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| Global Contract Catering Market Growth |
The contract catering market has emerged as an integral part of the food
service industry. Contract catering services provide customized food solutions
to corporate offices, educational institutions, healthcare facilities, senior
living communities, stadiums & arenas, and remote locations. Key advantages
of contract catering include professional management of meal programs, variety
in menu options, affordable pricing, and compliance with quality & safety
standards. With growing urbanization and dual income households, demand for
outsourced food services has increased considerably.
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 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 offering customized meal plans, acquiring
small players to expand their service portfolio and presence in new
geographies.
The growing working professional population and their hectic schedules have
increased the demand for contract catering significantly. Various organizations
are outsourcing their food services to contract caterers to reduce operating
costs and focus on their core business areas.
Technological advancements like digital meal ordering systems, cashless payment
options and inventory management tools have enhanced customer experience and
optimized processes for caterers. Cloud kitchens and delivery-only facilities
also aid contract caterers in expanding their service footprint.
Market Trends
Growing popularity of healthy menu options: Contact caterers are diversifying
their menus to include more plant-based, gluten-free, low-calorie and
customized wellness meals to cater to evolving consumer preferences.
Sustainability focused initiatives: Players are adopting sustainable packaging,
supporting local farmers and minimizing food wastage to reduce environmental
impact. This is appealing to many organizations focusing on ESG compliance.
Market Opportunities
Online food delivery boost: Integration of contract catering services with food
delivery apps allows caterers to expand their customer base, achieve higher
order volumes and improve visibility.
Remote work culture: As work-from-home and hybrid work models grow
post-pandemic, demand for hassle-free meal solutions from contract caterers is
expected to surge further. This offers significant opportunities.
Impact of COVID-19 on Contract Catering Market
The COVID-19 pandemic has significantly impacted the growth of the contract
catering market. The imposition of lockdowns and restrictions on travel and
public gatherings led to the closure of educational institutions, offices,
airports, railways, hospitals cafeterias and other establishments where
contract catering services are commonly provided. This led to a steep decline
in the demand for contract catering in the initial months of the pandemic.
However, with the gradual lifting of restrictions and resumption of activities,
the demand has started recovering from late 2020 onwards, though it is yet to
return to pre-pandemic levels.
The contract caterers faced major disruptions in their operations and cash
flows due to cancelled or postponed events in the early stages of the pandemic.
They had to lay off a large number of staff, change menus to suit home
deliveries and institute new safety and hygiene protocols. However, with work
from home and online education becoming more prevalent, the demand for packaged
and home delivered meals has increased steadily. Contract caterers are
leveraging technologies like online food ordering and cashless payment systems
to safely cater to the evolving needs. They are also focusing on healthier,
balanced and immunity-boosting menus to attract more clients in the current
scenario. The demand is expected to gradually pick up pace as vaccination
drives progress worldwide and confidence in public spaces is restored.
Geographical Regions with High Contract Catering Market Value
North America currently accounts for the largest share of the global contract
catering market value-wise, led by countries like the United States. The region
has a highly developed contract catering industry catering to various sectors
including corporates, education, healthcare, senior living, sports & leisure
and defense amongst others. Europe is the second largest regional market driven
by countries including United Kingdom, Germany and France. The Asian market is
projected to witness the fastest growth during the forecast period led by
India, China and other emerging economies with rapidly expanding service
sectors.
Fastest Growing Regional Market for Contract Catering
The Asia Pacific region is expected to emerge as the fastest growing regional
market for contract catering during the forecast period from 2024 to 2031. This
can be attributed to rising health awareness, westernization of food habits,
increasing women workforce participation and rapid growth of service industries
in Asian countries. Countries like India and China are witnessing substantial
economic development leading to expansion of their corporate, education,
tourism and healthcare sectors - major end-users of contract catering services.
The growing expatriate population and influx of multinational companies in Asia
are also driving the outsourcing of catering contracts. With improving
standards of living, Asian consumers are increasingly preferring outside
catered food over home-cooked meals. This is positively impacting the contract
catering industry growth in the region.
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Catering Market