Catering Services Market size is set to grow by USD 73.2 billion from 2025-2029, increasing popularity of online catering boost the market- Technavio

NEW YORK, Jan. 28, 2025 /PRNewswire/ -- The global catering services market size is estimated to grow by USD 73.2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 3.7% during the forecast period. increasing popularity of online catering is driving market growth, with a trend towards marketing initiatives However, fluctuations in food commodity prices poses a challenge. Key market players include Aramark, bartlett mitchell Ltd., Caterlink Ltd., CH and Co Catering Group Ltd, Compass Group Plc, Delaware North Companies Inc., Deutsche Lufthansa AG, Dine Contract Catering Ltd., DO and CO Aktiengesellschaft, Elior Group SA, Entier Ltd., Fairfax Meadow Europe Ltd., Fooditude Ltd., gategroup, ISS AS, Newrest Group International SAS, rhubarb Food Design Ltd., SAVORY Inc, Sodexo SA, and The Emirates Group.

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Market Driver

Catering services have become a significant trend in various sectors including conventions, celebrations, and events. Hot food catering for institutions, universities, commercial entities, and healthcare facilities is increasingly popular. In-house chefs and third-party businesses offer catering solutions for team-building activities and outsourcing. Food safety is crucial, and establishments prioritize it to prevent accidents. Third-party catering packages and commercial catering services provide diverse cuisine options, customized menus, and memorable dining experiences. Changing lifestyles have led to the rise of cloud kitchens, focusing on food preparation, cooking, presentation, and serving. Corporate gatherings benefit from specialized catering services, offering unique dining experiences and specialized dietary choices. Contractual and non-contractual catering services cater to different needs. Quality food, culinary skills, streamlined event management, and convenience are key factors driving the catering services market. 

Catering service vendors in the global market are utilizing integrated marketing communication to promote their businesses. Newspapers, magazines, and social media platforms, including YouTube and Facebook/Instagram, are key channels in their marketing strategies. X platform allows vendors to share upcoming locations and events, providing valuable information to customers and enabling real-time interaction. Facebook and Instagram offer a vast, diverse audience, making them essential tools for catering service providers to showcase their offerings and engage with potential clients. 

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Market Challenges

• Catering services play a crucial role in conventions, celebrations, and events, providing hot food catering for various establishments including institutions, universities, and commercial entities. In-house chefs and third-party businesses offer catering solutions for team-building activities, outsourcing catering services becoming increasingly popular. Food safety is a top priority, with third-party catering packages ensuring compliance and preventing food safety-related accidents. Commercial catering services provide quality food, presentation, serving, and streamlined event management for corporate gatherings. Changing lifestyles and diverse culinary skills call for specialized catering services, offering memorable dining experiences with unique cuisine options, customized menus, and specialized dietary choices. Cloud kitchens focus on food preparation and cooking, while presentation and serving create memorable experiences for guests. Contractual and non-contractual catering services cater to healthcare facilities and large-scale establishments, ensuring menu diversity and convenience.
• The catering services market is significantly influenced by the cost of essential food commodities, including sugar, grains, meat, salt, vegetables, and dairy products. These items serve as the primary raw materials for preparing meals. Consequently, fluctuations in their prices have a substantial impact on the catering industry's growth. Adverse weather conditions and natural calamities, such as droughts, floods, and tropical storms, can lead to raw material shortages, negatively affecting market expansion. For instance, wheat, a crucial grain for food production, requires specific temperature conditions at various growth stages. Disparities in climate can adversely impact wheat production volume and quality, ultimately affecting the catering services market.

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Segment Overview

This catering services market report extensively covers market segmentation by

1. Service 
• 1.1 Contract catering services
• 1.2 Concession catering services
2. Application 
• 2.1 Wedding catering
• 2.2 Corporate catering
• 2.3 Social event catering
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Contract catering services- Contract catering services involve caterers providing food services under a contract or agreement for a specified period. Contracts can be cost-plus, cost-plus guarantee, or fixed cost per head. Contract caterers serve educational institutions, industries, businesses, hospitals, and event organizers. The advantages include increased caterer accountability, convenience, and regulatory compliance. The contract catering services market is expected to grow due to its prevalence worldwide and the demand for high-quality, fresh food. Vendors offer innovative menus and healthier options to cater to evolving consumer preferences. Bundling contract catering services with other facilities management services is a trend, offering streamlined operations, cost savings, enhanced quality control, and tailored solutions for clients. Caterers are also incorporating sustainable practices into their offerings to meet the growing demand for integrated facility management. The demand for contract catering services will continue to fuel market growth during the forecast period.

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Research Analysis

Catering services have become an essential component of various conventions, celebrations, and events, providing hot food catering to establishments, institutions, universities, commercial entities, and more. In-house chefs often outsource catering services for team-building activities, corporate gatherings, and special occasions. Third-party catering packages offer diverse cuisine options, customized menus, and a memorable dining experience. Food safety is a top priority, ensuring all dishes are prepared and served to the highest standards. Cooking, presentation, and serving are key elements of successful catering, with specialized catering services available for specific dietary needs and cultural events. Convenience and flexibility are also crucial, as changing lifestyles and busy schedules make catering an increasingly popular choice for individuals and organizations alike.

Market Research Overview

Catering services have become an essential component of various conventions, celebrations, and events, providing hot food catering to establishments, institutions, universities, commercial entities, and more. In-house chefs often outsource catering services for team-building activities and corporate gatherings, seeking the expertise of third-party businesses. Food safety is a top priority, with third-party catering packages ensuring adherence to regulations and minimizing food safety-related accidents. Commercial catering services offer diverse cuisine options, customized menus, and convenience and flexibility. Changing lifestyles and culinary skills have led to the rise of cloud kitchens, where food preparation, cooking, presentation, and serving are streamlined for unique dining experiences. Specialized catering services cater to specialized dietary choices, menu diversity, and memorable experiences for various events. Contractual and non-contractual catering services are available for healthcare facilities and large-scale establishments, offering specialized expertise and memorable experiences for their guests.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Service
• Contract Catering Services
• Concession Catering Services
• Application
• Wedding Catering
• Corporate Catering
• Social Event Catering
• Others
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

SOURCE Technavio