HORECA Beverage

HORECA Beverage

The HORECA beverages market specifically focuses on the segment of the hospitality industry that involves the production, distribution, and consumption of beverages within hotels, restaurants, and cafes. This market includes a wide range of beverages such as alcoholic drinks, non-alcoholic drinks, hot beverages like coffee and tea, soft drinks, and specialty beverages. Trends in the HORECA beverages market are influenced by factors like changing consumer preferences, health and wellness trends, innovation in beverage offerings, and shifts in dining habits. The increasing demand for beverages has led to the market's growth. Several other factors, such as rising food tourism, rising demand for junk food and processed foods, and a surge in government collaborations & partnerships are driving the HORECA beverage market globally.

The HORECA Beverage Market is expected to grow at a steady rate of around 3.5% owing to the rising number of product launches. For instance, in April 2024, Radico Khaitan introduced the Jaisalmer Indian Craft Gin-The Golden Mirage Limited Edition Box to meet the evolving demands of consumers. Also, in December 2023, Coca-Cola India entered the alcohol segment, starting with Lemon-Dou, its global alcoholic ready-to-drink beverage. Several factors, including the expansion and development of restaurants and food outlets, are driving the market's growth during the forecast period. Apart from this, increased partnerships among restaurants and major beverage companies in HORECA beverages are also driving this market at a steady rate.

• Based on the type, the market is bifurcated into alcoholic and non-alcoholic beverages. The non-alcoholic beverage segment dominated the market in the year 2023. The non-alcoholic beverages segment in the HORECA market includes a diverse range of drinks that do not contain alcohol. This segment encompasses various options such as soft drinks, hot beverages: coffee, tea, hot chocolate, specialty drinks like lattes and cappuccinos, juices and smoothies, water (bottled water, flavored water, and infused water), non-alcoholic beer and wine. In recent years, there has been a growing demand for healthier and more innovative non-alcoholic beverage options in the HORECA market, driven by consumer preferences for wellness, sustainability, and unique flavor experiences. Continuous product innovations and new product launches are propelling the market. For instance, in March 2023, Reliance Consumer Products Limited (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), announced the launch of the iconic beverage brand, Campa. Thus, among the types, the non-alcoholic beverage segment held a significant market share in 2023.
• Based on the end user, the market is segmented into hotels, restaurants, cafes, and others. The hotels segment held a significant share of the market in 2023. In the HORECA beverages market, the hotels segment refers to the provision of beverages within hotel establishments. This includes a variety of offerings tailored to meet the needs and preferences of hotel guests, as well as visitors to hotel bars and restaurants. Hotels typically offer a range of beverage options. The hotel segment in the HORECA beverages market is influenced by factors such as guest demographics, hotel brand positioning, regional preferences, and trends in food and beverage consumption. Hotels often strive to offer a diverse and appealing beverage selection to enhance guests' overall experience and satisfaction. Online booking platforms, mobile check-ins, keyless entry systems, and tailored services are the prominent innovations, which have not only drawn in more customers but also contributed to the sector's growth. For instance, in February 2023, according to the report published by Site Minder, an open hotel commerce platform, reported travelers globally booked hotel stays significantly earlier in 2022 than in 2021, with hotels experiencing an increase of 38% in the average booking lead time year-on-year. Thus, the hotels category held a significant share of the market in the year 2023.
• For a better understanding of the market adoption of HORECA beverage, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is dominating the market in the current scenario of 2023 due to the rising popularity of takeout and drive-in restaurants, and rising company collaborations. The industry is witnessing several trends such as comfort drinks, touchless ordering, and innovative technology to bring dining experiences to the consumer’s doorsteps. For instance, according to a report published by Circana in 2023, full-service restaurants in Canada showed the highest traffic growth, with a remarkable gain of 24%. Moreover, quick-service establishments still dominated with a 67% share of all food service visits, showing a 9% increase during the quarter. Thus, amongst regions, North America held a significant share of the market in 2023.
• Some of the major players operating in the market include Unilever; The Coca-Cola Company; Nestle; PepsiCo; Jones Soda Co.; Danone; Appalachian Brewing Company; GCMMF (Amul); Keurig Dr Pepper Inc.; Bacardi Limited.