The U.S. catering market is entering a new phase of growth as corporate events, social celebrations, and institutional foodservice rebound strongly after pandemic-era disruptions. Catering demand is being shaped by hybrid work models, rising corporate travel, and the steady return of in-person conferences, weddings, and large-format gatherings. As of 2025, total U.S. foodservice sales crossed USD 1.05 trillion, reflecting the broader expansion of the hospitality ecosystem that supports catering services. At the same time, off-premise dining formats delivery, takeout, and event-based catering account for over 60% of total restaurant traffic, highlighting the structural shift toward food consumed outside traditional dine-in settings. This shift is creating sustained tailwinds for professional catering operators across corporate, education, healthcare, and private event segments.
What’s Driving the Catering Market in the USA?
Revival of Corporate Events and MICE Activities
The return of large-scale conferences, trade shows, and business meetings is a major driver for contract and corporate catering. U.S. business travel spending surpassed USD 421 billion in 2023 and continued to grow through 2025 as offices gradually reintroduced in-person collaboration. Corporate campuses, co-working hubs, and convention centers are increasingly outsourcing food services to specialized caterers to manage cost efficiency, menu variety, and service consistency. The growing frequency of multi-day events and training programs is also expanding demand for recurring catering contracts rather than one-off orders.
Shift Toward Off-Premise Consumption and On-Demand Catering
The structural shift toward off-premise food consumption is reshaping catering formats. With more than 60% of restaurant traffic occurring off-premise in recent years, catering operators are benefiting from rising demand for office lunches, boxed meals for meetings, and event-specific bulk orders. Technology-enabled ordering platforms and digital menus are simplifying corporate procurement, while delivery logistics partners are helping caterers scale service across metropolitan areas. This convenience-driven demand is particularly visible in tech hubs, financial districts, and suburban office clusters.
Health-Conscious Menus and Customization Trends
U.S. consumers are increasingly seeking healthier, customizable, and diet-specific meal options. Catering menus are expanding to include plant-based proteins, low-carb offerings, allergen-free selections, and sustainably sourced ingredients. In 2024, over 55% of U.S. consumers indicated they prefer restaurants and caterers that offer healthier menu options, pushing operators to redesign standard catering packages. This shift is driving menu innovation and premium pricing opportunities, especially for corporate wellness programs and university catering contracts.
Government and Institutional Demand Anchoring Volume
Large institutional buyers such as schools, hospitals, military bases, and public sector offices continue to provide volume stability for the catering and contract foodservice segment. The U.S. Department of Agriculture’s National School Lunch Program served meals to over 29 million children daily in 2023–2024, creating consistent demand for bulk food preparation and outsourced catering services. Healthcare facilities are also expanding patient and staff meal programs, supporting long-term catering contracts across urban and regional hospitals.
Market Competition and Operating Landscape
The U.S. catering market is moderately consolidated at the top, with global contract foodservice providers such as Compass Group North America, Aramark, and Sodexo dominating large institutional and corporate contracts. At the same time, the social and event catering segment remains fragmented, with thousands of regional and local players serving weddings, private events, and community gatherings. Branded restaurant chains are increasingly entering catering to diversify revenue, intensifying competition for small and mid-sized caterers. Digital ordering platforms and marketplace aggregators are improving customer access but are also compressing margins through commission structures.
Labor Shortages and Rising Wage Pressure
The U.S. catering industry continues to face tight labor availability, particularly for skilled kitchen staff, drivers, and on-site service personnel. Competition from restaurants, warehouses, and gig platforms has pushed wages upward, increasing operating costs for caterers. High employee turnover also disrupts service quality during peak seasons such as weddings and corporate events. These workforce constraints limit capacity expansion, delay contract fulfillment, and pressure margins, especially for small and mid-sized catering operators.
Future Outlook
The U.S. catering market is expected to grow steadily through 2035, supported by corporate event normalization, institutional foodservice contracts, and expanding off-premise consumption. By 2035, catering is likely to become more data-driven, with demand forecasting, menu personalization, and waste reduction enabled by AI-driven kitchen management systems. Corporate clients are expected to favor long-term catering partnerships that combine nutrition planning, sustainability reporting, and digital ordering integration. As hybrid work stabilizes, weekday office catering volumes may normalize at lower levels than pre-2020, but this will be offset by higher demand from large-scale events, healthcare, education, and lifestyle-driven social functions.
Consultants at Nexdigm, in their latest publication “USA Catering Market Outlook to 2035”, analyzed the market by Service Type (Corporate Catering, Event Catering, Institutional Catering), By End User (Enterprises, Education, Healthcare, Government, Social Events), and By Ordering Channel (Direct Contracts, Online Platforms, Aggregators). Nexdigm believes that catering businesses should prioritize scalable delivery logistics, health-forward menu engineering, and long-term institutional partnerships, while investing in digital ordering systems and waste-reduction technologies to protect margins and improve client retention.
To take the next step, simply visit our Request a Consultation page and share your requirements with us.
Harsh Mittal
+91-8422857704