The contract catering market provides a variety of food services for industries, educational institutions, medical facilities, and senior living communities. Contract catering services involve planning, preparation, and serving of meals or refreshments to clients at different locations on a regular or ad hoc basis through contracted service providers. It offers benefits such as better deployment of resources, improved efficiency and control over costs. The rising trend of outsourcing non-core operations is driving the demand for contract catering services globally.
The Global Contract Catering Market Growth is estimated to be valued at US$ 296.39 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the contract catering market are Bio-Rad Laboratories, 10x Genomics, Novogene, Fluidigm, BGI, Illumina, Inc., Oxford Nanopore Technologies, Pacific Biosciences, Thermo Fisher Scientific, Inc., and QIAGEN. The prominent players are focusing on strategic collaborations and partnerships to expand their product and service offerings. For instance, in January 2021, Jubilant entered into a partnership with Sodexo, a leading food services and facilities management company, to expand its contract food services business in India.
The key opportunities in the market include growing demand from corporate office spaces, educational institutions, and remote working culture post-pandemic. The corporate food services industry is expected to grow at a significant rate owing to busier work schedules and preference towards outside dining. Further, the demand from educational institutions is also rising significantly with the increasing focus on providing hygienic and balanced meals for school-going children.
The global expansion of prominent players through partnerships and acquisitions will also create growth prospects. For example, in 2021, Commercial Catering Group acquired Cura Food Services to expand its contract catering portfolio in Australia. Companies are focusing on geographic expansion plans to leverage the rising opportunities across emerging markets such as Asia Pacific and Latin America. The Asia Pacific region is anticipated to witness the fastest growth owing to growing industrialization and urbanization.
Market drivers - One of the major drivers for the contract catering market is the growing preference towards outsourcing of non-core operations by industries and institutions. Outsourcing food services help organizations focus on their core competencies and improve operational efficiency. It also helps in reducing costs associated with regulatory compliances and management of food services in-house.
Market restraints - Data privacy and security concerns act as a major restraint for the contract catering market. Third-party service providers have access to sensitive employee and customer data which raises privacy issues. Strict data governance policies and regulations increase compliance costs for contract catering companies operating globally. Lack of standardized processes across geographies also poses challenges for multi-location service providers.
Segment Analysis
The Contract Catering market has been dominating by corporate segment which holds around 60% market share. This segment demands for onsite catering services at offices, educational institutions, hospitals etc. The demand is mainly driven by growing number of corporate houses and working population which outsources their catering services to contract caterers. The caterers offer multi-cuisine menus, hygienic services and variety of options suiting different taste buds which pushes this segment's growth.
The industrial segment holds around 25% share. It caters to manufacturing plants, industrial belts where large number of workforce demands meal solutions. The specialized services like customized menus, large volume cooking and packing suitable for industrial settings makes it an important segment. However, the demand may fluctuate based on industrial production cycles.
Global Analysis
In terms of regions, North America is the fastest growing market for contract catering attaining revenues over US$ 110 Bn by 2031. The factors such as busy lifestyle, dine-out culture and hectic schedules have fueled the demand for outsourced catering services. Moreover, large number of multinational corporations headquartered in USA and Canada generate robust demand.
Asia Pacific is also emerging as dominating region with over 30% value share in global market. The presence of highly populated countries like China and India which are experiencing rapid urbanization and industrialization contributes to Asia Pacific's prominence. This has led to manifold growth in corporate, healthcare and industrial sectors necessitating varied catering needs.
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