Global Catering Services Market to Reach $614.47 billion by 2023, says Beroe Inc
Source: PR Newswire
RALEIGH, North Carolina, September 24, 2019 - The global catering services market is projected to grow at a steady CAGR of 4.5 percent, according to Beroe Inc., a procurement intelligence firm. Based on recent valuations, the value of the catering services market is highest in Europe, worth $218.1 billion, growing at a rate of 3-4 percent, while the LATAM market has had the lowest value of $23.74 billion, growing at a rate of 2-3 percent.
The catering services market is expected to have the highest growth in the APAC projected to grow at an annual rate of 7-8 percent until 2021. While Singapore and Hong Kong have high market maturity and Japan and Australia have medium maturity the remainder of APAC has low market maturity.
The overall value of the global food service industry is expected to reach approximately $616.24 billion in 2023, growing at a CAGR of 4.5 percent. At a global level, the high maturity regions are the U.S., the U.K., France, Italy, and the U.A.E. and medium maturity markets are Saudi Arabia, Turkey, and Canada. Other than Western Europe and a few other countries, markets for catering services as a standalone, specialized function remain underdeveloped.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report - on its recently launched market intelligence platform Beroe LiVE: https://live.beroeinc.com/
In the fastest growing regions of the catering services market, such as APAC developing countries, there is a highly fragmented market, with very high demand from buyers for organized catering. Meanwhile, political and economic unrest in Europe due to Brexit and other factors are expected to slow down the growth of the catering services market in Europe. Growing demand among corporate buyers for fresh and healthy food is driving the demand for the catering services market to reduce dependency on frozen and pre-prepared food.
Top trends in the global catering services market include employee fine dining, technology adoption, local foods, sustainability initiatives, cashless payments, and subsidies. Automation and other catering unmanned solutions are gaining popularity. Food delivery apps, food ordering, and staff restaurants are also influencing the best practices in the catering industry.
- Buyers have lower bargaining power in small contracts worth less than $5 million, while they have significantly higher bargaining power for large contracts worth more than $10 million.
- Major buyers are looking to go beyond just catering service offerings to employees and create a dining experience that enhances employee satisfaction and morale.
- Mobile payments and cashless payment options encourage employees to be free and focus on what they want to eat rather than worrying about cash-in-hand or carrying bulky wallets.
- The lack of significant complexities in the outsourcing of catering services and the volume of business involved ensure considerable levels of competition.
- The P&L pricing model is most widely used for large contracts in developed nations, while subsidized contracts and cost plus and fixed price models are popular for smaller contracts and in developing regions.
- Major food contractors have the capability to pass on up to 14 percent of rebates to the buyers by leveraging economies of scale.
- Food-spending accounts for 40 percent of catering costs while non-food related spending such as supplies, labor, and equipment accounts for 60 percent of costs.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
The global food service equipment market was valued at $36,380 million in 2018 and is expected to be worth $47686.7 million by the year 2022 growing at a CAGR of 7 percent. The development of advanced automated kitchen equipment capable of saving valuable space and money by improving efficiency is expected to keep driving the market especially in the mature markets.
The report includes:
- Global Catering Services Market Maturity
- Global Catering Industry Trends
- Global Catering Drivers and Constraints
- Regional Market Outlook
- Industry Outlook –Factors Affecting Catering Services
- Porter’s Five Forces Analysis: Developed Markets and Emerging Markets
- Supply Market Outlook –Supply Trends and Insights
- Key Global B&I Catering Suppliers
- Key Regional B&I Catering Suppliers
- Key Global Supplier Profile
- Supplier SWOT Analysis
Cost and Pricing Analysis:
- Cost Structure Analysis - Spending Categorization
- Cost Analysis and Expected Savings
- Cost Breakdown - Estimated Cost Model
- Cost Structure Analysis - Negotiation Benchmarks
- Pricing Models for Catering Services
- Pricing Models - Comparative Analysis
- Pricing Analysis - Price Forecast
- Key Catering KPI and SLA Components
Procurement Best Practices:
- Sourcing Models for Catering Services
- Sourcing Models - Comparative Analysis
- Sourcing Models - Pros and Cons
- Performance Assessment of the Service Provider
- Key Success Factors for Catering Contracts
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com