The term “HoReCa” is an acronym for Hotel, Restaurant, or Catering Businesses/establishments involved in the preparation and serving of food and beverages to customers belonging to this sector. Currently, due to increased consumer demands and the advent of online food delivery, competition is rapidly increasing among firms in this sector. Thus, companies are actively seeking out new markets to expand their business.
But, when it comes to establishing a business in a new market, there can be several hurdles. In this regard, opting for a food and beverage consulting firm is the best course of action.
The Potential of India’s HoReCa Industry
In India, the HoReCa sector plays a vital role in the economy. It contributes to approximately 1/7th of the country’s GDP, supports more than 50 million jobs, and accounts for almost 10% of the government’s tax revenue. By 2030, this industry segment is set to reach USD 450 billion as per market experts.
Now, there are various factors that further enhance the potential of this market sector. Some of them are as follows:
- Foreign Tourists
Over the years, India has become a preferred destination among foreign tourists for its rich cultural heritage, historic monuments, breathtaking landscapes, and more. To cater to their food, beverage, and accommodation needs, a lot of foreign entities have already established their businesses here.
Now, by 2028, experts predict the number of foreign tourists visiting India to reach 30.5 million. Thus, the Indian government has decided to restructure the tourism sector in order to make it more attractive. This can create several new businesses in the HoReCa sector to expand their operations in this market.
- Preference for International Cuisine
Recently, the preference for international cuisine among Indian consumers has risen manifold with an increased demand for foreign cuisines such as Italian, Thai, Korean, Japanese, etc.
Moreover, due to higher disposable income, consumers are eating out more often, thus creating a demand for newly introduced dishes. This creates ample scope for foreign businesses in the HoReCa sector to establish their brand in this country.
- Online Food Ordering
Nowadays, ordering food online is the new trend among the Indian youth. They prefer the sheer level of variety they get on food delivery platforms and the benefit of getting their favorite food delivered home. As per experts, this industry can achieve a valuation of USD 118.2 billion by 2028. Thus any global restaurant or café brand planning to increase its footprint in the Indian market can leverage this factor to scale its business.
However, to properly utilize the opportunities in India’s HoReCa Industry, taking help from food and beverage consulting firms is essential.
Current F&B Industry Trends that Can Benefit Foreign Businesses
Changing consumer preferences and the adoption of international trends have revolutionized India’s F&B industry. (India’s HoReCa Industry) Here are some ongoing trends in this market which can serve as a major benefit for foreign businesses:
- Cloud Kitchens
Cloud kitchens are virtual restaurants that have no physical location where guests can sit and dine. This helps businesses significantly reduce their overhead costs and increase profit margins. Moreover, it also enables the company to focus on delivering food to its customers.
This trend can be leveraged by foreign firms to set up their business without the hassles of finding a physical location for their establishment. Additionally, as per experts, the market for cloud kitchens in India may reach USD 2 billion by 2024.
- Quick Service Restaurants
Quick Service Restaurants are places where people can order food which takes minimal preparation time. They may include takeaways, sit-and-dine restaurants, buffet-styled eateries, etc. This trend is becoming increasingly popular in India as it caters to the fast-paced life of millennials and Gen-Z. Furthermore, experts think that in the future, quick-service restaurants may become the top preference among Indian consumers.
- Food Vending Machines
Food vending machines are devices that dispense eatables in exchange for cash. Nowadays, thanks to AI, these machines can be programmed to reheat food, take online orders, receive cashless payments, and more. Additionally, they can also predict the popularity of items and notify brands for restocking.
How can Food & Beverage Consulting Companies help Businesses?
India is a country with varied demographics and diverse consumer preferences. Thus, for a foreign company to create a market for its products, understanding the Indian consumer’s tastes is a must. Moreover, firms planning to open a restaurant need to find an appropriate location.
Now, given the high demand for commercial spaces in India, this task can be quite hectic. Furthermore, there are several legal compliances that businesses need to keep in mind while entering this market.
Thus, to mitigate all these hassles, experts recommend partnering with a food and beverage consulting company. In this regard, firms like Tecnova can help foreign businesses successfully enter and expand into the Indian market. It offers services like site selection and partner search, which can help international firms find the apt location for their Indian branch and partner up with an Indian business if need be.
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Consumer Goods & Services Consulting | Retail Consulting
