Catering Services Market is predicted to reach USD 395,311.92 million at a CAGR of 6.95% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Catering Services Market”.

Market Highlights

According to the MRFR analysis, the global catering services market was valued at USD 217,015.64 million in 2023 and is projected to reach USD 395,311.92 million by 2032 at a CAGR of 6.95%.

The catering services is driven by the growing demand for convenience and ready-to-eat meats, increasing corporate events and business meetings, and popularity of destination wedding and themed events.

COVID-19 Impact on the Catering Services Market

The COVID-19 pandemic had a profound impact on the food & beverage industry. As customer behavior and industry circumstances shifted, food & beverage lived through extraordinary times. Traditional dining experiences were disrupted across the globe to a lockdown and social isolation. Thus, home-cooked meals gained popularity and increased demand for delivery services. At the same time, this marked the start of a crisis for many restaurants and foodservice providers. The surge of delivery remained the only feasible solution for a significant part of the industry dealing with shutdowns, restricted operation, and weakened supply chains. Trends in dining were unprecedented, forcing businesses to focus on take-out, delivery, and increasingly popular contactless options. In the meantime, the crisis triggered dramatic changes in customer priorities, health, and safety became more important than mere convenience or novelty. Thus, COVID-19 prompted increased demand for immune-boosting products, organics, and sustainability. Consumers grew increasingly worried about the origins and constitution of their food, making exotic varieties or artificially produced goods less popular. These changes required businesses to adapt their offerings, advertisements, and business strategies to the new demands. Marketing, therefore, focused on absolute cleanliness, ethics, and safety. At the same time, many trends accelerated by COVID-19 were deeply rooted in digitalization and industry advancement. An increasingly large share of the food and beverage industry customers relied on online grocery rather than onsite shopping. This trend limited physical interaction, avoiding stores, and the need to visit relatively anonymous restaurants with blurred, even anonymous kitchens. Food and beverage businesses had to accommodate these demands by investing in e-commerce support, building solid online infrastructures, and increasing the online presence.

Competitive Landscape

Most of major players in the global catering services market compete for a significant market share because they have extensive networks and offer a wide range of diversified services employed across multiple industries or sectors. Compass Group PLC remains the market leader as they have a strong presence across the globe, prioritize innovation and sustainability, and strive to serve every industry, including business, industry, healthcare, and education. Sodexo SA has a significant share of the global market as they are also based in relevant key markets and willing to take advantage of their comprehensive integrated services and digital transformation and sustainability to strengthen their position. The key players operating in the global catering services market comprise Compass Group PLC (UK), Elior Group SA (France), Sodexo SA (France), ISS A/S (Denmark), Newrest Group Services SAS (France), Hutten Catering BV (Netherlands), Cotton Culinary (US), Aramark Corporation (US), Delaware North Companies Inc. (US), Gategroup (Switzerland) among others.

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Segmentation

By Type

1. Contractual: Contractual catering is a specific type of catering service which implies the long-term agreement between the catering company and its client. Such type of contract is usually established for several months and years. The clients for such services are, as a rule, corporate offices, educational establishments, hospitals, industrial plants, and governmental organizations. The advantage, distinguishing contractual catering from other types of catering services, is the guarantee of long-term coordination. The most attractive contractual catering option is that the permanent client is given an opportunity to choose his/her own menu, taking into consideration of specific dietary and cultural preferences.


2. Non-Contractual: Non-contractual catering services, or ad-hoc, or event-based catering is provided for a one-time event or a short engagement. This is the most flexible type of catering service because of the possibility to implement any original and innovative wishes from the clients. These catering services can offer different solutions for celebrations such are weddings, corporate events, conferences, parties, and other occasional events. In contrast to contractual catering, this sector does not require long commitments: clients can order catering services for different events and base their decisions on the peculiarities of a particular event. This sector is characterized by the priority of originality, high personalization, and a great extent of flexibility.

By Service Type

1. On-Site Catering: On-site catering, also called in-house catering refers to providing food services on the area of a certain event or establishment. Such type of catering is widely spread in various companies, educational institutions, healthcare institutions, and industrial locations. The key advantage of on-site catering lies in preparing and serving food on the premises of the party, event, or other gathering, thus ensuring a higher degree of freshness and convenience not always characteristic of off-site options. Permanent placing of a kitchen or another facility for preparing and preserving food makes it possible to accommodate the needs and dietary restrictions of any group of people. What is more important, on-site catering is also considered to be environmentally friendly, as, for instance, there is no need for long transit of pre-cooked meals and extensive packing.


2. Off-Site Catering: Off-site catering, alternatively, implies the preparation and cooking of food at a different place and its transportation to the place of the event. In the case of off-site catering, cooking and food distribution does not occur in the same space. Off-site catering is quite popular for weddings, special corporate events, private parties, and large-scale functions in cases when it may be impossible or unpractical to have an in-house kitchen. Besides, off-site catering is often applied because it allows customers to choose from the wide range of menu options and various culinary styles. It is also beneficial for the customer, as caterers always cook food in their kitchens and can use the necessary specialized equipment there.

By End-User

1. In-Flight: In-Flight Catering Services refer to the preparing, storing, and serving food and drink to passengers on commercial and private aircraft. This segment is integral to the airline industry as it has a significant impact on the satisfaction of passengers and the branding of airlines. In-Flight catering services are usually delivered by the specialized catering companies that operate from airport kitchens with high-level proficiency in the provision of these services and in the peculiar logistics of their activity at high altitudes. The offerings on the menu are served to accommodate a broad array of dietary needs and cultural peculiarities. Indeed, in-flight catering menus provide both fresh and frozen food, and, in many cases, vegetarian, vegan, as well as many different special diet meals.


2. Educational Institutions: The catering services for educational institutions imply meal planning, preparation, and delivery for schools, colleges, and universities. The significance of these services is explained by the need to supply students with a proper and balanced nutrition plan, and it often meets governmental guidance for child and adolescent nutrition. The major goal of these services is to consider physical and cognitive development in students. The catering companies dealing with educational institutions should be able to work with significantly large volumes; many students also have various dietary restrictions, food allergies, and religious limitations; the services may also rely on sustainable practices, such as working without single-use products and providing more localization.


3. HoReCa/Hospitality: The HoReCa segment encompasses the provision of catering to hotels, restaurants, and cafes. This market segment is highly dynamic and competitive on account of changing customer expectations, internal cuisine fads, and demand for customer experience. Catering services in this segment range from the buffet and banquets in hotels to the food preparation and menus in cafe and restaurant. Food quality and presentation are among the most significant aspects of this segment. As such, the caterer will need to identify local and international fads and their implementation in the segment. Some of the fads necessitating transformation in the segment include farm-to-table, fusion food, satisfied eaters, and wellness.


4. Healthcare: Healthcare catering services refer to the provision of meals for patients in hospitals, nursing homes, and other such facilities. This type of catering focuses on supporting patients’ health and, as such, is specialized and primarily concerned with providing nutritious and medically appropriate meals. This includes catering to various patient conditions with a suitable diet and working with nutritionists and dietitians in the facilities to develop meal plans that support patients’ therapeutic diets and their overall schedule. Consequently, caters are involved in this area every step of the way, cooking the food, serving it, and being involved in planning and preparation with the medical staff.


5. Special Occasions: This segment involves delivering food and beverage services for special events, such as weddings, birthdays, anniversaries, and other celebrations. As a result, it is extremely personal and requires a high level of customization. Usually, such services include cooking in accordance with a special menu and a particular theme of a wedding or another type of celebration. Creativity, as well as the flexibility of a provider, is of utmost importance as tastes and preferences of people may vary significantly. On the one hand, the company is required to consider the overall requirements, but, on the other hand, it is necessary to find a way to make the celebration extraordinary, which is why attention to detail should be high. It is important to mention that such activities include, not only preparing meals, but also setting the place and providing all decorative elements.


6. Corporate & Industrial Business Canteens: This segment serves corporate offices and industrial business canteens by providing meals and refreshments to employees during work hours. Here, the key aim is to improve worker satisfaction and productivity by offering them convenient, nutritious, and affordable options. Catering for corporate and industrial clients typically includes breakfast, lunch, dinner as well as multiple snack options. With such a variety of options necessary, it is also important to customize every meal so as to match the tastes and dietary needs of the diverse group of workers.


7. Others: The others segment mostly includes catering for military and defense services, cruise lines, remote and offshore locations, and public institutions, including prisons and rehabilitation centers. Every sub-segment within this category has different demands and peculiarities. For example, meals for the military have to qualify for stricter characteristics compared to other types and be suitable for operation and severe conditions, such as field cooking. Cruise line catering has to satisfy a very diverse audience with its international population, as well as be worked around the customer’s demands 24/7. Remote and offshore locations catering has to be highly organized and have sustainable logistics as the food has to be freshly supplied to the mining sites or oil platforms.

By Booking Mode

1. Online: The online booking mode has garnered significant attention in the past few years and is expected to grow in the future due to the success of the numerous online platforms and the increasing number of people that use the internet, as well as the adoption of smartphones. The general features of this mode imply people ordering the catering services through websites or mobile applications provided by the companies. As in the case of subscription and food-only concepts, online bookings can be made either several days or weeks before the event and just hours from the occasion. The primary advantage of online booking is the convenience associated with it. Customers can see a wide variety of the catering company’s offers, delve into the menus and prices, and take time to make an order at home or work regardless of the time of the day. The detailed descriptions of the offered dishes, as well as customer reviews and ratings, help people make an informed choice. Also, online bookings usually provide good customization options, which means that one’s order can be tailored to the person’s personal preferences and dietary requirements.


2. Offline: The offline booking mode is still a considerable share of the global catering services market. Traditional consumers and businesses, preferring an enhanced degree of personal contact when arranging catering services, are among the major users of an offline booking mode. In an offline mode, customers book catering services by making phone calls, paying in-person visits to the catering service provider, and by contacting intermediaries, such as event planners. One of the major advantages of an offline booking mode is that the service is highly personalized and directly communicative. The service provider listens directly to the requirements of their customers and arranges the catering services as needed.

By Region

1. 
   

   North America: The U.S. catering services market is actively developing due to changing customer behavior, technological progress, and new partnerships. According to the article February 2023 ConnectedEconomy Monthly Report: The Evolving Digital Daily Edition, a survey of 4,000 U.S. consumers showed that while the share of the population performing digital activities has grown to some extent, the percentage of people working remotely dropped from 26% in 2022 to 23%. As companies increasingly open offices and enforce the return of employees, corporate catering may benefit from this change: business and corporate customers might welcome a service that would provide meals for their employees. Corporate catering is becoming an increasingly important tool for both employee retention and business development, subsequently increasing the number of people dining in home offices and attracting outside clients. Services expansion has generally been achieved through partnerships; however, in 2023, they can be considered as one of the main reasons for the market’s growth.

   
   


2. 
   

   Europe: The catering industry in Europe is a vital component of the food service sector, with a robust annual turnover exceeding USD 43 billion in 2023. The sector employs approximately 600,000 people across the continent and serves over 6 billion meals annually, catering to diverse clientele including workers, students, patients, and others accessing canteens or internal restaurants within companies, public institutions, and healthcare facilities. This market not only fulfills a critical need for convenient and subsidized meal options but also plays a pivotal role in supporting efficiency and productivity in various sectors.

   
   


3. 
   

   Asia-Pacific: Asia Pacific is expected to register the robust growth over the forecast duration, driven by various sector including in-flight catering. The inflight catering in the Asia-Pacific region is semi-consolidated. The key vendors in the market are Gate Gourmet, LSG Sky Chefs, SATS, Cathay Pacific Catering Services, and Emirates Flight Catering. These players are expanding their geographical footprint and adding new menu options which include vegetarian and gluten-free. Competition among key players is intense and drives action toward improved passenger satisfaction.

   
   


4. 
   

   The Middle East & Africa: The Middle East and Africa market for catering services is characterized by a variety of culinary traditions, economic growth disparities, and consumer behavior. In recent years, the region’s market has demonstrated rapid growth due to the impact of urbanization, the increase in the level of income of the population, and the development of the tourism and hospitality sector. The UAE’s market for catering services is one of the most developed in the region, as the country itself disposes of the most developed hospitality sector in Dubai and Abu Dhabi. In addition, the developed economy and high standard of living in the UAE are evidenced by the active use of catering services at various events of a social and cultural nature. This demand is quite diverse, from corporate fast food to luxury wedding receptions. The country’s leading players, such as Café Blanc, Al Habtoor Group, and Movenpick Hotels & Resorts Dubai provide customers with the widest range of innovative and tailor-made catering experiences. The Russian market for catering services has also actively developed lately due to the country’s economic growth.

   
   


5. 
   

   South America: South America is set to become a highly attractive catering services market, driven by the robust growth projected in aviation and across the diverse catering segments. Specifically, Brazil, which is the largest economy and the major aviation market in the region, appears to be a significant player in the catering services segment. The Brazilian branch of LATAM Airlines, which is the largest carrier in the region with access to the wider Latin American market, experienced a robust increase in its passenger traffic. In the future, the overall aviation industry in Latin America is set to experience substantial growth, with a projected delivery of approximately 2,550 new aircraft by Airbus between 2021 and 2040 and an implied fleet increase across the region. Given that the current size of Brazil’s aviation market is sizeable, with such local airlines as LATAM Brazil and GOL LinhasRereas, the growth projected for this country is a significant driver of the growing demand for inflight catering services.