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Indonesia catering market to register a steady five year CAGR of over 10% in next 5 years till 2022

Author: Vicky Karantzavelou / Date: Thu, 04/19/2018 - 15:06
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Indonesia Catering Market is driven by several high growth potential opportunities and test case scenarios. Hospitality sector and the market for pure play caterers is highly fragmented whereas, in-flight & industrial, railway catering sectors have been marked with highly concentrated competition.

GURUGRAM, INDIA - Catering in Hotels & Wedding Halls will continue to account for majority revenue share in Catering Market in Indonesia till 2022. Dominating Players in the segment include Ayana Resort and Spa, Alila Jakarta, Conrad Bali, The Mulia, The Royal Santrian and others. Over 1,300 Hotels & Wedding Halls currently operates in Indonesia. Catering Market is expected to witness consolidation and new market entry by other restaurant players especially in the corporate events and wedding celebration.

Indonesia Catering Market is driven by several high growth potential opportunities and test case scenarios. Hospitality sector and the market for pure play caterers is highly fragmented whereas, in-flight & industrial, railway catering sectors have been marked with highly concentrated competition. There were approximately 1,500 food catering entities operating in 2017 providing food catering services along with providing supplementary facilities such as flower decoration, parking facilities, seating arrangement, cutlery and others. Few of the major players include Sasana Kriya, Hilton Garden Inn, Conrad Bali, The Royal Santrian, Hard Rock Hotel Bali, Holiday Inn Jakarta, Holiday Inn Express Jakarta Thamrin, PT Indocater, CAS Group, Aerofood and others.

The pre-requisite of heavy investment into setting up a full-fledged production facility and establishing a large distribution network has presented challenges for stakeholders to scale their businesses. This also proves to be a barrier in the entry of new players. Presence & expertise of major players, large geographical out-reach (especially to remote sites), diversity in menus, larger capacity of event halls, well established & exclusive clientele have helped these major players to assemble higher revenue share in the market during the 2012-2017.

Indonesia is an attractive destination for investment in catering business because it has a large addressable market, stability in tourist arrivals, relatively low labor costs and reasonable priced and availability of raw materials. The construction of hotel project would be supported by purpose of the government to target 20 million tourists in 2020, and for successful hosting of Asian Games 2018 which will be held in Jakarta and Palembang. Indonesian government is taking up various initiatives to increase the number of international tourists in the country.

Ken Research in its latest study, "Indonesia Catering Market Outlook to 2022 - by Hotel and Wedding Halls Catering, In-Flight Catering, Industrial Catering, Educational Catering, Healthcare Catering, Railway Catering" suggests Success of a catering company depends largely upon the quality of food which it offers to the customers. It is preferred by the market players to hire the best chefs and focus on their aggressive training from time to time. This can be done by contacting big Hotel Management institutes of the country.

ABOUT THE AUTHOR

Vicky Karantzavelou

Co-Founder & Chief Editor

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.