HoReCa Market – The Dominance of Single Outlets in the HoReCA Industry: Global Industry Analysis and Forecast (2023-2029)

The Global HoReCa Market size was valued at USD 2.92 Trillion in 2022 and the total HoReCa Market revenue is expected to grow at a CAGR of 3.64% from 2023 to 2029, reaching nearly USD 3.75 Trillion By 2029.

HoReCa (Hotels, Restaurants and Catering) is a term used to describe the hospitality industry. It is most commonly used in Europe, but it is also used in other parts of the world, such as India and Australia. In the United States, the most common term for the hospitality market is "hospitality sector". A major factor behind the growth of the global HORECA market is the expansion and development of restaurants and food outlets. For instance, according to JLL's Hotel Momentum India (HMI) Q4, 2021, the Indian hospitality industry saw a revenue per available room (RevPAR) growth of 100.3 percent year on year in the fourth quarter of 2021. The RevPAR for the fourth quarter (October-December) was 41.9 %. Furthermore, according to the National Restaurant Association, sales at U.S. eating and drinking establishments increased 10.2 % to $548.3 billion in 2021, as customers indulged pent-up demand for service experiences they were prohibited during the outbreak.The Hospitality Industry in 2023: Recovery and Resilience

The hospitality industry, encompassing hotels, restaurants, and catering, has weathered the storm of the COVID-19 pandemic and is poised for a rebound in 2022. While the HoReCa Market still faces challenges, there are encouraging signs of recovery.
Hotel Demand and Revenue on the Rise:

1. Hotel occupancy rates are expected to reach 63.4% in 2022, approaching pre-pandemic levels. This recovery is being driven by pent-up demand for travel and leisure activities, as well as a gradual return to business travel.

2. In line with this occupancy growth, hotel revenues are also expected to increase, reaching $168 billion in 2022. This represents a significant rebound from the $128 billion generated in 2020.
Meetings and Events Industry Resurges:
1. The meetings and events industry, a crucial component of the HoReCa Market, is also showing signs of recovery. In 2022, 58.3% of meetings and events are expected to return, with a full-fledged comeback anticipated by 2023.

2. This resurgence is being fueled by the easing of travel restrictions and the increasing adoption of hybrid meeting formats, combining in-person and virtual elements.To know about the Research Methodology :- Request Free Sample Report
HoReCa Market Dynamics:
Growing Tourism Bolsters HoReCa Industry in 2022:

The HoReCa market, encompassing hotels, restaurants, and catering, is closely intertwined with the tourism industry. As tourism flourishes, so does the demand for HoReCa services, creating a symbiotic relationship that benefits both sectors.

In 2022, the global tourism industry witnessed a significant rebound after the pandemic-induced slump. According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals reached 613 million in 2022, representing 55% of pre-pandemic levels. This resurgence of tourism has had a positive impact on the HoReCa market, driving demand for accommodation, dining, and catering services.The growing tourism industry is providing a much-needed boost to the HoReCa market, revitalizing businesses and creating opportunities for growth and innovation. As the world embraces travel once again, the tourism-HoReCa relationship is poised to flourish, contributing to economic recovery, job creation, and enhanced travel experiences for all.

Technological Advancements: Revolutionizing the HoReCa Industry:

The HoReCa market, encompassing hotels, restaurants, and catering, is undergoing a significant transformation driven by the adoption of cutting-edge technologies. These advancements are not only enhancing guest experiences but also improving operational efficiency, optimizing resource utilization, and fostering innovation across the sector.

1. Artificial Intelligence (AI): AI is rapidly transforming the HoReCa landscape, introducing a new era of personalization, automation, and predictive analytics.

2. Contactless Technologies: Contactless technologies are revolutionizing the way HoReCa businesses interact with guests, promoting convenience, hygiene, and a touchless experience.

3. Mobile applications are becoming indispensable tools for HoReCa market, providing guests with convenient access to information, services, and personalized experiences.

The Rise of E-commerce and Online Food Ordering:

The digital revolution has transformed the way consumers interact with businesses, and the HoReCa industry is no exception. The growth of e-commerce and online food ordering is creating a new landscape for HoReCa market, offering both challenges and opportunities.
Market Growth Challenges:
1. Increased competition: The online space has become a crowded marketplace, with numerous restaurants and food delivery platforms vying for customers' attention. This makes it more challenging for HoReCa market to stand out and attract customers.

2. Reduced margins: Online food ordering platforms often charge commissions on orders, which can eat into HoReCa market' profits. Additionally, the costs of packaging and delivery can further reduce margins.

3. Customer acquisition and retention: Attracting new customers and keeping existing ones loyal is crucial for success in the online space. This requires effective marketing strategies, customer relationship management (CRM) systems, and a focus on providing exceptional customer service.
Market Growth Opportunities:
1. Expanded reach: Online platforms allow HoReCa market to reach a wider audience beyond their immediate geographic area. This can significantly increase their customer base and revenue potential.

2. Convenience for customers: Online food ordering offers convenience and flexibility to consumers, allowing them to order food from the comfort of their homes or offices. This can increase customer satisfaction and loyalty.

3. Data-driven insights: Online platforms generate valuable data about customer preferences, ordering patterns, and behavior. HoReCa market can use this data to make informed decisions about menu offerings, pricing strategies, and marketing campaigns.

4. Personalized experiences: Online platforms enable HoReCa market to personalize customer experiences by providing tailored recommendations, dietary options, and loyalty programs.
Strategies for HoReCa Businesses

To capitalize on the opportunities presented by e-commerce and online food ordering, HoReCa market can adopt the following strategies:

1. Partner with delivery platforms: Collaborating with established delivery platforms like Uber Eats, DoorDash, and Grubhub can significantly expand their reach and tap into a wider customer base.

2. Invest in online presence: Developing a strong online presence, including a user-friendly website and social media engagement, is crucial for attracting and retaining customers.

3. Optimize online menus: Online menus should be clear, visually appealing, and easy to navigate. High-quality food photography and detailed descriptions can entice customers to order.

4. Leverage data analytics: Utilize customer data to personalize experiences, optimize pricing, and identify trends that inform menu development and marketing strategies.

5. Focus on customer satisfaction: Provide excellent customer service through prompt order fulfillment, responsive communication, and effective complaint resolution.
HoReCa Market Regional Insight:
APAC Emerges as a HoReCa Powerhouse -

APAC dominated the global HoReCa market with the highest market share of over 48% in 2022. The Asia-Pacific (APAC) region is rapidly establishing itself as a dominant force in the global HoReCa market, driven by a confluence of factors, including a massive population, urbanization, and rising disposable incomes. With over 4.7 billion inhabitants, APAC represents a vast and growing consumer base, fueling demand for hospitality services.

International tourism plays a pivotal role in the region's HoReCa market, with countries like Thailand, Japan, and China attracting a surge of visitors. In 2022, Thailand witnessed a remarkable 39.9% increase in international tourist arrivals, demonstrating the region's appeal as a travel destination. This influx of tourists has translated into a heightened demand for accommodation, dining, and entertainment options. The burgeoning middle class in APAC is another key factor propelling the HoReCa industry forward. As incomes rise, individuals are increasingly opting for dining out and seeking luxury accommodations, further stimulating demand. This trend is particularly evident in countries like China and India, where the middle class is expanding at a rapid pace.

Technology is revolutionizing the HoReCa market in APAC, with mobile apps and artificial intelligence (AI) transforming operations and enhancing guest experiences. Mobile apps are enabling seamless check-in, contactless payments, and personalized recommendations, while AI is optimizing resource allocation and providing data-driven insights to improve efficiency. Furthermore, APAC's culinary diversity is a major draw for both domestic and international travelers. Renowned culinary scenes in Japan, Thailand, and other countries offer a unique blend of flavors and dining experiences, further solidifying the region's position as a HoReCa powerhouse.

Current Trends and Future Scenario of the Indian Hospitality Sector

The Indian hospitality sector, encompassing hotels, restaurants, and catering, is witnessing remarkable growth, driven by several key trends and promising future prospects. The Federation of Hotel and Restaurant Associations of India (FHRAI), the apex body of the Indian hospitality industry, provides comprehensive data on the sector, including 53,000 hotels, 70 lakh restaurants, and 2.3 crore unorganized outlets.

Rising Food Budget Share: The share of food expenditure in the average Indian household's budget is projected to increase from 29% in 2022 to 35.4% by 2025. This increasing disposable income is fueling demand for dining out, catering services, and accommodation, driving growth in the HoReCa market.

Globalizing HoReCa Terminology: The term "HoReCa," originating in the Netherlands, has gained widespread adoption in business contexts across Europe and Asia. While traditionally used in these regions, the term is increasingly being embraced in American industry jargon as the global hospitality market expands and converges.

Elevated Hospitality Standards: India's hotel industry is experiencing rapid growth, with the establishment of foreign hotel chains significantly enhancing service standards and establishing new benchmarks for excellence. The number of hotels in India has tripled in the past ten years, reflecting the growing demand for quality accommodation.
HoReCa Market Segment Analysis:
Single Outlets: The Reigning Champions of the HoReCA Realm

Based on Type, the Single outlet segment held the largest HoReCa Market share of about 60.78% in the global HoReCa market in 2022. According to the MMR analysis, the segment is further expected to grow at a CAGR of 4.12% during the forecast period. Single outlets excel in fostering a sense of community and personalized customer relationships, a stark contrast to the often perceived impersonal nature of larger chains. By providing tailored recommendations, engaging with customers on a personal level, and creating a unique atmosphere, single outlets establish themselves as welcoming havens for discerning diners seeking more than just a meal.The dominance of single outlets in the HoReCA market is a testament to their agility, personalized service, niche expertise, community engagement, and ability to adapt to evolving consumer preferences. These factors enable them to thrive in a dynamic and competitive market, offering unique experiences and culinary delights to diverse customers worldwide, solidifying their position as the cornerstone of the HoReCA Market.
Competitive Landscape: HoReCa Market
The HoReCa market is highly fragmented, with a large number of players competing for market share. The competitive landscape can be broadly categorized into the following segments:

Single outlets: These are independent establishments with a single location, such as family-owned restaurants or cafes. Single outlets account for the majority of HoReCa market but typically have smaller market shares compared to larger chains.

Chains and franchises: These are businesses that operate multiple locations under a common brand and name. HoReCa chains often benefit from economies of scale, brand recognition, and standardized operating procedures.

Luxury hotels and restaurants: These establishments cater to high-end customers and offer premium amenities, personalized service, and exclusive dining experiences.

Online food ordering and delivery platforms: These platforms have transformed the way consumers order and receive food, creating a new channel for competition and disrupting traditional HoReCa marketbusiness models.

Key Players in HoReCa Market Growth Strategy: Pizza Hut Accelerates Global Growth with New Multi-Unit Franchise Agreements

Pizza Hut's smart growth strategy is focused on opening new restaurants in high-growth markets, partnering with experienced franchise operators, and investing in digital innovation. The brand is also focused on providing its guests with a superior dining experience, offering a variety of menu options, including its iconic pizzas, wings, and pasta dishes, as well as convenient delivery and carryout options.

Pizza Hut, one of the world's largest restaurant brands, is accelerating its global growth strategy with five new multi-unit franchise agreements across Texas, Florida, Arizona, and the Mid-Atlantic region. These agreements represent a total of 75 new restaurants, which will be developed and operated by experienced franchisees. The new agreements are part of Pizza Hut's ongoing efforts to expand its reach and make its delicious pizzas even more accessible to customers around the world. The company is targeting key growth markets, such as the United States, Latin America, and Asia Pacific, and is investing in new technologies and innovations to enhance the customer experience.
HoReCa Market Scope: Inquiry Before Buying



HoReCa Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 2.92 Tn.


Forecast Period 2023 to 2029 CAGR:
3.64%
Market Size in 2029:
US $ 3.75 Tn.


 Segments Covered:
by Type
Single outlet
HoReCa chain


by Services
Restaurants
Hotels
Cafes and pubs



HoReCa Market by Region:
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan, and the Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria, and the Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
HoReCa Market Key Players:
1. Chick fil A Inc.
2. Dominos Pizza Inc.
3. Hilton Worldwide Holdings Inc.
4. Hyatt Hotels Corp.
5. Inspire Brands Inc.
6. InterContinental Hotels Group Plc, ITC Ltd.
7. Jack in the Box Inc.
8. Little Caesar Enterprises Inc.
9. Marriott International Inc.
10. McDonald Corp.
11. Papa Johns International Inc.
12. Performance Food Group Co.
13. Restaurant Brands International Inc.
14. Starbucks Corp.
15. Tata Sons Pvt. Ltd.
16. The Coca Cola Co.
17. Pizza Hut
18. The Wendys Co.
19. Wyndham Hotels and Resorts Inc
20. YUM Brands Inc.
FAQs:
1. What are the growth drivers for the HoReCa Market?
Ans. Integration of technology in the HoReCa sector, increasing demand for healthier food options and accommodations etc. are expected to be the major drivers for the HoReCa Market.

2. What is the major restraint for the HoReCa Market growth?
Ans. Increasing competition in hospitablity industry is expected to be the major restraining factor for the HoReCa Market growth.

3. Which region is expected to lead the global HoReCa Market during the forecast period?
Ans. APAC is expected to lead the global HoReCa Market during the forecast period.

4. What is the projected market size & and growth rate of the HoReCa Market?
Ans. The HoReCa Market size was valued at USD 2.92 Trillion in 2022 and the total HoReCa Market revenue is expected to grow at a CAGR of 3.64% from 2023 to 2029, reaching nearly USD 3.75 TrillionBy 2029.

5. What segments are covered in the HoReCa Market report?
Ans. The segments covered in the HoReCa Market report are Type, Services, and Region.