The trend towards premiumisation in catering has pushed prices upwards, with most consumers happy to pay premium prices for on-trend food
Melbourne, Australia (PRWEB) October 24, 2014
A hunger for gourmet catering has driven Event Catering Services revenue upwards over the past five years. According to IBISWorld industry analyst Stephen Gargano, “the trend towards premiumisation in catering has pushed prices upwards, with most consumers happy to pay premium prices for on-trend food.” As a result, industry revenue is forecast to grow at an annualised 3.2% over the five years through 2014-15. This strong performance includes a 3.1% rise in 2014-15, with revenue to reach $520.8 million. Profitability has increased over the past five years, as operators passed on increasing input costs and sought to limit wages. The widespread use of casual contracts and agency staffing has allowed operators to adjust staffing levels rapidly, ensuring that costs are kept low and profit margins are maximised.
Growing demand for catering services to provide meals at corporate events has boosted the industry over the past five years. Companies have increasingly sought to outsource catering functions to specialist firms, in an attempt to focus on their core businesses. This trend has driven industry revenue upwards over the past five years, as companies have sought to impress with high-quality catering. Larger, diversified operators have been particularly successful in capturing these clients, with many already providing a range of facilities management services for these companies. These relationships place larger firms in a strong position to actively market additional event catering services to their clients. Over the next five years, the industry structure is expected to shift towards boutique, niche operators, as smaller players seek to differentiate themselves from larger operators. However, the industry will face pressure as fashionable food vans compete for catering business, benefiting from their mobility and trendy image. “Increasing competition will place significant pressure on prices as operators compete for events,” says Gargano. As a result, profit margins are forecast to decline over the next five years.
The level of market share concentration for the Event Catering Services industry is at a low level. The industry has a high degree of fragmentation, and is mostly populated by small-scale or niche operators. These firms typically operate within a particular geographic region, food specialty or type of event. Large firms are rare within the industry, and these companies tend to focus on long-term corporate contracts. Spotless Group's Epicure product is uncommon in this regard, in that it mostly focuses on contract work, but also provides event-catering services.
For more information, visit IBISWorld’s Event Catering Services industry in Australia report page.
This industry consists of firms that provide event-catering services. This excludes food prepared for resale or day-to-day catering.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
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
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.