HoReCa Market 2025

HoReCa Market Size

The global HoReCa market reached a value of nearly $4,172.65 billion in 2024, having grown at a compound annual growth rate (CAGR) of 4.01% since 2019. The market is expected to grow from $4,172.65 billion in 2024 to $5,631.98 billion in 2029 at a rate of 6.18%. The market is then expected to grow at a CAGR of 6.65% from 2029 and reach $7,769.69 billion in 2034. Growth in the historic period resulted from strong economy, rapid growth of unmanned aerial system and growing aerospace industry. Factors that negatively affected growth in the historic period were supply chain disruptions. Going forward, rapid urbanization, expansion of defense budgets, growing demand for air travel, expanding tourism sector, increasing aircraft production and favorable government support will drive the growth. Factor that could hinder the growth of the aerospace forging market in the future include lack of skilled labor.

HoReCa Market Drivers

The key drivers of the HoReCa market include: Growing Tourism Industry During the forecast period, the growing tourism industry will significantly drive the expansion of the HoReCa market. Growing investment and activity in the tourism industry are significantly driving demand within the HoReCa market, as increased traveler volumes fuel the need for high-quality accommodation, food services and guest experiences. As destinations attract more domestic and international tourists, operators are expanding capacity, enhancing service standards and adopting digital solutions to improve efficiency and meet rising expectations. This surge in tourism acts as a strong catalyst for HoReCa growth by increasing occupancy rates, restaurant footfall and event bookings, ultimately supporting broader industry expansion and revenue generation. The growing tourism industry during the forecast period in 2024 is 1.50%.

HoReCa Market Restraints

The key restraints on the HoReCa market include: Technology Adoption Constraints During the forecast period, technology adoption constraints will pose a restraint on the growth of the HoReCa market. Technology adoption constraints hinder growth in the HaReCo market by creating barriers to implementing digital solutions and automation. High upfront costs, lack of technical expertise and integration challenges with legacy systems often prevent small and medium-sized enterprises from embracing modern technologies such as POS systems, kitchen automation, or AI-driven analytics. These limitations slow operational efficiency gains, data-driven decision-making and customer experience improvements, ultimately impacting competitiveness and scalability within the sector. Growth affected by technology adoption constraints during the forecast period in 2024 is -2.62%.

HoReCa Market Trends

Major trends shaping the HoReCa market include: Robotic Kitchens Enhance Competitive Edge Through Automation And Intelligence Major companies operating in the HoReCa market are focusing on AI-driven kitchen automation such as fully autonomous robotic kitchens to gain competitive advantage. A fully autonomous robotic kitchen integrates robotics, AI and computer vision to cook, assemble and monitor meals with minimal or no human involvement. For example, in June 2025, Appetronix, a U.S. food-robotics developer, introduced an autonomous kitchen system for Donatos Pizza in Columbus, Ohio. This system can serve Asian and Mexican cuisine modules and features real-time AI quality control, inspecting sauce, cheese and toppings distribution. It also includes predictive maintenance to reduce downtime and ensure food consistency. The unique attributes of this technology enable seamless menu diversification across cuisine types without manual intervention, maintain strict quality standards using visual AI and automatically anticipate maintenance needs for uninterrupted operations. AI-Driven Personalization And Automation Major companies operating in the HoReCa market are focusing on AI-driven personalization and automation such as AI-powered recommendation engines to gain competitive advantage. AI-powered personalization refers to technology that customizes guest experiences, menu recommendations and loyalty offerings based on guest preferences, ordering history and dietary needs, allowing businesses to deliver hyper-personalized service on scale. For example, in February 2025, MOBI, a US-based restaurant technology provider, introduced an AI-driven restaurant operating system that uses customer data analytics to deliver individualized menu suggestions and loyalty rewards and dynamically adjusts operational processes for each guest. The MOBI system offers unique features such as real-time personalization of menu options based on previous orders, predictive guest flow management to optimize staffing and integration with digital loyalty programs for tailored promotional offers.

Opportunities And Recommendations In The HoReCa Market

Opportunities – The top opportunities in the HoReCa markets segmented by price level will arise in the midscale segment, which will gain $617.73 billion of global annual sales by 2029. The top opportunities in the HoReCa markets segmented by service will arise in the restaurants segment, which will gain $1,014.72 billion of global annual sales by 2029. The HoReCa market size will gain the most in the USA at $324.58 billion. Recommendations- To take advantage of the opportunities, The Business Research Company recommends the HoReCa companies to focus on AI-driven kitchen automation for operational efficiency and menu diversification, focus on AI-driven personalization and automation to enhance guest experience, focus on adopting advanced HACCP digital solutions to drive efficiency and compliance, focus on regional diversification through strategic hotel openings, focus on IoT integration for operational efficiency, focus on single outlet market expansion, expand in emerging markets, continue to focus on developed markets, focus on strengthening multi-channel distribution networks, focus on competitive yet value-driven pricing models, focus on targeted promotional campaigns, focus on collaborative marketing initiatives and focus on targeted engagement with hotel decision-makers.