Catering Services in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia, Nov 02, 2013 (PRWeb.com via COMTEX) --
The Catering Services industry in Australia is a mix of large, global organisations that service multimillion-dollar contracts, and smaller independent businesses that provide catering for wedding receptions and other functions. At the top end of the industry, major players are increasingly providing catering alongside other services such as building maintenance, security and cleaning. This has arisen due to increased competition among top suppliers and the synergies that can be found by providing diversified services. According to IBISWorld industry analyst Ryan Lin, "at the bottom end of the market, operators typically operate off low margins due to significant price competition, which stems mainly from the relatively low barriers to entry associated with running a small-scale catering company." The industry is sensitive to downstream demand from the public and private sectors. For some commercial caterers, demand is highly dependent on winning contracts to supply leisure, recreation and sporting venues, and the outsourcing of catering needs by other business and government sectors.
IBISWorld expects industry revenue to increase at an annualised 3.1% over the five years through 2013-14. This five-year growth reached an annualised high of 3.1% mostly due to the low base in 2008-09, which was caused by weaker economic activity and low consumer sentiment. "Since then, steady demand from a variety of sectors, and the continued tendency of organisations in other sectors to outsource hospitably functions, has assisted revenue growth," says Lin. Revenue is expected to grow by 2.6% in 2013-14, to reach $5.6 billion. Mergers and consolidation of the industry's major operators mean that growth in the number of establishments has not matched advances in revenue. The industry exhibits a medium level of concentration, with several major players including Compass Group (Australia) Pty Ltd, Spotless Group Limited, Sodexo Australia Pty Limited and Qantas Airways Limited.
Over the five years through 2018-19, steady demand is expected to lead to modest growth. Demand from the mining sector, which has helped the Catering Services industry over the past five years, 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 will enjoy meals prepared by caterers in airports, hospitals and major sporting and cultural events.
For more information, visit IBISWorld's Catering Services in Australia industry report page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
This industry includes specialist caterers and food-service operators that mainly provide 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.
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.
Read the full story at http://www.prweb.com/releases/2013/11/prweb11293333.htm
[ Back To Technology News's Homepage ]