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The Global HoReCa market size is estimated to grow by USD 349.22 billion, accelerating at a CAGR of 3.41% between 2023 and 2027.
Our report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Type (single outlet and HoReCa chain), Service Type (restaurants, hotels, and cafes and pubs), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2022.
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The HoReCa market plummeted in 2020 due to COVID-19, with lockdowns and travel restrictions leading to hotel and restaurant closures. Reduced dining out and hotel stays caused a significant revenue decline, forcing closures. But the latter half of 2021 saw a rebound in demand, indicating market growth due to mass vaccination. The governments lifted travel restrictions, and the domestic and outbound tourism levels returned to normal which boosted the growth of the market.
The increasing demand for healthier food options and accommodations is a key factor driving the HoReCa market growth. The global HoReCa market, encompassing hotels, restaurants, and catering services, has experienced a notable surge in demand for healthier food choices and accommodations. With a heightened awareness of health, consumers actively seek establishments offering nutritious options, prompting businesses in the industry to adapt.
Hotels, for instance, are expanding their healthier menu choices, featuring fresh fruits, vegetables, whole grains, lean proteins, and plant-based alternatives. They also cater to specific dietary needs like gluten-free or vegan diets. Similarly, restaurants are incorporating more nutritious ingredients, adopting innovative cooking techniques, and reducing unhealthy additives. This trend extends to the catering sector, where companies are meeting increased requests for healthier menu options at events and gatherings. Customized menus now include vegetarian, vegan, gluten-free, and lighter alternatives, promoting a healthier lifestyle and contributing to HoReCA 2023 market growth during the forecast period.
The integration of technology in the HoReCa sector is a major HoReCa market trends. Technology integration has revolutionized the global HoReCa sector, enhancing efficiency, customer experience, and profitability. Mobile ordering and payment systems, prevalent in many restaurants and cafes, enable customers to place orders via apps or websites, saving time and reducing errors. Smart kitchen equipment, featuring automated controls and cloud connectivity, ensures consistent food quality and minimizes human errors.
Artificial intelligence, in the form of chatbots and virtual assistants, handles HoReCa customers inquiries and reservations, relieving staff workload and improving customer experience. Data analytics analyzes customer data, providing insights for personalized offers, optimized inventory management, and streamlined operations. These technological advancements are expected to drive the HoReCa industry growth during the forecast period.
The limited skilled labor and staff is a key challenge hindering the HoReCa market. The global HoReCa market is grappling with a significant challenge of scarce skilled labor across hotels, restaurants, and catering services. This scarcity hampers the industry's ability to meet rising demands. In the hospitality sector, increased global tourism exacerbates the difficulty in filling crucial positions like hotel managers and chefs, leading to compromised service quality and decreased customer loyalty.
Similarly, restaurants face challenges in recruiting skilled chefs, impacting food quality and service efficiency. Catering services encounter difficulties in securing skilled servers and event planners, resulting in service delays and potential damage to the company's reputation. The shortage arises from a lack of interest among young individuals in pursuing careers in the industry and a high turnover rate due to demanding work conditions. These factors are anticipated to impede the hotels, restaurants, cafes, bars, catering companies, and other hospitality establishments (HoReCa) market's growth during the forecast period.
The standalone outlet segment is projected to experience notable growth in the forecast period. A standalone business, like a restaurant or cafe, operates independently with only one location, distinct from chains or franchises. The success of a standalone business hinges on its agility in adapting to evolving consumer preferences. To thrive, it must regularly refresh its menu by blending traditional favorites with innovative dishes.
HoReCa Market
By Single Outlet Segment
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The single outlet segment was the largest segment and was valued at USD 1,251.57 billion in 2017. By offering a wide range of options, the outlet ensures that the outlet caters to different tastes and dietary needs, allowing them to attract a wider customer base. In addition to food, the Single Outlet also offers a unique dining experience. Additionally, the staff provide excellent customer service and are well trained to ensure that all guests feel welcomed and valued. Besides, these single outlets often depend on word of mouth and a loyal customer base. Hence, these factors are expected to increase the demand for single outlets, which will boost the growth of the market during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
HoReCa Market
By APAC
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APAC is emerging as a key player in the global HoReCa industry, fueled by a population exceeding 4.7 billion and rapid urbanization, leading to increased disposable income and evolving consumer preferences. International tourism, particularly in countries like Thailand, Japan, and China, is a significant growth driver. For instance, Thailand saw a 39.9% increase in international tourists in 2022, boosting demand for hospitality services. The expanding middle-class population in APAC is also contributing, with rising incomes driving spending on dining out and luxury accommodations. Technology adoption, such as mobile apps and AI, is reshaping operations for efficiency and enhanced guest experiences. The region's unique and diverse food offerings, including renowned culinary scenes in Japan and Thailand, attract domestic and international consumers, fostering a vibrant HoReCa sector.
The research report includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Dominos Pizza Inc., Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., Inspire Brands Inc., InterContinental Hotels Group Plc, ITC Ltd., Jack in the Box Inc., Little Caesar Enterprises Inc., Marriott International Inc., McDonald Corp., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Starbucks Corp., Tata Sons Pvt. Ltd., The Coca Cola Co., The Wendys Co., Wyndham Hotels and Resorts Inc., YUM Brands Inc., Chick fil A Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The HoReCa market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
HoReCa Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.41% |
Market growth 2023-2027 |
USD 349.22 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.75 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Chick fil A Inc., Dominos Pizza Inc., Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., Inspire Brands Inc., InterContinental Hotels Group Plc, ITC Ltd., Jack in the Box Inc., Little Caesar Enterprises Inc., Marriott International Inc., McDonald Corp., Papa Johns International Inc., Performance Food Group Co., Restaurant Brands International Inc., Starbucks Corp., Tata Sons Pvt. Ltd., The Coca Cola Co., The Wendys Co., Wyndham Hotels and Resorts Inc., and YUM Brands Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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