India HoReCa Market Research Report: By Category Outlook (Single Outlet, HoReCa Chain) and By Service Type Outlook (Hotels, Restaurants, Cafes and Pubs) - Forecast to 2035

India HoReCa Market Overview

India HoReCa Market Size was estimated at 212.16 (USD Billion) in 2023. The India HoReCa Industry is expected to grow from 223.41(USD Billion) in 2024 to 442.5 (USD Billion) by 2035. The India HoReCa Market CAGR (growth rate) is expected to be around 6.41% during the forecast period (2025 - 2035).

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

Key India HoReCa Market Trends Highlighted

A variety of elements have led to a significant increase in the India HoReCa market. The growth of the middle class coupled with rapid urbanization are key factors to market growth due to an increased willingness to either dine out or order food. With worsening lifestyles and growing disposable income, cities are witnessing a more significant proliferation of hotels, restaurants, and cafes. Globalization and growing interest amongst Indians for foreign cuisine has also led to an increase in demand for diverse culinary experiences which is another major factor driving the market. There are numerous opportunities in the India HoReCa market, especially with increased access to and use of online food delivery services.

The growth of these services has made consumers more accessible to a different variety of cuisines which has led to restaurants improving their delivery services. Furthermore, a growing number of diners have also turned their attention towards sustainability by adopting eco-friendly sustainable practices such as local ingredient sourcing, food waste reduction, and plant-based menus. This not only helps to appeal to consumers who are more environmentally friendly but also aids the government by promoting sustainable practices regarding food services. In contrast to earlier times, there has been a lot more investment put into the hospitality sector post-pandemic as the country tries to recover from the effects of the pandemic.

New business models are emerging, including cloud kitchens and hybrid dining spaces that merge dining with entertainment. The evolving preferences of consumers toward health-conscious, organic, and locally sourced food further shape this dynamic market. As the HoReCa landscape continues to evolve in India, businesses must adapt to these trends to capture emerging opportunities and remain competitive.

India HoReCa Market Drivers

Increasing Urbanization

India is witnessing significant urbanization as more people migrate to cities in search of better job opportunities and living standards. According to the Ministry of Housing and Urban Affairs, the urban population in India is expected to reach 600 million by 2031. This surge in urbanization is projected to enhance the demand for food service establishments, including hotels, restaurants, and cafes, contributing to the growth of the India HoReCa Market Industry.As urban populations shift, the need for diverse dining and hospitality options expands, which encourages the establishment of new players and the expansion of existing ones. Not only does this represent increased market activity, but it also reflects a shift in consumer behavior towards more dining options and experiences that cater to the fast-paced urban lifestyle.

Rise in Disposable Income

The increase in disposable income amongst the middle-class population in India is a significant driver for the HoReCa market. Recent data from the National Statistical Office suggests that the per capita income in India witnessed a growth of over 8% on a year-on-year basis in the last five years. This uptick in disposable income has led to a consumer shift towards spending on dining out and hospitality services, significantly impacting the India HoReCa Market Industry.As more individuals seek dining experiences, the demand for diverse culinary offerings in hotels and restaurants grows, thereby fostering market expansion. Notable brands that are capitalizing on this trend include Zomato and Swiggy, which have transformed the way consumers access food services in urban areas.

Increasing Influence of Social Media

With the advent of platforms like Instagram and Facebook, social media has become a crucial tool for marketing within the HoReCa sector in India. A survey conducted by the Internet and Mobile Association of India indicates that social media penetration reached over 450 million users in 2022. The impact of this digital presence encourages restaurants and cafes to create visually appealing dishes and vibrant atmospheres, boosting customer engagement.This trend contributes positively to the India HoReCa Market Industry as establishments increasingly adapt to the influence of online reviews and food bloggers. Prominent restaurant chains and hotels are leveraging social media strategies to attract and retain customers, leading to enhanced market viability.

Growth of the Tourism Industry

Tourism in India has been on an upward trajectory, with the Ministry of Tourism reporting a 20% increase in domestic tourism over the past few years. The government's initiatives to promote 'Incredible India' have led to a surge in foreign tourists, further fueling the demand for hospitality services. This growth significantly impacts the India HoReCa Market Industry as the influx of travelers creates demand for hotels, restaurants, and catering services.Urban centers like Delhi and Mumbai and tourist destinations such as Goa and Rajasthan have witnessed substantial growth in their service sectors due to this tourism boom. Established hotel chains such as Taj Hotels, Oberoi Group, and Marriott have expanded their reach, catering to the growing needs of tourists and boosting overall market growth.

India HoReCa Market Segment Insights

HoReCa Market Category Outlook Insights

The India HoReCa Market is witnessing a notable growth trajectory, fueled by the increasing demand for dining experiences and food service solutions across various demographics. The market showcases a diverse landscape where the Category Outlook reveals two prominent segments: Single Outlet and HoReCa Chain. Single Outlet establishments are crucial as they represent independent businesses catering to personalized customer experiences and offering unique culinary offerings, thereby fostering local entrepreneurship and driving economic growth in the hospitality sector.

These businesses often focus on niche markets, leveraging traditional recipes and local ingredients, which resonate well with consumers looking for authenticity. On the other hand, the HoReCa Chain segment plays a pivotal role in the market's expansion by providing standardized services and scalable offerings that appeal to a broader audience. Chains benefit from economies of scale, allowing for effective cost management and widespread brand recognition, which attracts a loyal customer base. The demand for fast food and casual dining, along with the rising trend of online food delivery services, further underscores the significance of chain establishments.

Together, these segments contribute to the dynamic nature of the India HoReCa Market, with increasing competition and innovation shaping the industry landscape. The growing urban population and changing lifestyles are central drivers of growth, reflected in the rising expenditure on food services. Additionally, changing consumer preferences for health-conscious options and experiences over mere transactions create ample opportunities for both Single Outlet and HoReCa Chain businesses to adapt and thrive. Overall, the India HoReCa Market segmentation is characterized by its vibrant and evolving nature. It is driven by cultural diversity and an expanding consumer base, positioning the industry for continued development in the coming years.

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

HoReCa Market Service Type Outlook Insights

The India HoReCa Market exhibits a diverse service-type outlook, encompassing various segments such as Hotels, Restaurants, Cafes, and Pubs. Each of these segments contributes significantly to the overall market growth, driven by increasing consumer preferences for dining out and the evolving lifestyle of the Indian population. The hospitality industry is being fueled by the rising trend of travel and tourism in India, with a notable increase in both domestic and international visitors, which strengthens the hotel's segment. Restaurants are experiencing transformation through innovative dining experiences, with themes and cuisines reflecting the vast cultural diversity of the country.

Further, the cafe culture is proliferating among the younger demographic, making it a popular choice for social gatherings and informal meetings. On the other hand, pubs continue to thrive, bolstered by changing social habits and a growing nightlife culture in urban areas. Notably, the integration of technology and delivery services has also revolutionized dining experiences across these segments, making them more accessible. As India continues to grow economically, the potential for expansion within the HoReCa segments remains significant, driven by changing consumer preferences and lifestyle choices.

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

India HoReCa Market Key Players and Competitive Insights

The India HoReCa market, encompassing hotels, restaurants, and catering services, has become increasingly competitive as consumer preferences evolve and the food service industry expands. The market is notable for its diversity, catering to a wide range of tastes and cultures, which necessitates businesses to innovate and adapt to gain a competitive edge. In recent years, the growth of social media, food delivery apps, and the influence of global cuisine have further intensified competition within this sector. Companies are continually seeking to differentiate their offerings, improve customer experiences, and optimize operational efficiency to secure their place in an ever-evolving marketplace.

Marico has established a strong foothold in the India HoReCa market, primarily focusing on its health-conscious and premium offerings. The company is well-regarded for its commitment to quality and innovation, which sets it apart from competitors. With an emphasis on product development, Marico has diversified its portfolio to cater to evolving consumer demands, ensuring that its products resonate well with the target audience in hotels and restaurants. Its effective distribution network and extensive supply chain strengthen its presence, enabling Marico to efficiently deliver products that meet the needs of various HoReCa players. Additionally, Marico's proactive marketing strategies and brand loyalty have solidified its reputation and fostered strong relationships with partners across the hospitality industry.

AB InBev has a significant presence in the India HoReCa market, known for its diverse portfolio of beverages that includes various beers and other alcoholic drinks. The company continuously strives to capture market share by introducing innovative products tailored to Indian tastes and preferences, ensuring it remains competitive. AB InBev leverages its substantial brand equity and global connection to provide marketing support and promotional activities for its retail and HoReCa partners. The company's strengths lie in its focus on sustainability and responsible drinking, appealing to the contemporary consumer. Furthermore, AB InBev has engaged in strategic mergers and acquisitions to bolster its market position in India, allowing it to expand its product range and enhance its distribution capabilities within the HoReCa segment. Through these initiatives, AB InBev aims to continually develop new offerings, supporting the growth of the Indian hospitality industry while maintaining a competitive edge.

Key Companies in the India HoReCa Market Include

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  Marico

  
  


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  AB InBev

  
  


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  Britannia Industries

  
  


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  Parle Agro

  
  


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  Tata Consumer Products

  
  


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  Hindustan Unilever

  
  


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  CocaCola India

  
  


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  GSK Consumer Healthcare

  
  


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  Nestle India

  
  


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  PepsiCo India

  
  


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  Mondelez India

  
  


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  Dabur India

  
  


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  ITC Limited

  
  


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  Diageo India

  
  


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  Kraft Heinz Company

  
  

India HoReCa Market Industry Developments

The India HoReCa (Hotel, Restaurant, and Catering) market has witnessed significant developments recently, driven by increased consumer spending and a growing demand for varied dining experiences. Companies such as Hindustan Unilever and Britannia Industries have been innovating product lines catering to the evolving preferences of consumers. There has been considerable traction in the beverage segment, with AB InBev and Coca-Cola India continuously expanding their product offerings, capitalizing on the Rise in social gatherings and events. Recent acquisition news includes Tata Consumer Products who announced the acquisition of a significant stake in a local beverage brand in March 2023, enhancing its presence in the HoReCa sector. Additionally, Diageo India reported growth in its premium spirits portfolio fueled by the booming restaurant culture. Over the past 2-3 years, the market has also seen a substantial increase in food delivery services, as exemplified in October 2021, with several partnerships formed between delivery platforms and local restaurants amid the pandemic. With a robust growth forecast, the HoReCa sector remains a vital contributor to India's economy, signaling a dynamic evolution in consumer behavior and preferences.

India HoReCa Market Segmentation Insights

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  HoReCa Market CategoryOutlook

  
  
  
  
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    Single Outlet

    
    
  
  
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    HoReCa Chain

    
    
  
  
  
  


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  HoReCa Market Service Type Outlook

  
  
  
  
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    Hotels

    
    
  
  
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    Restaurants

    
    
  
  
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    Cafes and Pubs

    
    
  
  
  
  

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	212.16(USD Billion)
MARKET SIZE 2024	223.41(USD Billion)
MARKET SIZE 2035	442.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.41% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Marico, AB InBev, Britannia Industries, Parle Agro, Tata Consumer Products, Hindustan Unilever, CocaCola India, GSK Consumer Healthcare, Nestle India, PepsiCo India, Mondelez India, Dabur India, ITC Limited, Diageo India, Kraft Heinz Company
SEGMENTS COVERED	Category Outlook, Service Type Outlook
KEY MARKET OPPORTUNITIES	Growing urban population demand, Increasing health-conscious dining options, Expansion of food delivery services, Rise in experiential dining trends, Sustainable and locally sourced ingredients.
KEY MARKET DYNAMICS	increasing disposable income, growing urbanization, rising food delivery demand, expansion of global chains, focus on health and sustainability
COUNTRIES COVERED	India