A feast for the industry: Rising discretionary income has driven demand and revenue

The Catering Services industry has grown modestly over the past five years. Industry revenue is expected to rise at an annualised 0.7% over the five years through 2018-19, to $7.7 billion. Businesses have been increasingly outsourcing their catering requirements, driving industry revenue growth. Outsourcing enables companies to focus on their core operations and allow experts with established supply chains to undertake catering. Steadily increasing demand from airlines, government departments and households has also supported industry revenue growth. Industry revenue is expected to rise by 1.6% in the current year, reflecting rising discretionary incomes...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Businesses have been increasingly outsourcing their catering requirements, driving revenue growth
  • The air-travel sector has required increased food services to cater to growing customer numbers
  • Increasing demand is anticipated to support industry participation over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Catering Services industry is in the mature stage of its life cycle. Industry value added, which measures the industry's contribution to the overall economy, is forecast to rise at an annualised 0.6% over the 10 years through 2023-24. This represents an underperformance relative to the overall economy, with GDP forecast to grow at an annualised 2.7% over the same period. The industry's relatively slower growth is typical of a mature industry.Businesses are increasingly outsourcing catering, which is driving industry revenue. Companies are focusing on core business operations, which has increased market acceptance of catering services. Increased regulation regarding food safety, handling and storage has also encouraged businesses to outsource catering services...purchase to read more.

    Additional Insights for the Catering Services Industry

    IBISWorld has determined the most important Key Success Factors for the Catering Services are:

  • Effective quality control
  • Access to multiskilled and flexible workforce
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Aircraft kilometres flown and Real household discretionary income in the Catering Services industry impact industry performance..

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    What's in this report

    What is the Catering Services Industry?

    Industry firms primarily provide catering services at specified locations or events. Meals and snacks may be transported or prepared and served on or off the premises, as required by the client.

    Industry Products
  • Meals for takeaway consumption
  • On-premises catering
  • Liquor and other beverages
  • Other goods and services
  • Industry Activities
  • Airline catering service
  • Catering service operation
  • Mobile catering service
  • Event catering service
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aircraft kilometres flown
  • Real household discretionary income
  • Demand from restaurants
  • Business confidence index
  • Consumer sentiment index

  • Current Performance
  • Industry profitability
  • Demand conditions
  • Employment and establishments
  • Full-service contracts
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit and participation
  • Growth opportunities
  • Small operators
  • 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
  • Mining
  • Retail Trade
  • Domestic Airlines
  • Education and Training
  • Health Services
  • Integrated Logistics

  • Key Selling Industries
  • Dairy Produce Wholesaling
  • Fruit and Vegetable Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Temporary Staff Services

  • Products & Services
  • On-premises catering
  • Meals for takeaway consumption
  • Other goods and services
  • Liquor and other beverages
  • Chart: Catering Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Health and education providers
  • Businesses
  • Government departments
  • Sports and entertainment venues
  • Households
  • 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
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Catering Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Catering Services Industry

  • Industry Globalization
    Spotless Group Holdings Limited, Compass Group (Australia) Pty Ltd, Sodexo Australia Pty Limited,
  • Table: Spotless Group Holdings Limited - financial performance
  • Table: Compass Group (Australia) Pty Ltd - financial performance
  • Table: Sodexo Australia Pty Limited - financial performance

  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Snap-freezing of prepared meals to maintain flavour and freshness for later reheating or further cooking.
  • Food Service
  • Providing customers with prepared food and beverages.
  • Full-Service Contract
  • Contracts that incorporate catering functions with other services, such as security, building repairs and cleaning services.
  • What Our Customers Say

    Why buy this report?

    The Catering Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 of 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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