Market Definition
Catering services are a prominent part of the hospitality sector that includes institutions, companies, and other businesses offering a blend of services like food preparation, transportation, and serving across restaurants, schools, hospitals, & cafeterias, among others. These services are usually for outdoor events, workplaces, airlines, railways, and other sectors.
Market Insights
The Kuwait Catering Services Market is projected to grow at a considerable CAGR during the forecast period, i.e., 2023-28. Most of the market expansion would be driven by the growing focus of the government on economic diversification away from oil & gas and developing other sectors like commercial, industrial, & hospitality. It, in turn, is demonstrating favorable policies & substantial investments into the construction of hotels, restaurants, shopping malls, cafes, and many others to offer excellent service experiences to the public.
As a result, the need for food services is soaring rapidly to meet the demand of the exponentially rising population and the growing influx of tourists, pilgrims, & migrants in Kuwait. Besides, the aviation sector is another industry playing a crucial role in driving the market by augmenting the need for in-flight catering services for customers & provide them with a variety of Kuwaiti dishes & cuisine.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| Region Covered | Al Asimah, Al Farwaniya, Hawalli, Al Ahmadi, Al Jahra |
| Key Companies Profiled | Kuwait Catering Company, Mais Catering, Kuwait Pearls Catering, Aswar National Catering Company, Anaar Catering |
| Unit Denominations | USD Million/Billion |
Moreover, since the working population is rising gradually with minimal or no time for cooking, ordering & consuming food from office canteens & restaurants is becoming a prominent trend. It, in turn, is propelling the need for robust catering solutions across corporate offices, schools, colleges, etc., to meet the different food requirements of people.
Furthermore, online catering services are gaining swift momentum across Kuwait, enabling consumers to order their favorite food anytime & from anywhere. These platforms allow customers to create their accounts and place orders for the future. In addition, the service provider could monitor consumer preferences to show them food options as per their preferences. As a result, the proliferating online services regarding foods further project remunerative prospects for overall market growth through 2028.
Market Dynamics
Key Driver: The Emergence of Online Catering Services
The ever-increasing inclination of food services providers toward opting for digital platforms to expand their reachability and offer services throughout the country is crucial in driving the market. The convenience of ordering food through online portals and availing customization in nutritional value, taste, quality, and health planning. etc., at ease, coupled with ordering popular food items across different locations & getting quick deliveries, i.e., is portraying an escalating demand for online food services in Kuwait.
Possible Restraint: Fluctuations in Food Commodity Prices
Catering services are driven highly by price competition & taste value. Hence, any fluctuation in the food commodity might threaten the growth of the Kuwait Catering Services Market during 2023-28. Moreover, the high cost of labor required for maintaining food quality & hygiene is another critical aspect that might hinder the overall market expansion in the coming years.
Growth Opportunity: Themed Restaurants and Fine-Dining Eateries On Campus with Customization Options
The catering industry in Kuwait is experiencing growth due to companies using it as an incentive to attract and retain talented employees. Rather than just providing meals, more companies are offering customized menus and subsidized rates for dining experiences as an additional employee benefit. This approach enhances employee satisfaction and morale, encouraging them to eat together and build a sense of belonging to the company. As a result, we can expect to see more themed restaurants and fine-dining options on corporate campuses.
Key Trend: Growing Popularity of Food Trucks across Kuwait
As the population of food lovers escalates rapidly, so is the inundation of restaurants on wheels. As a result, the trending food trucks are promulgating the demand for catering services. This popularity owes principally to the convenience of food trucks offering an extensive food variety. Besides, growing government support through lenient licensing norms for food trucks to operate across Kuwait is another aspect contributing to the growth of the catering service industry in the country.
Market Segmentation
Based on End-Users:
Of them all, the Corporate sector is anticipated to dominate the Kuwait Catering Services Market with the largest share during 2023-28. It attributes principally to the gradually expanding corporate offices and the growing awareness about the benefits of procuring these services, such as maintaining a good impression of the company, getting professional assistance, hassle-free food preparation, making spectacular events, and offering a wide variety of food.
Besides, since the corporate sector looks after the productivity of the employee at the utmost, having a catering service encourages the employee to stick around the office during breaks & return to work. Hence, the demand for catering services in the corporate sector is rising & contributing to the overall market expansion in Kuwait.
Based on the Model:
Here, Client Pay B2B dominated the Kuwait Catering Services Market with the largest share, and the same trend is likely during the forecast period. It owes principally to the growing awareness among consumers about the benefits of the Client Pay B2B models, like greater brand visibility, customer engagement, & revenue generation, i.e., instigating service providers to expand their business operations. Besides, as this model offers an extensive food menu, customization, and introduction of new cuisines, the demand for the Client Pay B2B model for catering services is becoming popular and contributing to the overall market growth in Kuwait.
Recent Developments in the Market
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Frequently Asked Questions
A. The Kuwait Catering Services Market is projected to grow at a considerable CAGR during 2023-28.
A. The emergence of online catering services is likely to drive the market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition are Kuwait Catering Company, Mais Catering, Kuwait Pearls Catering, Aswar National Catering Company, and Anaar Catering.
A. Corporate sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the market during the forecast period.
A. Growing popularity of food trucks across Kuwait is the significant trend projected to shape the Market through 2028.
A. Themed restaurants and fine-dining eateries on campus with customization options are expected to present remunerative opportunities for the leading players in the market during the forecast period.
A. Fluctuations in food commodity prices are expected to hinder the growth of the Kuwait Catering Services Market.
