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

Krasimir Dinev Krasimir Dinev London, United Kingdom Last Updated: June 2025 SIC UK-I5621

Revenue

£25.5bn

2025-26

£27.8bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

376k

Businesses

105k

Wages

£X.Xbn

Caterers in the UK industry analysis

Caterers have endured a period of high revenue volatility amid the recovery of COVID-19 disruptions and subsequent inflationary and geopolitical pressures, which have affected consumer and business spending on functions and events. Industry revenue is expected to climb at a compound annual rate of 8.5% to €25.5 billion over the five years through 2025, including a 4.9% hike in 2025. Evolving consumer tastes and trends, like healthier eating and vegetarianism, are driving change in the products offered by caterers.

Trends and Insights

  • Caterers expand their offerings to meet client needs. Evolving consumer preferences and tastes are forcing caterers to innovate and introduce new offerings that address growing health and environmental awareness, as well as veganism and vegetarianism.
  • A subdued economic environment hinders business spending on catering. Despite easing inflation from the high levels in 2022 and 2023, prolonged economic uncertainty amid geopolitical tensions and US tariff fears has restricted business spending on corporate functions.
  • The industry is highly fragmented. Many small-scale catering service providers with new caterers are entering the industry due to opportunities presented by consumers' growing health and sustainability awareness across Europe.
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Top Questions Answered in this Report

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What is the market size of the Caterers industry in the United Kingdom in 2025?

The market size of the Caterers industry in the United Kingdom is £25.5bn in 2025.

How many businesses are there in the Caterers industry in the United Kingdom in 2025?

There are 105k businesses in the Caterers industry in the United Kingdom, which has grown at a CAGR of 7.3 % between 2020 and 2025.

Has the Caterers industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Caterers industry in the United Kingdom has been growing at a CAGR of 9.7 % between 2020 and 2025.

What is the forecast growth of the Caterers industry in the United Kingdom over the next 5 years?

Over the next five years, the Caterers industry in the United Kingdom is expected to grow.

What does the Caterers industry in the United Kingdom include?

Corporate functions and Weddings are part of the Caterers industry in the United Kingdom.

How competitive is the Caterers industry in the United Kingdom?

The level of competition is high and increasing in the Caterers 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

Caterers must abide by strict food rules. Due to the services provided by catering service companies, they must meet various food health and safety standard regulations, including food preparation, storage and disposal.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Caterers in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Elevated costs subdued profit expansion. Despite inflation easing, input costs have remained above historic averages, constraining caterers’ profit as intense competition has limited their ability to fully pass on costs to clients.

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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 Caterers 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.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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