Contract catering is a service that provides food services to various organizations across commercial sectors on an outsourced basis. It involves planning menus, procuring ingredients, cooking and preparing meals, and serving food at different facilities. Contract catering services help organizations focus on their core operations while outsourcing food requirements to expert caterers. The growing working professional population and busy lifestyle have increased the need for convenient food options from contract caterers.
The contract catering market is estimated to be valued at USD 302.81 Bn in 2024 and is expected to reach USD 449.33 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.
Key players operating in the contract catering are Compass Group PLC, United Enterprises Co. Ltd., Elior Group SA, Aramark Corporation, CHandCo Catering Group Limited, Mitie Group plc., Sodexo S.A., Westbury Street Holdings Limited, Rhubarb Food Design Limited., AVI Foodsystems, Inc.
Key Takeaways
Key players Compass Group PLC and Sodexo S.A. dominate over 35% of the global market share due to their strong presence across regions.
Growing number of corporate offices and industries are outsourcing their food services to contract caterers for convenience and reliability.
Technological innovations in smart packaging, automated kitchen equipment, and digital menu designing are improving quality and efficiency of Contract Catering Market Demand.
Market Trends
Increase in health-conscious customers is compelling caterers to offer low-calorie menu items prepared using organic ingredients and custom diets.
Sustainable and eco-friendly packaging solutions along with zero-waste programs are being adopted to reduce carbon footprint of the industry.
Market Opportunities
Emerging Asian markets like India and China are witnessing rapid urbanization and economic growth creating demand from corporate offices, industries, and educational institutes.
Subscription-based customized meal plans and cloud kitchen models for remote working professionals present avenues for contract caterers.
Impact of COVID-19 on Contract Catering Market
The COVID-19 pandemic has severely impacted the contract catering market with reduction in demand due to lockdowns and strict restrictions imposed across regions. Social distancing norms mandated work from home for many organizations leading to closure of offices, educational institutions, event spaces and other commercial establishments relying on contract catering services. This steep fall in demand led to cancellation of existing catering contracts and new business opportunities drying up. During the peak of pandemic in 2020 and early 2021, revenues of contract catering providers dropped by over 30-40% year on year.
However, with rapid vaccination drives and gradual lifting of restrictions in 2022, contract catering market is witnessing signs of recovery. There is increased focus on safety, hygiene and customized food services post pandemic. Contract caterers are equipping themselves with advanced technologies to enable contactless dining and digital food ordering solutions. They are innovating menus with immunity-boosting ingredients and customized meal plans. Companies are banking on reopenings of offices, educational institutes and return of live events to accelerate their growth trajectory. Continuous health monitoring of staff and suppliers along with enhanced safety protocols will be the key for future success in this space.
Europe dominates contract catering market in terms of value
Europe accounts for the largest share of Contract Catering Market Regional Analysis in terms of value. Availability of several MNCs, large enterprise base and higher spend per employee are major growth drivers. Countries like UK, Germany, France and Spain contribute significantly to the European market. Strong presence of global players like Compass Group and Sodexo along with local providers consolidate European leadership. North America follows Europe as the second largest region attributed to robust commercial foodservice sector and organized workplace cafeterias.
Asia Pacific exhibits fastest growth for contract catering market
Benefitting from rising urbanization, increasing number of dual income households and westernization of food habits, Asia Pacific contract catering market exhibits highest growth rate globally. China, India and other Southeast Asian countries are witnessing rapid infrastructure development, digitalization and emergence of startups catering to customized food demands. Availability of skilled yet affordable labor and adoption of western models of outsourced catering fuel the APAC market momentum. Investments in smart kitchens, tech-led operations and customized meal plans will be crucial for contract caterers tapping into fast growing Asia's catering opportunities.
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