The introduction of healthy and organic foods has bolstered industry profitability.
New York, NY (PRWEB) August 13, 2014
The Caterers industry has benefited from rising consumer spending and surging corporate profit over the past five years. Corporate profit is expected to grow over the five years to 2014, meaning businesses across Canada have increased their spending on events requiring catering, such as office parties, corporate conferences, team-building seminars and client events. Additionally, according to IBISWorld industry analyst Andy Brennan, “rising per capita household income and improving consumer confidence have led to greater spending on private events like weddings and birthdays.” As a result, industry revenue is expected to grow at an annualized rate during the five years to 2014. Industry growth was highest in the period immediately following the recession as consumers loosened their purse strings after two years of constrained spending. In 2014, the industry is anticipated to grow.
Caterers in this industry specialize in providing individual event-based foodservices and generally have equipment and vehicles to transport meals and snacks to events or prepare food off site. Operators cater to a variety of one-off events, such as wedding receptions, business luncheons and trade shows. During the past five years, “operators have adapted their offerings to suit changing consumer preferences,” says Brennan. Healthier, organic foods and local produce now dominate the menus of many upmarket caterers, which has led to higher average industry profit margins. Operators are also providing a wider range of services, such as lighting and decor consulting and event planning, to satisfy increasing client requirements.
The Caterers industry will continue growing over the next five years due to a gradual improvement in both consumer spending and corporate profit. Industry revenue is forecast to rise at an average annual rate during the five years to 2019. Industry operators will need 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. In addition, caterers are expected to experience growing demand for healthier and organically grown food items. While demand for higher-quality products may push up the cost of purchases in the short term, it will allow operators to expand their profit margins over the long term.
For more information, visit IBISWorld’s Caterers in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
The Caterers industry provides foodservices for events like graduation parties, wedding receptions and trade shows. Industry establishments generally have equipment and vehicles to transport meals and snacks to events and to prepare food at the event site. Caterers who own or manage permanent facilities in which they provide event-based foodservices are also included.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.