The Top 5 Catering Services Providers (Ranked By Revenue)
Catering services are one of the popular services offered to individual and business customers. It is a fast-growing industry across the world with the demand for catering increasing by the passing months and years. The catering services market was valued at $130 billion globally. Its size is expected to increase at an annual growth rate (CAGR) of 6%.
Owing to COVID-19, the catering market has seen a downfall in 2020. This is in line with the downturn in other sectors. However, analysis reveals that there is an increasing demand for healthy food. This demand is likely to spur the growth of this market in the coming months.
Who is Seeing the Highest Growth?
The catering market is segmented by type as contractual and non-contractual. Contractual services are growing at a faster rate and change in workforce dynamics in organizations will fuel this growth. In terms of region, the APAC or Asia Pacific region is seeing the highest demand for catering services. Around 38% of market growth is coming from the APAC market. China, India, Japan, and Australia are the key driver of this increased demand.
Tapping on the Right Opportunity
In terms of end-user, the catering services market is segmented as industrial, hospitality, in-flight, educational, healthcare, and others. Industrial and healthcare segments are fast-growing. The awareness of healthy eating is a huge opportunity for the catering services market. Companies that cater to this need can look forward to higher growth.
In the non-contractual segment, catering services are in demand for parties and other occasions. High-income households are likely to avail more catering services. Another trend that is likely to benefit the catering sector is the demand for different types of cuisines. However, one of the major constraints affecting the sector is the fluctuation in the prices of food commodities.
Catering Services Market Forecast
The catering services market is expected to cross the $600 billion mark by 2023. Suppliers in this category provide a plethora of specialized services such as wedding catering services and catering supplies. These companies may use local catering companies to fulfill orders or they may have their own offices set up in the region depending on their presence. We've ranked the frontrunners in the catering services industry based on their revenue. Here are the top five names:
The ISS has a history that dates back to 1901. The ISS Group was formed in 1973. ISS went global by the 2000s. ISS provides various services including catering delivery services, security services, cleaning services, support services, property services, and facility services. The company serves various industries including public administration, pharmaceuticals, healthcare, business services & IT, energy & resources, and retail & wholesale among others. ISS is present in more than 70 countries in the world across Asia, Latin America, Europe, North America, and Europe. 533,544 people are employed by ISS, making it one of the largest private employers in the world. When it comes to catering services, the ISS provides services to retail shops, coffee shops/outlets, pop-ups/high street brands, restaurant/canteen and take-away, events, and fine dining.
Revenue - $16.2Bn
Aramark is a food, uniforms, and facilities company that was founded in 1959. It was called ARA, which was short for Automatic Retailers of America, and was founded by William Fishman and Davidson brothers. Initially, it started as providing local catering services and today it has its presence in 19 countries all over the world. It is present in North America, South America, Europe, and Asia. More than 270,000 people work in Aramark. Aramark serves the education industry, sports and entertainment industry, healthcare industry, and business and government industry.
Aramark has received several awards over the years for its exceptional work ethics and services. It has been listed in ‘Top 50 Employer for People with Disabilities’ and this has been the case for the past 6 years. Aramark was named as one of the ‘Best Places to Work for LGBTQ Equality’. Aramark offers corporate dining services & operates concessions at places like sports arenas, stadiums, and other entertainment venues.
Revenue: $17.9Bn (2019)
JLL is short for Jones Land LaSalle. JLL was founded in 1783 and provides various services in the food and beverage industry such as retail, manufacturing, project design, and food catering services. The company operates in more than 80 countries in the world from 300 offices.
JLL has earned several awards and accolades. It has been featured in the list of ‘World’s Most Admired Companies’ by Fortune magazine for 4th year in a row. JLL has been featured in ‘World’s Most Ethical Companies’ by Ethisphere Institute. Moreover, JLL has also received the ‘Energy Star Sustained Excellence Award’ by U.S. Environmental Protection Agency.
Revenue: $23.7Bn (2019)
Sodexo was established in 1966 in Marseille, France. Today, it operates in more than 65 countries all over the globe. It serves various industries including schools, healthcare, business and industry, universities, government, defense, seniors, and justice. Sodexo provides food services, personal and home services, soft facilities management services, hard facilities management services, and benefits and rewards services. Sodexo has more than 470,000 employees. It serves more than 100 million consumers daily and has consolidated revenue of more than €22 billion.
It has been listed as one of the best in the sector in the Dow Jones Sustainability Index and 2019 SAM Sustainability Yearbook. Sodexo has been listed in the Fortune World's Most Admired Companies 2019 list. According to the activity, Sodexo gets 96% of its revenue from on-site services while the food services account for 64% of Sodexo's revenue. Its highest on-site service revenue comes from North America which accounts for 45%. Sodexo gets 39% of its revenue from Europe and 16% from Asia, Africa, the Middle East, Australia, and Latin America.
Revenue: $30.9Bn (2019)
Solidifying their top spot in terms of revenue on this list is The Compass Group. The Compass Group was founded in 1941 and was called 'Factory Canteens Ltd'. It was established in the UK. Today, the Compass Group operates in more than 45 countries across the globe. It is present in North America, South America, the Middle East, Africa, Asia, Europe, and Australia. Some of the Compass Group clients are HSBC, Intel, Coca Cola, Microsoft, Nike, Google, Boeing, American Express, and Chevron. The Compass Group has organic revenue growth of 5.0% CAGR.
The Compass Group employs more than 600,000 people and serves more than 55,000 locations at present. It was featured in the list by Forbes in ‘Forbes Global 2000 – World’s Best Employer List for 2017’. Per year, more than 5.5 billion meals are served by the company all over the globe. 86% of the revenue comes from food services while the other 14% comes from support services. The Compass Group provides services to five markets; business and industry, healthcare and seniors, education, sports and leisure, and defense, offshore and remote.
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