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Contract Food Services in the Australian Facilities Management Market 

  • April 2016
  • 73 pages
  • Frost & Sullivan
Report ID: 3803136

Summary

Table of Contents

Australian Contract Foodservices Market

The intensely competitive Facilities Management (FM) market in Australia has been growing steadily, with a relatively high outsourcing rate of soft FM services when compared to countries in the Asia-Pacific region.
Forming a significant part of the soft FM services is Contract Food Services (CFS), a market that is experiencing a rapid transition from the growth stage in its lifecycle to the well-established mature market stage.
Whilst the Global Financial Crisis (GFC) had a noticeable impact on sales and profit margins in the recent past, the market, on the whole, enjoyed stable growth due to the large demand from the resources sector.
However, the end of the mining boom has been amongst the main restraints to growth.
Political stability, supportive trade agreements, regulatory changes, and favourable demographic trends have enhanced current and future growth expectations in the CFS sector.
Three significant market trends impacting the opportunity are:
1. the shift in consumer preferences is prompting CFS businesses to deliver greater quality and variety of food to end-users
2. changes in demographics has forced greater cultural sensitivity and enhanced capabilities, and
3. more CFS businesses are adopting consolidation strategies.
The main end-user segments are corporates, remote sites, healthcare and government. Other key segments include sports , leisure and entertainment as well as education.

While overall, suppliers, buyers, competitors, substitutes and new entrants together are moderate influencers in CFS operations; however, individually, competitors and buyers have the highest influence.
In the future, given subdued activity in some key end-user segments, the CFS market will be challenged to sustain and indeed enhance growth.


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