Contract Catering Market – Insights

Contract catering is a catering company that is hired by an organization to provide catering services on a regular basis.

Increasing demand for food-away-from-home across the globe due to rising millennial and working population is expected to drive growth of the contract catering market over the forecast period. For instance, according to the U.S. Bureau of Labor Statistics in October 2016, average spending on food of U.S. household was valued at US$ 7,023 in 2015 of which, spending on food-away-from-home accounted for share of 43% (around US$ 3,008) of all food spending.

On the basis of sector, corporate segment is expected to witness significant growth in the global contract catering market over the forecast period. Corporate segment includes IT sector, banking & financial sector, consumer services, and other professional services such as KPOs (knowledge process outsourcing) and BPOs (business process outsourcing).

The global contract catering market was valued at US$ 215.9 billion in 2018, and is expected to exhibit a CAGR of 5.8% over the forecast period (2019-2027), to reach US$ 355.6 billion by 2027.

North America is expected to be a lucrative region in the global contract catering market. For instance, according to Coherent Market Insights’ analysis, North America is expected to exhibit a CAGR of 6.0% in the contract catering market during the forecast period (2019-2027). The growth is mainly attributed to increasing demand for contract catering from corporate sector in North America. For instance, according to Compass Group’s annual report (2018), corporate and industrial sector accounted for the largest revenue share of 31.0% of the total revenue generated in North America with operating profit of 8.1% in 2018. Moreover, healthy catering outsourcing culture in the U.S. is expected to drive growth of the contract catering market in North America.

Figure 1. Global Contract Catering Market Share (US$ Mn), By Region, 2018

Contract Catering  | Coherent Market Insights

Source: Coherent Market Insights, 2018-19

Among regions, Middle East & Africa region is expected to witness significant growth in the global contract catering market over the forecast period. Middle East & Africa contract catering market is mainly dominated by regional players. For instance, National Catering Services & Foodstuff is a leading contract caterer in the Middle East region, providing 31,000 meals/day in industry, business, and education sectors in GCC. Increasing number of regional contract caterers is expected to boost growth of the contract catering market in the region.

Europe is expected to witness a lucrative growth in global contract catering market by 2021.  The growth is attributed to rising presence of contract caterers and their adoption of growth strategies such as providing new venue, events solution and merger & acquisition. For instance, in September 2019, CH&CO, one of the leading players in contract catering, headquartered in the U.K., launched a new venue and event solution called ‘eve’. The combination of the company’s resources & network, venue and events are expected to help the company in gaining competitive advantages.

Global companies such as Compass Group have low presence in the Europe region and operate through joint ventures. For instance, Compass Group entered into a joint venture partnership with Abu Dhabi National Hotels (ADNH) in 2000, named ADNH Compass. Therefore, there is a high scope for market penetration in Middle East & Africa region for global catering giants such as Sodexho and Aramark.

Figure 2. Global Contract Catering Market Share (%), Analysis, By Sector, 2018

Contract Catering  | Coherent Market Insights

Source: Coherent Market Insights, 2018-19

Players operating in the global contract catering market are focused on adopting various growth strategies such as providing new catering services and expansion to enhance their customer base. For instance, in December 2018, Elior Group SA, that operates in contract catering and support services under two main brands namely Elior and Elior Services, created a new generation central kitchen model called ‘the Pépinière du gout’.  

Furthermore, the company launched TRIO Community Meals, as a leading brand in senior nutrition and community meals in September 2019. This was done by combining -Valley, Bateman Community Living, and Lindley brands. With this launch, the company strengthened its presence in the meals-on-wheels and community meals initiatives.

Major players operating in the global contract catering market include Compass Group PLC, United Enterprises Co. Ltd., Elior Group SA, Aramark Corporation, CH&Co Catering Group Limited, Mitie Group plc., Sodexo S.A., Westbury Street Holdings Limited, and Rhubarb Food Design Limited.

Contract catering provides catering services to organizations or business on a regular basis. Contract companies work with educational institutions, hospitality, industrial, healthcare, sports & leisure, and other sectors to develop menus and programs to inculcate varied and balanced diet.

Market Dynamics

Increasing demand for food-away-from-home and increasing focus  of consumers on offering fresh food at work place are expected to drive demand for contract catering services, owing to its increasing demand from corporate offices, hospitals, educational institutions, and other industries, which provide quick and easy access to various healthy snack foods within the office or institute premises.

Latin America is expected to witness a significant growth in global contract catering market by 2021. High economic growth in Latin American countries such as Brazil coupled with increasing purchasing power of the urban population are expected to propel the contract catering market growth in Latin America. For instance, according to International Monetary Fund (IMF), Brazil’s economy grew 3.6 times to reach US$ 1.8 trillion in 2018 from US$ 0.5 trillion in 2002.

Growing healthcare sector in Mexico is also expected to boost growth of contract catering services to the healthcare sector. For instance, according to International Trade Administration, Mexico spent around 4.2% of its GDP in the healthcare sector in 2018.

Furthermore, key manufacturers are involved in developing or opening of a new facility, in order to expand their customer base. For instance, in 2018, Aramark Corporation opened a new global headquarter with a culinary innovation kitchen in Philadelphia. This has helped the company expand its customer base in the U.S.

However, online food delivery services, worldwide is increasing at a significant rate, which is expected to hinder growth of the global contract catering market over the forecast period. Online food services offers convenient and easy order process and keeps cost transparent including price along with other taxes to be charged. It allows customers to order through mobile app and explore various options of food without the intervention of contractors. The major competitors of global contract catering pertaining to online food delivery services include Grubhub Inc., UberEats, Ele.me, Deliveroo, and Zomato, among others.

Key features of the study:

  • This report provides in-depth analysis of contract catering and provides market size (US$ Billion) and cumulative annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2018 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global contract catering market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study includes Compass Group PLC, United Enterprises Co. Ltd., Elior Group SA, Aramark Corporation, CH&Co Catering Group Limited, Mitie Group plc., Sodexo S.A., Westbury Street Holdings Limited, and Rhubarb Food Design Limited
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global contract catering market report caters to various stakeholders in this industry including investors, suppliers, contract catering manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the contract catering market

Detailed Segmentation:

  • Global Contract catering Market, By Sector:
    • Corporate
    • Industrial
    • Hospitality Services
    • Healthcare
    • Educational Institutions
    • Sports & Leisure
    • Others
  • Global Contract catering Market, By Region:
    • North America
      • U.S.
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Canada
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
    • Europe
      • U.K.
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Germany
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Italy
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • France
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Russia
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Rest of Europe
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
    • Asia Pacific
      • China
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • India
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Japan
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • ASEAN
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Australia
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • South Korea
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Rest of Asia Pacific
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
    • Latin America
      • Brazil
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Argentina
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Mexico
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Rest of Latin America
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
    • Middle East & Africa
      • Middle East
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
      • Africa
        • By Sector:
          • Corporate
          • Industrial
          • Hospitality Services
          • Healthcare
          • Educational Institutions
          • Sports & Leisure
          • Others
  • Company Profiles
    • Compass Group PLC *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • United Enterprises Co. Ltd.
    • Elior Group SA
    • Aramark Corporation
    • CH&Co Catering Group Limited
    • Mitie Group plc.
    • Sodexo S.A.
    • Westbury Street Holdings Limited
    • Rhubarb Food Design Limited

 “*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Sector
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
        • Supply Side Drivers
        • Demand Side Drivers
        • Economic Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenarios
      • Industry Trends
      • Mergers and Acquisitions
      • New Product Approvals/Launches
      • Promotion and Marketing Initiatives
    • Cost Tier Down Analysis
  4. Global Contract Catering Market, By Sector, 2017- 2027 (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Corporate
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
    • Industrial
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
    • Hospitality Services
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
    • Healthcare
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
    • Educational Institutions
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
    • Sports & Leisure
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Billion)
  5. Global Contract Catering Market, By Region, 2017- 2027 (US$ Billion)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, For Regions, 2019 - 2027
    • North America
      • Market Share Analysis, By Country, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2019 - 2027
        • U.S.
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Canada
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
    • Europe
      • Market Share Analysis, By Country, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2019 - 2027
        • U.K.
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Germany
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Italy
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • France
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Russia
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Rest of Europe
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
    • Asia Pacific
      • Market Share Analysis, By Country, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2019 - 2027
        • China
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • India
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Japan
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • ASEAN
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Australia
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • South Korea
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Rest of Asia Pacific
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
    • Latin America
      • Market Share Analysis, By Country, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2019 - 2027
        • Brazil
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Argentina
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Mexico
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Rest of Latin America
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
    • Middle East & Africa
      • Market Share Analysis, By Country, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2019 - 2027
        • Middle East
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
        • Africa
          • Country Trends
          • Market Size and Forecast, By Sector, 2017- 2027 (US$ Billion)
  6. Competitive Landscape
    • Heat Map Analysis
    • Market Share Analysis (3x3 Matrix)
    • Company Profiles
      • Compass Group PLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • United Enterprises Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Elior Group SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Aramark Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • CH&Co Catering Group Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Mitie Group plc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Sodexo S.A.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Westbury Street Holdings Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Rhubarb Food Design Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
  7. Section
    • References
    • Research Methodology
    • About us and Sales Contact

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