by The global Catering And Food Service Contractor Market is estimated to be valued at US$360.6 billion in 2017 and is expected to exhibit a CAGR of 6.35% over the forecast period, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Catering and food service contractors provide food and beverage services to various end-use industries such as hospitals, schools, corporate offices, and event venues. These contractors offer a wide range of services including menu planning, food preparation, delivery, and even event management. They have become an essential part of the food service industry, providing convenience and quality food services to businesses and institutions that prefer to outsource their food requirements. This market is driven by the increasing demand for convenience and the need for cost-effective solutions in the food service industry.
B) Market Dynamics:
1) Driver: Increasing demand for convenience
The busy lifestyles of individuals and the rise in dual-income households have led to an increasing demand for convenient food services. Catering and food service contractors offer ready-to-eat meals, which save time and effort for consumers. Moreover, they provide customizable menus and flexible delivery options, catering to the specific needs of their clients. This convenience factor is driving the growth of the catering and food service contractor market.
2) Opportunity: Outsourced food services in the healthcare sector
The healthcare sector is one of the key end-use industries for catering and food service contractors. Hospitals and healthcare facilities are increasingly outsourcing their food services to specialized contractors. This allows them to focus on their core activities while ensuring that their patients and staff are provided with nutritious and high-quality meals. Healthcare facilities also benefit from the cost savings achieved through outsourcing. This presents a significant opportunity for catering and food service contractors to expand their services in the healthcare sector.
C) Segment Analysis:
The catering and food service contractor market can be segmented based on end-use industry, service type, and region. In terms of end-use industry, the healthcare sector dominates the market due to the increasing outsourcing of food services in hospitals and healthcare facilities. Among the service types, the food delivery segment holds the largest market share, followed by menu planning and event management services. The dominance of the food delivery segment can be attributed to the growing demand for ready-to-eat meals and the convenience they offer.
D) PEST Analysis:
Political: The Catering and Food Service Contractor Market is influenced by government regulations and policies regarding food safety and hygiene standards. Compliance with these regulations is crucial for contractors to maintain their reputation and secure contracts.
Economic: The growth of the catering and food service contractor market is influenced by economic factors such as disposable income and consumer spending. The demand for outsourced food services is expected to increase as economies grow and consumers become more inclined towards convenience.
Social: Changing lifestyles, increasing urbanization, and the rising number of working individuals are driving the demand for convenient food services. The social trend of outsourcing non-core activities also contributes to the growth of the catering and food service contractor market.
Technological: Advancements in technology have enabled catering and food service contractors to streamline their operations, improve efficiency, and enhance the customer experience. Digital platforms and online ordering systems have made it easier for consumers to avail of their services.
E) Key Takeaways:
– The global catering and food service contractor market is expected to witness high growth, exhibiting a CAGR of 6.35% over the forecast period, due to increasing demand for convenience and outsourced food services.
– North America is the fastest-growing region in the catering and food service contractor market, driven by the rising adoption of outsourcing in various industries and the presence of key players in the region.
– The key players operating in the global catering and food service contractor market include Compass Group Plc., Sodexo, Aramark Corporation, Elior Group, Delaware North, Westbury Street Holdings, Ovations Food Services, Thompson Hospitality, Dine Contract Catering, Olive Catering Services, and others. These players focus on strategic partnerships, acquisitions, and new product launches to maintain their market position and expand their customer base.
In conclusion, the catering and food service contractor market is witnessing significant growth due to the increasing demand for convenience and outsourced food services. This market offers a range of opportunities for contractors, especially in sectors such as healthcare. With the support of technological advancements and favorable economic conditions, the market is expected to continue its upward trajectory in the coming years.
