U.S. Contract Catering Market - Industry Analysis & Forecast 2023-2028

INDUSTRY INSIGHTS

The U.S. contract catering market was valued at USD 53.78 billion in 2022 and is projected to reach USD 70.60 billion by 2028, growing at a CAGR of 4.64% during the forecast period. The market is growing significantly due to the rise of fresh food subscriptions, rising demand for customized food, penetration of smart devices and digitalization, growing need for balanced diet & wellness in geriatric care centers and the healthcare sector, rise of entertainment, and emergence of a new age of outsourcing facilities. Further, many new trends are present in the U.S. contract catering market, which helps vendors adopt them in their businesses. For instance, customized food is gaining traction in the market. Thus, many large organizations offer personalized food services for business & industry sectors.

WHY THIS REPORT?

This report provides

• Quick check market conditions & market size of the industry
• Overviews of top manufacturers/marketed products, pipeline analysis, clinical trial analysis, competitive landscape, vendor profiles, mergers & acquisitions
• Reliable forecast data to support your business plans and goals.
• Insights to formulate effective sales and marketing strategies by understanding the competitive landscape and by analyzing the performance of various competitors
• Identifies emerging players with potentially strong product portfolios and creates effective counter strategies to gain a competitive advantage

MARKET TRENDS & DRIVERS

Rise of Fresh Food Subscriptions
The trend of ordering fresh food from various online and offline platforms in the U.S. contract catering market is growing significantly. The companies that offer B2B contract catering services also offer B2C services. The customers are responding to carrying food from their cafeteria; the companies offer fresh food subscriptions and home meal replacement programs in the region. For instance, Sodexo and Aramark offer a home meal replacement program that helps drive demand for fresh food subscriptions.

Penetration of Smart Devices and Digitalization
Digitalization is changing contract catering services in many ways in the U.S. industry. Several contract catering companies are offering online menu selection and pre-booking options. Companies invest in catering management software (CMS) to reduce scheduling issues. Accepting online booking for catering services improves the customer experience and drives the region's food and catering services demand. For instance, 92% of the U.S. population have at least one smartphone in 2023. Due to digitization, it is possible to manage the data and optimization in the food service and required facilities, which includes supply chain and inventory. It helps to deliver services in a shorter time.

The Emergence of a New Age of Outsourcing Facilities
In most of the business & industry segments, food outsourcing is a trend. Rising competition among organizations makes them offer various facilities for employee satisfaction and engagement activities. The organizations continuously organize client meets, functions, sports events, etc. For such events, organizations prefer contract catering services. Outsourcing the food from third-party vendors helps maintain the food quality, operational efficiency, resource savings, accountability,  and on-time delivery of food services. Outsourcing the food helps to improve the focus on core business activities. Thus, during the forecast period, it drives the U.S. contract catering market.

SEGMENTATION INSIGHTS

INSIGHTS BY INDUSTRY
The U.S. contract catering market by industry is segmented as business & industry, education, healthcare & senior care, and others. Due to the increasing competition among organizations, organizations must offer various things for employee satisfaction and engagement activities. High-quality food services are one among them. Thus, demand for contract catering services from multiple organizations will grow significantly during the forecast period. Further, the business & industry segment has the highest rate of outsourcing food services across the United States. The number of employees working in the business and industry is very high compared to the other sectors; thus, outsourcing food is a huge requirement. However, during the forecast period, the healthcare & senior care segment is projected to witness the highest CAGR growth in the U.S. contract catering market. The senior population in the U.S. is very high. Many companies offer catering services for senior households and geriatric care centers in the region. For instance, Compass Group, Taher Incorporated, Nexdine, etc., offer contract catering services for senior care.

INSIGHTS BY CONTRACT
The fixed-price contract segment held the most significant U.S. contract catering market share in 2022. Fixed-price contract catering is useful for businesses focusing on the core business, and the organization can control the amount payable to the food services. Thus, many of the big organizations prefer to make fixed-price contracts. Also, this contract type is much more beneficial for managing expenses for small vendors. As per the capacity, they can offer their services and maintain the quality of the services till the end of the contract. In the U.S., many new entrants are gaining traction by offering high-quality services at lower prices. This is expected to drive the demand for contract catering in the U.S. during the forecast period.

INSIGHTS BY DELIVERY
The U.S. contract catering market by delivery is segmented as IFM and single service. IFM stands for integrated facility management. This segment of contract catering is much preferable for large corporations with many offices and employees. A holistic and comprehensive approach to facility management services is very important for such organizations. Thus, there is significant demand for IFM in the U.S. industry, and help the IFM hold a dominant segmental share in 2022. Many companies, such as Atalian Servest Group Ltd., Compass Group, Sodexo, Elior Group, ISS A/S, and The Nutrition Group, offer IFM services for most industries in the United States.

INSIGHTS BY FACILITY
The U.S. contract catering market by facility is segmented as on-premise and on & off-premise. The on-premise dominated the segmental share and is projected to continue the trend during the forecast period. On-premises facility services are known for win-win situations, as the operator can save transportation expenses, and the client can get fresh food & on-time service. Thus, it drives the demand for on-premises facility services in the U.S. during the forecast period. Moreover, in many organizations, the companies are offering food subscription services for on-premises facilities. The companies offer various multi-functional appliances, specialty stalls, and various foods. For instance, Sodexo is offering a food subscription facility through swipe cards. The employee can purchase any food from Sodexo-owned shops using the swipe cards.

VENDOR LANDSCAPE

The U.S. contract catering market is characterized by several international players offering various services along with food & catering services. The contract catering companies offer their services to most industries in the U.S. market. Most companies focus on corporate, educational, and healthcare sectors for their service offerings. It gives more revenue to the companies. Some players dominating the U.S. contract catering market are Compass Group, Aramark Services, Sodexo, Delaware North, HMS Host, Elior Group, and others. Further, HMS Host is one of the leading food service companies in the region. The company’s portfolio includes road and airport food services. It is associated with over 300 restaurant brands. It also has partnerships with many beloved and famous brands for offering food to travelers.