The contract catering market - France

Mass catering refers to the preparation and distribution of meals for specific groups in non-commercial settings, such as schools, businesses, hospitals, medical-social facilities, government departments, prisons and military establishments. Unlike commercial catering, the cost of meals is partially covered by the employer or institution, making prices more affordable for users. Two types of management coexist: direct management (by the facility itself) and concession management, carried out by specialized service providers. In Europe, the contract catering market was valued at $55.34 billion in 2022 and should reach $69.78 billion in 2028, with an average annual growth rate (CAGR) of 3.94%. In France, the sector's sales were hit hard by the health crisis, dropping to 5.59 billion euros in 2020, before rebounding rapidly. It will reach 8.45 billion euros in 2024, up 46% on 2015. This upturn reflects growing demand for services incorporating quality, sustainability and adaptability requirements. Despite this momentum, the number of foodservice establishments has fallen, from 4,601 in 2018 to 4,087 in 2023, a decline of 11%. This contraction reflects a gradual restructuring of the market, marked by closures, consolidations or outsourcing, driven by economic, regulatory and logistical pressures. Every year, some 7.3 billion meals are served in France's contract catering sector, according to the Syndicat national de la restauration collective (SNRC). 46% of French people claim to have had at least one contact with this type of catering, underlining its central role in society. The sector is dominated by three major groups - Elior, Sodexo France and Compass - with over 70% market share, making it a highly concentrated market. In addition, the sector faces growing environmental and regulatory challenges. Although the Egalim law sets ambitious targets for sustainable sourcing, 88% of foodservice purchases still involve non-organic products, compared with just 12% from organic farming. Budgetary, logistical and supply constraints continue to hamper the transition to more responsible food.