HORECA
Not just FMCGs but online retail players are also looking beyond conventional trade channels to boost revenues while gaining entry in the HoReCa segment. In the recent years, hospitality industry, also known as HoReCa industry is one of the fastest growing markets across the world. B2B wholesale giants such as Metro Cash and Carry and Walmart are increasingly becoming part of the FMCG supply chain owing to their reach in the HoReCa (Hotels, Restaurants and Catering) space that services the hotel industry. FMCGs are eying at this lucrative segment today since it outnumbers the mom and pop stores in India.The HoReCa segment accounts for nearly 1.3 crore organizations against 1.2 crore kirana stores across the country.
However, HoReCa as an alternate model and independent segment has gathered immense focus owing to its contribution that is higher than retail. In addition to traditional Kirana stores, Modern Trade and General Trade, FMCGs are building a strong focus on the HoReCa channel as well.The last decade has witnessed the emergence of large number of organized food processors with a strong focus on HoReCa. Frozen food manufacturers and marketers have a strong foothold in this industry since their major business comes from this channel.
India’s HoReCa space is growing at a rapid pace and the attractiveness of the segment has prompted leading FMCG manufacturers to set up diversified lines to cater to this segment.