The Booming Catering Industry: Facts and Statistics

Factual and Statistical Info

The revenue from the catering market worldwide is expected to reach $265 billion US dollars 4 years from now with an estimated compound annual growth rate of 5 percent according to Research and Markets. Significantly, the market encompasses the major sectors in various communities including schools, elderly facilities, sports centers, and even hospitals. These institutions outsource their food service needs so they can lessen their spending and focus their labor force on more important matters.

Recent Technomic study shows that the catering industry in the U.S. made about $537 billion dollars in total sales last 2017 with a continuous growth rate due to easy and fast online ordering system. There are more than 10,000 caterers in America, employing about 110,000 people altogether. Most of these businesses are small and locally controlled that don’t account for a large portion of the market share. The demand for their services is higher in densely populated areas.

The Asia’s largest catering market and the second in the world, China reached an estimated revenue of $616 billion US dollars as reported by the China Cuisine Association. At the moment, it has around 5 million active companies in the catering industry. This has been attributed to the implementation of online to offline marketing strategy where customers are encouraged to order food by going to the caterer’s physical shop rather than online.

Just imagine how many people are choosing the convenient and practical way of catering food to their guests to celebrate life milestones. Statistics show that caterers are in demand for the following occasions: weddings, engagements, birthdays, corporate events, graduations, holiday parties, and even funerals. There’s also an increasing need for food services in trade shows and conferences worldwide.

Reports show that the money spent on food service mainly depends on how much corporate clients or individual consumers can spend for certain occasions. That is why catering companies often offer various packages, and sometimes even create meals suiting the most limited budget on the line.

To be able to serve large groups opens a series of catering opportunities for them so it is rare for them to turn down any offer, deal or invite. However, although the demand still exists, customers are less likely to order for catering services during uncertain economic times.

Based on Koncept Analytics’ market research, the 3 major factors fueling the increasing demand for contract and self-operated caterers are the people’s need for customized food orders, the rise of the middle class, and the continuing use of digital technology.

The 2018 Analysis of the World’s Contract Catering Market by Orbis Research

By Segment

  • Business & Industry (B&I)
  • Education
  • Healthcare
  • Elderly Facilities
  • Government Agencies
  • Sports & Entertainment

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Africa
  • ROR (Rest of the Regions)

By Country

  • United States
  • Canada
  • United Kingdom
  • France
  • Germany
  • Others (Spain, India, China, Japan, Australia & Brazil

So what type of food catering service would you prefer to establish in your own local community?

  • Contract Catering

Hospitality Industry – Hotels Business Current and Future Trends

Hospitality has long been synonymous with the hotel industry. Any changes in trends of hotel business have wide scale implications on an otherwise diverse industry. What might be an opportunity for a traveler can be a matter of survival for hotels? It will not be an oversimplification to suggest that the emerging concepts in hotel industry reveal an atmosphere of stiff competition. Here is a look at a few major issues:

Is Green better?

Amid growing concern over environment friendly services, a majority of travelers now prefer Green and Eco lodgings. Recent surveys by trade associations such as Partnership Travel Industry Association and online retailers like Yahoo revealed that nearly seventy percent of the tourists are willing to pay extra when it comes to environmental friendly lodgings. These surveys further revealed that these guests will pay anywhere from nine to ten percent premium on the already advertised prices.

What can be stated as a welcome relief for the educated traveler might pose real challenges for the hotel business. To better understand the scenario, it should be noted that hotels are presently facing severe shortages in occupancy rates which are at their lowest since 1971. Such a crisis and lack of funds can definitely hamper any efforts to install appliances that comply with the LEEDS standards (Leadership in Energy & Environmental Design). Some experts agree that a trade off may lead hotels into removing free amenities that include little bottles of shampoos, jams and free basket of fruits; all of which are the hallmark of these eco lodgings.

Where are the Workers gone?

The hotel industry gives employment at a very large proportion of part time workers, who after gaining substantial experience, leave for other lucrative jobs at restaurants and outdoors. Low wages in the hotel industry is one of the primary reasons for low retention rates.

Hotel industry Gurus are already thinking of ways to attract and retain qualified workers by increasing the pay scales and by reducing the long working hours. The top management is now devising constructive methods that will retain the existing workers by sponsoring education and creating attractive career paths.

Mega Hotels

The rising cost of construction and a struggling real estate has prompted hoteliers to deploy the pre-fabricated and cost effective solution in the construction of new hotels. In fact they are fighting back by producing highly efficient designs that utilize a greater proportion of space for revenue generating purpose. Future trends in the hotel construction will seek to maximize the use of building areas by constructing a multi purpose facility that will include Casinos, shopping outlets and Theatres. The stand alone hotel concept is likely to vanish as the new properties will be constructed as a mixed use development to provide guests with facilities such as Church, Hospitals and Theme Parks. Such a variety will ensure that guests remain at one spot which will help generate revenue for the entire hotel complex.

The evolution of savvy traveller

The evolution of internet has given rise to a phenomenon where travelers are becoming ever more demanding. Industry professionals suggest that an increase in a trend, to review properties online, will make travelers less forgiving as they are able to post their travel experiences. Such an overemphasis on web may even lead to stiff competition and price reduction strategies where only large players may be able to survive.

To ward of such threats, the small business owner is now turning towards opening a boutique establishment as an alternate to 70,s style motels. Such niche properties are popping up everywhere by advertising a more personalized “home away from home” kind of experience. The introduction of such boutique properties has also given rise to the popular and widely accepted theme of modern hostels. These hostels are keen to provide a clean and safe environment for budget conscious travelers. Their goal is to wipe out the myths associated with cheap motels and dingy guesthouses.

Whatever may be the case, one thing is for sure that constant remodeling of the hotel industry has made it more functional and practical not only for the guests but also for the hotel owners.

Mobile Gaming Industry – Generating Big Business From Small Devices

In the year 2007, Apple Inc. gave a whole new meaning to mobile technology by launching its flagship device – the first-generation iPhone. The device acted as a boon for a mobile game development sector, which was otherwise growing with a “snail’s speed“. Later, in the year 2008, the Internet giant Google also released “Android OS” and this eventually started a war of apps, and both became fierce competitors. However, this proved fruitful for the smartphone users, as the competition resulted in the development of better mobile gaming apps with excellent graphics, fascinating game play and superb sound systems.

The Statistics and Predictions

With the pace of time, companies brought advance tools and technologies to develop more sophisticated gaming apps, to allure a bigger chunk of mobile enthusiastic population. As per recent statistics, in the year 2010, the smartphone and tablet gaming app sales reached $898 million, and it is expected to generate a revenue figure of $1.6 billion by the year 2015.

The overwhelming response experienced by the mobile gaming apps can be seen by the following facts –

  • 53% of smartphone owners play mobile games on daily basis
  • Smartphone users spend 14.7 hrs per month, playing mobile games
  • 93% people pay for gaming apps
  • 100 million mobile gamers in U.S. alone
  • 700 million download of Angry Birds app
  • Tiny tower generated $3 million from in-app purchase
  • Major revenue generation is via advertisements

It is worth mentioning that the above figures show only a small insight of the entire mobile gaming industry. However, with the technology evolving with each passing day, the popularity of mobile games is expected to break all the previous records.

Freemium Model or Paid Model – The Game Changers

The task of selecting the right medium for revenue generation has always been a game changer. There are three main revenue models in the mobile application development industry:

  • Free Apps – The apps were supported with advertisements, to support revenue generation.
  • Freemium (Free + Premium) Apps – Free to download apps, but with in-app purchase options.
  • Paid Apps – One-time payment for all the features.

No doubt, the freemium model has proven fruitful many times, but the major revenue generation is still carried by paid game apps. In addition, the predictions by experts state that, the revenue from free, ad-supported games is expected to grow by 12.3%, by the year 2014. Therefore, with free applications missing the “Spark“, and freemium apps showing better potential, the prospects of being innovative and effective are higher in the latter. As a result, one can sense a balance in revenue generation between paid and freemium apps in coming years.

Word of Mouth – The Main Reason Of Downloads

No matter whatever the medium is, physical or virtual, the “word of mouth” always serves as an efficient way of promotion. Even as the companies are spending heavy to promote their gaming apps, the statistics suggest that “word of mouth” medium of publicity still holds the number-one position in effectiveness. As per a recent survey:

  • Around 50% of adults learn about new gaming apps from friends and family.
  • About 40% of adults learn from app stores, after reading the user reviews and hot list.
  • About 25% of adults learn from social media sites.

However, there is also a long list of mobile gaming websites with a heavy influx of web traffic, present over the Internet that provides game reviews, upcoming apps, cheats and tips. So, companies should concentrate on utilizing all types of efficient media channels to acquire maximum coverage and ensure 100% promotion of their apps.

With mobile gaming apps available for free to play, it is easy to fall-in and get absorbed in them. Furthermore, from above statistics one can easily sense the increasing popularity, the higher growth rate and the potential in Mobile Game Development Industry.