and specialized skills and expertise.
Bargaining power of buyers: High bargaining power as buyers have options to switch between existing players.
Bargaining power of suppliers: Low bargaining power given the market is fragmented with large buyers and many suppliers.
Threat of new substitutes: Low threat as there are limited substitutes to contract catering services used by various end-use industries.
Competitive rivalry: High rivalry exists among existing players to gain market share through service differentiation, price, and quality.
Key Takeaways
The Global Contract Catering Market Size is expected to witness high growth, exhibiting CAGR of 4.9% over the forecast period, due to increasing demand from corporate, healthcare, and education sectors. The Asia Pacific is projected to be the fastest growing market for contract catering during the forecast period. The growth of the market in the region can be attributed to rapid urbanization, rising middle class, and expansion of end-use industries.
The global contract catering market size for 2023 is US$ 257.28 Mn. The Europe market holds the largest share in the contract catering market and is expected to maintain its dominance over the forecast period. Stringent regulations regarding food quality and hygiene in Europe has boosted the adoption of contract catering services.
Key players operating in the contract catering market are Group PLC, Sodexo S.A., Aramark Corporation, and Elior Group. Group PLC is one of the leading players focusing on expanding its footprint through partnerships and mergers & acquisitions. Sodexo S.A. offers integrated facilities management services along with contract catering worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
