Melbourne, Australia (PRWEB) August 22, 2014
Players in the Catering Services industry in Australia have gone through a period of strong growth over the past five years. Industry revenue is estimated to rise at an annualised 3.6% over the five years through 2014-15. This performance has been supported by a growing trend among businesses to outsource catering functions to industry firms, which allows companies to focus on their core operations and leave catering to the experts. According to IBISWorld industry analyst Stephen Gargano, “steady increases in demand from airlines, mining companies, government departments and households have also supported industry growth.” Revenue is forecast to rise by 4.3% over 2014-15, to reach $5.9 billion.
The Catering Services industry is a mix of large, global organisations that service multimillion-dollar contracts, and smaller independent businesses that provide catering for smaller events such as wedding receptions and other functions. At the top end of the industry, major players have become more diversified and are increasingly providing catering alongside other services such as building maintenance, security and cleaning. This trend has expanded over the past decade due to increased competition among major players and the synergies that can be realised by providing diversified services. At the bottom end of the market, operators typically operate off low margins due to significant price competition. “The relatively low barriers to entry associated with running a small-scale catering company have exacerbated competition,” says Gargano. The industry is characterised by a medium level of market share concentration. Major players include Compass Group (Australia) Pty Ltd, Spotless Group Holdings Limited, Sodexo Australia Pty Limited and Qantas Airways Limited.
Revenue growth over the next five years will be supported by steady increases in demand from downstream markets. Demand from the Mining division has helped drive the industry over the past five years, and is expected to continue its growth (albeit more slowly) as mining companies continue to seek suitable hospitality options for their staff. Rising household discretionary income is expected to encourage Australians to eat out, meaning consumers are more likely to spend on meals prepared by caterers in airports, hospitals and major sporting and cultural events.
For more information, visit IBISWorld’s Catering Services industry in Australia report page.
This industry includes specialist caterers and food-service operators that are primarily involved in the provision of catering services at specified locations or events. Meals and snacks may be transported or prepared and served on or off the premises, as required by the client.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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