Savoring Success: Global Catering Trends.

Global Market Overview

The contract catering industry is responding to increasing concerns about environmental sustainability and social responsibility, driven by shifts in consumer preferences such as a demand for healthier options, personalization, and easy-to-implement culinary solutions.

According to cognitive market research (2023), the projected period (2023-2030) anticipates growth in the contract catering market, attributed to the rising demand for food away from home across the globe, fueled by the growing millennial and working population.

The global contract catering market is projected to be valued at USD 245.8 billion in 2023, experiencing a compound annual growth rate (CAGR) of 5% from 2023 to 2030. In 2023, Europe holds a substantial market share, accounting for over 36% of the global revenue, and is expected to expand further at a CAGR of 4.2% throughout the forecast period.

Key companies in the European Contract Catering Market include Sodexo, Compass Group, Elior Group, Aramark Services, Westbury Street Holdings, ISS A/S, American Dining Creations, Ojaco S.À R.L., CIRFOOD Cooperativa Italiana di Ristorazione s.c. and Kluh Multiservices.

This blog explores the global market trends shaping the contract catering industry and emphasizes the crucial role sustainability plays, particularly in the European market, based on the latest reports from the market.

Sustainability in the European Contract Catering Business:

The European contract catering business is actively responding to the growing demand for locally sourced, ethically produced food. Sustainability is a prominent concern, leading to a transformation of menus to incorporate more plant-based and healthy options, aligning with consumer preferences.

Key Drivers of Global Expansion:

The European contract catering market is experiencing significant growth due to several key factors: Collaboration between contract caterers and events & exhibition vendors; rising demand for customized food; the emergence of fresh food subscriptions; penetration of smart devices and digitalization; growing emphasis on a balanced diet and wellness in senior care centers and the healthcare sector; the rise of entertainment and the emergence of cloud kitchens.

• The European events & exhibition market: provides substantial growth opportunities for contract catering. With an increasing number of foreign visitors and exhibitors, there is a high demand for professional contract catering services.
• Changing Demographics and Lifestyles: Increasing demand for contract catering is driven by factors such as expanding cities, a growing and diverse middle class, a younger and more active population, and a heightened focus on health and nutrition in corporate settings.
• Technological advancements: including digital ordering, menu management, and consumer interaction platforms, are expected to propel contract catering marketing growth, providing businesses with a competitive edge.
• Contract Types Impacting Market Dynamics: Fixed-price contracts, in high demand, mitigate monetary risks and foster relationships by protecting against cost fluctuations. Fastest-growing cost-plus contracts offer openness and itemized expenses, allowing tailored service provision.
• End-User Segments: Private companies dominate catering in B&I for worker satisfaction, while the public sector’s rapid growth emphasizes affordable food services. The European contract catering market sees a rising demand for nutritious options, offering caterers significant opportunities, especially in senior care, K-12 schools, and healthcare.
• Catering service segments: Food service holds the highest market share in 2023 due to its familiarity with food safety regulations. Support services are the fastest-growing category, incorporating customer feedback loops to better meet customer needs.
• Menu Type segments: Veganism is the leading menu type, reflecting consumer preferences for well-balanced diets, while the organic menu type experiences the fastest growth, focusing on locally and seasonally sourced ingredients.

Insights from the Food Service Market Monitor (Deloitte, 2023):

Food service market operators are adjusting their value propositions through sustainability, leveraging digital tools to enhance customer experience, and capitalizing on the higher availability of data to make data-driven strategic decisions.

Food Service Trends and Challenges:

Till next time, let these Key Strategic Questions for Foodservice CEOs, adapted from the Mordor Intelligence report (2023), guide Catering Owners and Professionals toward a future where sustainability thrives and the catering industry continues to evolve dynamically.

Reference:

Cognitive Market Research. (2023). Global Contract Catering Market Report. Retrieved from https://www.cognitivemarketresearch.com/regional-analysis/europe-contract-catering-market-report

Globe Newswire. (2023, October 19). Europe Contract Catering Market Analysis Report 2023-2028 Featuring Prominent Vendors Sodexo, Compass Group, Elior Group, Aramark Services, Westbury Street, ISS A/S. Retrieved from https://www.globenewswire.com/en/news-release/2023/10/19/2763027/28124/en/Europe-Contract-Catering-Market-Analysis-Report-2023-2028-Featuring-Prominent-Vendors-Sodexo-Compass-Group-Elior-Group-Aramark-Services-Westbury-Street-ISS-A-S.html

Deloitte. (2023). Foodservice Market Monitor. Retrieved from https://www2.deloitte.com/it/it/pages/consumer-business/articles/foodservice-market-monitor-2023.html

Mordor Intelligence. (2023). Europe Foodservice Market (2023 – 2029). Retrieved from https://www.mordorintelligence.com/industry-reports/europe-foodservice-market