The HORECA beverage market is expected to increase at a compound yearly growth rate of 4.35% to reach US$351.191 billion in 2027 from US$260.681 billion in 2020. Some of the major factors propelling the HORECA beverage market are the increase in the number of food outlets and restaurants, and the rising demand for junk food and processed foods among millennials. Additionally, increased consumer expenditure on food delivery and the requirement to deliver orders on time is also aiding in driving global demand. For instance, in July 2020, Radisson Hotel Group South Asia announced that it teamed with EazyDiner, a dining reservation, and food discovery platform, to boost the chain's food and beverage (F&B) operations in the region.

The agreement is expected to benefit all 94 of the group's current hotels in India and would comprise table booking and home delivery services. Furthermore, the expansion of the global HORECA beverage market is being driven by an increase in the number of cafés, hotels, and restaurants in developing countries and the growing popularity of Quick Service Restaurants (QSRs). For instance, in March 2022, Roll-Em-Up Taquitos, the US first taquito-focused business, announced a new agreement with PepsiCo to extend its products. Under the terms of the new multi-year contract, all Roll-Em-Up Taquitos restaurants, both corporate and franchised, will begin providing customers with a preference for popular beverages from the PepsiCo portfolio. Through its bottling relationships, Pepsi, Diet Pepsi, Horchata Agua Frescas, Mountain Dew, and Dr. Pepper are among the beverages covered by the deal.

Additionally, the advent of the travel and tourism sector is accelerating the market's expansion. For example, in March 2022, Hudson, a Dufry business and a travel experience pioneer with over 1,000 stores in airports, commuting hubs, and tourist sites across North America, revealed that it will begin operating and developing Starbucks cafes in U.S. airports in summer 2022. Starbucks' expertise and leadership in the coffee market will be combined with Hudson's renowned Traveler's Best Friend service and proven knowledge of running food and beverage facilities inside the travel retail area in this new alliance.

INCREASED EXPANSION AND DEVELOPMENT OF RESTAURANTS AND FOOD OUTLETS

 A major factor behind the growth of the global HORECA beverage market is the expansion and development of restaurants and food outlets. For instance, according to JLL's Hotel Momentum India (HMI) Q4, 2021, the Indian hospitality industry saw a revenue per available room (RevPAR) growth of 100.3 percent year on year in the fourth quarter of 2021. The RevPAR for the fourth quarter (October-December) was 41.9 percent. Furthermore, according to the National Restaurant Association, sales at the U.S. eating and drinking establishments increased 10.2 percent to $548.3 billion in 2021, as customers indulged pent-up demand for service experiences they were prohibited during the outbreak.

Furthermore, increased partnerships among restaurants and major beverage companies will aid in market expansion during the projected timeframe. For instance, in May 2021, the parent business of nine restaurants, FAT (Fresh. Authentic. Tasty.) Brands Inc. announced an exclusive beverage collaboration with PepsiCo, Inc. FAT Brands is broadening its beverage agreement with PepsiCo to include the Fatburger, Elevation Burger, Buffalo's Cafe, Johnny Rockets, and Buffalo's Express brands, building on the relationship PepsiCo has with Hurricane Grill & Wings, Ponderosa, Yalla Mediterranean, and Bonanza Steakhouses.

Similarly, a rise in distribution agreements is also anticipated to propel the growth of the HORECA beverage market. For example, in March 2021, Natfood, the Italian leader in the Horeca service announced an essential collaboration to share their technological and distribution expertise and to provide customers of bars, cafes, eateries, hotel chains, and caterers with integrated and innovative hot and cold beverage alternatives.

Moreover, the integration of digital payments and marketing technologies to provide contactless services, increase operational efficiency, and adapt to rapid changes in the marketplace will also propel the market forward during the forecast period. For instance, in December 2021, Restaurant Brands International, which owns Burger King, Tim Hortons, and Popeyes, formed a regional agreement with the Ant Group. The firm would use Ant Group's digital capabilities across RBI's establishments in the Asia Pacific market as a result of this collaboration. Ant Group will collaborate with RBI's local affiliates to develop a variety of digital technologies, including a SaaS solution for mini-programs and Alipay+, a portfolio of global cross-border digital payments and marketing capabilities.

By End-user, the HORECA Beverage market is segmented into hotels, restaurants, and cafes.

The restaurant and hotel industry has seen a tremendous increase in growth in the last couple of years. The HORECA beverage business will continue to increase as consumer affluence in developing countries rises and people adapt to modern lifestyles at a rapid rate. Due to the availability of a wide selection of products on the menu, the restaurant category holds a substantial share of the market. Families, corporate meetings, and social groups prefer to eat at full-service restaurants because there is a wide choice of food to choose from. The number of eateries is growing in tandem with the increase in family outings. Furthermore, the number of restaurants that serve alcohol is increasing. Alcohol consumption is increasing year after year, and more such eateries are springing up to meet the demand. To keep up with consumer demand and expand their offering, major brands are investing in R&D and innovation. For instance, there is a restaurant under the water on the Maldives' Rangali Island that offers a 270-degree breathtaking view of the finest and most unusual Maldives aquatic critters. Every location has its own distinctive culture, which has a significant impact on the market. Consumers all over the world are willing to test out new environments and services. Furthermore, the Unprecedented growth of various-format stores is gaining traction in both developed and developing regions around the world, although franchising remains one of the most popular growth techniques. Because the majority of millennials like fast food, their spending on restaurants is expanding at a surging rate. 

COVID-19 SCENARIO

The COVID-19 pandemic had a detrimental impact on the global HORECA beverage market. Due to the COVID-19 outbreak, confinement measures and restrictions on capacity and mobility were implemented in 2020. The pandemic not only strained resources in beverage manufacturing, but also halted the HORECA (hospitality, restaurants, and cafes) sector, as demand was considerably impacted. During the year 2020, the entire hospitality market, which includes the sectors of restaurants, hotels, and cafes, had a highly unfavorable performance.

Furthermore, because of the already visible impact of the economic crisis induced by the lockdown measures that most national and municipal governments had to implement, the possibility of recovery in 2021 looks increasingly unlikely. According to an AECOC (Association of Manufacturers and Distributors) study conducted in December 2020, only 6.8% of respondents expected their revenue to increase in 2021 compared to 2019. Many people lost their employment, particularly in the HoReCa sector. In April, the leisure and hospitality business in the United States shed 7.7 million jobs, or 47 percent of total positions, with food service accounting for the great majority of layoffs.

Global HORECA Beverage Market Scope:

Market segmentation:

• BY TYPE 
  • Alcoholic Beverage
    • Beer/Malt
    • Wine
    • Spirits
  • Non-Alcoholic Beverage
    • Bottled Water
    • Carbonated Soft Drinks
    • Fruit Juice
    • Milk
• BY END-USER 
  • Hotels
  • Restaurants
  • Cafe
• BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Others