HoReCa Market: Current Analysis and Forecast (2021-2027)

Report Description

Global HoReCa Market is expected to display an elevated CAGR of ~3% over the forecast period (2021-2027).

Growth in the food outlets and restaurants etc. is one of the prominent reasons driving the HoReCa Market. Also, the growing demand for junk food and processed food among millenniums is one of the prominent reasons which is contributing to the growth of the market. For Instance: In 2020, the number of pizza restaurants established was 78,092 in the United States alone. Even after the year-on-year fluctuations, the number of pizza restaurants was increased by roughly 6,000 units over the past 9 years. Thus, there has been intense competition among the independent chains of pizza and restaurants as they offer the same products. Furthermore, the rising consumer spending on food delivery and the need to deliver their orders in time is also fueling the demand for commercial equipment over the globe.

Moreover, a rise in the café, hotels, and restaurants across in Asia pacific region coupled with the growing demand for processed and packaged food owing to the rising number of working coupled and adoption of western culture is leading to the growth in the HoReCa market.  Moreover, the rising attractiveness of Quick Service Restaurants (QSRs) among millennials is also acting as a growth catalyst to the industry. As per Statista, the number of foodservice establishments worldwide varied greatly by region in 2020. Asia-Pacific had the most establishments at over 17 million. In comparison, the region with the second-highest number of foodservice establishments was Latin America with over 2.3 million.

Furthermore, the rise in the travel and tourism industry is adding pace to the growth of the market. As per the World Bank, the total number of international tourists in the Asia Pacific region reached 487 million in 2019 high from 396 million in 2015. Also, a rise in the investment in the hospitality sector is leading to the growing number of hotels and restaurants which is gaining end-users traction, and the market is booming. As per a report by JLL, approximately $7 billion in transactions in 2021, an increase of 20% year-on-year, up from $5.8 billion in 2020. Moreover, in the first half of 20201, In total, 61 hotel investment deals were transacted in the first half of the year across nine countries and representing over 10,000 rooms.

China, Annual Increase in New Franchised Stores in China, 2018 & 2019

Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Marriott International, Inc., InterContinental Hotels Group plc, Wyndham Hotel Group, LLC, McDonald’s Corporation, Yum! Brands, Inc., Restaurant Brands International Inc., Inspire Brands, Inc, The Coca-Cola Company (Costa Coffee), etc., are some of the prominent players operating in the HoReCa market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.

Insights Presented in the Report

“Amongst Service Type, Hotels segment holds the major share”

Based on the Service Type, the market is fragmented into Hotels, Restaurants, Cafés & Pubs. The hotels’ segment grabbed considerable market share and captured XX% market share in the global HoReCa market in 2020. Moreover, the market would witness a sharp rise in the forthcoming years owing to surging disposable income. However, the restaurant and cafe segment would witness sky-rocked growth in the forecast period of 2021-2027F

“Amongst Category Type, HoReCa Chain segment to dominate the market during the forecast period”

Based on the Category, the market is fragmented into Single Outlet and HoReCa Chain. The single outlet segment captured XX% market share in the HoReCa market in 2020. Moreover, the market would witness a sharp rise in the forthcoming years owing to surging demand for ready-to-eat food and junk food from the millenniums. However, the HoReCa chain segment would witness sky-rocked growth in the forecast period of 2021-2027F.

“North America represents one of the largest markets of HoReCa market”

For a better understanding of the market dynamics of the HoReCa market, a detailed analysis was conducted for different regions across the globe including North America, Europe, Asia Pacific, and the Rest of the world. North America dominated the market and generated the leading revenue share in 2020 owing to the rising working women coupled with the offering of HoReCa of food products as per consumer need.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the HoReCa Market were the three major steps undertaken to create and analyze the demand for HoReCa across major regions. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the HoReCa market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/ bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the HoReCa through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the HoReCa market, we conducted a detailed secondary analysis to gather historical market insights and share for Service Type, and Category for major regions. Major segments included in the report are Service Type and Category. Further region and country-level analyses were conducted to evaluate the overall adoption of HoReCa across the globe.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of HoReCa. Further, we conducted factor analysis using dependent and independent variables such as growth in the disposable income, rising investment in ready to eat food products, etc., A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the HoReCa industry across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the HoReCa market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weightage was assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e. bottom-up/ top-down approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of HoReCa across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the HoReCa market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the HoReCa market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of service type, and category of the HoReCa market.

Main Objective of the HoReCa Market Study

The current & future market trends of HoReCa were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of HoReCa in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of service type, and category.
• Define and analysis of the regulatory framework for the HoReCa industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the HoReCa market for the major countries
• The major region studied in the report includes North America, Europe, Asia- Pacific, and the Rest of the World.
• Company profiles of the HoReCa market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry