Global Catering and Food Service Contractor Market – Insights
Catering is a very critical part of the business, especially for network carriers serving long distances. Meal design and meal planning are important processes of catering services. According to International Air Transport Association (IATA), catering planning and catering operations are important areas of activities of catering services. Growing tourism industry is one of the major factors driving growth of the global catering and food service contractor market. According to the Our World in Data, in 2014, international tourist arrivals across regions including Europe, the Americas, Asia Pacific, Africa, and Middle East was 1.14 billion, which increased to 1.24 billion in 2016.
Moreover, increasing preference for mini buffets is also expected to propel growth of the global catering and food service contractor market. Mini meals are convenient and are packed in disposable trays, which are then dropped off at desired locations. Such meals are significantly preferred for smaller gatherings or when there are space constraints. Moreover, hassle-free set-up of mini buffets has led their increasing adoption compared to normal buffet counterparts.
However, increasing number of online food delivery services is a major restraining factor for growth of the global catering and food service market. Online food services make ordering process easier and convenient, maintain cost transparency including price along with other taxes to be charged, and monitor expenses incurring in real-time. These services enable customers to order through mobile app and explore various options of food without the intervention of contractors. The major competitors of the global catering and foodservice contractors pertaining to online food delivery services include, Food Matters, Zomato, Swiggy, UberEats, Foodpanda, Deliveroo, and others.
Figure 1. Global Catering and Food Service Contractor Market Share, By Application, 2017
Source: Coherent Market Insights, 2017-18
Europe is expected to witness significant market share during the forecast period in the global catering and food service contractor market. Market growth in the region is attributed to increasing number of merger and acquisition activities in the region. For instance, in 2017, CH&Co Group and Harbour & Jones merged, which brought the turnover of US$ 299.46 million. The merger of both the companies was aimed to offer catering services across the U.K. and Ireland. Prior to this, in 2015, Harbour & Jones acquired PCC Ltd along with its two brands namely Fare of London and Principals Catering. The deal made the turnover of over US$ 55.48 million. Therefore, increasing M&A activities in Europe is expected to boost the market growth in terms of revenue.
Asia Pacific is expected to account for a significant market share over the projected period in the global catering and food service contractor market. This is majorly attributed to stringent regulations in the region that promote people towards healthy eating. For instance, In April 2017, the Government of Singapore introduced Whole-of-Government (WOG) Healthier Catering Policy. The policy was introduced to encourage healthier eating at homes, workplaces, and communities in Singapore. According to the policy, government entities in Singapore will be provided with healthy food and drinks at the government organized functions, conferences, trainings, and meetings.
Figure 2. Global Catering and Food Service Contractor Market Share (%), By Region, 2017
Source: Coherent Market Insights, 2017-18
Key players in the market are focused on expanding their businesses via establishing subsidiaries. For instance, in June 2018, Neo Group Limited announced the establishment of its wholly-owned subsidiary, Chilli Manis Catering Pte. Ltd., in the Republic of Singapore. The subsidairy aims to work for food establishments, catering, and manufacturing of cooked-food preparations.
Key players operating in the global catering and food service contractor include, Compass Group Plc., Sodexo, Aramark Corporation, Elior Group, Delaware North, Westbury Street Holdings, Ovations Food Services, Thompson Hospitality, Dine Contract Catering, Olive Catering Services, and others.