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As of 2020, the global foodservice market, which includes segments such as educational institutions, corporations, governments, and healthcare, has experienced 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 percent to $327.9 billion by 2028, with the school foodservice market expected to expand from $19.46 billion in 2022 to $36.19 billion by 2032. The UK foodservice market, while experiencing a 25 percent decrease in value from 2019 due to the pandemic, is expected to grow at a CAGR of 8.4 percent to reach 6.6 billion pounds by 2026. The demand for mass catering is influenced by trends such as convenience, variety, socialization, sustainability, and time-saving. Household spending on catering in the UK increased by 67.2 percent between 2020 and 2022. Major companies, such as Compass Group, Sodexo, and Elior, have billion-dollar turnovers and continue to influence the market. The market is also influenced by regulations aimed at ensuring safety and quality and is adapting to trends such as ethnic cuisine, sustainability, customization, and expanding supply. The ongoing Russian-Ukrainian conflict since February 2022 has further impacted the market, causing a 7.9 percent increase in the consumer price index for canteens in the U.K..Title: Evolving Demand Dynamics in the U.K. Canteen Market In recent years, the U.K. canteen market has shown distinct trends reflecting a combination of socio-economic factors, consumer preferences, and industry innovations. With a stable number of companies providing services, employment in the sector has remained relatively stable, despite fluctuations due to the pandemic. Market demand is driven primarily by the convenience, variety, and affordability of services offered, with an emphasis on social interaction and time-saving, especially in educational institutions and corporate settings. The geographic distribution of demand for catering services largely mirrors the distribution of businesses across the country, with England taking the lion's share with over 90 percent, followed by Scotland, Wales, and Northern Ireland. The customer base remains strong, with substantial growth in the student population-between 9 and 10 million in primary and secondary schools-linked to an increase in the number of those eligible for free school meals, with a socioeconomic impact on household incomes. The university student population also showed significant growth, with numbers estimated at 2.5 to 3 million. The corporate sector shows stability, with enterprises employing more than 50 people maintaining a steady number of about 50,000. The trend toward sustainable and ethnic food offerings in canteens underscores a response to growing consumer expectations for environmentally friendly and diverse cuisine. End-user prices in mass catering maintain a competitive advantage, as full meals are typically between £2.00 and £3.50, indicating an affordable price point for the majority. However, parents' perceptions of price fairness in school cafeterias demonstrate sensitivity to economic pressures, with a majority considering the price to be appropriate, albeit down slightly from the previous year. Reflecting the current global situation, the Russian-Ukrainian conflict has had a direct effect on the British market, with a significant increase in consumer and producer price indexes. This ensures that mass catering services will have to innovate and adapt further to cope with these economic constraints while maintaining service quality and value for money. In summary, the U.K. foodservice market is in a stable phase, with nuanced growth and a conscious move toward sustainable and diversified offerings that reflect a blend of traditional needs and contemporary expectations The U.K. foodservice market is a dynamic environment, with several significant players known for their innovation and dedication to providing high-quality food services. Below, we delve into the profiles of the most prominent companies that set the standard for catering excellence and tailor their offerings to the specific needs of their clientele. **Sodexo**: A global powerhouse in the foodservice industry, Sodexo boasts an impressive presence in 80 countries and serves more than 100 million customers every day. Founded in 1966 in Marseille, the company has evolved to meet the foodservice needs of diverse sectors, including corporate, government, and education, with a focus on sustainability, local sourcing, and waste reduction. **Chartwells**: Dedicated to academic minds, Chartwells specializes in feeding students in schools, colleges, universities and academies. Emphasizing the importance of sustainable and locally sourced products, it not only provides meals but also educates on responsible and environmentally 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 school catering industry in the United Kingdom. The company prides itself on its innovative approach to school meals, aiming to balance taste, nutritional value and cost. **PabulumCatering**: Operating in Hampshire, Pabulum has a strong focus on nourishing the future through health-oriented school meals. Their commitment to freshness and local suppliers ensures children in the educational ecosystem receive a complete diet. **Eurest**: A Compass Group brand, Eurest covers a broad spectrum of catering services for corporations, institutions and the mass market. Creating tailored solutions for a diverse clientele, Eurest places customer satisfaction and quality among its strategic priorities. **Elior**: Since its inception in 1991, Elior has embarked on a journey that has led it to become a giant in the industry, distributing millions of meals worldwide. The company carefully develops its offerings for educational, healthcare and corporate settings, with a strong focus on health and sustainability. **Compass Group**: With more than 75 years of experience, Compass Group is committed to serving palatable and nutritious meals in schools, offices and nursing homes. As market pioneers, they distinguish themselves by promoting pre-order systems that emphasize customers' individual food preferences. **Caterfood**: Engaged primarily in schools and elder care facilities, Caterfood provides delicious meals that are attentive to the specific nutritional needs of these communities
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Summary and extracts
1 Market Summary
1.1 Definition of the Contract Catering market
The mass catering market is the provision of an on-site catering service for a local authority or corporate client
The main markets involved are the following educational institutions, corporations, administrations, health care institutions, air or rail catering services, as well as some other public or private entities (military, religious communities, prisons.....). The end customers are thus generally employees, public servants, patients, students....
Mass catering is more generally part of the out-of-home catering market alongside commercial catering (restaurants and fast-food restaurants), hotel catering, vending machines (vending machines), and other alternative food channels (bakeries, gas stations, department stores, etc.)
There are mainly 2 methods of managing mass catering :
- Restoration granted by using a service provider.
- The direct management of catering by the company requesting the service.
1.2 The global and European market
In ****, the global foodservice market reached a value of $***.* billion. With a compound annual growth rate of *.** percent for the next six years, the value could rise to $***.* billion in ****.
Contract catering market World, ****-****, billion dollars Imarcgroup
In order to delve deeper into the global contract catering market, the market related to school catering, framed as one of the most important subcategories of contract catering, is analyzed.In ****, the global school cafeteria market is valued at $**.** billion. Between **** and ****, it is expected to grow at a compound annual rate of *.* percent with a market value of $**.** billion in ****.
School cafeteria market World, ****-****, billion dollars Enterpriseappstoday
European market: The European foodservice market was valued at $**.** billion in **** and is expected to reach $**.** billion by ****, growing at a compound annual growth rate (***) of *.** percent during the forecast period. European foodservice market Europe, ****-****, € million European growth is driven by a number of key factors: Collaboration between caterers and event and exhibition providers has increased demand for customized food offerings. The popularity of fresh food subscriptions reflects a trend toward healthier and more convenient food choices, while digitization is transforming access to and management of catering services. A growing focus on wellness, ...
1.3 The market in the United Kingdom
By ****, the UK foodservice market is worth *.* billion pounds. However, the advent of the pandemic has brought important consequences for this market. The advent of smart working and the ability to attend school classes from home are the main explanatory factors. By ****, the market is expected to grow at a compound annual growth rate (***) of *.** percent, which would bring the market itself to a value of *.** billion pounds.
Mass catering market United Kingdom, ****-****, billion pounds Bgateway
Between **** and ****, household spending on catering services (***) in the UK grew by *.*%. The advent of the pandemic in **** resulted in a **.*% drop in spending from the previous year. Between **** and ****, the growth is +**.*%.
Expenditure on catering services
In ****, the segmentation of catering products and services in the UK is dominated by the corporate sector, which accounts for **.*% of the market. Weddings make up **.*%, while private events and other functions cover *.*% and **%, respectively.
Product segmentation and catering services United Kingdom, ****, in % bgateway
1.4 The impact of the Russian-Ukrainian conflict
The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in the consumer price index. As for canteens, between March **** and June ****, the consumer price index increased by *.* points to a value of ***.*. This means that in ****, prices increased by *.* percent from the previous year and **.* percent from ****.
Canteen consumer price index United Kingdom, ****-****, base ****=*** ONS
Among the reasons for the increase in the consumer price for the public should definitely be noted is the increase in producer prices for the other food services sector, within which mass catering falls. Between March **** and June ****, the producer price index increased by **.* points. Between March **** and June ****, the increase was just *.* points. Compared to ****, producer prices are **.* percent higher.
Output price index other food services United Kingdom, ****-****, base ****=*** ONS
2 Demand analysis
2.1 Demand in the United Kingdom
The number of students in elementary school, secondary schools and at university, the number of nursing homes in the area, and the number of companies with more than ** employees are taken into account to analyze the demand for mass catering in the United Kingdom, assuming a greater tendency on the part of the latter to enter into mass catering contracts.
In the United Kingdom, just over * billion students are enrolled in primary and secondary schools (***) as of January ****. Between **** and ****, the number of students grew by *.** percent. The growth rate between years is consistent throughout the period.
United Kingdom, ****-****, millions Gov.uk
In ****, **% of students use the school canteen at least once a week. **% use the canteen at least * times a week, **% prefer to always bring their lunch from home, and finally **% alternate between the two options. Student preference for school lunch United Kingdom, ****, % Laca Between **** and ****, the percentage of students eligible for free school lunch in primary and secondary schools increased by * percentage points. In ****, nearly ** percent of pupils in schools are entitled to eat a free meal in the school mesa. Specifically, after **** the increase is particularly evident demonstrating the economic consequences generated by the pandemic for families ...
2.2 Demand drivers
The main drivers of demand for collective catering in the UK are:
Convenience: choosing collective catering results in financial savings for the consumer, who, unlike in commercial catering, does not have to bear the full cost of the service but only a portion. Choice: cafeterias usually offer a good variety of options on their menus, thus allowing consumers to be able to satisfy their tastes from time to time. Socialization: mass catering also represents a space for socialization and interaction especially in schools and offices. Sustainability: by now, almost all canteens in the UK offer as much *-kilometer and organic cuisine as possible, thus proving attractive among those committed to a sustainable lifestyle. Time savings: taking advantage of canteens, especially in work settings, can save time as consumers do not have to search for a restaurant or prepare lunch at home.
(***)
2.3 The geographical distribution of demand
To visualize the geographic distribution of demand, a map was created with the number of enterprises engaged in other food services, within which mass catering falls, for each country in the United Kingdom.
England is home to the vast majority of businesses, **.* percent of the total. This is followed by Scotland with *.*%, Wales with *.*% and finally Northern Ireland with *.*%.
2.4 New trends in demand
Demand trends in foodservice are constantly evolving, as is the commercial foodservice sector. In particular, some of the main trends are:
The growing preference for sustainable products: consumers are increasingly inclined to consume products with an environmentally and ethically sustainable supply chain. Seasonality: an increased interest in the seasonality of products can be seen by avoiding imported or out-of-season products. Healthy diet: there is a growing demand for healthy menus, especially in schools, where parents expect their daughters and sons to eat healthy food that meets their nutritional needs. Ethnic food: especially in corporate cafeterias, there is a growing demand for ethnic food. Different reasons include the desire to vary the diet and the desire to vary the menu, which is considered excessively static from a culinary point of view.
(***)
3 Market structure
3.1 The market structure
Analysis of the structure of the foodservice market is carried out based on data for the other food services sector (***) within which foodservice is included. Specifically, the number of active enterprises in the UK, the number of people employed in the sector, and the legal form of enterprises are highlighted.
Between **** and ****, the number of businesses active in the sector grew by **.* percent. The trend is also positive between **** and **** (***) in contrast to the restaurant sector in general, which saw a decline in the number of businesses by *.*% during the same period.
United Kingdom, ****-****, in number Nomisweb.co.uk
Regarding the number of people employed, data for Northern Ireland is not available, so reference will be made to Great Britain alone (***).
In ****, ***,*** people are employed in the sector, and compared to ****, the figure has not changed. A *.* percent increase in employment is recorded between **** and **** compared to ****. However, the advent of the pandemic in **** contributed to a subsequent decline in employment in the sector. Employment in other food services United Kingdom, ****-****, in numbers Nomisweb.co.uk The data just presented allow us to define the market for other food services in the United Kingdom as fragmented. In fact, while ...
3.2 The value chain
3.3 Distribution
Mass catering service can be divided into two categories based on the process of meal distribution. The two types of systems are:
Conventional system: meals are prepared and cooked in the same facility where they will later be distributed. Each kitchen thus works independently of the others as the entire preparation takes place in-house. On-site cooking can often allow for greater flexibility in menu development and faster response to changes in demand, resulting in less food waste. Deferred system: preparation takes place at large production centers called "central kitchens." Then, meals are transported to the distribution location where they are cooked and served to the community. Systems in which food is prepared partially or completely in a central kitchen and then transported to other food service locations are an emerging trend. Central kitchens can provide hot meals (***), pre-cooked refrigerated meals to be reheated for serving, or compose meals with pre-processed cold components to be cooked on site.
Although centralized kitchens can save on labor costs by allowing the caterer to employ fewer professionals in on-site kitchens, there are generally additional transportation costs. The conventional system lowers transportation costs compared, however, it requires more labor within the kitchens in addition to the ...
3.4 The main actors
Some of the major companies providing mass catering services in the UK are:
Sodexo: founded in **** in Marseille, Sodexo is the world's number one food service and business services provider. The company is present in ** countries around the world and serves more than *** million customers every day. In the catering business, it is active in the corporate, public administration and education sectors. The catering business focuses on using sustainable products, limiting food waste and supporting local production.
Chartwells Limited: a company specializing in catering for schools, academies, universities and colleges. It focuses on the use of sustainable produce sourced from local UK growers, and the catering service includes guidance for students of all grades toward environmentally friendly food choices that reduce food waste.
Taylor Shaw Limited: is one of the leading companies active in institutional catering within schools and universities. It operates throughout the UK and aims to provide sustainable meals at an affordable cost to all. In ****, the company was named winner of the Education Caterer of the Year award due to its innovative approach that is tailored to the context or consumer.
Pabulum CateringLimited: Pabulum Catering is a catering company based in Fleet, Hampshire. The business focuses exclusively on ...
4 Supply analysis
4.1 Mass catering
Mass catering consists of the preparation and delivery of a large number of complete meals intended for a community. There can be many reasons for people to use these services, such as the need to have complete, healthy meals in a working environment, lack of time to prepare meals at home, or being away from home for study, work, or other reasons. Current food trends, any allergies and/or intolerances of customers, customers with special dietary needs (***)
Mass catering differs markedly from commercial catering. The main points of difference are:
The type and number of customers: mass catering offers its service to a generally larger audience than commercial catering. The reasons for exploiting the service: mass catering is a service of necessity. The price: the price to the end user is lower in mass catering. Who pays for the service: generally a percentage of the cost for the service is borne by the entity or company that makes the contract for collective catering.
The main types of mass catering are:
School canteen Company canteen Canteens at nursing homes and hospitals
(***)
According to a **** survey conducted in the UK, * out of * workers who routinely eat meals from company canteens say they ...
4.2 The prices
The following are prices for the end user in the UK foodservice industry:
In **** in the UK, more than * in * parents believe the price for school lunch service is fair (***). Compared to ****, the figure is ** percentage points lower. In contrast, **% think the price is too high while *% think the price is too low.
Opinion on the price of school canteens United Kingdom, ****, % LACA
4.3 New trends in supply
The catering industry's offerings are constantly evolving not only in order to attract new customers but to ensure better service and meal quality. The following are the main trends in the offerings:
Entico street food: some companies active in the sector have launched several ethnic cuisine projects in response to the demand for more appetizing and varied food.(***) Sustainable offerings: in recent years there has been an increasing emphasis on healthy and sustainable foods. This has included the inclusion of organic and local products on menus nonochè an increasing focus on reducing food waste. Personalization: it is becoming increasingly common for consumers to be able to choose their meals in advance and at the same time be able to make changes according to their needs and tastes. The offer aimed at vegetarian and vegan consumers is particularly on the rise. Expansion of offerings: partly due to state guidelines, mass catering is expanding the variety of its menus both on a daily level and in weekly programming.
(***)
5 Rules and regulations
5.1 Regulations
Collective catering, as well as the more general catering sector, is regulated by various national laws in order to ensure the safety, quality and origin of the service offered. With regard to school canteens, the legislation is more substantial in order to ensure proper and balanced nutrition for young pupils. Some of the main laws and regulations are:
Food and Standards Act ****: establishes the Food Standards Agency, set up to protect consumers for food safety at every stage of the production chain.
Food Safety Act ****: provides the framework for all food legislation in the UK that affects all food businesses in the UK and outlines the standards that businesses must meet to protect consumers. It covers the entire supply chain from food production to distribution.
Education Act **** (***): Sections ***, ***ZA, ***ZB, ***A, ***B and *** regulate the provision of school meals in England.
The requirements for School Food Regulations **** (***): sets nutritional standards for school canteens in England, imposing limitations in ingredients and substances used.
Food in Schools Policy **** (***): establishes nutritional standards for school canteens in Northern Ireland. It also promotes the adoption of healthy menus and food awareness among children.
The Nutritional Requirements for Food and Drinks in School ****(***): establishes nutritional standards for ...
6 Positioning of actors
6.1 Segmentation
Listed on the stock exchange
Unlisted
- Accent Catering Limited
- Aspens Limited
- Caterfood Limited
- Taylor Shaw Limited
- Caterlink Limited
- Compass Group
- Sodexo France
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