US HoReCa Market Research Report: By Category Outlook (Single Outlet, HoReCa Chain) and By Service Type Outlook (Hotels, Restaurants, Cafes and Pubs) - Forecast to 2035
ID: MRFR/F-B & N/19448-HCR | 128 Pages | Author: Snehal Singh| December 2023
US HoReCa Market Size was estimated at 712.87 (USD Billion) in 2023. The US HoReCa Market Industry is expected to grow from 800(USD Billion) in 2024 to 1,750 (USD Billion) by 2035. The US HoReCa Market CAGR (growth rate) is expected to be around 7.375% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US HoReCa market has seen significant trends shaping its evolution. One major trend is the increasing demand for sustainable and locally sourced food products. Consumers are becoming more conscious of their environmental impact and are seeking dining experiences that reflect these values. This shift influences restaurants and catering services to prioritize local suppliers and eco-friendly practices, thereby fostering a supply chain that supports regional farmers and food producers. Another important trend is the integration of technology in the dining experience. With advancements in mobile payment systems, online reservations, and digital menus, establishments are enhancing convenience and efficiency for their customers.
Many diners in the US now expect seamless technological interactions, which influences operational strategies within the HoReCa sector. This change also opens opportunities for businesses to gather data on customer preferences to further tailor their offerings. Health and wellness have also emerged as key drivers of market dynamics in the US HoReCa landscape. There is a growing consumer interest in menu transparency, with diners wanting to know more about the ingredients and nutritional aspects of their food. This trend pushes restaurants to offer healthier options, including plant-based meals and allergen-friendly dishes, thus engaging a wider customer base. Moreover, the impact of the pandemic has led to the rise of delivery and takeout services. Restaurants have quickly adapted by enhancing their delivery options and focusing on the customer experience during these services. The ongoing evolution of dining preferences presents numerous opportunities for innovation and growth within the HoReCa sector in the US, necessitating a deeper focus on consumer behavior and market adaptation. Overall, these trends reflect a significant transformation in the US HoReCa market, driven by consumer demands for sustainability, technology, health, and convenience.
The US HoReCa Market Industry is significantly driven by the increasing consumer demand for diverse culinary experiences. According to the US Department of Agriculture, Americans spent approximately 50% of their food budget on dining out in recent years, reflecting a notable shift in consumer preferences towards varied dining options. This trend has been further supported by the rise in social media platforms that encourage food exploration and sharing, resulting in a more educated and adventurous consumer base.Established restaurant groups like Darden Restaurants and Yum! Brands have adopted innovative menu approaches to meet these evolving demands, offering a wider array of international cuisines, local sourcing, and experiential dining options to attract millennial and Gen Z consumers. This increasing demand for restaurants providing unique dining experiences is anticipated to fuel the market growth of the US HoReCa Market Industry.
The growth in travel and tourism activities is a pivotal factor bolstering the US HoReCa Market Industry. The US Travel Association reported that domestic leisure travel spending reached over USD 800 billion in recent years, prompting a significant need for hospitality services. The increase in international tourist arrivals, projected to reach 115 million visitors by 2027, corresponds to a growing need for hotels, restaurants, and catering services across the country.This surge in tourism, particularly post-pandemic with pent-up travel demand, has prompted key players like Marriott International and Hilton Worldwide to expand their footprints in major tourist cities to capitalize on this trend. Thus, the travel industry's recovery and growth firmly supports the expansion of the US HoReCa Market Industry.
The growing trend towards sustainability and health-conscious dining is significantly impacting the US HoReCa Market Industry. According to the Food Marketing Institute, 72% of consumers are more likely to choose restaurants offering healthy or organic options, reflecting a major shift in consumer dieting habits. Noteworthy chains, including Panera Bread and Chipotle, have actively embraced this trend by introducing sustainable menu items and sourcing local ingredients.Moreover, initiatives from organizations like the National Restaurant Association advocate for transparency in sourcing and sustainability practices in the restaurant sector, fostering a competitive edge among restaurants that align with these consumer preferences. This awareness around health and sustainability is anticipated to further fuel growth in the US HoReCa Market Industry.
The rapid digital transformation in the hospitality sector is reshaping the US HoReCa Market Industry, facilitating streamlined operations and enhanced customer experiences. Research from the American Hotel and Lodging Association indicates that over 70% of hotels are investing in technology to improve guest services, making reservations more accessible, and employing mobile ordering systems. Companies like Zomato and DoorDash have catalyzed this transformation by offering delivery and online platforms, which have become essential in the post-pandemic landscape.The integration of artificial intelligence and big data analytics for personalized services is also revolutionizing how restaurants interact with customers. As technology continues to evolve, its application in the hospitality sector is poised to drive significant growth in the US HoReCa Market Industry.
The Category Outlook for the US HoReCa Market reveals significant trends and opportunities that shape its landscape. With the market expected to reach a valuation of 800.0 USD Billion in 2024 and grow substantially by 2035, the insights into its diverse segments play a crucial role in understanding its dynamics. The US HoReCa Market segmentation focuses on two primary areas: Single Outlet and HoReCa Chain, each contributing uniquely to the overall growth and structure of the industry. The Single Outlet segment appeals to independent restaurants and cafes that capitalize on localized offerings, unique customer experiences, and personalized service. These establishments often foster loyalty among their clientele, as they deliver distinctive culinary experiences that are hard to replicate in larger chains. Meanwhile, the HoReCa Chain segment dominates the market due to its extensive reach and operational efficiencies, enabling a quicker response to consumer trends and demands. Chains often implement standardized processes that ensure consistency across multiple locations, which can enhance brand recognition and customer satisfaction.
The rising consumer preference for convenience and quick service has made the HoReCa Chain segment particularly significant, especially in metropolitan areas where busy lifestyles demand efficient dining solutions. As a result, many chains are embracing technology, such as mobile ordering apps and delivery services, to further enhance customer engagement and streamline operations. Additionally, sustainability has surged as a central theme, with both segments increasingly adopting eco-friendly practices, ranging from sourcing local ingredients to implementing waste reduction strategies. These market trends are driven by growing consumer awareness of environmental issues, presenting opportunities for both Single Outlets and Chains to differentiate themselves.
Challenges such as changing regulations, fluctuating food prices, and competition from the growing delivery and takeout sector impact both segments. However, the insights derived from ongoing market data highlight that adaptability and innovation remain critical growth drivers across the US HoReCa Market. As the market continues to evolve, players within the Single Outlet and HoReCa Chain categories must deeply understand consumer preferences, technology trends, and operational efficiencies to capitalize on emerging opportunities for success. Understanding these dynamics will significantly influence market positioning and strategic planning for participants in the US HoReCa Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Service Type Outlook within the US HoReCa Market encompasses various key areas such as hotels, restaurants, cafes, and pubs, each contributing uniquely to the industry landscape. Hotels, being a significant component, cater to a diverse clientele, including business travelers and tourists, driving substantial revenue through accommodation and added services. Restaurants play a crucial role, reflecting changing consumer preferences towards gourmet dining experiences and plant-based options, which are trending in the culinary scene. Cafes offer a blend of casual dining and social engagement, appealing especially to younger demographics and remote workers seeking comfortable spaces with quality beverages.
Pubs serve as social hubs, often featuring entertainment and community events, which enhances their appeal and customer loyalty. The US HoReCa Market demonstrates robust growth factors driven by an increasing consumer desire for unique dining experiences, convenience, and quality service. Challenges include labor shortages and rising operational costs, while opportunities lie in technology integration, such as delivery apps and digital reservations systems, which continue to reshape the way services are delivered across these sectors, ultimately influencing overall market statistics and growth.
US HoReCa Market Key Players and Competitive Insights:
The US HoReCa market, which encompasses the hotel, restaurant, and catering sectors, has seen significant growth and transformation in recent years due to changing consumer preferences, technological advancements, and the aftermath of the pandemic. The competitive landscape is characterized by various players ranging from large food service management companies to regional providers and local establishments. Organizations within this space are continually adapting to meet the demands for healthier and sustainable food options, leveraging digital platforms for better customer engagement, and integrating supply chain efficiencies to optimize operations. With the rebound of dining out and hospitality services, understanding the competitive dynamics and strengths of key players within this market is crucial for strategic positioning.Aramark has established a commanding presence in the US HoReCa market by focusing on providing comprehensive food services and facilities management solutions across various sectors including sports, education, and healthcare.
The company's strengths lie in its ability to design customized dining experiences that cater to diverse consumer needs and preferences. Aramark effectively utilizes its extensive supply chain network to source high-quality ingredients, ensuring that it can meet customers' demands consistently. Furthermore, the company has invested in innovation by incorporating technology to enhance the customer experience, streamline operations, and improve sustainability measures. These strengths have cemented Aramark’s reputation as a reliable partner in the US food service industry.US Foods operates as a leading foodservice distributor in the United States, delivering a wide array of food products and culinary services tailored for the HoReCa sector. It provides a diverse selection of offerings, including meats, seafood, produce, and dairy, all aimed at meeting the unique needs of restaurants, caterers, and other food service operators.
US Foods capitalizes on its extensive distribution network, enabling rapid delivery and a strong market presence across the country. The company's strengths revolve around its commitment to quality, robust customer service, and the adaptation of its product line to include innovative and trending cuisine options. Moreover, US Foods has consistently pursued strategic mergers and acquisitions to bolster its market share and enhance its operational efficiency, allowing it to navigate this competitive landscape successfully while continuing to expand its service footprint across the nation.
Key Companies in the US HoReCa Market Include:
Aramark
Martin Brower
Compass Group
Cedar Fair
Darden Restaurants
Performance Food Group
Sysco
Gordon Food Service
Sodexo
Soft Drinks International
Chartwells
Pinnacle Foods
US HoReCa Market Industry Developments
Recent developments in the US HoReCa market have been characterized by a gradual recovery from the impacts of the COVID-19 pandemic, with growth seen across various segments. Companies such as Aramark, Sysco, and US Foods have actively adapted their service models to meet changing consumer preferences. Notably, in September 2023, Performance Food Group announced the acquisition of a regional distributor to expand its market reach. Additionally, in August 2023, Darden Restaurants reported better-than-expected earnings, reflecting a strong rebound in dining out as consumer confidence returns. Major players like Compass Group and Gordon Food Service have focused on sustainability practices, aligning with consumer demand for eco-friendly options. The market valuation for these companies has seen significant growth; for example, Sysco's stock reached a record high in June 2023, indicating strong confidence in its recovery strategy. Market reports indicate a steady increase in the number of restaurant openings, suggesting a vibrant outlook for the sector, with data showing a resurgence in business travel and events driving demand in the HoReCa industry across the United States.
US HoReCa Market Segmentation Insights
HoReCa Market Category Outlook Outlook
Single Outlet
HoReCa Chain
HoReCa Market Service Type Outlook Outlook
Hotels
Restaurants
Cafes and Pubs
Report Attribute/Metric Source: | Details |
MARKET SIZE 2018 | 712.87(USD Billion) |
MARKET SIZE 2024 | 800.0(USD Billion) |
MARKET SIZE 2035 | 1750.0(USD Billion) |
COMPOUND ANNUAL GROWTH RATE (CAGR) | 7.375% (2025 - 2035) |
REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
BASE YEAR | 2024 |
MARKET FORECAST PERIOD | 2025 - 2035 |
HISTORICAL DATA | 2019 - 2024 |
MARKET FORECAST UNITS | USD Billion |
KEY COMPANIES PROFILED | Aramark, US Foods, Martin Brower, Compass Group, Cedar Fair, Darden Restaurants, Performance Food Group, Sysco, Gordon Food Service, Sodexo, Soft Drinks International, Chartwells, Pinnacle Foods |
SEGMENTS COVERED | Category Outlook, Service Type Outlook |
KEY MARKET OPPORTUNITIES | Sustainable sourcing and dining, Technology integration in services, Health-conscious menu offerings, Delivery and takeout expansion, Experiential dining experiences |
KEY MARKET DYNAMICS | post-pandemic recovery, increased online orders, focus on sustainability, labor shortages, value-driven dining experiences |
COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US HoReCa Market is expected to be valued at 800.0 USD Billion in 2024.
By 2035, the US HoReCa Market is projected to reach a value of 1750.0 USD Billion.
The expected CAGR for the US HoReCa Market from 2025 to 2035 is 7.375%.
The 'HoReCa Chain' segment is expected to dominate the market with a value of 500.0 USD Billion in 2024.
The Single Outlet category of the US HoReCa Market is estimated to reach a value of 650.0 USD Billion by 2035.
Major players in the US HoReCa Market include Aramark, US Foods, Martin Brower, and Compass Group among others.
The HoReCa Chain category is expected to reach a market value of 1100.0 USD Billion by 2035.
Key growth drivers for the US HoReCa Market include increasing consumer spending on dining and food services.
Challenges impacting the growth of the US HoReCa Market include rising operational costs and supply chain disruptions.
The US HoReCa Market currently holds a significant share compared to other regions due to its robust infrastructure and consumer demand.
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