Canadian institutional foodservice to grow 4.1 per cent in 2012

Institutional foodservice to grow 4.1 per cent in 2012By Geoff Wilson
March 26, 2012

2012 Canadian Institutional Foodservice Market Report

According to fsSTRATEGY’s newly released 2012 Canadian Institutional Foodservice Market Report, the total institutional foodservice market is expected to grow to $7.1 billion this year – representing a 4.1 per cent increase over 2011. This combined contracted and self-operated institutional foodservice is expected to account for 11 per cent of Canada’s $65-billion foodservice industry in 2012.

Contract caterers are expected to account for 44 per cent of the institutional foodservice market in 2012 while self-operated institutional foodservice will account for 56 per cent.

Sector trends

The report also identifies key trends in each sector:

  • Retirement foodservice is expected to be the fastest-growing institutional foodservice segment in 2012, on the heels of strong expansion in 2011. Growth is attributed to a continuing rise in occupancy levels as well as increases in daily spending due to enhancements to menus to build market share.
  • Hospital foodservice sales were expected to rise moderately in 2011 and 2012, driven primarily by significant increases to food costs and rising occupancy rates. Hospitals are now approaching capacity as Canada’s healthcare system strains to meet demand.
  • Correctional foodservice sales are expected to experience the second-highest growth of all institutional foodservice sectors in 2012. These increases are driven by rising costs and growing inmate populations at federal facilities due to the government’s tougher stance on crime.
  • Transportation foodservices were expected to grow moderately in 2011 and 2012. This represents a significant improvement over the flat sales performance in 2009. Based on discussions with airline caterers and major airports, flight traffic is expected to increase moderately in 2012. According to port authorities, cruise ship traffic continues to grow, primarily in Quebec and Montreal, and in 2011, significantly on the Vancouver – Alaska corridor.
  • Business dining sales are expected to be relatively flat in 2012. The number of business plants and offices (specifically in the private sector) offering foodservices will continue to decline, as will the populations by location. Further, daily spending is expected to rise with price increases and enhanced sales strategies.

Ardent Mills Organic 2016

Posted in Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *