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Food-Service Contractors in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Georgie Marple Georgie Marple London, United Kingdom Last Updated: June 2025 SIC UK-I5629

Revenue

£66.8bn

2025-26

£70.1bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

1m

Businesses

73,133

Wages

£XX.Xbn

Food-Service Contractors in the UK industry analysis

Food-service contractors thrive on the need for convenient, efficient dining options driven by corporate clients, educational institutions and healthcare facilities. Businesses outsource these services to focus on core activities while ensuring quality food provision for employees, creating sustained demand and lucrative long-term contracts for specialist contract caterers. Industry revenue is expected to climb at a compound annual rate of 2.8% over the five years through 2025 to reach €66.8 billion, including a 0.9% hike in 2025.

Trends and Insights

  • Office returns boost demand for European canteen food services. The post-pandemic shift back to the workplace has driven growth, with contract caterers enjoying higher attendance from workers seeking cheaper food alternatives.
  • The healthcare sector drives consistent revenue for caterers. As Europe's population ages, more people require specialised dietary plans in healthcare facilities, ensuring steady demand that remains less vulnerable to economic fluctuations compared to corporate food services.
  • There are many companies operating in the industry. The industry is highly fragmented, with many contract caterers operating across Europe. Consumer trends toward healthier eating present opportunities for new entrants.
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Top Questions Answered in this Report

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What is the market size of the Food-Service Contractors industry in the United Kingdom in 2025?

The market size of the Food-Service Contractors industry in the United Kingdom is £66.8bn in 2025.

How many businesses are there in the Food-Service Contractors industry in the United Kingdom in 2025?

There are 73,133 businesses in the Food-Service Contractors industry in the United Kingdom, which has grown at a CAGR of 1.9 % between 2020 and 2025.

Has the Food-Service Contractors industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Food-Service Contractors industry in the United Kingdom has been growing at a CAGR of 3.9 % between 2020 and 2025.

What is the forecast growth of the Food-Service Contractors industry in the United Kingdom over the next 5 years?

Over the next five years, the Food-Service Contractors industry in the United Kingdom is expected to grow.

What does the Food-Service Contractors industry in the United Kingdom include?

On-premises food services and Beverages are part of the Food-Service Contractors industry in the United Kingdom.

How competitive is the Food-Service Contractors industry in the United Kingdom?

The level of competition is high and increasing in the Food-Service Contractors industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Contract caterers must comply with stringent food regulations. As food-service contractors deal with food, they have to comply with strict food standards on preparation, storage and disposal.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Food-Service Contractors in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

High costs and demand shifts impact food-service profitability. Inflation and elevated input prices have squeezed margins, but rising demand for nutritious meals allows premium pricing, while companies have also been passing costs onto clients to protect profit.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Food-Service Contractors in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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