Food for thought: Industry revenue growth is expected to be limited by economic uncertainty

The Catering Services industry has recovered over the past five years after demand went stale in the aftermath of the economic downturn. The industry began the five-year period through 2017-18 on a relatively low base as weak consumer and business confidence weighed on demand in key downstream markets. However, in recent years, a stronger economy has enabled consumers to grow in confidence, which has boosted demand for higher value catering services. Businesses have benefited from higher revenue, which has supported profitability. Industry operators have also diversified their food and drink offerings. Early in the period, caterers focused on the provision of cheap, simple food in an effort to attract reluctant businesses and more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Demand for catered events from businesses is expected to slow over the next five years
  • Demand for caterers used at weddings and funerals tends to be more resilient to economic conditions
  • The increasing marriage rate is expected to support demand for caterers over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Catering Services industry is estimated to have a very low level of market share concentration. The four most dominant players in the industry are expected to generate 7.8% of industry revenue in the current year. The largest industry players do not generally specialise in event catering and industry-related revenue is just a proportion of overall company revenue. Many operate as food-service contractors, providing catering services at specific locations over long periods of time. Others also own restaurants and cafes, while Crown Holdings, the parent company of Seasoned Events, also operates through a number of subsidiaries involved in different activities, including catering recruitment and event equipment hire...purchase to read more.

    Additional Insights for the Catering Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Catering Services Industry are

  • Use of high volume/low margin strategy
  • Receiving the benefit of word of mouth recommendations
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Consumer confidence index in the Catering Services industry impact industry performance..

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    What's in this report

    What is the Catering Services Industry?

    The industry includes businesses engaged in the provision of catering services for one-off events such as weddings, private parties and corporate functions. The industry excludes the provision of contracted catering on an ongoing basis.

    Industry Products
  • Corporate functions
  • Weddings
  • Private functions
  • Industry Activities
  • Catering for weddings
  • Catering for private parties
  • Catering for corporate functions
  • Catering for product and shop launches
  • Catering for office parties
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Consumer confidence index
  • Real household disposable income
  • Demand from full-service restaurants
  • Marriage rate

  • Current Performance
  • Going stale
  • Alternative arrangements
  • Side dish
  • Chart: Revenue Growth

  • Industry Outlook
  • Out of the frying pan
  • Wedding bells
  • Cream of the crop
  • Table: Catering Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Catering Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Banks
  • Legal Activities
  • Libraries, Museums & Cultural Activities
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Fruit & Vegetable Wholesaling
  • Meat Wholesaling

  • Products & Services
  • Corporate functions
  • Weddings
  • Private functions
  • Other
  • Chart: Catering Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Consumers
  • Government and educational bodies
  • Chart: Major Market Segmentation for the Catering Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Catering Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Catering Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Catering Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Catering Services Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food-Service Contractors
  • Firms that provide contracted catering services on an ongoing basis.
  • Self-Catering
  • When consumers hosting events provide food and drink without the aid of caterers.
  • Sustainable Produce
  • Produce that minimises detrimental impacts on the environment.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Catering Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Catering Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Catering Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Catering Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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