April 20, 2024
Contract Catering Market

Contract Catering Market is Estimated to Witness High Growth Owing to Growing Demand for Convenient Food Options

Contract catering refers to the service of providing prepared meals and snacks for organizations on a contractual basis. Foodservice providers in the contract catering market plan menus, purchase ingredients, cook meals, and deliver food to various client locations including offices, educational institutions, healthcare facilities, senior living communities, sports and leisure venues. Contract catering offers flexibility and scalability to clients while allowing them to focus on their core operations. The growing preference for outsourcing non-core services is driving the demand for contract catering 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 are Bio-Rad Laboratories, 10x Genomics, Novogene, Fluidigm, BGI, Illumina, Inc., Oxford Nanopore Technologies, Pacific Biosciences, Thermo Fisher Scientific, Inc., QIAGEN, and F Hoffmann-La Roche Ltd. The growing M&A activities in the industry are fueling market opportunities for contract caterers to expand their service offerings and geographical footprint. Major players are focusing on global expansion through partnerships and acquisitions to tap into high growth international markets.

The rising demand for convenience food options coupled with busy lifestyles especially in developed economies is driving the growth of contract catering globally. Changing dietary habits and increasing health awareness is also positively influencing the contract catering market.

Market drivers
One of the major drivers for the contract catering market is the growing demand from corporate enterprises. Outsourcing non-core operations such as catering allows companies to focus on their core business and improves efficiencies. Contract caterers offer customized and flexible meal plans to suit the evolving needs of corporations. They also take up responsibilities associated with menu planning, sourcing, cooking and distribution of food thereby reducing the administrative burden on client organizations. The catering service providers also ensure compliance with relevant food safety and hygiene regulations which is another key factor fueling their adoption.

PEST Analysis
Political: The contract catering market growth is influenced by government policies and regulations regarding food safety and hygiene standards. Government initiatives to promote outsourcing of non-core activities by corporates also impact the market.
Economic: Factors such as rising disposable incomes, growing urban population, and increasing consumer spending on dining out and convenience foods drive greater demand for contract catering services. Global economic growth positively impacts the corporate sector and influences outsourcing of catering services.
Social: Changing lifestyles and busy schedules leave less time for home-cooked meals, fueling the trend of outsourcing catering needs to professionals. Growing health-consciousness increases demand for healthy and customized meal options.
Technological: Advancements in food processing and catering equipment help providers improve efficiency, Widen service scope, and better manage large centralized kitchens as well as off-site operations. Digital solutions for online ordering, cashless payments and real-time order tracking enhance customer experience.

The European region accounts for the largest share of the global contract catering market value owing to a high volume of outsourcing in countries like Germany, UK, and France. North America follows Europe with significant market presence led by the US, where contract catering services are widely adopted across corporates, educational institutes, healthcare facilities and remote locations.

The Asia Pacific region holds promising growth potential for the contract catering market over the forecast period. Factors like expanding middle-class population, rising income levels and westernization of food habits in Asia’s developing countries are fueling outsourcing of catering services. Countries such as China, India and Japan contribute majorly to the Asia Pacific market value and are expected to emerge as the fastest growing regional markets between 2024 and 2031.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it