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HoReCa - Current scenario & emerging trends
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Thursday, 30 June, 2022, 08 : 00 AM [IST]
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Sumit Rohilla
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Food is the only way which brings us all together and it is the first and foremost indeed requirement of an individual to live but now the time is when food is part of the lifestyle. The increase in Hotel, Restaurant, and Café (HoReCa), food consumption has become one of the most prominent features of food consumption transformation under the background of rapid urbanisation in India.
The current era of social media plays an important role in eating habits, some eats to show their living standard, some go out to satisfy their hunger, some dine out to spend quality time with friends, family, and loved ones and some went to HoReCa for the business meets. Whatever the reason behind of visit it ultimately helps in the growth of the HoReCa sector.
Indians are now spending their money on "food from the outside" as their solvency and mentality have started to shift in response to Western consumer expectations. In the years from 2016 to 2019, Indian citizens spent, on average, 3–4% of their own money on this kind of activity. Around 20 % of India's middle-class population now regularly eats lunch and dinner outside. It has been noted that younger people (ages 25 to 34) frequently use cafes, while elderly people (ages 35 and older) with higher salaries frequently frequent restaurants.
As a result, India's way of life is gradually incorporating the tradition of public catering. The public catering industry in the nation has grown quickly in recent years. The fact that foreign residents and visitors made up a sizable portion of the public catering service consumers had an impact on the sector's dynamic development. Without comfortable cafes or restaurants, it is difficult to envision modern living.
Restaurants, cafes, fast-food cafes, and buffets are frequently used by business personnel of corporations. In addition, more individuals are choosing restaurants of all classifications as the location for banquets for special occasions every year.
The level of competition is rising, and customer preferences are shifting quickly, it should be highlighted. This establishes the patterns in the growth of the restaurant industry and the requirement for a fundamental shift in the marketing strategy of the restaurant businesses.
In different cities, different culinary formats are more or less popular. Coffee shops and bars are becoming increasingly popular in big cities, while more democratic neighbourhoods continue to expand.
The Federation of Hotel and Restaurant Associations of India, the umbrella organisation of the Indian hospitality industry, combines direct-weighing data to provide information on 53,000 hotels, 70 lakh restaurants, and 2.3 crores of unorganised establishments. The average Indian household's food budget share is anticipated to rise over the next years, reaching 35.4% by 2025. Businesses in Europe and Asia frequently use the word HoReCa, which has its roots in Holland. The word HoReCa has, nevertheless, entered American industry parlance as the worldwide market continues to contract.
India's hotel industry is expanding quickly, and international hotel chains are now present there, raising the country's level of service and establishing new norms for excellence. There have been three times as many hotels built in the last ten years.
The size of the worldwide hospitality industry is anticipated to increase by $4,548.42 billion in 2022, at a compound yearly growth rate (CAGR) of 15.1%, from $3,952.87 billion in 2021. The Covid-19 impact, which had previously resulted in restrictive containment measures involving social estrangement, remote work, and the closure of commercial activities that resulted in operational challenges, is largely to blame for the growth in the hospitality market.
These companies have reorganised their operations and are recovering from the impact. In 2026, the hospitality industry is anticipated to generate $6,715.27 billion. The Hospitality Industry in India is growing at a CAGR of 4.73% over the next 5 years.
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Segment
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Market
Size (Rs Cr)
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Expected
Growth Rate
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Quick
service Resturants
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4675
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21.5%
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Casual
Dining
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2365
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11.9%
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Cafes
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1265
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12.3%
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Fine
dining
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1045
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12.0%
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Pubs,
Bars, Clubs and Lounges
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963
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11.0%
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The marketing director of Moet Hennessy India, Smriti Sekhsaria, The advent of the home bar, with people showing a strong preference for entertaining and making drinks at home, was one of the trends that arose significantly during the pandemic in the beverage industry.
Many HoReCa-focused companies have observed this tendency continue with the reopening, and the majority of them are excited by the response these reopened establishments are receiving overall. The bar and pub industry includes a significant amount of liquor companies, and many have used this reopening as an opportunity to introduce new goods. e want to appeal to younger consumers, who are obviously older than the legal drinking age, since we think that's where a lot of the mixology trends is also taking place, she continued.
Future meals in India are anticipated to include more dairy products, fruit, vegetables, and potatoes. Cereal consumption is anticipated to remain steady, and meat consumption is anticipated to remain low. The amount of water needed in Indian agriculture might be reduced by 30% if each eating pattern were made better (following WHO nutritional criteria).
Without increasing the amount of water used in Indian agriculture, this would be sufficient to feed the expanding population until 2050. The primary adjustments would be to eat more fruit and vegetables and less grains and dairy. Additionally, the healthier diet would decrease fatalities from non-communicable diseases and diet-related greenhouse gas emissions.
(The author is assistant professor, Sunder Deep College of Hotel Management, Ghaziabad. He can be reached at sumitrohilla2@gmail.com)
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