HoReCa Market is predicted to reach USD 6,449.35 billion at a CAGR of 6.78% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global HoReCa Market”.

HoReCa Market Highlights

The global HoReCa market is projected to witness significant growth during the review period, exhibiting a CAGR of 6.78%. The market was estimated to be USD 3,574.5 billion in 2022 and is expected to reach a value of USD 6,449.35 billion by the end of the forecast period (2023-2032).

"Hotel, Restaurant, and Catering" is referred to by HoReCa. It describes the area of the economy that includes companies and establishments that offer hospitality services, including hotels, restaurants, cafes, bars, catering businesses, and other similar industries. In business and hospitality, the phrase is frequently used to classify and solve the unique needs and difficulties faced by companies that provide food, drink, and lodging services to clients and visitors. HoReCa businesses are vital to tourism and hospitality because they serve locals and visitors looking for food, housing, and related services.

The global HoReCa market is projected to register a CAGR of 6.78% during the forecast period. The HoReCa channel is a group of for-profit catering companies whose main work is producing and supplying meals for consumption directly outside the home. It covers the subsectors of the hospitality, dining, and catering industries, excluding other possible types of facilities. Hotels, restaurants, and food trucks have all greatly expanded as growth-producing businesses. The growth of dining venues like restaurants is one of the major variables affecting the HoReCa market. Additionally, the growing popularity of processed foods and junk food among millennials is one of the key drivers propelling the market's growth. Furthermore, the expansion of the travel and tourism sector is speeding up the market's expansion. The business is fuelled by various cafés and restaurants that provide various supplemental services to satisfy patrons, opening up new opportunities for the HoReCa sector. Due to the spike in demand for processed and ready-to-eat meals over the years, the market would likewise see a significant increase. All these factors are anticipated to boost the market growth.

Market Synopsis

The global HoReCas market has been growing rapidly in recent years. The primary driver of the expansion of the global HoReCa market is the rising desire for healthier dining and lodging alternatives. Customers are actively searching for businesses that provide wholesome and healthy options as they become increasingly concerned with their health and well-being. Due to this growing trend, numerous businesses in the HoReCa sector have been forced to change and respond to their client's evolving needs. Many restaurants increasingly use fewer unhealthy chemicals, such as excessive salt and sugar, and add more healthful components to their recipes. In addition to being advantageous for consumers, a shift towards healthier food alternatives positions eateries as more desirable choices in the market. Catering companies have begun to provide customized menu options, such as vegetarian, vegan, and gluten-free options, as well as lighter and healthier variations on classic dishes. As a result, during the forecast period, such factors are anticipated to fuel market expansion.

However, the main obstacle limiting the expansion of the global hospitality and related industries sector is a lack of trained labor and personnel. Hotels, restaurants, and catering services are just a few of the HoReCa industry segments impacted by the lack of competent personnel. It is getting more and harder to find and keep qualified workers to match this market's escalating demand. This shortcoming may cause service delays, mistakes, and a lack of professionalism, harming the catering business's reputation and resulting in missed business prospects. The worldwide HoReCa business is experiencing a skilled labor shortage for various reasons. This is due, in part, to young people's lack of enthusiasm for professions in this field. The industry's high turnover rate is another factor, as the difficult nature of the labor, the long hours, and the poor pay frequently drive employees to look for different employment alternatives. Therefore, during the projected period, these factors are anticipated to restrain market expansion.

Competitive Landscape

The high competition among the players have encouraged the players to produce quality products in the market. In order to build new and quality products, numerous companies benefit from mergers, acquisitions, and product development. To preserve their positions and broaden their geographic reach, the players in the worldwide HoReCa market are using a variety of strategies, including expansion, mergers and acquisitions, alliances, joint ventures, and product launches. To gain the largest possible market share, expansion was the growth strategy that was most frequently used by market participants.

There are numerous international, national, and regional players in the worldwide HoReCa industry. There is a lot of competition in this sector, and everyone is trying to increase their portion of customers' wallets. When comparing prices and quality, as well as product availability across regions, different suppliers will use different metrics. In order to be competitive, suppliers must offer reasonably priced, high-quality products and services. Market and economic conditions, government laws, and technological progress all affect how quickly and how large market actors can expand. As a result, businesses in this sector need to concentrate on increasing output and refining their offerings to keep up with consumer demand. The companies in the market are investing heavily in providing quality products and services. Although worldwide companies account for the vast majority of sales, smaller regional and local firms are also present.

Key Market Strategies

Nike has renewed the multi-year global licensing agreement with Marchon Eyewear for the Numerous factors have an impact on how the HoReCa industry develops and expands. The market's dynamics have been altered by changing consumer choices, globalization, increased urbanization, and rising disposable income. In addition, movements like "farm-to-table," "sustainability," "fusion food," and "technological integration" have altered the landscape and promoted inventiveness and ingenuity in the kitchen. The HoReCa industry is extremely varied, and small and medium-sized businesses predominate. Online ordering and delivery services have had a significant impact on the HoReCa market recently. With limitations and lockdowns throughout the epidemic, this trend is expected to persist and will be especially crucial for restaurateurs. However, the employment of technology in the hospitality sector is a trend that will most likely continue. For instance, many hotels and restaurants currently offer smartphone apps and online ordering services to their patrons, enabling them to book rooms and place meals. Virtual and augmented reality, artificial intelligence, and other technologies that can help organizations increase productivity, cut expenses, and improve customer experiences will likely become even more widely used in the future. Furthermore, the industry for international online meal delivery is thought to be worth $130.2 billion and is projected to increase to $223.7 billion by 2027, according to Statista. Restaurants unable to provide in-house food ordering and delivery services will continue to depend on third-party food delivery services like DoorDash, Uber Eats, and GrubHub. Digital tools let restaurants build strong relationships with their clients despite the distance. Thus, expanding the market as a result.

The future of the hospitality industry is also expected to be influenced by a trend: shifting consumer preferences. This can anticipate a demand increase for organic, regionally sourced, and sustainably produced food options as more people become health-conscious and environmentally conscientious. Younger generations are more likely to spend more money on wholesome foods, including those that use trendy terms like organic, GMO-free, and all-natural. A lot of eateries and hotels are catching on to the popularity of vegan cuisine, which is also on the increase. Restaurants will begin to add new items to their menus as demand for healthy eating options rises. In place of simply serving meals made with conventional foods, they will now offer a variety of plant-based and vegan options as menu staples. Thus, all these factors are anticipated to drive the HoReCa market growth over the forecast period.

Furthermore, businesses in HoReCa continued to use contactless technologies to increase productivity and enhance customer experiences, implementing anything from virtual menus and QR code ordering to digital guest registration and voice-activated systems. The pandemic made contactless payment the new norm, despite steadily gaining popularity in the international restaurant sector. Approximately 53% of POS transactions will be contactless globally in the next five years, according to 2020 Juniper research. The value of contactless payments worldwide is expected to rise by 300% ($2 trillion to $6 trillion) by 2024, according to a Juniper prediction. Moreover, HoReCa businesses began using digital menus that could be accessed by scanning QR codes instead of the usual printed menus. Customers can access the menu on their own devices by scanning the QR codes with their smartphones, eliminating the requirement for printed menus and lowering the danger of cross-contamination. Thus, the HoReCa market is growing due to rising contactless services.

Lastly, the HoReCa industry noticed a rise in immersive hospitality and interactive eating. Beyond only the cuisine and lodging, they searched for distinctive and memorable experiences. To enhance the overall dining or lodging experience, establishments started putting more emphasis on storytelling, themed events, and interactive aspects.

By Region

• North America: The U.S. is anticipated to lead the North American market throughout the forecast period. Greater income production in the US results from Americans spending more on luxurious accommodations. The American Hotel and Lodging Association (AHLA) reported that in 2022, American hotel room services revenues and the country's hotel occupancy rate would be USD 168.0 billion and 63.4%, respectively. As a result, the U.S. market is driven by consumers' growing propensity for leisure travel and increased purchasing power.


• Europe: The market for HoReCa in Germany is anticipated to Benefit from the huge population's reliance on outdoor dining and changing lifestyles. An important factor in the market expansion in this nation, which is well-known for travel and tourism, is the availability of food from many areas. The nation's rising need for packaged and processed foods is another factor boosting the industry's expansion. Changes in eating habits, a rise in the appeal of dining out, and a reduced cooking time are further factors influencing the HoReCa sector's geographical expansion.


• Asia-Pacific: It is anticipated that the China HoReCa market will expand significantly throughout the projected period because domestic and leisure trips are becoming more expensive. To largely provide opulent luxuries to their customers in this nation, most firms are investing sizable sums in thorough R&D activities. The company is also prospering due to local governments' growing investments in the tourism industry. The local administration has taken several steps that have sped up the development of the tourism industry and boosted the number of visitors. The country's HoReCa business is expanding due to new items being introduced, local restaurant expansion, and millennials' increased preference for eating out.


• Latin America: Over the course of the projection period, it is predicted that the HoReCa market in Brazil will expand significantly. As disposable income rises, more people are choosing to stay in hotels. The popularity of eating out and a busier lifestyle, both of which raise demand for prepared food items, are major factors affecting the growth of the HoReCa industry. Consumers have tremendous purchasing power, which helps the market grow. The competitive hotel and tourist sector is one of the economic sectors with the fastest growth rates. Many different types of lodging are available for both business and pleasure travelers.


• Middle East & Africa: The market for HoReCa in Saudi Arabia is expected to grow quickly, largely because there are more women working and many HoReCa menu items that appeal to the customers' tastes. The market is driven by changing lifestyles and a sizeable population's reliance on outdoor dining. The expansion of the industry in this well-known travel and tourism zone has been greatly influenced by the accessibility of cuisine from several areas. The rising demand for packaged and processed foods in the nation is another factor promoting the industry's expansion. Changes in eating habits, a rise in the popularity of eating out, and a reduction in cooking time are a few other variables affecting the spread of the hospitality industry.