HoReCa Market Research Report— Global Forecast till 2028

Global HoReCa Market Research Report: Information by ServiceType (Hotels, Restaurants, and Cafés & Pubs), Category (Single Outlet and HoReCa Chain), and Region (North America, Asia-Pacific, Europe, and the Rest of the World)—Forecast till 2028

ID: MRFR/CR/9054-HCR | April 2021 | Region: Global | 90 pages

Market Scenario


The global HoReCa market is projected to reach approximately USD 2.38 trillion, at a CAGR of 3.15%, from 2021 to 2028. HoReCa stands for hotels, restaurant, and cafés & pubs and is an important service sector in the global economy. It primarily consists of hotels, restaurants, and bars accounting for about two thirds of the global turnover.


The outbreak of Covid-19 has caused a downward trend in the HoReCa industry as lockdown and “stay at home” orders given by governments across the globe and consumers preferring to stay indoors to curb the spread of the novel coronavirus. The pandemic has forced restaurants to close their doors to dine-in customers resulting in a sharp drop in HoReCa industry growth. However, with gradual relaxation of government norms, hotels, restaurants, and cafés & pubsare primarily focusing on cleanliness and safety precautions to restrict the spread of the virus. Owing to this, there is a significant gap in supply and demand as there is a limitation in dine-in seats, lodging rooms, and has even impacted operation time. Furthermore, the HoReCa industry is highly responsible for crowd management to follow social distancing norms. Moreover, with the increasing Internet penetration in developingregions and the escalating growth of online food delivery services, food service outlets that cannot attract consumers are turning to either home delivery services or approaching third party food delivery platforms such as GrubHub and DoorDash. Therefore, gradual relaxation of government restrictions and rising popularity of online food delivery services are expected to drive the overall HoReCa industry during the forecast period.


Market Synopsis


The global HoReCa market has witnessed high growth in recent years. An emerging strategy within the HoReCa industry involves the combination of culinary expertise, industry experience, and strategic marketing among food manufacturers, food distributors, and foodservice operators. This alliance, along with several other trends is re-shaping the HoReCa operation into a highly technological, efficient, and flexible enterprise. Additionally, the increase in busy lifestyle and hectic schedules of consumers have augmented the demand for fast food and out-of-home eating. In several metro cities, where people work almost throughout the day, the consumption of fast food to save time and money is significantly popular. For instance, according to a recent MRFR study, the total share of disposable personal income spent on food decreased to less than 7% in 2020 from 12% in 2000. Our research figures further show that food away-from-home expenditures have grown to 44% of total household food expenditure, while food at-home expenditures have fallen to 56% in 2020.Moreover, the young generation tends to follow the Western culture and opt forfast food chains such as McDonald’s and Subway, which is further driving the overall HoReCa industry globally in 2020.However, despite the success of large hotels, fast food chains, takeaways, and franchises, the presence of unorganized small, independent, and family-owned organizations are restricting the growth of the HoReCa market across the globe.


Market USP


Wide availability of food options and convenient buying


Market Drivers



  • Growing Tourism Industry: The rapid growth of global HoReCa market is directly proportional to rise in tourism industry globally. The hospitality & tourism industry has witnessed significant growth over the past few years, both in developed and developed economies; this, in turn, has accelerated the growth of HoReCa industry across the globe. According to the International Trade Administration (ITA), US, the total contribution of the travel and tourism industry to USA’s GDP in 2017 is over USD 1.6 trillion. According to Department of Commerce projections, the US is expected to welcome 95.5 million international visitors annually by 2023. In the present scenario, the US leads the world in international travel and tourism exports and ranks third in terms of total visitation. Therefore, such growth in the travel and tourism industry in the US has led to increasing number of hotels and restaurants due to which the HoReCa industry is projected to grow in the US during the forecast period of 2021 to 2028.

  • Effective marketing strategies


Market Restraints



  • Presence of street hawkers and family-owned small kitchens leading to Unorganized Market.


Segmentation


By ServiceType



  • Hotels

  • Restaurants: This segment accounted for the largest market share in 2020 and is projected to grow at the fastest pace during the forecast period. Restaurants control 46.5% of the sales in the overall HoReCa industry owing to the growth of its fast-food segment over the last few years. The demand for take-out food has boosted the segmental growth as increasing number of consumers are opting for convenience along with quality food and wide variety. Furthermore, restaurants offer curbside service where consumers place ordersvia phone calls or e-mails and provides the restaurant with their car license plate number. When aconsumer drives into the parking lot, a restaurant employee brings the ordered food out to the car. This type of service has been a very popular service specially in the US and has fueled the restaurants market across the globe.

  • Cafés & Pubs


By Category


  • Single Outlet:

  • HoReCa Chain: This segment accounted for the highest market share in 2020 owing to increasing number of food service outlets across the globe. HoReCa chains are established with the purpose of expanding geographical presence, difference in culture and traditions, as well as cater to regional and local taste buds. For instance, Taco Bell's parent company, Yum Foodscame up in India with a bunch of special menu items designed for local palates such as crunchy potato tacos and extra-spicy burritos filled with paneer. Similarly, in the Netherlands, McDonald's serves a McKroket which is a fried beef croquette on a bun; in Germany, it offers shrimp with cocktail sauce. Therefore, increasing regional footprints of HoReCa establishments are driving the worldwide market growth.


By Region



  • North America: North America dominated the global HoReCa market in 2020. Strong real estate industry, presence of popular hotel chains, and hectic schedule have impacted the lifestyle of Americans. Growing travel and tourism industry;increasing number of emigrants; presence of diverse food culture;and wide availability of a range of cuisines have led to the growing demand for HoReCa industry in the region.

  • Europe:

  • Asia-Pacific: Asia-Pacific is a new revenue pocket for the HoReCa market.The growing populationin China and India hascreated an opportunistic market for the existing players.Increasing exposure to international cuisine and culture andthe willingness to experiment with food items have further fueled the regional market growth. Additionally, attractive seasonal offers and happy hour discounts offered by HoReCa are further aiding to the growth in Asia-Pacific market.

  • Rest of the World


Key Players



  • Hilton Worldwide Holdings Inc. (US)

  • Hyatt Hotels Corporation (US)

  • Marriott International, Inc. (US)

  • InterContinental Hotels Group plc (UK)

  • Wyndham Hotel Group, LLC (US)

  • McDonald's Corporation (US)

  • Yum! Brands, Inc. (US)

  • Restaurant Brands International Inc. (Canada)

  • Inspire Brands, Inc. (US)

  • The Coca-Cola Company (Costa Coffee) (US)



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 2.38 trillion
  CAGR   3.15%
  Base Year   2019
  Forecast Period   2028
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends, Type, category
  Segments Covered   Product Type, Indication, End User, Region, Services
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors    Hilton Worldwide Holdings Inc. (US) Hyatt Hotels Corporation (US) Marriott International, Inc. (US) InterContinental Hotels Group plc (UK) Wyndham Hotel Group, LLC (US) McDonald's Corporation (US) Yum! Brands, Inc. (US) Restaurant Brands International Inc. (Canada) Inspire Brands, Inc. (US) The Coca-Cola Company (Costa Coffee) (US)
  Key Market Opportunities   Wide availability of food options and convenient buying
  Key Market Drivers   The hospitality & tourism industry has witnessed significant growth over the past few years