PUBLISHER: Allied Market Research | PRODUCT CODE: 1414772
PUBLISHER: Allied Market Research | PRODUCT CODE: 1414772
According to a new report published by Allied Market Research, titled, "Catering And Food Service Contract Market," The catering and food service contract market was valued at $251.1 billion in 2021, and is estimated to reach $477.3 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031.
Improvement in living standard of people, catering and food and service contract market has grown at a significant rate. Young generations are more willing to pay for the high quality and experiences. Moreover, after COVID-19 pandemic, catering and food service contract market continued to develop the possibility of increasing the efficiency of the market participants, as per macroeconomic indicators showing economic growth, unemployment, and the demographic situation. A major element that shows the increased in catering and food service contract market is the systematically growth in revenue. The revenue of catering and food and service establishments is generated mainly by own food production, followed by alcohol and tobacco sales.
Moreover, with increase in use of contract catering and food services among the working-class people, technological advancement in delivering contract catering services and fulfilling the expectations of the clients by providing customized and nutritious food boosts the growth of the market. According to European Commission JRC (Joint Research Center) Technical report, Europe is expected to hold significant share in the global catering and food service contractor market during the forecast period.
Market growth in the region is attributed to the increase in number of merger and acquisition activities in the region. For instance, in 2017, CH&Co Group and Harbour & Jones merged, which brought a turnover of US$ 299.46 million. The merger of both companies was aimed to offer catering services across the UK and Ireland. Prior to this, Harbour & Jones acquired PCC Ltd along with its two brands namely Fare of London and Principals Catering. The deal made a turnover of over US$ 55.48 million. Therefore, increasing M&A activities in Europe is expected to boost market growth in terms of revenue.
Catering is the business of providing food service at various locations. The growth in business is influenced by several factors, such as a change in the lifestyle of city dwellers. Moreover, corporate culture that holds several meetings, conferences, business lunch and dinner parties are dependent upon the catering and food service contract industry services. The trend might not be that new for the developed countries, but the countries that have recently discovered the corporate culture help the industry to attain popularity.
Furthermore, catering and food services contract businesses add more services such as birthday parties, wedding receptions and others. Companies with greater reliance on the service part of their business focus on a better return on sales that can improve their value. Based on high-quality products, companies invest more in service differentiation to achieve competitive advantages. Moreover, the increase in popularity of online contract catering and food service is one of the major factors driving the growth of the contract catering and food service market.
The catering and food service contract market is segmented into ownership, application, and region. On the basis of ownership, the market is divided into standalone and chain. On the basis of application, it is classified into a corporate, educational institution, healthcare, industrial, hospitality services, sports and leisure, and others. On the basis of region, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
The players in the catering and food service contract market have adopted acquisition and product launch as their key development strategies to increase profitability and improve their position in the market. The key players profiled in the catering and food service contract market include The RK Group, Gulf Catering Company, Delaware North Companies, Inc., Comprehensive Support Services PTE., Ltd., Australian Camp Services, Of Food Catering, Conntrak Catering Service., National Catering Services & Foodstuff, NCC Group, Compass Group PLC., Sodexo, Elior Group, Aramark, ISS A/S, Thompson Hospitality Corporation, NTUC Foodfare Co-operative Limited, SATS Ltd., Catering Solutions Pte. Ltd., Neo Group Limited, Algosaibi Services Company, Ltd., Cater Care Holdings Pty., Ltd., Catering HQ, Gnocci Holdings Pty. Ltd., WSH Investments Limited., Fusion Foods & Catering Pvt. Ltd.
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