Global Contract Catering Market
The foodservice industry is broadly segmented into two categories: self operated and contract catering. Both types of foodservice
providers are responsible for supply of food and beverage services and a broad range of other services to their clients in a number of
end markets. Contract catering principally operates in the outsourcing structure by a firm or by a specialized company on a contractual
base. Major organizations face increasing cost pressures and look for cost-effective alternatives to self-administer food and support
services thus demanding for contract catering. The contract caterers have a clearly predefined clientele, such as civil servants,
workers, patients, who will have access to canteen and deliver meals at a social price.
Based on amount of financial risks that contract catering company bears and potential compensation, profit or loss that it receives, the
contract catering foodservice contracts usually fall in one of the three types of contracts: Fee-based/Cost Plus, Profit & Loss, and Fixed
Price. The contract caterers offer a number of benefits to their clients such as contract caterers can deliver more consistent, flexible
and better products, and clients do not have to worry about rising health and safety regulatory regime.
Furthermore, the entire market is segmented into five major end markets namely; business and industry, healthcare and senior,
education, sports and leisure, and defense, offshore and remote. Historically, business and industry end market has accounted for
maximum revenue generation for the contract catering market. However, it is noteworthy that the long-term growth opportunity lies in
the healthcare and education sector.
The key factors driving growth of the global contract catering industry include rising global GNI, increasing demand for outsourced
services, and accelerating demand for natural and healthier eating options. Some of the noteworthy trends and developments of this
industry include focus on innovative ideas, changes in social and work cultures, continuous efforts to enter new markets along with
increasing demand for home delivery and take away services. However, the growth of the industry is being hindered by issues in
training and retaining skilled manpower, negative impacts of contract catering, and stringent directives and political uncertainties.
The global, regional and country-wise analysis of the foodservice industry along with an in-depth study of the contract catering industry
is presented in this report. The contract catering industry has been analyzed on regional level covering the major countries under each
region. In addition to this, an extensive coverage of each of the contract catering end markets has been incorporated in the study on
global, regional and country level. The report profiles the major contract caterers along with their key business strategies.
The global foodservice industry is primarily segmented into two types: contract catering foodservice
industry and self operated foodservice industry.
• The global foodservice market inclined by ….% to reach US$....
billion at the end of 2013, compared to US$.... billion during the
prior year. The foodservice industry is not immune to global
economic crisis due to which the market declined to US$.... billion
• The share of contract catering has been consistently inclining
over the past couple of years, while a steady decline has been
noted in the market share of self operated foodservice providers. In
2013, the share of contract caterers was reported at …%, up by …
percentage points whereas the share of self operated foodservices
providers declined by … percentage points reaching …%,
compared to 2009.
• Out of the total revenue generated by the global foodservice
industry in 2013, B&I held the highest share of …%, followed by
healthcare and education sectors with respective shares of …%
Percentage Share of Foodservice Sectors – by Revenue (2013)
Global Foodservice Market Share – by Category (2009 - 2013)
Global Foodservice Market Turnover (2009 - 2013)
2009 2010 2011 2012 2013
Self Operated Contract Catering
Business & Industry Healthcare
Education Sports & Leisure
Defence Offshore and Remote
The contract catering industry has been divided and studied in five categories namely; business &
industry, Education, Healthcare, Sports & Defense, and Defense, Offshore & Remote.
• The global contract catering market has been on a steady
increase since 2010 after witnessing a massive decline in 2009 due
to economic and financial turmoil. The contract catering market
was valued at US$.... billion at the end of 2013 depicting an incline
of …%, compared to US$.... billion during 2012.
• The global contract catering market is strongly dominated by
business and industry segment with US$.... billion revenue being
generated by it in 2013. Healthcare segment accounted for
US$....billion revenue driven by increasing aging population and
increased per capita healthcare expenditure.
• The North American contract catering industry generated revenue
equivalent to US$.... billion in 2013, up by an impressive ….%
compared to US$.... billion in 2012. Through the period spanning
2009 to 2013, the growth of the North American contract catering
industry was noted at a CAGR of ….%.
North American Contract Catering Market (2009 - 2013)
Global Contract Catering Market – By End Markets (2013)
Global Contract Catering Market (2009 - 2013)2009
B&I HC ED DOR S&L
The key factors driving growth of the global contract catering industry are increasing demand for
outsourced services, increasing demand for home delivery and take away services apart from others.
• After witnessing a downfall in 2011 due to great Japan
earthquake, the contract catering industry has been on a steady
incline since 2012. The revenues generated by the contract
catering foodservice industry depicted an incline of ….% reaching
US$... billion at the end of 2013, compared to US$... billion during
the prior year.
• Business and industry held …% of the contract catering revenues
in Europe at the end of 2013. Healthcare end market represented
share of ….% closely followed by education sector with ….% share.
The contract caterers offer a great diversity in the food menus at
offices and educational institutes.
• The contract catering market of the developing regions has been
steadily increasing since 2010 with an exception of 2011 wherein
the industry plummeted to US$..... billion marking a downfall of
….%, compared to the previous year.
Developing Region Contract Catering Market (2009 - 2013)
Percentage Share of End Markets in European Contract Catering
Japanese Contract Catering Market (2009 - 2013)
B&I HC ED DOR S&L
2009 2010 2011 2012 2013
The global contract catering market is highly dominated by the business and industry end market with
significant growth opportunities being noted for educational and healthcare end market.
The global foodservice market is expected to grow at a CAGR of ….% from US$.... billion in 2014 to US$.... billion in 2018. The anticipated
increase in the global foodservice market can be attributed to escalating global population, rising living standards driven by convenience of
contract catering services. The increased availability of a variety of options in food menu along with high degree of quality attracts the health
conscious people towards the foodservice industry. All the aforementioned factors are expected to positively drive the market in the near
The global contract catering market is forecasted to expand at an impressive CAGR of …% from US$.... billion in 2014 to US$.... billion in
2018. The rise in the revenue of the contract catering services will be observed due to expected changes in the corporate strategies in terms of
operations, services and menus being offered by major players of this industry. As compared to 2013, the global contract catering industry is
projected to grow by ….% to reach US$.... billion by the end of 2014.
Compass held ….% of the global contract catering market in 2013 immediately followed by Sodexo with …..% share. These two
organizations lead the marketplace mainly due to wide range of foodservices being offered by them in each of the end markets. The companies
operating in the global contract catering market are trying to expand their horizon by focusing on the growing fast food and home delivery
Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa
2014F 2015F 2016F 2017F 2018F
Global Foodservice Market Forecast (2014F - 2018F)
2014F 2015F 2016F 2017F 2018F
Global Contract Catering Market Forecast (2014F – 2018F)