Catering Services Market

Catering Services Market Size and Share:

The global catering services market size was valued at USD 154.71 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 229.92 Billion by 2033, exhibiting a CAGR of 4.28% from 2025-2033. North America currently dominates the market, holding a catering services market share of over 35% in 2024. There is a gradual increase in the reliance on the outsourcing of food services around the world. This, along with the growing number of social events, rising preferences for diverse cuisine options and customized menus, and changing lifestyles of individuals, is driving the overall market.

A key driver in the catering services market is the increasing demand for corporate events and business gatherings. Companies are prioritizing professional catering services to enhance the quality of their events, improve client experiences, and foster employee engagement. This demand is fueled by the growing number of business conferences, product launches, and networking events. Additionally, the rising trend of outsourcing non-core activities, including food services, allows organizations to focus on their core operations. Caterers now offer customized menus, flexible delivery options, and enhanced service quality, making them indispensable for businesses aiming to leave a lasting impression on stakeholders and attendees.

The U.S. catering services market is driven by a thriving events industry, encompassing corporate functions, weddings, and private gatherings. Increasing consumer spending on premium food experiences and personalized menus contributes to market growth. The trend toward health-conscious and sustainable dining has pushed caterers to incorporate organic, vegan, and locally-sourced options. Moreover, the rise of meal delivery catering for corporate offices and social events enhances catering services market demand. Technological advancements, such as online booking platforms and mobile apps, streamline service accessibility. The U.S. market also benefits from a growing immigrant population, aiding diverse culinary offerings and catering solutions across various cuisines.

Catering Services Market Trends:

Increasing Trend of Outsourcing Food Services

The trend of outsourcing food services among individuals and businesses is propelling the market growth. People are hiring professional caterers to handle their events and gatherings. Catering services save hosts time and allow them to focus more on other parts of event organizing and preparing. Professional caterers provide high-quality food and beverage services to individuals. They can also accommodate a wide variety of visitors because of their expertise. Moreover, outsourcing food services to caterers often results in more efficient and streamlined event management. Outsourcing can handle all aspects of menu planning, food preparation, and service. This convenience factor, along with the assurance of a memorable dining experience, is catalyzing the catering services demand. Furthermore, top players are contracting out food services temporarily in order to appeal to a broader range of individuals. For example, the Noida International Airport (NIA) entered into a concession agreement with TajSATS, a top in-flight catering company owned by the Tata group on 27 October 2023 to establish an in-flight kitchen facility. TajSATS will build the facility using a design, finance, build, operate, and transfer (DBFOT) model for a duration of 37 years. It will provide meals for passengers and crew, handle in-flight catering equipment, and load and unload meals.

Growing Popularity of Social Events

The popularity of social events among the masses is propelling the catering services market growth. Parties, business get-togethers, and other social events are becoming more commonplace worldwide. In order to make these events successful and provide guests an unforgettable experience, hosts are turning to catering services. In line with this, Caterers bring specialized expertise in party planning, enhancing the dining experience and making events more enjoyable. Furthermore, the growing demand for customized menus is further driving the market expansion. On October 11, 2023, Aramark Sports + Entertainment declared a gameday hospitality experience for the 2023-24 season. This includes different kinds of menu items, local partnerships, premium club and suite upgrades, and advanced technology to expedite service.

Rising Preference for Diverse Cuisine Options

People are preferring a diverse range of food options, which is offering a favorable catering services market outlook. People nowadays are becoming open to trying cuisines from different countries for experiencing new and unique flavors. Caterers are consequently coming up with fusion dishes, global cuisines, and specialized menus like vegan or gluten-free options to capture a wider consumer base. Apart from this, various social media platforms are making exotic and diverse dishes more desirable to individuals. In addition, food bloggers and influencers play a crucial role in introducing and promoting new cuisines to the market. Their creativity has no bounds as they blend different cuisines and present unique food displays, captivating a diverse audience seeking fresh dining experiences. Cooks and catering businesses are now experimenting with ingredients and methods from various culinary traditions, enriching their offerings. SATS Ltd. and Mitsui & Co., Ltd. announced a Memorandum of Understanding (MoU) on April 5, 2023. This partnership will help these companies to expand their businesses and overall sales revenue. They are focusing on to exploring different opportunities such as diversifying supply sources to strengthen the food value chain, developing innovative products and services, and expanding their sales and distribution networks.

Catering Services Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global Catering Services market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on service type and end user.

Analysis by Service Type:

• Contractual Catering Service
• Non-contractual Catering Service

Based on the catering services market forecast, contractual catering services dominate the market, accounting for a significant 67.8% share, driven by long-term agreements with businesses and institutions. This model ensures consistent, cost-effective, and customized meal services for various sectors, including corporate offices, healthcare facilities, educational institutions, and industrial units. Organizations prefer contractual catering to reduce overhead costs and streamline food service operations while meeting employee and client demands for quality meals. The reliability and scalability of these services make them ideal for large-scale operations. Additionally, providers offer tailored solutions such as health-focused menus, dietary accommodations, and flexible delivery schedules, which enhance their appeal. The growing trend of outsourcing non-core activities further supports the dominance of contractual catering services in the global market.

Analysis by End User:

• Industrial
• Hospitality
• Educational
• Healthcare
• In-flight
• Others

The industrial segment benefits from catering services providing meals for employees at factories, construction sites, and manufacturing units. Companies rely on catering to ensure consistent, nutritious, and affordable meal options for their workforce, improving employee satisfaction and productivity. Bulk meal delivery and cost efficiency are key factors driving this segment.

However, the hospitality segment leverages catering services to enhance guest experiences during conferences, banquets, and special events. Hotels and resorts collaborate with caterers to offer tailored food services that match event themes and client expectations. The demand for premium, diverse, and gourmet menus fuels growth in this segment, particularly for luxury and destination events.

Also, the educational segment is driven by the need for healthy, balanced meals in schools, colleges, and universities. Catering providers focus on offering nutritious options, often adhering to regulatory dietary standards. Meal plans for students and staff, along with customizable menus to accommodate allergies and preferences, play a vital role in this segment's expansion.

Moreover, the catering services in the healthcare sector focus on providing specialized meals that align with patient dietary needs, such as low-sodium, diabetic, or heart-healthy options. Hospitals and healthcare facilities partner with caterers to ensure safe, hygienic, and nutrient-rich meals for patients, staff, and visitors, prioritizing quality and consistency in food preparation.

Besides this, the in-flight catering segment addresses the unique needs of airlines, offering pre-packaged meals that meet high safety standards. Customization for diverse passenger preferences, including vegan, halal, and kosher options, is key to this market. Rising air travel and premium class services have elevated demand for high-quality, gourmet in-flight meals.

Furthermore, the other segment encompasses catering for events such as weddings, sports functions, and private gatherings. Customization, seasonal themes, and diverse menu options drive this market. The growing trend of destination weddings, outdoor parties, and pop-up events has significantly contributed to the demand for personalized and innovative catering solutions in this category.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America holds the leading position in the catering services market, accounting for 35% of the catering services market share, driven by a well-established events industry and high consumer spending on food services. The region's demand is bolstered by a strong preference for outsourced catering for corporate events, weddings, and private gatherings. Growing awareness of health-conscious and sustainable dining has encouraged catering providers to offer diverse menus featuring organic, vegan, and locally-sourced ingredients. Additionally, technological advancements, such as online ordering platforms and mobile applications, enhance customer convenience, further boosting the market. The multicultural population in North America has also contributed to the growth of catering services by fostering demand for customized menus that cater to diverse culinary preferences and dietary requirements.

Key Regional Takeaways:
 

United States Catering Services Market Analysis

A growing United States catering services market is attributed by the robust recovery and expansion taking place in travel and tourism. Indeed, the International Trade Administration found out that in 2022 the industry contributed USD 2.3 trillion to the U.S. economy as it accounts for 2.97% of the country's GDP. With all these economic implications to the nation's economy, related tourism activities have been the activities that make and even break the day. The industry provided for 9.5 million jobs, therefore emphasizing its role as one of the biggest employers in the United States. Steady increases in number of both domestic and international visitors are also having a ripple effect on hotels, event spaces, and tourist centers as demand for catering services has increased. Catering businesses are therefore making a kill out of this boom as they offer just menus, good dining experiences, and events-related services to meet the customers' changing demands. The strong performance of the U.S. travel and tourism industry remains a key growth driver for the catering services market outlook.

Europe Catering Services Market Analysis

The Europe catering services market is also experiencing strong growth as a result of rapid hospitality sector growth. For instance, in September 2023, Marriott Hotels officially opened the doors to the 398-room Munich Marriott Hotel City West in Germany. Strategically positioned in Munich's Westend district, the new hotel includes four dining venues offering different kinds of cuisines, a rooftop deck, and a fitness center that would create positive guest experiences. It also contains an M Club lounge, which Marriott Bonvoy's Elite members only can access to further enhance premium service. It is a manifestation of the growing desire for luxury hospitality in Europe and the fact that hotels are really focusing on top-notch dining and catering services that will attract not only business travelers but also leisure travelers to their establishments. As hotel development increases throughout the region, the demand for creative catering solutions has become the catalyst for growth in the sector and is thus a critical part of the hospitality industry's transformation in Europe.

Asia Pacific Catering Services Market Analysis

The Asia Pacific catering services market is set for a healthy growth rate. According to the Pacific Asia Travel Association (PATA), international visitor arrivals in 2023 have risen to 522 million across 47 destinations in the Asia Pacific, with an impressive increase of 94.3% over the previous year. This upward trend continues through 2024, highlighting the flexibility and strength of the tourism sector. Countries like China, Japan, and Thailand are seeing increasing numbers of international travelers, and their demand for excellent catering services is growing in hotels, airlines, and events. The catering companies offer a variety of cuisines, which helps the tourists enjoy some memorable dining moments. This growth in business travel and events internationally further escalates the need for premium catering services, placing Asia Pacific in a dynamic position as a booming market for any industry player with aspirations to seek business opportunities in this arena.

Latin America Catering Services Market Analysis

Latin America catering services is experiencing a lot of growth with the surge in hotel development in the region. According to industry reports, the hotel construction pipeline has grown to 612 projects and 97,597 rooms, up 11% in projects and 10% in rooms from the previous year. This rapid growth in hospitality infrastructure has created demand for high-quality catering services for the guests, events, and conferences. Some of the leading countries in this regard are Brazil and Mexico, and they are ahead in this area, driven by tourism growth and the region's appeal as a global destination for business and leisure travel. Catering services are now being incorporated as a significant component in new hotel openings, along with premium dining experiences and customized event solutions. Increased international travel further increases the demand for innovative and diversified food offerings in Latin America, thus becoming an exciting market for catering service providers.

Middle East and Africa Catering Services Market Analysis

The catering services market in the Middle East and Africa is booming with a rising hospitality sector. The industry has seen a strong 8% increase in visitor arrivals in the first ten months of 2024 to about 15 million, reports have indicated. Such a trend in tourism has hugely increased the demand for catering services in hotels, events, and conferences. According to projections, 2024 occupancy in hotels will amount to 77.9% preliminary; therefore, 0.9% up compared to the one realized in 2023. In a broad aspect, it also portrays a huge requirement of excellent food and beverages service for hospitality businesses. Key drivers behind the increasing trends of occupancy include UAE and Saudi Arabia with high-standard luxurious hotels, globally prominent events. In addition, the region's focus on hosting international events coupled with premium dining experiences is creating demand for innovative and customized catering solutions. These factors position the Middle East and Africa as an emerging hub for the catering services industry.

Competitive Landscape:

Key players are focusing on bringing innovations in menu planning and food presentation, offering unique and creative culinary experiences to attract individuals. These players are also engaged in the introduction of diverse menus and cuisines options, which are prepared using locally sourced and sustainable ingredients. Additionally, they are financing technology and digital platforms to streamline the entire ordering and delivery process while also offering convenience to individuals. Key players are expanding their service offerings beyond traditional events to include corporate catering, food truck services, and meal delivery for individuals. Moreover, catering companies are working closely with clients to understand their specific requirements and preferences while increasing catering services market revenue. They are also focusing on opening kitchen spaces to cater to the unique need of increasing population. For instance, on 22 January 2024, BM Caterers invested in a new 1,200 square foot offsite kitchen in London's Millbank to help businesses in the city without a kitchen space. The kitchen is called Atelier and will enhance the company's ability to serve building moves and openings with no kitchen space available or with delays, catering events, and fine dining for clients with minimal facilities.

The report provides a comprehensive analysis of the competitive landscape in the catering services market with detailed profiles of all major companies, including:

• Aramark
• AVI Foodsystems Inc
• Bartlett Mitchell Ltd
• Compass Group plc
• Dine Contract Catering
• DO & CO Aktiengesellschaft
• Elior Group
• Emirates Flight Catering
• Entier Limited
• ISS A/S
• Newrest Group Services SAS
• Sodexo S.A.

Latest News and Developments:

• January 2024: The prominent global provider of food services Compass Group PLC recently acquired CH&CO, one of the largest contract and hospitality companies in the UK and Ireland, for a reported GBP 475 million that is about USD 600 million.
• May 2023: Aramark, the international leader in providing food services, facilities management, and uniforms announced their partnership with Bean Sprouts nationwide café chain focused on creativity, health, particularly for children.
• April 2023: Olo, a leading open software as a service (SaaS) platform for restaurants, partnered with DeliverThat was selected as a DSP for the Dispatch network. Olo's Direct Delivery solution directly connects orders received from a restaurant's mobile app or website directly with third-party DSPs for final-mile delivery.

Catering Services Market Report Scope:

Key Benefits for Stakeholders

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the catering services market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global catering services market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the catering services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.