The Qatar catering services has grown from USD ~ million in 2011 to USD ~ million in 2016 at a CAGR of ~%. This growth was majorly driven by the industrial and hospitality sector which are the largest end users of catering services contributing ~% and ~% respectively in the revenue share in 2016. The government of Qatar has initiated major infrastructure reforms under Qatar National Vision 2030 in various sectors of the economy such as transport network, education, healthcare, hotels and others which further created opportunities for catering services market as the number of labor camps increased. Such labor camps require catering services at their site for the workers and management at standard quality and low price. The education and healthcare sector together contributed ~% in the revenue share of catering services market in 2016.
Qatar attracted over ~ million tourists in 2016 for business and leisure purpose. Investment in tourism sector has also been increasing to accommodate the rising number of tourists further supported by the upcoming World Cup 2022 in Qatar which is expected to see over ~ visitors. Qatar is dominated by expatriates in the construction and corporate sector. Catering services witness major demand from this segment of the population. Moreover, expatriates as they come from different parts of the world, demand fusion cuisine and variety of options for their meals.
As the Qatar economy developed with the implementation of Qatar National Vision 2030, a large number of construction activities picked up pace during 2016. The catering services benefitted from growing demand from such construction sites as they required catering services for the laborers and management.
Catering services saw increasing demand from the hospitality sector for marriages and corporate events. The number of marriages in Qatar increased from ~ in 2014 to ~ in 2016. The Qatar wedding catering market also increased from USD ~ million in 2014 to USD ~ million in 2016
The catering industry also saw increasing use of technology and modern methods of production which include online ordering apps, vehicle tracking systems and inventory management platform. This helped in increasing the efficiency of various processes by minimizing wastage and reducing cost of production involved in the catering business. Major players in the Qatar catering service industry are Newrest Gulf, Qatar Aircraft Catering Company and IFS Qatar.
How Have The Different Segments in The Qatar Catering Service Market Performed?
The contract catering market have accounted for ~% of the total Qatar catering services market while non contractual catering have acquired ~% of the market in 2016. Only marriages in personal spaces are non contractual whereas all other end users hire catering services on contractual basis which include airline, schools, corporate offices, hotels, hospitals, industrial and labor camps. Therefore, the share of contract catering services is higher. Marriages have accounted for around ~% in the total catering industry in 2016. Mostly marriages in Qatar are held in hotels, halls and a few in villas and backyards.
Within contract catering services, 0-1 year contracts are the most popular and account for ~% of the total contracts. 0-1 year long contracts are more prevalent as the customers which include schools, offices and hospitals initially look for good quality catering service. Once satisfied with the services, they tend to renew the contracts after 1 year. 0-2 year contracts are signed with trusted brands as they guarantee quality food and service. Such services are signed by hotel and airline companies who prefer premium quality food with excellent service as the quality of food catering directly affects the image of the hotel or the airline company
The industrial sector has accounted for the major revenue share of ~% in Qatar Catering services market 2016. Construction activities have majorly been driven with the implementation of government programs such as National Vision (QNV) 2030 and Qatar Rail Development Program (QRDP). As a part of Qatar’s World Cup preparations, 5 new stadiums have been announced. Furthermore, Al-Wakrah and Al-Bayt stadiums construction started in 2015. Furthermore, the revenue for construction industry in 2016 was QAR ~ billion with QAR ~ million worth of construction contracts. The hospitality sector has accounted for the second largest share of ~% in revenue share in Qatar Catering Services in 2016 driven by National Tourism Sector Strategy 2030. During 2016, the room supply across Qatar’s accommodation market grew by ~% in comparison to room supply at the end of 2015. This growth was due to opening of ~ new hotel properties with ~ rooms. Catering services saw a growing demand from hotels with focus on variety of cuisines and gourmet food items.
Company Profile Of Major Players
Qatar has ~ catering service providers as of 2016. The major players in the industry are Newrest Gulf Catering, Qatar Aircraft Catering Company and IFS Qatar. This market has seen a rise in competition which is being driven by growing demand and increasing use of technology and innovation. Since major clients hire on contractual basis, these players compete to achieve contracts for longer duration to ensure regular orders and increase profits. They offer different menus and customization services tailored for different end users. Furthermore, they indulge in various marketing activities to build their brand equity and reliability.
Trends Developments And Restraints In Qatar Catering Services Market
The infrastructure development in Qatar has seen rapid growth in the last five years under the guidelines of Qatar National Vision 2030. The government has allotted USD ~ billion for infrastructure, transport, hotels and stadia as it prepares to host the 2022 FIFA World Cup. Rising construction activities increased the number of labour camps in Qatar. Such camps required catering services for ~ meals a day at competitive prices and standard quality of food and service. Qatar saw more than ~ million visitors in 2016 majorly during Eid celebration events and the Qatar Summer Festival. QTA’s collaboration with the Ministry of Interior and Qatar Airways has further facilitated visitors’ entry to Qatar. Over the past 5 years, growth in number of visitors averaged ~%. Also, with the recent introduction of a 96-hour free visa scheme for travelers transiting in the country, the number of tourists is consequently projected to increase. Qatar has seen rising number of health conscious people looking for light and nutritious food. People have become more aware about the need for a healthy lifestyle. In order to fulfill the needs of the customers, catering services are putting more emphasis on using organic food ingredients. Due to the changing preferences, many catering services have restructured their production process. Catering companies are now increasing focus on locally produced raw materials to ensure quality standards. There is a shortage of good quality warehouses in Qatar. Moreover, storage of food products require extra care as many factors such as temperature, humidity, pest control need to be considered
Qatar Catering Services Market Future Outlook And Projections
Qatar catering services market is expected to reach USD ~ million in 2021 as compared to USD ~ million in 2016 at a CAGR of ~%. This will be majorly driven by the rise in construction activities as major infrastructure projects get implemented under the Qatar Vision 2030. The country has started renovation and new projects for World Cup 2022. The country has devised plans to draw USD ~ billion of amount by 2022 for the infrastructure projects including stadiums, hotels and other transport related facilities. Tenders for such projects have been floated. Construction of these new projects will create demand for catering services at labour sites. The tourism sector is expected to reach USD ~ billion by 2025 with a target to receiving ~ million visitors by 2020. This will be supported by USD ~ billion investments under National Tourism Sector Strategy 2030. This will further create opportunities for catering services in hotels and hospitality sector. Catering services can use the experiential dining concept to gain competitive advantage by offering services such as theme food and extreme forms of design and décor.
Analyst Recommendation
As Qatar government has increased focus on infrastructure development in tourism, education and healthcare sector, catering services will majorly see rising demand from these end users. Catering services should keep tracking government tenders for capturing contracts for catering at remote industrial sites and mega infrastructure projects. Supply chain efficiency for catering service involves cost reduction, minimum wastage, storage and inventory management, integrating various departments in the manufacturing process and incorporating a proper monitoring and tracking system in order to avoid contamination and ensure quality and hygiene standards. Another important aspect is agility which means that a catering service should have the ability to deal with variable demand and production flexibility. Furthermore, technology and digital platforms are being increasingly used to enhance productivity. These apps can be used by new entrants to improve their value proposition. The Qatar catering services market has seen a rise in number of players with large players catering to big and luxurious clients while small players providing lunch box services to the corporate with variety of cuisines. Initially, the company might chose to keep lower prices to capture market share but once it builds a brand name it can raise the prices. Moreover, Qatar population is dominated by expatriates. Special focus should be on Indian, Pakistani and Filipino population as they account for the highest expat population. Such employees prefer food items according to their ethnicity and culture. The most popular cuisines in Qatar are Indian, Arabic, Pakistani and Filipino.
Companies Cited In The Report
List of Companies Companies Covered in the Report
Newrest Gulf
Qatar Aircraft Catering Company
IFS Qatar
Hands Kitchen Major Players
Lee-Top Services
Dunes Catering
Future catering
Qatar Star Services
Shaqab
Amwaj Services
Crompton Catering and Support Services Co. WLL
PDC Tamween
Key Topics Covered in the Report:
Qatar Catering Services Market Size
Market size and segmentation of Catering Services Market on the basis of major End Users, Type of Contract
Qatar Catering Services Value Chain
Government Regulation, Decision Making Process of Customers and Trends and Developments in Qatar Catering Services Market
Future Outlook for Qatar Catering Services Market on the basis of major End Users
Company Profiling of Major Players Qatar Catering Services Market
Qatar Catering Companies
Catering Service Providers in Qatar
Catering Business in Qatar
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