Caterers in the US - Industry Market Research Report

Clean Plate: Increases in Consumer Spending and Corporate Profit Will Likely Bode Well for Industry Demand

The Caterers industry contended with challenges stemming from soaring unemployment and has yet to recover from the adverse influences of the pandemic. Before the pandemic, higher downstream consumer spending and corporate profit translated to greater demand for business-to-consumer events. This increased demand was not intense enough to temper the adverse effects of declining marriage rates and decreases in per capita expenditure on alcohol, which hindered the industry. In response to these adversities, caterers have introduced new menu items and provided a more comprehensive range of services to satisfy a broader range of client interests. Amid health and safety restrictions like lockdowns and social distancing due to the pandemic in 2020, industry revenue cratered. As consumer spending and corporate profit have declined after the onset of the pandemic, demand for catering has fallen accordingly. Demand rebounded in 2021 as restrictions on large gatherings eased, but revenue has been unable to recover to pre-pandemic levels. Ultimately, catering revenue has declined at a CAGR of 6.7% to $10.8 billion, falling 2.6% in 2023 alone, as profit slips to 5.5%. The Caterers industry includes companies that provide individual event-based food services. These companies generally have equipment and vehicles to prepare food off-site and transport it to events. Banquet halls with catering staff are included in this industry. Examples of events catered by industry establishments include graduation parties, wedding receptions, business luncheons and trade shows. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.