The collective catering market - United Kingdom

Since 2020, the global contract catering market, which includes segments such as educational institutions, corporations, governments, and healthcare, has seen significant growth despite the challenges posed by the pandemic. The global foodservice market was valued at $245.1 billion in 2022 and is expected to grow at a CAGR of 4.97% to $327.9 billion by 2028, with the school catering market projected to expand from $19.46 billion in 2022 to $36.19 billion by 2032. The UK foodservice market, while experiencing a 25% decrease in value compared to 2019 due to the pandemic, is forecasted to grow at a CAGR of 8.4% to £6.6 billion by 2026. Demand for mass catering is influenced by trends such as convenience, variety, socialization, sustainability, and time savings. Household spending on catering in the UK increased by 67.2% between 2020 and 2022. Key companies, like Compass Group, Sodexo, and Elior, have turnovers in the billions and continue to shape the market. The market is also affected by regulations aimed at ensuring safety and quality and is adapting to trends such as ethnic cuisine, sustainability, personalization, and expanded offerings. The Russian-Ukrainian conflict since February 2022 further impacted the market by causing a 7.9% increase in the consumer price index for canteens in the UK.

Evolving Demand Dynamics in the UK Contract Catering Market

In recent years, the UK contract catering market has exhibited distinct trends that reflect a combination of socio-economic factors, consumer preferences, and industry innovations. With a stable number of businesses providing services, employment within the sector has remained relatively steady, despite fluctuations due to the pandemic. Demand in the market is primarily driven by the convenience, variety, and cost-effectiveness of the services provided, with an emphasis on social interaction and time savings, especially noted in educational institutions and corporate environments. The geographical spread of demand for contract catering services largely mirrors the distribution of enterprises across the country, with England commanding the lion's share of over 90 percent, followed by Scotland, Wales, and Northern Ireland. The customer base remains robust with a consistent growth in the student population—ranging between 9 million and 10 million in primary and secondary schools—linked to a rise in the number of those eligible for free school meals, signaling socio-economic impacts on family incomes. University student populations have also seen significant growth, with numbers estimated to be between 2.5 and 3 million. The corporate sector shows stability, with businesses employing more than 50 people maintaining a steady count of approximately 50,000 enterprises. Remarkably, the trend towards sustainable and ethnic food offerings in cafeterias underscores a response to a growing consumer expectation for environmentally friendly and diverse cuisines. The pricing for end users in contract catering sustains a competitive edge, as full meals typically range between £2.00 and £3.50, indicating an accessible price point for the majority. However, parental perception of the fairness of pricing within school canteens demonstrates sensitivity to economic pressures, with a majority considering the price appropriate albeit slightly declining compared to the previous year. Reflective of the current global situation, the Russian-Ukrainian conflict has had a direct effect on the UK market, with a considerable uptick in consumer and producer price indices. This guarantees that contract catering services will need to innovate and adapt further to cope with these economic constraints while maintaining service quality and value for money. To sum up, the UK contract catering market is in a phase of stability with nuanced growth and a conscientious pivot towards sustainable and diversified offerings, reflecting a blend of traditional demands and contemporary expectations.

### Key Players Shaping the UK Contract Catering Landscape

The UK contract catering market is a dynamic environment with several significant players known for their innovation and dedication to providing top-quality food services. Below, we delve into the profiles of notable companies that set the standards for foodservice excellence and tailor their offerings to the specific needs of their diverse clientele.

• Sodexo: A global powerhouse in the catering industry, Sodexo boasts an impressive presence in 80 countries and services over 100 million customers each day. With foundations laid in 1966 in Marseille, the company has evolved to meet the dining needs of a variety of sectors including corporate, public administration, and education with a focus on sustainability, local sourcing, and waste reduction.
• Chartwells: Catering to academic minds, Chartwells specializes in nourishing students in schools, colleges, universities, and academies. By emphasizing the importance of sustainable and locally sourced produce, they not only provide meals but also educate about responsible, eco-friendly food choices.
• Taylor Shaw: Having received accolades such as the Education Caterer of the Year award in 2022, Taylor Shaw is a leader in the UK's educational catering sector. The company prides itself on its innovative approach to school meals, aiming to balance taste, nutritional value, and cost effectively.
• PabulumCatering: Operating from Hampshire, Pabulum has a strong focus on feeding the future through health-oriented school meals. Their commitment to freshness and local suppliers ensures that children in the educational ecosystem achieve well-rounded diets.
• Eurest: A label of the Compass Group, Eurest covers a wide spectrum of catering services for corporations, institutions, and the mass market. Tailoring solutions for diverse clientele, Eurest emphasizes customer satisfaction and quality amongst its strategic priorities.
• Elior: Since its inception in 1991, Elior has forged a path to becoming a giant in the sector, distributing millions of meals worldwide. The company keenly develops its offerings for educational, healthcare, and corporate contexts with a strong orientation toward health and sustainability.
• Compass Group: With over 75 years of experience, Compass Group commits itself to serving palatable and nutritious meals across schools, offices, and care homes. Being market pioneers, they are notable for championing pre-ordering systems that emphasize customer individual dietary preferences.
• Caterfood: Primarily engaged with schools and elderly care facilities, Caterfood offers meals that are both delightful and considerate of the unique nutritional requirements present in these communities

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 02/10/2023

Summary and extracts

List of charts

• Catering market
• Market for school canteens
• Expenditure on catering services
• Mass catering market
• Primary and secondary school students
• Primary and secondary school students with free canteen facilities
• Student preference for school lunch
• University students
• Residential care institutions
• Firms with 50+ employees
• Employed in other food services
• Other food service enterprises
• Legal form other food service enterprises
• Opinion on the quality of corporate canteens
• Opinion on the price of school lunches
• Producer price index other food services
• Consumer price index canteens