The contract catering market - Belgium

The contract catering market, which includes the preparation and distribution of meals within companies, communities or public institutions, has undergone significant changes as a result of the COVID-19 crisis. Before the pandemic, the global market was expected to grow at a CAGR of 5.5% between 2018 and 2023, reaching 264 billion euros. However, the rise of telecommuting has had a negative impact on demand, particularly in corporate catering. With fewer employees making regular visits to company canteens, the sector is forced to adapt by offering new services such as deliveries.

Major players such as Sodexo and Compass Group hold significant market shares, accounting for over 50% of the sector's sales in Belgium. Faced with the challenges of the pandemic, companies are resorting to strategies such as winning public contracts, mergers and acquisitions, diversification into event catering and delivery services. The trend towards "responsible" and "sustainable" collective cooking has also gained momentum, with organic, local and waste-reduction practices. Unfortunately, despite the sector's ability to adapt, the slowdown in 2020 was brutal, with a drop of almost 40% for "caterers and other food services" as a whole, indicating the severe blow suffered by the industry as a result of COVID-19.

Changing dynamics and new challenges in the Belgian contract catering market

The Belgian contract catering market, which encompasses the preparation and distribution of meals within companies, communities or public institutions, has undergone significant changes and faced new challenges in recent years. The market caters for a variety of sectors, including corporate catering, healthcare facilities and educational establishments, each with distinct needs and drivers. Demand is driven by a combination of factors, including employee lunch habits, telecommuting trends and an aging population. In Belgium, the contract catering market has historically shown a preference for quick lunches, with a large proportion of employees opting for company restaurants or preparing their meals at home.

Nevertheless, the widespread practice of bringing home cooked meals and the generous granting of meal vouchers in the country often encourage employees to abandon company canteens in favor of off-site restaurants or takeaway services. The rise of telecommuting, particularly accentuated by the COVID-19 crisis, poses a major threat to the corporate catering segment, as the frequency of on-site lunch use declines. Regions with large numbers of teleworkers, such as Brussels, are the hardest hit by this change. As Belgium moves towards a hybrid working model, corporate catering services are being forced to reinvent their business models to remain relevant. Belgium's aging population is driving up demand for catering services in healthcare facilities. With the proportion of the population aged 65 and over expected to reach between 20 and 21% by 2025, and up to 26% by 2050, the need for catering services in long-term care facilities is set to increase proportionately.

Despite evolving trends and demand drivers, the contract catering market has seen a steady decline over the past decade. The average annual decline in the number of companies and employees in the sector has been around 6.4% and 1.3%, respectively. The market, valued at around 860 million euros, is dominated by leading international players such as Sodexo and Compass Group, which together account for almost half of the sector's sales. The sector is also impacted by price trends, with an average increase of 1.6% per year. The costs associated with meals in educational and healthcare establishments often include subsidies or form part of the total cost of accommodation, while company restaurants generally benefit from partial subsidies from the company. This dynamic is changing as companies seek more commercial models in response to reduced corporate contributions.

The trend is towards more commercial models in response to reduced corporate contributions: Focus on the leading contract catering companies

In the dynamic field of foodservice, several heavyweights and a multitude of challengers and smaller entities shape the competitive landscape. Here, we take a look at the key companies that are playing a decisive role in the sector's evolution.

• Sodexo is a key leader, not only in Belgium, but worldwide. This French-born multinational spreads its tentacles across a variety of sectors, with a significant proportion of its business coming from the healthcare sector, where it manages the culinary needs of hospitals and retirement homes. One of the hallmarks of Sodexo's success is the diversification of its offering, which goes beyond foodservice to encompass a wide range of facilities management services, reflecting a multi-functional strategic approach.
• UK-based Compass Group is a strong competitor. With a foothold that extends into corporate catering via its Eurest brand, Compass demonstrates a deep presence in schools and healthcare facilities under the Scolarest and Medirest banners respectively. The company's revenue streams are further strengthened by its interest in event catering through entities such as Gourmet Invent, underlining its versatility and adaptability in various catering fields.
• Aramark occupies a prominent place among leading entities, particularly strong in the healthcare and corporate catering sectors, notable for employing a large workforce to deliver its services across Belgium.
• The ISS Group, based in Denmark, juggles a unique position by not focusing exclusively on catering, but positioning itself as a comprehensive provider of facility services that also includes foodservice in its portfolio. True to its name, Integrated Service Solutions, ISS aims to provide integrated solutions where catering is part of a wider service experience.
• Prorest Catering, as a subsidiary of the Dutch Facilcom Group, brings regional expertise and focuses on the outsourcing of facility services such as cleaning and maintenance, reflecting an operational synergy that blurs the boundaries between different service categories.
• Duo Catering stands out as a leading Belgian SME that has made a name for itself by offering catering services to companies and nursing homes. Its expansion plans reflect a localized, growth-oriented approach.
• Culinoa specializes in the healthcare and wellness segment and, in addition to providing catering services, enhances its value proposition with software solutions that manage catering needs.
• API Restoration takes the lead in the French market and demonstrates cross-border influence in the foodservice sector. These major players are continually vying for market share through strategies such as winning lucrative public tenders, mergers and acquisitions

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 15/03/2021

Summary and extracts

List of charts presented in this market study

• Size of the contract catering market
• Geographical breakdown of the foodservice market
• Proportion of teleworkers by Belgian region
• How much time do you spend on your lunch break (at work)?
• Type of lunches eaten by Belgians on working days
• Evolution of the structure of the Belgian population
• Number of companies and employees in the contract catering sector
• The top 4 players in the contract catering sector
• Comparison between the evolution of the turnover of the catering services and that of the collective catering
• Number of restaurants available on TakeAway.com
• Share of Walloon canteens under autonomous management
• Evolution of the consumer price index in the catering industry
• Evolution of the turnover of the collective catering
• Evolution of the turnover of the collective catering and the caterers
• Geographical breakdown of Catering and Foodservices sales
• Comparison of "Catering and food services" turnover between 2019 and 2020
• Impact of the Covid-19 crisis on the turnover of catering companies
• Share of overweight children by average body mass index (BMI)
• Share of Belgians who regularly eat vegetarian