Cup of tea: Strong outsourcing trends have assisted growth for large, diversified caterers

The Catering Services industry has grown solidly over the past five years, with industry revenue expected to rise by an annualised 3.7% over the five years through 2017-18, to reach $8.1 billion. Businesses have been increasingly outsourcing their catering requirements, driving growth. Outsourcing allows 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 growth. However, revenue is forecast to rise by a marginal 0.6% in the current year, reflecting negative consumer sentiment and falling discretionary incomes...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
Profit
Employment
41,131
Businesses
3,704

Industry Threats & Opportunities

  • Businesses have been increasingly outsourcing their catering requirements, driving growth
  • The air-travel sector has required increased food services to cater to growing customer numbers
  • Some growth is forecast for catering at sporting events and other major events
  • Industry Report - Starting a New Business Chapter

    The industry has low barriers to entry, with new players able to easily enter and exit the industry, particularly at the lower end of the scale. Licensing requirements and the need for economies of scale and scope can deter new entrants. Entry barriers for small-scale firms are low due to the small capital outlay required and the ability to commence operations on a small scale by serving mainly private or family functions. However, significant barriers exist for entrants seeking to establish larger, more profitable operations. While the majority of companies operating in the industry are small businesses, companies can benefit from economies of scale and scope in the industry. Thi...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

  • Ability to compete on tender
  • Effective quality control
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Demand from restaurants 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
  • Demand from restaurants
  • Real household discretionary income
  • Aircraft kilometres flown
  • Business confidence index
  • Consumer sentiment index

  • Current Performance
  • 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
  • Businesses
  • Health and education providers
  • 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
  • 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
    Compass Group (Australia) Pty Ltd, Spotless Group Holdings Limited, Qantas Airways Limited,
  • Table: Compass Group (Australia) Pty Ltd - financial performance
  • Table: Spotless Group Holdings Limited - financial performance
  • Table: Qantas Airways 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
    Includes:
  • 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
    Cook-Chill
  • 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?

    IBISWorld’s Catering Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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