HoReCa Market Analysis

Global HoReCa Market Overview

HoReCa Market Size was valued at USD 3,394.6 billion in 2023 and USD 3,574.5 billion in 2024. The HoReCa industry is projected to grow USD 6,449.35 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.70% during the forecast period (2024 - 2032). In Dutch, "hotels, restaurants, and cafes" are referred to as "HoReCa." 

One of the main factors influencing the HoReCa market is the expansion of food establishments like restaurants. One of the main factors driving the expansion of the market is the rising desire for processed foods and junk food among millennia. For instance, in the United States alone, there were 78,092 pizza eateries opened in 2020. Pizza restaurants have grown in number by about 6,000 units over the previous nine years, despite year-to-year variations. As a result of offering the same goods, there has been fierce competition among independent chains of pizza and restaurants. 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Furthermore, the global demand for commercial equipment is fueled by increased consumer expenditure on food delivery and the pressure to fulfill customers' orders on time. Additionally, the HoReCa sector's growth is driven by an increase in cafés, hotels, and restaurants and a rise in processed and packaged food demand due to an increase in the number of working couples and the embrace of Western culture.

HoReCa Market Trends

• Growing Tourism Industry

The number of domestic and foreign tourists traveling to diverse locations increases as the tourism industry develops. Hotels, restaurants, and cafes in well-known tourist destinations are in increased demand since visitors need lodging, dining, and refreshment services. Furthermore, seasonal changes are common in the tourist industry, with peak seasons seeing an increase in visitors. Peak seasons bring higher occupancy rates and a greater influx of patrons to hotels and restaurants. Business travelers, as well as vacationers, highly influence the HoReCa market. Corporate gatherings, conferences, and meetings necessitate appropriate settings and lodging, which fuels a consistent demand for hotels and eateries in business-friendly areas. Destinations frequently invest in building their infrastructure for tourists as tourism expands. Along with enhancing transportation infrastructure, this entails building additional hotels, resorts, and eateries. Such developments further stimulate the HoReCa market in such locations. The hospitality sector promotes joint ventures and alliances with other industries like restaurants and hotels. For instance, hotels and nearby eateries may offer eating packages, while cafes and tourist sites may collaborate to draw customers.

HoReCa Market Segment Insights

HoReCa Service Type Insights

The HoReCa Market segmentation, based on the service type, has been segmented into hotels, restaurants, and cafes and pubs. The restaurants segment accounted for the largest market share in 2022 in the HoReCa Market revenue. The restaurant category is anticipated to grow significantly over the forecast period. From quick-service restaurants to fine-dining venues, restaurants provide various gastronomic experiences. Individuals, families, and parties looking for meal options outside their homes are catered to by this category. There are many different restaurant layouts and eating concepts. Fast food restaurants, family-style restaurants, ethnic restaurants, fine dining places, cafes, bistros and more fall under this category. Each kind of restaurant offers different ambiance, menus, and dining experiences.

April-2023: Seven months after Burger King unveiled a strategy to revive its U.S. business, the chain is selling more Whoppers than ever before.

Jan-2023: With four chains and an impressive presence around the world, the Louisville, Ky.-based company typically increases its unit count by about 4% a year and now has more than 50,000 locations total, including 25,000 KFC restaurants.

June-2023: Jubilant Foodworks plans to invest Rs 900 crore in India in 12-18 months.

Sep-2022: Introduces Three-Year Financial Roadmap, Delivering Annual 7-9% Comparable Store Sales Growth, 10-12% Revenue Growth, and 15-20% Non-GAAP EPS Growth.

Figure 2: HoReCa Market, by Service Type, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

HoReCa Category Insights

Based on category, the HoReCa Market data has been bifurcated into single outlet and HoReCa chain. The single outlet segment accounted for the largest market in 2022 in the HoReCa Market revenue. During the projected period, the single outlet segment is anticipated to develop fastest. A single outlet, as opposed to a chain or franchise, is an independent company that runs independently within its industry and has just one branch or location. Examples of single outlets include restaurants, cafes, and hotels. The flexibility of a single outlet to adjust to shifting consumer tastes is essential to its success. Menus at the one establishment must be updated frequently to include tried-and-true favorites and cutting-edge fare. In addition, these lone establishments frequently rely on word-of-mouth and a committed clientele. As a result, these factors are anticipated to raise demand for single outlets, accelerating market expansion over the forecast period. This has further broadened the growth opportunity for the HoReCa industry.

Figure 2: HoReCa Market, by Category, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

HoReCa Regional Market Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. Asia-Pacific is the largest region in the HoReCa market with a market share in 2022.

Figure 3: HORECA MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America HoReCa market is expected to expand at a robust rate over the projected period, according to Market Research Future. North America is anticipated to grow at the highest rate in the HoReCa market over the forecast period. The development of new airports and highways in developing countries has encouraged various restaurant and hotel chains to open rooftop bars and pubs. Meanwhile, the emergence of upscale bars and pubs has occurred due to the diverse tastes and preferences of the country's young adults for various types of premium beverages. Because of this, the HoReCa market in this area is being driven. Additionally, the market has seen significant investments in micro hotels in North American urban centers by independent and well-known brand hotels. For instance, Marriott International, a renowned American global smart hospitality firm, announced the opening of its network of Moxy hotels in the Southeast of the United States in January 2022. These are the main elements that will fuel North America's expansion in the market during the prediction period.

Europe’s HoReCa market accounts for the second largest market share as of 2022. Europe is anticipated to drive the growth of the HoReCa at a significant rate over the forecast period. One of the key factors boosting the market's expansion is the rising demand for processed and junk food in the millenniums. Tacos, sandwiches, doughnuts, and milkshakes are just a few examples of light meals and nonalcoholic drinks frequently consumed as snacks and mini-meals and are, therefore, simpler to consume on the move. German and British consumers favor light food items topped and packed with toppings, such as cookies, vegan cream, and apple pies. For instance, European cafe and bar market vendors sell donuts filled with apple pie and caramel sauce or custard filling and topped with toffee. Such vendor product offerings are anticipated to boost food sales in European cafés and bars. As a result, it is projected that this will fuel the HoReCa business in this area.

Asia-Pacific HoReCa market accounts for a significant market share as of 2022. The market for HoReCa is anticipated to be dominated by Asia-Pacific. In APAC, disposable income has greatly expanded due to population growth, growing urbanization, and shifting consumer preferences. The area's hotel, restaurant, and cafe market will rise. The rising number of foreign visitors to APAC is one of the key drivers of the HoReCa market's expansion. The number of tourists visiting nations like Thailand, Japan, and China is rising, raising the demand for hospitality services. The way hotels and restaurants operate is evolving as a result of innovative technologies like mobile apps for online reservations, digital payment systems, and personalization enabled by AI. Various traditional and foreign cuisines are available in nations like Thailand and Japan, which are recognized for their gastronomic brilliance. Food tourism is becoming increasingly popular, fueling market expansion in this area throughout the projection period.

The Latin America HoReCa market comprises of the Brazil, Argentina, and Rest of Latin America. The HoReCa market in Latin America is anticipated to grow substantially over the forecast period because domestic and recreational travel costs are increasing. Most corporations are making sizeable investments in thorough R&D operations to largely give their clients sumptuous luxuries in this country. The firm is also flourishing due to increasing investments in the tourism sector by local governments. Numerous initiatives by the local government have accelerated the growth of the tourist sector and increased visitor numbers. The introduction of new products, the growth of regional restaurants, and millennials' greater penchant for eating out all contribute to the country's HoReCa market's boom.

The Middle East & Africa HoReCa market comprises of the GCC, Northern Africa, Southern Africa, and Rest of Middle East & Africa. Over the projection period, it is anticipated that the Middle East and Africa would witness significant growth in the HoReCa market as a result of rising domestic and leisure travel expenses. To largely offer their clients opulent amenities in this nation, most businesses are investing considerably in thorough R&D activities. Additionally, the business is booming due to increased expenditures made in the tourism industry by regional governments. Numerous local government efforts have sped up the development of the tourism industry and drawn more visitors. On the other side, the country's HoReCa market is expanding due to the expansion of eateries in the area, the introduction of new products, and millennials' increased propensity for eating out.

HoReCa Key Players & Market Competitive Landscape

Many national, international, and local merchants mark the HoReCa market. All businesses are vying for market share in a fiercely competitive market. Key obstacles to market expansion include fierce rivalry, quick technological advancements, frequent changes in governmental rules, and environmental restrictions. Cost, product quality, dependability, and governmental requirements are all factors that the vendors compete on. Vendors must offer polyamide items that are both affordable and of a high caliber if they want to thrive in this market's fierce competition.

The evolution of the industry, governmental backing, and market circumstances all affect market vendor growth. Therefore, the vendors should prioritize regional growth and service enhancement. The top players in the industry that compete on availability, quality, price, and technology are Mcdonald, Subway IP LLC, KFC CORPORATION, Pizza Hut, Burger King Company LLC, YUM! BRANDS RSC, Jubilant FoodWorks Ltd, Starbucks Coffee Company, COSTA COFFEE, and Papa John's International, Inc. They concentrate mostly on creating HoReCa goods. Despite the market being dominated by foreign competitors, regional and foreign competitors with smaller market shares are also present. The multinational players can increase their global presence through acquisitions during the projection period. It has also been predicted that improvements in the global economic environment and initiatives to improve infrastructure in developing countries are driving market growth, making this a prime opportunity for HoReCa to introduce new products and expand its market share globally.

Key Companies in the HoReCa Market Include

• Mcdonald


• Subway IP LLC


• KFC CORPORATION


• Pizza Hut


• Burger King Company LLC


• YUM! BRANDS RSC


• Jubilant FoodWorks Ltd


• Starbucks Coffee Company


• COSTA COFFEE


• Papa John's International, Inc.

HoReCa Industry: Market Developments

July-2023: Pizza Hut introduced Hot Honey Pizza and Hot Honey Wings Tuesday in its Dallas and Cleveland markets.

July-2023: India emerged as the second largest developer of new Pizza Hut restaurants globally.

Nov-2020: McDonald's Corporation announces a new growth strategy, Accelerating the Arches, which encompasses all aspects of McDonald's business as the leading global omni-channel restaurant brand.

Feb-2023: McDonald’s Corp. plans to build hundreds of new restaurants around the globe this year, including its first new units in the United States in more than eight years.

April-2023: Subway, one of the world's largest restaurant brands, is accelerating its smart growth development strategy with five new multi-unit owner agreements, across Texas, Florida, Arizona and the mid-Atlantic.

June-2023: Subway Announces Largest Master Franchise Agreement in Brand History to Expand Presence in Mainland China.

HoReCa Market Segmentation

HoReCa Service Type Outlook

• Hotels


• Restaurants


• Cafes and Pubs

HoReCa Category Outlook

• Single Outlet


• HoReCa Chain

HoReCa Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC
  
  
  • Northern Africa
  
  
  • Southern Africa
  
  
  • Rest of MEA