Catering Service Market Research Report 2024

Global Catering Service Market Synopsis

Catering Service Market Size Was Valued at USD $148.1 billion in 2023 and is Projected to Reach USD 220.09 Billion by 2032, Growing at a CAGR of 4.5% From 2024-2032.

An increase in disposable income, the change in consumer lifestyle, preference for personalized menus, various cuisine options, the growing trend of active social events, and the rise of food services outsourcing are the main drivers of the catering services market.

• Catering services market is a part of the food and beverage sector and includes all businesses delivering ready-to-eat food and beverages to various occasions, gatherings, and events.
• The increased consumer interest in food and beverages offers catering services a myriad of opportunities. With the increase in technology used to deliver a unique experience to consumers and to shorten waiting lines, it is expected that the market for catering services will take off. The development of capable specialists in catering services is a nationwide urge due to the growth of multinational enterprises. In addition, the fast food industry has started to provide no-junk nutrition, for instance, organic meals, balanced vegan foods as well as healthy snacks.
• This especially applies to vegetarian countries where increase in the production is impelled by the worldwide trend of more health-conscious consumers. With regard to freshly harvested farm produce, sourced locally from livestock, fruits, and vegetables, and also paying attention the catering services market is growing.
• The area of catering services is expected to expand at a faster pace in the next year. The market is driven by a flood of clients' need to outsource well-done, quick meals for events. Saturation level and market size are dependent upon location within the region, economic trends and etc. Growing purchasing power and the changing consumers’ living standards, the incline towards ordering tailored courses and different food products, the increased desire for social gatherings, and the outsourcing of food services are just a few of the main drivers of catering services.

Top Key Players Involved Are:

Aramark Corp., Compass Group PLC, Bartlett Mitchell Ltd., CH and Co Catering Group Ltd., Delaware North Companies Inc., Newrest Group Services SAS, Deutsche Lufthansa AG, Dine Contract Catering Ltd., Gategroup, DO & CO Aktiengesellschaft, DoorDash Inc., Elior Group SA, The Emirates Group, Sodexo Group PVT Ltd., Cushman & Wakefield, WSH Group Ltd., Newrest Group Services SAS, ABM Catering Solution, ISS A/S, Jones Lang LaSalle IP, Inc., AVI Foodsystems, Inc., Thompson Hospitality, Albron B.V., Hutten Catering BV., Other Active Plyers.

Catering Service Market Trend Analysis

Growing Corporate Sector and Business Events

• One of the significant drivers of the catering service market is the expansion of the corporate sector and the increasing number of business events and meetings. As companies grow and establish global operations, there is a higher demand for catering services to accommodate corporate gatherings, client meetings, product launches, conferences, and team-building events.
• These events often require a well-organized catering service that can deliver high-quality meals and beverages tailored to various preferences, from formal dining to casual buffets. The rise of remote work and hybrid work models has also contributed to this trend, with companies organizing frequent in-person events to foster team collaboration and maintain corporate culture.
• The corporate sector not only demands standard catering services but also specialized offerings, such as personalized menus for dietary restrictions, eco-friendly options, and high-end presentations to impress clients. This surge in demand from businesses, combined with increasing global trade and the need for cross-border networking, has significantly fueled the growth of the catering service market. Furthermore, the trend towards corporate social responsibility is encouraging companies to choose catering providers with sustainable practices, pushing innovation and quality within the industry.

Rising Demand for Health-Conscious and Sustainable Catering Options

• An emerging opportunity in the catering service market is the rising consumer demand for health-conscious and sustainable food options. As individuals and businesses become more aware of the environmental and health impacts of their food choices, there is an increasing preference for catering services that offer organic, locally sourced, and plant-based menu options. This trend is driven by growing concerns about personal health, climate change, and sustainability, creating a lucrative market for caterers who can cater to these preferences.
• Catering companies have the opportunity to differentiate themselves by offering menus that emphasize nutritional value, minimize food waste, and use eco-friendly packaging. Health-conscious consumers are seeking alternatives to traditional catering options, such as gluten-free, vegan, or low-sugar meals, which creates a niche that forward-thinking caterers can tap into.
• Additionally, businesses and event organizers are increasingly prioritizing sustainability in their choices, pushing the catering industry to adopt more responsible sourcing, preparation, and disposal practices. By embracing this opportunity, catering companies can appeal to a growing segment of eco-conscious clients, enhancing their brand image and expanding their market share.

Catering Service Market Segment Analysis:

Catering Service Market is segmented on the basis of Service Type, Application, and region

By Type, Contractual Catering Service segment is expected to dominate the market during the forecast period

• The contractual catering service segment is projected to lead the catering service market during the forecast period, driven by several key factors. Contractual catering refers to long-term service agreements between catering providers and organizations such as schools, hospitals, corporations, and governmental institutions. These contracts guarantee a steady flow of business for catering companies, ensuring a reliable revenue stream over an extended period. As companies and institutions seek more efficient and cost-effective ways to manage their meal services, contractual catering has emerged as the preferred solution due to its ability to provide consistent, high-quality service while reducing operational overhead for the client.
• One of the significant advantages of contractual catering services is their ability to offer customized and scalable solutions. For instance, organizations like hospitals and schools require tailored menus that accommodate diverse dietary needs, including vegetarian, vegan, low-calorie, and allergen-free options. Contractual catering services can efficiently handle these requirements by developing long-term, client-specific meal plans. Additionally, the predictability of demand allows catering providers to streamline their operations, leading to cost efficiencies that benefit both the provider and the client.
• The rise in demand for catering services across educational institutions, healthcare facilities, and large corporate campuses has further fueled the growth of this segment. Corporations are increasingly outsourcing their in-house cafeteria services to professional catering companies under contractual agreements, ensuring that employees have access to nutritious, well-balanced meals. The trend is also prominent in the healthcare sector, where hospitals often opt for contracted catering services to manage patient meals efficiently while adhering to strict health and nutritional standards.
• Moreover, contractual catering services provide operational stability for catering companies, allowing them to invest in advanced kitchen technologies, training, and sustainability initiatives. This enhances service quality and enables them to remain competitive in a growing market. Overall, the combination of cost-effectiveness, customization, and scalability makes the contractual catering service segment the dominant force in the catering industry during the forecast period.

By Application, Wedding Catering segment held the largest share in 2023

• The wedding catering segment emerged as the largest contributor to the global catering services market, driven by several key factors. Weddings are major life events where food and hospitality play a crucial role in ensuring a memorable experience for the couple and their guests. The growing trend of lavish and customized weddings, with elaborate menus, diverse cuisine offerings, and high-quality service, has significantly boosted demand for specialized wedding catering services. Couples are increasingly opting for personalized catering experiences, including gourmet meals, themed buffets, and even live cooking stations, elevating the importance of catering in the wedding planning process.
• One major factor contributing to the dominance of the wedding catering segment is the rising disposable income of individuals, especially in developing economies, which has led to higher spending on weddings. This has resulted in a demand for premium catering services that focus not only on the quality of the food but also on the overall dining experience. Additionally, cultural shifts and a growing inclination towards destination weddings have also propelled the need for unique and customized catering solutions, where local or exotic cuisine becomes a centerpiece of the celebration.
• The wedding industry’s move towards grander, more diverse events has also encouraged innovation within the catering sector. From vegan and gluten-free menus to organic and farm-to-table concepts, catering providers are continuously evolving to meet the diverse dietary needs and preferences of modern couples and their guests. The ability of wedding catering companies to cater to a wide range of cultural, religious, and dietary requirements has made this segment particularly strong.

Catering Service Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• North America is currently dominating the global catering service market due to a combination of factors related to economic development, changing consumer preferences, and a robust corporate sector. Several key drivers contribute to this dominance, making the region a major hub for the catering industry:
• North America, especially the United States, is home to a vast and dynamic corporate landscape with numerous multinational companies. These organizations frequently require catering services for various events such as conferences, meetings, product launches, and employee gatherings. Corporate clients often prefer high-quality, reliable catering options, which has fueled growth in both the contractual and event-based catering services sectors. The rise of hybrid work models has also spurred demand for in-office catering to maintain employee engagement.
• The region’s relatively high levels of disposable income enable consumers to spend more on events such as weddings, private parties, and large social gatherings. In the U.S. and Canada, consumers place significant emphasis on personalized catering experiences for these events, demanding high-quality, diverse, and often premium culinary options. This willingness to invest in high-end catering services makes North America a lucrative market for catering providers.
• North America’s culturally diverse population drives demand for a wide range of cuisines and food options, from traditional American to international and fusion dishes. Catering companies in the region are known for their ability to offer specialized services, such as vegan, gluten-free, and organic options, aligning with the region’s growing health-conscious and sustainable food trends. This ability to innovate and meet evolving dietary preferences gives North American catering services a competitive edge.
• The catering industry in North America benefits from advanced logistics, technology, and food safety standards, enabling efficient service delivery. The use of technology in kitchen management, customer relationship management (CRM), and online ordering platforms further enhances the quality and scalability of catering services in the region.

Catering Service Market Top Key Players:

• Aramark Corp.
• Compass Group PLC
• Bartlett Mitchell Ltd.
• CH and Co Catering Group Ltd.
• Delaware North Companies Inc.
• Newrest Group Services SAS
• Deutsche Lufthansa AG
• Dine Contract Catering Ltd.
• Gategroup
• DO & CO Aktiengesellschaft
• DoorDash Inc.
• Elior Group SA
• The Emirates Group
• Sodexo Group PVT Ltd.
• Cushman & Wakefield
• WSH Group Ltd.
• Newrest Group Services SAS
• ABM Catering Solution
• ISS A/S
• Jones Lang LaSalle IP, Inc.
• AVI Foodsystems, Inc.
• Thompson Hospitality
• Albron B.V.
• Hutten Catering BV,
• other Major Player

Key Industry Developments in the Catering Service Market:

• In April 2023, Olo, a leading open software as a service (SaaS) platform for restaurants, partnered with DeliverThat, an industry leader in catering delivery, to allow individuals to take their direct catering business to the next level. DeliverThat joined Olo's Dispatch network as a delivery service provider (DSP). Dispatch is Olo's direct delivery solution that automatically connects direct orders from a restaurant's mobile app or website with third-party DSPs for last-mile delivery.