Recent growth has been aided by recoveries in consumer spending and corporate profit
Los Angeles, CA (PRWEB) May 09, 2013
The Caterers industry has cooked up a new recipe for growth in recent years and is expected to continue to build on that success with revenue rising 2.9% in 2013 to $8.3 billion. Since 2010, industry operators have seen regular growth as they work to offer new menu items and provide a wider range of services to satisfy increasing client requirements. Recent growth has been aided by recoveries in consumer spending and corporate profit, says IBISWorld industry analyst Austen Sherman. “Households and businesses are expanding their budgets and hosting more catered events.”
Nevertheless, the recession did weigh on the Caterers industry. As unemployment rates increased and consumer spending rates fell following the financial crisis, the strong growth that the industry had experienced in the years prior came to a halt. Employment levels were slashed and establishments began exiting the industry. “Demand across all downstream catering markets declined as both consumers and businesses had less money to spend on extravagant and catered functions,” says Sherman. As a result, industry revenue fell 8.6% in 2009. And over the five years to 2013, total industry revenue is expected to rise at a meager annualized rate of 0.9%.
During the next five years, however, the Caterers industry is forecast to experience continued improvement as both consumer spending and corporate profit reach all-time highs. Industry operators will be forced to meet increasing client demands, such as floral arrangement and entertainment services, by developing relationships with providers or by bringing these additional services in-house to streamline the client experience. In addition, firms will be faced with growing demand for healthier and organically grown food items. While demand for higher-quality products may increase the cost of purchases in the short term, it will allow operators to expand profit margins over the long term. As a result of increased profit and low barriers to entry, IBISWorld projects the number of industry enterprises to rise through 2018. For more information, visit IBISWorld’s Caterers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that provide individual event-based food services. These companies generally have equipment and vehicles to transport meals and snacks to events or prepare food off-site. Banquet halls with catering staff are included in this industry. Examples of events catered by establishments in this industry are graduation parties, wedding receptions, business luncheons and trade shows.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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