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HoReCa Market

ID: MRFR/FnB/9054-CR
167 Pages
Snehal Singh
August 2023

HoReCa Market Research Report Information By Service Type (Hotels, Restaurants, and Cafes and Pubs), Category (Single Outlet and HoReCa Chain) And By Region (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa) - Forecast Till 2032

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HoReCa Market Summary

As per MRFR analysis, the HoReCa Market Size was estimated at 3574.5 USD Billion in 2024. The HoReCa industry is projected to grow from 3813.99 USD Billion in 2025 to 7294.98 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.7 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The HoReCa Market is currently experiencing a dynamic shift towards sustainability and digital innovation.

  • Sustainability in sourcing is becoming a pivotal focus for both hotels and restaurants, particularly in North America.
  • Digital transformation is reshaping service delivery, enhancing customer engagement across the Asia-Pacific region.
  • Experiential dining is gaining traction, especially among restaurants, as consumers seek unique culinary experiences.
  • Rising consumer demand for quality and the shift towards sustainable practices are driving growth in the HoReCa Market chain segment.

Market Size & Forecast

2024 Market Size 3574.5 (USD Billion)
2035 Market Size 7294.98 (USD Billion)
CAGR (2025 - 2035) 6.7%

Major Players

Sysco (US), US Foods (US), Groupe Le Duff (FR), Compass Group (GB), Aramark (US), Elior Group (FR), Dussmann Group (DE), Sodexo (FR), Martin Brower (US), Brakes (GB)

HoReCa Market Trends

The HoReCa Market is currently experiencing a dynamic evolution, driven by shifting consumer preferences and technological advancements. As dining habits transform, establishments within this sector are adapting to meet the demands of a more discerning clientele. The rise of sustainability and health-conscious choices is reshaping menus, prompting restaurants and hotels to source local and organic ingredients. Furthermore, the integration of digital solutions is enhancing customer experiences, with online reservations and contactless payments becoming increasingly prevalent. This transformation indicates a broader trend towards convenience and personalization, as businesses strive to create memorable dining experiences. In addition, the HoReCa Market is witnessing a growing emphasis on experiential dining. Consumers are seeking not just meals, but unique experiences that engage their senses and create lasting memories. This trend is prompting establishments to innovate, offering themed events, interactive cooking classes, and immersive atmospheres. As competition intensifies, businesses are likely to invest in creating distinctive environments that resonate with their target audience. Overall, the HoReCa Market appears poised for continued growth, driven by evolving consumer expectations and a commitment to enhancing the overall dining experience.

Sustainability in Sourcing

The HoReCa Market is increasingly prioritizing sustainable sourcing practices. Establishments are focusing on procuring local and organic ingredients, reflecting a growing consumer demand for environmentally friendly options. This trend not only supports local economies but also aligns with the values of health-conscious diners.

Digital Transformation

The integration of technology within the HoReCa Market is reshaping customer interactions. Online reservations, mobile ordering, and contactless payments are becoming standard practices. This digital shift enhances convenience and streamlines operations, allowing businesses to cater to the evolving preferences of their clientele.

Experiential Dining

There is a notable shift towards experiential dining within the HoReCa Market. Consumers are increasingly seeking unique and memorable experiences rather than just meals. This trend encourages establishments to innovate, offering themed events and interactive dining options that engage customers on multiple levels.

HoReCa Market Drivers

Rising Consumer Demand for Quality

The HoReCa Market is currently experiencing a notable increase in consumer demand for high-quality food and beverage offerings. This trend is driven by a growing awareness of health and wellness, as consumers are increasingly seeking out fresh, organic, and locally sourced ingredients. According to recent data, the premium food segment within the HoReCa Market has seen a growth rate of approximately 8% annually. This shift towards quality is not merely a passing trend; it reflects a deeper cultural change where consumers are willing to pay a premium for superior dining experiences. As a result, establishments within the HoReCa Market are compelled to adapt their menus and sourcing strategies to meet these evolving preferences, thereby enhancing their competitive edge.

Shift Towards Sustainable Practices

Sustainability has emerged as a pivotal driver within the HoReCa Market, influencing both consumer choices and operational practices. Many establishments are adopting eco-friendly practices, such as reducing food waste, sourcing sustainable ingredients, and implementing energy-efficient systems. Recent surveys indicate that over 60% of consumers prefer dining at establishments that prioritize sustainability. This shift not only caters to consumer preferences but also aligns with regulatory pressures aimed at reducing environmental impact. As sustainability becomes increasingly integral to the HoReCa Market, businesses that proactively implement green practices may find themselves at a competitive advantage, appealing to a conscientious consumer base.

Growth of Delivery and Takeaway Services

The HoReCa Market is witnessing a significant expansion in delivery and takeaway services, driven by changing consumer lifestyles and preferences. With the rise of convenience culture, many consumers now favor dining options that allow them to enjoy restaurant-quality meals at home. Data suggests that the delivery segment within the HoReCa Market has grown by approximately 20% in recent years. This trend has prompted many establishments to enhance their delivery capabilities, often partnering with third-party platforms to reach a wider audience. As this segment continues to evolve, businesses that adapt their offerings to cater to the delivery and takeaway market are likely to thrive in an increasingly competitive landscape.

Culinary Innovation and Diverse Offerings

Culinary innovation is a key driver in the HoReCa Market, as establishments strive to differentiate themselves through unique and diverse menu offerings. The increasing globalization of cuisine has led to a blending of flavors and techniques, appealing to adventurous consumers seeking new dining experiences. Recent trends indicate that fusion cuisine and plant-based options are gaining traction, with many consumers eager to explore novel culinary concepts. This emphasis on innovation not only enhances customer engagement but also positions establishments within the HoReCa Market to capitalize on emerging food trends. As competition intensifies, those that prioritize creativity and diversity in their menus are likely to attract a loyal customer base.

Technological Advancements in Service Delivery

Technological innovations are reshaping the HoReCa Market, particularly in service delivery and customer engagement. The integration of advanced point-of-sale systems, mobile ordering applications, and contactless payment solutions has streamlined operations and improved customer satisfaction. Data indicates that establishments utilizing technology effectively can increase their operational efficiency by up to 30%. Furthermore, the rise of online reviews and social media platforms has transformed how consumers interact with the HoReCa Market, making digital presence crucial for success. As technology continues to evolve, businesses that embrace these advancements are likely to enhance their service offerings and attract a broader customer base.

Market Segment Insights

HoReCa Market 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.

HoReCa Market Category Insights

Based on category, the HoReCa Market data has been bifurcated into single outlet and HoReCa Market 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)

HoReCa Market 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.

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Get more detailed insights about HoReCa Market

Regional Insights

North America : Market Leader in HoReCa Market

The North American HoReCa Market is driven by increasing consumer spending on dining out and a growing trend towards premium food offerings. The U.S. holds the largest market share at approximately 70%, followed by Canada at around 15%. Regulatory support for food safety and health standards further catalyzes market growth, ensuring high-quality service and product offerings. Key players like Sysco, US Foods, and Aramark dominate the competitive landscape, leveraging extensive distribution networks and strong brand recognition. The market is characterized by a mix of independent restaurants and large chains, with a rising demand for sustainable and locally sourced ingredients. This competitive environment fosters innovation and service diversification, enhancing customer experiences.

Europe : Diverse Culinary Landscape

The European HoReCa Market is characterized by diverse culinary traditions and a strong emphasis on sustainability. Germany and France are the largest markets, holding approximately 25% and 20% market shares, respectively. Regulatory frameworks promoting food safety and environmental sustainability are key growth drivers, encouraging restaurants to adopt eco-friendly practices and innovative dining experiences. Leading countries like France, Germany, and the UK showcase a competitive landscape with major players such as Groupe Le Duff and Sodexo. The market is witnessing a shift towards digital solutions for ordering and delivery, enhancing operational efficiency. The presence of various culinary styles and a growing trend for experiential dining further enrich the market dynamics, attracting both local and international investments.

Asia-Pacific : Emerging Market Potential

The Asia-Pacific HoReCa Market is experiencing rapid growth, driven by urbanization, rising disposable incomes, and changing consumer preferences towards dining out. China and India are the largest markets, accounting for approximately 30% and 20% of the market share, respectively. Regulatory initiatives aimed at improving food safety standards and promoting local cuisines are significant catalysts for market expansion. Countries like China, Japan, and Australia are at the forefront of this growth, with a competitive landscape featuring both local and international players. Key companies such as Compass Group and Elior Group are expanding their operations to cater to the increasing demand for diverse dining options. The market is also witnessing a surge in food delivery services, further enhancing accessibility and convenience for consumers.

Middle East and Africa : Growing Hospitality Sector

The Middle East and Africa HoReCa Market is on the rise, driven by increasing tourism, urbanization, and a growing middle class. The UAE and South Africa are the largest markets, holding approximately 25% and 15% market shares, respectively. Government initiatives to boost tourism and hospitality sectors are significant growth drivers, creating a favorable environment for new investments and innovations. Leading countries like the UAE, South Africa, and Saudi Arabia are witnessing a competitive landscape with key players such as Dussmann Group and Sodexo. The market is characterized by a blend of traditional and modern dining experiences, catering to diverse consumer preferences. The increasing focus on quality and service excellence is shaping the competitive dynamics, attracting both local and international investments.

HoReCa Market Regional Image

Key Players and Competitive Insights

The HoReCa market, characterized by its dynamic competitive landscape, is currently driven by several key factors including the increasing demand for diverse culinary experiences, the rise of health-conscious dining, and the ongoing digital transformation within the sector. Major players such as Sysco (US), Compass Group (GB), and Sodexo (FR) are strategically positioning themselves to capitalize on these trends. Sysco (US) focuses on enhancing its supply chain efficiency and expanding its product offerings, while Compass Group (GB) emphasizes sustainability and local sourcing to meet consumer preferences. Meanwhile, Sodexo (FR) is investing in technology to improve service delivery and customer engagement, collectively shaping a competitive environment that prioritizes innovation and responsiveness to market demands.

In terms of business tactics, companies are increasingly localizing their manufacturing processes and optimizing supply chains to enhance operational efficiency. The HoReCa market appears moderately fragmented, with a mix of large multinational corporations and smaller regional players. The collective influence of key players is significant, as they drive trends and set standards that smaller entities often follow, thereby shaping the overall market structure.

In August 2025, Sysco (US) announced a partnership with a leading technology firm to implement AI-driven inventory management systems across its distribution centers. This strategic move is likely to enhance operational efficiency and reduce waste, aligning with the growing emphasis on sustainability within the industry. The integration of advanced technology into supply chain operations may provide Sysco with a competitive edge, allowing for more accurate demand forecasting and improved service levels.

In September 2025, Compass Group (GB) launched a new initiative aimed at reducing food waste in its operations by 50% over the next five years. This initiative underscores the company's commitment to sustainability and reflects a broader industry trend towards environmentally responsible practices. By prioritizing waste reduction, Compass Group (GB) not only enhances its brand reputation but also potentially lowers operational costs, which could be a significant advantage in a competitive market.

In October 2025, Sodexo (FR) unveiled a new digital platform designed to enhance customer engagement through personalized dining experiences. This platform leverages data analytics to tailor menus and services to individual preferences, indicating a shift towards more customer-centric operations. By investing in technology that fosters deeper connections with consumers, Sodexo (FR) positions itself as a leader in the evolving landscape of the HoReCa market.

As of October 2025, current competitive trends in the HoReCa market include a pronounced focus on digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances among key players are increasingly shaping the landscape, fostering innovation and collaboration. The competitive differentiation appears to be shifting from traditional price-based competition to a more nuanced approach that emphasizes technological advancement, sustainability, and supply chain reliability. This evolution suggests that companies that can effectively leverage these trends will likely emerge as leaders in the HoReCa market.

Key Companies in the HoReCa Market market include

Industry 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.

Future Outlook

HoReCa Market Future Outlook

The HoReCa Market is projected to grow at a 6.7% CAGR from 2024 to 2035, driven by increasing consumer demand, technological advancements, and sustainability trends.

New opportunities lie in:

  • Expansion of cloud kitchen models in urban areas.
  • Integration of AI-driven inventory management systems.
  • Development of plant-based menu offerings to attract health-conscious consumers.

By 2035, the HoReCa Market is expected to be robust, characterized by innovation and diverse consumer preferences.

Market Segmentation

HoReCa Market Category Outlook

  • Single Outlet
  • HoReCa Chain

HoReCa Market Service Type Outlook

  • Hotels
  • Restaurants
  • Cafes and Pubs

Report Scope

MARKET SIZE 20243574.5(USD Billion)
MARKET SIZE 20253813.99(USD Billion)
MARKET SIZE 20357294.98(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)6.7% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of sustainable practices and technology enhances operational efficiency in the HoReCa Market.
Key Market DynamicsEvolving consumer preferences drive innovation and competition within the food service and hospitality sectors.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Snehal Singh
Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the HoReCa market as of 2024?

The HoReCa market was valued at 3574.5 USD Billion in 2024.

What is the projected market size for the HoReCa sector in 2035?

The HoReCa market is projected to reach 7294.98 USD Billion by 2035.

What is the expected CAGR for the HoReCa market from 2025 to 2035?

The expected CAGR for the HoReCa market during the forecast period 2025 - 2035 is 6.7%.

Which segment of the HoReCa market had the highest valuation in 2024?

In 2024, the Restaurants segment had the highest valuation at 2000.0 to 4000.0 USD Billion.

How do single outlets compare to HoReCa chains in terms of market valuation?

Single outlets were valued between 1074.5 and 2294.99 USD Billion, whereas HoReCa chains were valued between 2500.0 and 5000.0 USD Billion.

Who are the key players leading the HoReCa market?

Key players in the HoReCa market include Sysco, US Foods, Groupe Le Duff, and Compass Group.

What is the valuation range for the Cafes and Pubs segment in 2024?

The Cafes and Pubs segment was valued between 574.5 and 1294.98 USD Billion in 2024.

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