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The catering services market size is estimated to grow by USD 68.9 billion, accelerating at a CAGR of 3.65% between 2023 and 2028. The increasing popularity of online catering platforms has made it easier for consumers to order food for events and gatherings, driving demand for catering services. The introduction of new food menus allows caterers to offer a variety of options to suit different preferences and dietary requirements, attracting more customers. Increasing promotional initiatives, such as discounts, special offers, and marketing campaigns, help caterers attract and retain customers, driving business growth. Additionally, the convenience and accessibility of online catering platforms have expanded the customer base, reaching a wider audience. The introduction of new menus not only attracts new customers but also encourages existing customers to try different offerings, increasing revenue opportunities. Increasing promotional initiatives help caterers stay competitive in the market and maintain customer loyalty, driving sustained growth in the industry.
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The market caters to a wide range of needs, including meetings, conventions, celebrations, and other events. They extend to hot food catering for various establishments, institutions, universities, and commercial entities. Options range from in-house chefs to third-party businesses offering healthy meal catering services. They are popular for both corporate and social establishments, providing opportunities for team-building activities and outsourcing catering needs. As the industry expands, specialized services focus on providing a memorable dining experience with diverse cuisine options, customized menus, and convenience and flexibility for customers with disposable income and changing lifestyles.
The increasing popularity of online catering is a key factor driving the market growth. The expansion of urban populations is fostering new consumer habits, including a growing preference for international foods. This change is influenced by shifting lifestyles, evolving preferences, rapid urbanization, and an increase in nuclear families. Additionally, there is an increasing demand for convenience and flexibility in dining options, driven by factors such as corporate gatherings and the expansion of the industry. Specialized catering services that offer memorable dining experiences, diverse cuisine options, and customized menus are becoming more popular, especially among consumers with disposable income and changing lifestyles. As global consumers are exposed to diverse international cultures, there is a rising interest in exploring different cuisines, which is creating growth opportunities for the fast-food industry. Mobile meal service providers are becoming more popular, particularly in developed and developing countries, as they cater to the on-the-go preferences of the working population.
Moreover, the increasing purchasing power in the Asia-Pacific (APAC) and South America regions is also contributing to the growth of the market. companies are expanding their offerings in the Quick Service Restaurant (QSR) segment to meet the rising demand for convenience foods, which is driving the growth of the global market. This expansion includes third-party businesses offering healthy meals to corporate and social establishments.
The marketing initiatives are one of the major market trends shaping the growth of the market. In the global market, companies are strategically utilizing integrated marketing communication through various channels, including newspapers, magazines, and social media platforms such as YouTube and Facebook. These platforms play a pivotal role in the marketing strategies of these service providers. Noteworthy social media platforms and their advantages include:
Twitter: Enables companies to share upcoming locations and events, providing real-time interaction with customers.
Facebook/Instagram: With a diverse audience, these platforms leverage specific hashtags to enhance social media marketing reach.
Foursquare: A premier location-based social media platform beneficial for mealstruck owners aiming to increase footfall.
YouTube: Acts as an effective tool for companies to create informative and entertaining videos about their trucks and menu items, attracting and retaining customers.
LinkedIn: Facilitates business-to-business conversations, expertise demonstration, and collaboration with partners and suppliers for mobile food service providers.
These strategies contribute to an anticipated rise in demand during the forecast period.
Fluctuations in food commodity prices are a key challenge hindering the market growth. The market is heavily influenced by fluctuating prices of essential food commodities, including sugar, grains, meat, salt, vegetables, and dairy products. Adverse weather conditions and natural disasters often lead to shortages in raw material supplies, impacting market growth.
Natural calamities, such as floods and droughts, contribute to disruptions in agricultural production, affecting global crop yields. Erratic weather conditions, exemplified by phenomena like El Nino, further reduce crop and vegetable output worldwide. Balancing prices and quality is crucial for companies navigating challenges in a market driven by price competition and product differentiation. Coping with fluctuating commodity prices is a significant hurdle in the highly competitive landscape during the forecast period.
The contract catering services segment experienced steady growth in the catering management market, reaching a market share of USD 247.60 billion in 2018. These caterers are engaged by educational institutions, industries, hospitals, and event organizers to provide services, ensuring increased accountability, customer convenience, and adherence to food hygiene regulations. Contract catering has gained popularity due to its convenience, accountability, and compliance with safety standards.
Market
By Service
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The market is projected to grow consistently, driven by global prevalence, demand for high-quality on-site-prepared meals, and consumer preferences for fresh and healthy food. companies are actively innovating menus to meet evolving consumer tastes, contributing to an anticipated surge in demand during the forecast period.
APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Catering Services Market
By APAC
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Further, businesses contract catering services for office dining, contributing to increased revenues in the region. The preference for on-the-go foods due to busy lifestyles is boosting the market. Rapid urbanization in India and China, along with a growing working population, is modernizing food consumption patterns, driven by higher income levels and a positive perception of Western foods. Mobile food service providers offering affordable options are preferred over traditional full-service restaurants (FSRs). The rising demand for fast food is prompting international companies to expand in China and South Korea, foreseeing continued growth in the APAC market.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the catering services and food contractors market.
Deutsche Lufthansa AG - The company offers premium, high-quality catering services through the brands Lufthansa German Airlines, SWISS and Austrian Airlines. The company's key offerings include catering services.
The report also includes detailed analyses of the competitive landscape of the catering management market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key catering management market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is thriving, offering a range of options for various occasions such as meetings, conventions, and celebrations. From hot food to healthy meal catering services, establishments like universities and commercial entities are utilizing in-house chefs or third-party business for their needs. Outsourcing these has become popular due to its convenience and flexibility. However, food safety remains a critical concern, especially in the healthcare industry, where food safety-related accidents can have serious repercussions. Despite this, the market is expanding, offering these diverse cuisine options and customized menus for memorable dining experiences. Further, consumers are increasingly demanding clean and healthy diets, leading to the rise of cloud kitchens and online food delivery services offering packaged and convenience food items, as well as fresh and prepared food items. Professional companies and individuals are providing high-quality food and beverage offerings tailored to diverse dietary requirements and preferences, including vegan or gluten-free menus. This market caters to various sectors, including healthcare facilities and large-scale establishments, with both contractual and non-contractual available.
Additionally, the market is characterized by the provision of third-party packages and a strong focus on the quality of food. Professional companies and individuals offer a wide range of food and beverage services, including food preparation, cooking, presentation, and serving, showcasing their culinary skills knowledge, and resources. They aim to provide a memorable dining experience through streamlined event management and a keen understanding of the popularity of social events. These services offer memorable experiences and unique dining experiences, with a wide array of cuisine options including international and fusion cuisines and specialized dietary choices. The market emphasizes menu diversity and provides a detailed breakup and analysis to meet customer needs.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.65% |
Market growth 2024-2028 |
USD 68.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.48 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, France, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aramark, bartlett mitchell Ltd., Caterlink Ltd., CH and Co Catering Group Ltd, Delaware North Companies Inc., Deutsche Lufthansa AG, Dine Contract Catering Ltd., DO and CO Aktiengesellschaft, DoorDash Inc., Elior Group SA, Entier Ltd., Fairfax Meadow Europe Ltd., Fooditude Ltd., gategroup, ISS AS, Newrest Group International SAS, Pret A Manger, rhubarb Food Design Ltd., SAVORY Inc, and The Emirates Group |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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