Education Foodservice Segment up 3%

ROCKVILLE, Md.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 a new Packaged Facts report.

The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education" report forecasts education foodservice sales at primary, secondary, and postsecondary schools will exceed $41 billion in 2010, up almost 3 percent from 2009. At $22 billion, K-12 foodservice sales comprise 53 percent of the market, while college foodservice comprises 47 percent. 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 percent 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," said 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."