Back to earth: Airline budget cuts have reduced catering spending, constraining industry growth

The Catering Services industry is growing moderately, with revenue expected to rise at an annualised 2.6% over the five years through 2018-19. Steady demand growth from households has supported industry performance, as strong consumer sentiment has encouraged households to boost their expenditure on special occasions like weddings, engagements, birthdays and parties. This has subsequently resulted in stronger demand for catering services at these events and functions. Furthermore, real household discretionary income has also risen over the five-year period, providing consumers with greater purchasing power to spend on discretionary services such as catering. Following strong consumer sentiment and discretionary income growth, industry revenue is expected to grow by 3.4%...read more.

Industry Statistics & Market Size
Revenue
$716m
Annual Growth 14-19
2.6%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
11,584
Businesses
814
Market Share of Companies

Industry Threats & Opportunities

  • Strong consumer sentiment has resulted in households boosting expenditure on special occasions
  • Many catering firms have focused on streamlining their operations and reducing costs
  • Falling business confidence will lead to some businesses reducing expenditure on catering

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    Industry Report - Industry Key Buyers Chapter

    The Catering Services industry is characterised by moderate market share concentration, with the top four players accounting for an estimated 42.2% of revenue in 2017-18. Outside of the three major players, the industry is highly fragmented and diverse and consists of many smaller, independent businesses. These smaller firms typically serve their local market and generally focus on catering for small events and functions.Large companies such as Spotless, Compass Group and LSG Sky Chefs benefit from significant economies of scale and can secure major contracts with companies. For example, LSG Sky Chefs has a partnership agreement with Air New Zealand to provide catered meals for the airline. Thi...purchase to read more.

    Additional Insights for the Catering Services Industry

    IBISWorld has determined the most important Key Success Factors for the Catering Services are:

  • Ability to compete on tender
  • Ability to control stock on hand
  • Effective quality control

    • IBISWorld analysts also discuss how external factors such as Business confidence index and Consumer sentiment index in the Catering Services industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Catering Services in New Zealand Industry?

    Industry firms primarily provide catering services at specific locations or events. Meals and snacks may be transported to the venue or prepared and served on the premises, as required by the client.

    Industry Products
  • Private event catering
  • Corporate catering
  • Airline catering
  • Other services
    • Industry Activities
  • Airline catering services
  • Catering service operations
  • Mobile catering services
  • Event catering services
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Business confidence index
  • Consumer sentiment index
  • Aircraft kilometres flown
  • Real household discretionary income

    • Current Performance
  • Industry demand
  • Profit margins
  • Industry participation
  • Chart: Revenue Growth

    • Industry Outlook
  • Consumer demand
  • Industry profit
  • Industry structure
  • Competition
  • Table: Catering Services Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Airlines in New Zealand
  • Consumers in New Zealand

    • Key Selling Industries
  • Fruit and Vegetable Wholesaling in New Zealand
  • Meat, Poultry and Smallgoods Wholesaling in New Zealand
  • Temporary Staff Services in New Zealand

    • Products & Services
  • Corporate catering
  • Private event catering
  • Airline catering
  • Other services
  • Chart: Catering Services Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Businesses
  • Households
  • Other markets
  • Chart: Major Market Segmentation for the Catering Services Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Catering Services

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Catering Services Industry

    • Industry Globalization

    Major Companies

    LSG Sky Chefs New Zealand Limited, Compass Group New Zealand Limited, Spotless Holdings (NZ) Limited,
  • Table: LSG Sky Chefs New Zealand Limited - financial performance
  • Table: Compass Group New Zealand Limited - financial performance
  • Table: Spotless Holdings (NZ) Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Catering Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Catering Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Cook-Chill
  • Snap-freezing of prepared meals to maintain flavour and freshness.
    • Food Service
  • Providing customers with prepared food and beverages.
    • Full-Service Contract
  • Contracts that incorporate catering functions with other services, such as security, building repairs and cleaning services.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Catering Services in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Catering Services in New Zealand:
    • 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 Catering Services in New Zealand 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 Catering Services in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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