Author : Saravanan R
In the fast-paced world of FMCG, sales channels define how far and fast a brand can grow. While modern trade and general trade often take the spotlight, there’s one segment that quietly drives high-volume sales and brand loyalty: HoReCa.
HoReCa stands for Hotels, Restaurants, and Cafés (or Catering). It’s a collective term for the food service and hospitality segment that purchases products in bulk and serves them directly to end consumers. From the ketchup in your burger at a QSR (Quick-service restaurant) to the beverage served at a resort, these are all HoReCa touchpoints.
But HoReCa is not just functioning, it’s booming.
Why It’s Trending:
⚡️ Global hospitality and dining
demand is on the rise, fueled by urbanization, tourism, and increased disposable income.
⚡️ Out-of-Home Consumption:
Nearly 40% of India's out-of-home food consumption is driven by HoReCa channels, underscoring its pivotal role in FMCG distribution.
⚡️ Consumer Demand Surge:
With India's hospitality and food service sector expanding, consumer demand through HoReCa is rapidly climbing especially in categories like beverages, ready-to-eat foods, condiments, and hygiene products.
⚡️ Market Size & Growth:
The Indian HoReCa industry was valued at approximately ₹2.23 lakh crore (USD 223.41 billion) in 2024 and is projected to reach ₹4.42 lakh crore (USD 442.5 billion) by 2035, growing at a CAGR of 6.41%.
As a result, many FMCG companies are strategically investing in HoReCa partnerships, custom packaging, and even HoReCa-exclusive SKUs to tap into this expanding ecosystem.
When a consumer enjoys your product in a restaurant or hotel, they are more likely to look for it on store shelves. That’s the indirect marketing power of HoReCa.
Why HoReCa Matters in FMCG Sales
✔ Bulk Buying = Big Margins
Hotels and restaurants purchase FMCG products in large volumes, creating steady revenue for brands. Whether it’s beverages, condiments, packaged foods, or personal care products HoReCa moves stock faster than most retail shelves.
✔ Premium Placement Opportunities
The HoReCa sector often opts for premium or specialized SKUs. This opens the door for brands to test new packaging, flavors, or sizes not feasible for general trade.
✔ Strategic Distribution Channel
FMCG brands can build loyal relationships with HoReCa outlets, securing recurring orders and predictable demand. It’s a relationship-driven sales environment, perfect for long-term
✔ Brand Visibility Without Traditional Ads
Your product becomes part of the customer experience. When a diner loves the spicy chutney or cold drink served at their table, they’ll remember it and may actively seek it during their next grocery run.
This is closely related to understanding your route-to-market strategy how you reach end consumers via various channels like general trade, modern trade, and HoReCa.
Challenges in the HoReCa Channel
Selling to HoReCa isn’t as straightforward as retail. Here’s why brands often struggle:
✨ Fragmented buyer base
From large hotel chains to small tea stalls, HoReCa is highly unorganized in markets like India.
✨ Inconsistent order sizes
Different outlets have different needs and ordering patterns.
✨ Complex pricing
Volume-based discounts, credit terms, and custom deals make manual tracking difficult.
✨ Poor visibility
Many FMCG companies lack data on primary, secondary, and tertiary sales, especially in the HoReCa chain.
This is where automation and tech tools step in.
How Sales Automation Empowers HoReCa Sales Teams
If you're trying to scale your HoReCa sales with spreadsheets and WhatsApp orders, it's time to rethink your process.
With a powerful Sales Force Automation (SFA) tool like SalesJump, you can:
✔ Digitize bulk order booking from field reps or distributors
✔ Track product movement at outlet-level, giving you better demand forecasts
✔ Offer custom pricing and schemes for HoReCa partners
✔ Monitor delivery and returns in real-time
✔ Streamline invoicing and credit management
All this leads to faster turnaround times, fewer errors, and happier HoReCa partners.
Real Impact: A Use Case in Action
Let’s say a beverage brand partners with a hotel chain. Using SalesJump, their sales reps:
✔ View real-time stock levels at each location
✔ Push custom offers for new flavors during the festive season
✔ Ensure timely replenishment using geo-tagged order data
Result? Zero stockouts, higher visibility, and 20% increase in repeat orders from that HoReCa partner in just 3 months.
HoReCa as a Strategic Sales Catalyst
Beyond bulk buying, the HoReCa sector serves as a strategic growth lever it’s a strategic growth engine that offers brands visibility, volume, and velocity. And with tools like SalesJump, FMCG companies can bring automation, accuracy, and agility to this valuable channel.
If you're serious about scaling FMCG sales, don't ignore HoReCa. Instead, build a strategy that ties it into your push distribution model and strengthens your overall market presence.
