Dinner is served: Rising consumer spending will bolster industry revenue growth

Over the past five years, the Caterers industry in Canada has benefited from rising consumer spending and steady growth in the number of Canadian businesses. Moreover, improving economic conditions have encouraged many businesses to increase spending on events requiring catering, such as office parties, corporate conferences, team-building seminars and client events. Additionally, rising per capita household income and improving consumer confidence have led to greater spending on private events such as weddings and birthdays. Over the five years to 2022, the Caterers industry is expected to continue growing due to a gradual improvement in consumer spending and rebounding corporate profit, which fell over the past five years...read more.

Industry Statistics & Market Size
Revenue
$958m
Annual Growth 12-17
4.3%
Forecast Growth 17-22
Profit
Employment
16,586
Businesses
4,392
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising per capita household income and improving consumer confidence have led to greater spending on private events such as weddings and birthdays
  • Clients have become discerning in their requirements, demanding higher-quality produce
  • Corporate demand for catered events is expected to improve in coming years
  • Industry Report - Industry Key Buyers Chapter

    The Caterers industry is characterized by a very low level of market share concentration, with the industry's four largest companies accounting for less than 5.0% of the industry's total revenue in 2017. Operators in this industry are often small and family-owned; therefore, many companies can function from an owner's home, not requiring separate headquarters. Additionally, many companies are owner-operated, calling in temporary or part-time staff and renting equipment as required. Demand for industry services can also be seasonal, depending on the type of events being catered. These factors cause the industry to be highly fragmented, and many operators are limited to serving specific towns or cities...purchase to read more.

    Additional Insights for the Caterers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Caterers Industry are

  • Access to multi-skilled and flexible workforce
  • Ability to control stock on hand
  • Ability to manage external (outsourcing) contracts
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Number of households earning $100K or more in the Caterers industry impact industry performance..

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    What's in this report

    What is the Caterers Industry?

    This industry provides food services for events such as 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 food services are also included.

    Industry Products
  • Alcoholic and nonalcoholic beverages
  • Food prepared for immediate consumption
  • Food served at events on caterer's premises
  • Food served at events on customer's premises
  • Food dropped off at the customer's event
  • Food prepared for customer pick-up
  • Other services
  • Industry Activities
  • Providing single-event based food services
  • Providing food services in banquet halls with catering staff
  • Transporting meals and snacks or preparing food on-site
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Number of households earning $100K or more
  • Corporate profit
  • Demand from trade show and event planning
  • Per capita alcohol consumption

  • Current Performance
  • Mixed demand conditions
  • Product trends
  • Profit stumbles
  • Chart: Revenue Growth

  • Industry Outlook
  • Food for thought
  • Competition and profitability
  • Table: Caterers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Caterers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services In Canada
  • Trade Show & Event Planning in Canada
  • Educational Services In Canada
  • Arts, Entertainment and Recreation In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Beef & Pork Wholesaling in Canada
  • Beer, Wine & Spirits Wholesaling in Canada
  • Dairy Wholesaling in Canada
  • Fish & Seafood Wholesaling in Canada
  • Fruit & Vegetable Wholesaling in Canada
  • Office Staffing & Temp Agencies in Canada
  • Wine & Spirits Wholesaling in Canada

  • Products & Services
  • Food served at events on caterer's premises
  • Food served at events on customer's premises
  • Other services
  • Alcoholic and nonalcoholic beverages
  • Food prepared for immediate consumption
  • Food dropped off at the customer's event
  • Food prepared for customer pick-up
  • Chart: Caterers Industry Products and Services Segmentation

  • Demand Determinants
  • Time constraints
  • Corporate demand
  • Regulation

  • Major Markets
  • Businesses, governments and other organizations
  • Households in the highest income quintile
  • Households in the fourth-lowest income quintile
  • Households in the third-lowest income quintile
  • Households in the second-lowest income quintile
  • Households in the lowest income quintile
  • Chart: Major Market Segmentation for the Caterers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Caterers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Caterers Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Caterers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Caterers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food Handling
  • Ensuring that health and food standards are maintained at a high level during each stage of the process, from purchasing to serving.
  • Food Service
  • Provision of catered meals, which usually includes alcoholic and nonalcoholic beverages.
  • Wastage
  • Food, drinks or other items that must be discarded due to fluctuations in demand, oversupply of meals or excess ingredients that cannot be used and are subsequently spoiled.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Caterers market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Caterers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Caterers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Caterers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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