With restaurant foodservice sales generally under pressure, education foodservice sales remain a bright spot: Packaged Facts forecasts education foodservice sales at primary, secondary, and postsecondary schools will reach $41.15 billion in 2010, up 2.5% from 2009, according to The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education.
We view federal food programs and student loans as revenue bulwarks that have helped soften the recessionary blow on educational foodservice, as they have helped shield it from swoons in discretionary spending. In response to the children’s obesity crisis and propelled by First Lady Michelle Obama’s Let’s Move campaign, we believe that K-12 foodservice will continue to receive significant attention—and funding—beyond the Obama administration’s first term. The wild card concerns state and local revenue: With property tax revenue declining steeply and with many budgets facing significant revenue shortfalls, primary and secondary schools are in a real fight for local and state budgetary dollars.
Within the next five years, nutritional change will continue to aggressively evolve, as policy makers ready their revisions to school meal nutritional guidelines. We believe these changes are widespread and significant enough that they will ripple out of schools and into the home, helping to reshape how consumers interact with food.
As for today’s college students, the children of the Restaurant Age expect more than ever from their foodservice programs. But with more families in economic straits and lower college enrollment rates ahead, college foodservice programs will need to compete more aggressively to grow revenue.
The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education provides the insight industry participants need to understand today’s evolving educational foodservice market, by mapping key trends and policies shaping the K-12 and university sales growth and by profiling a range of school district programs, college foodservice programs, and educational foodservice contractors.
Packaged Facts forecasts educational foodservice to grow 2.7% in 2011 and 2.9% in 2012, with slightly higher estimates for college foodservice than for K-12 foodservice.
Market Insights: A Selection From The Report
University Foodservice Program Analysis
All students at Duke University residing on campus are required to purchase a meal plan. Freshmen much choose between 3 meal plans that all provide 12 meals a week, and a range of food points (1 food point = $1), which can be used at any campus eatery, convenience store,
vending machine, or off-campus Merchants on Point Vendor. Meals not used during the week become invalid, whereas food points roll over. Upperclassmen (everyone other than freshmen) are only required to purchase food points. Duke students...
Packaged Facts’ Consumer Restaurant Tracker
To analyze consumer use of educational foodservice and place it within the context of the broader foodservice industry, we highlight results from our proprietary quarterly Consumer Restaurant Tracker.
Our Tracker provides directional analysis on consumer spending behaviors and attitudes related to foodservice use (with a focus on restaurants and food retail). Current consumer behavior, as well as intended consumer behavior during the “next three months,” is assessed. Packaged Facts also provides directional analysis on consumer usage and usage frequency, according to foodservice category and type (shown in the table below).
We compare educational foodservice program use against two other institutional segments (hospital foodservice and corporate foodservice), then narrow our focus to students’ engagement with college foodservice.
Market size and overview
Packaged Facts forecasts education foodservice sales at primary, secondary, and postsecondary schools will reach $41.15 billion in 2010, up 2.5% from 2009. While we expect stronger college foodservice sales than K-12 sales, both foodservice categories have performed relatively well, given the current economic climate.
We forecast educational foodservice to grow...
Future trends at Vanderbilt
In our September 2010 interview with Vanderbilt's Foodservice Director Howard Camp, we learned that students have mounting expectations for the range of dietary needs and restrictions. His students ask for options that are gluten-free, kosher, soy-free, and so forth. They increasingly demand options that are portable, flavorful, and...In the News
New York, December 14, 2010 — Bolstered by revenue safeguards such as federal food programs and student loans, K-12 and college foodservice has emerged as an industry bright spot expected to grow steadily over the next several years, according to The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education by market research publisher Packaged Facts.
The report forecasts education foodservice sales at primary, secondary, and postsecondary schools will exceed $41 billion in 2010, up almost 3% from 2009. At $22 billion, K-12 foodservice sales comprise 53% of the market, while college foodservice comprises 47%. Though stronger college foodservice sales are expected, both categories have performed relatively well considering the current economic climate. Forecasts for 2011 and 2012 trend similar with growth approaching 3% expected both years, with slightly higher estimates for college foodservice.
Unlike restaurant foodservice and its dependency on discretionary spending, education foodservice remains more shielded from negative swings in consumer expenditure. However, the industry’s relative recession resistance may not fully protect it from the sluggish economy, which Packaged Facts expects will likely influence future market growth to some extent due to changes in government funding and the number of students financially able to afford enrolling in college.
"With local, state and federal budgets hit hard by revenue declines and deficit fears, funds earmarked for education are now under severe pressure," says Don Montuori, publisher of Packaged Facts. "As a result the wildcard to near-term growth concerns the extent to which local and state governments may be forced to curtail education revenue, and the effect any potential cuts would have on school foodservice budgets. However, we anticipate that future food-related federal government funding will be secure at the primary and secondary educational levels."
The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education provides the insight industry participants need to understand today’s evolving educational foodservice market, by mapping key trends and policies shaping the K-12 and university sales growth and by profiling a range of school district programs, college foodservice programs, and educational foodservice contractors. .
About Packaged Facts — Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products.Packaged Facts also offers a full range of custom research services.
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