HoReCa Packaging: All you need to know
An overview of the HoReCa industry
India’s hotel, restaurant, and cafe industry (HoReCa for short) went through a brief but noticeable lull during the pandemic. But now, the industry has picked up the pace again and how! With new cafes and restaurants opened by the dozens in recent months, this is currently one of the fastest-growing market segments in the country. FnB news reports that India’s hotel and restaurant segment will likely reach $2.38 trillion by 2028.
That said, the industry is not without its unique complications. Food packaging — a crucial aspect of this business — is one such area that can be pretty challenging. So let’s first take a closer look at the types of food packaging commonly used today and venture into the associated challenges
The Role of Aggregators in HoReCa Packaging
Businesses grappling with these challenges can look towards Packaging aggregators as a one-stop solution to overcome all possible roadblocks. Aggregators offer comprehensive services to streamline packaging and procurement for businesses in the HoReCa industry. Some such services include digitization of procurement, vendor consolidation, benchmarking, and measures to ensure uniformity in product and pricing. Online food delivery services are playing a pivotal role in reshaping this market. These players have a higher volumetric need for packaging consumables, which can be fulfilled by their channel partners or aggregators. This essentially eliminates the need to search for multiple suppliers on short notice. Moreover, aggregators can offer competitive pricing as they leverage the benefits of economies of scale.
Types of packaging in the HoReCa segment
Whether primary or secondary packaging, the following packaging supplies are typically used in the hotel industry today.
- Metal packaging:
Metal packaging includes metal tins like stainless steel or aluminum tins. These are popularly used for packaging canned food items and beverages.
Sustainability level: High since metal is easy to recycle
Lightweight, inexpensive and easy to mold, plastics are commonly used for packaging food in the HoReCa segment. Around 40% of all the plastic manufactured is touted to be used for the packaging alone.
Sustainability level: Low, since most plastics, like single-use plastic, are not eco-friendly.
- Glass packaging:
Glass is also a preferred item on the list of Horeca supplies used for packaging. More specifically, it is used for various foods like soft drink cans, jams and pickles, juices and even baby food.
Sustainability level: High since glass can be fully recycled.
- Paper packaging:
Paper packaging is widely used in cafes and restaurants as a part of their takeaway services. It is typically used as a part of secondary packaging or tertiary packaging.
Sustainability level: High as Moglix uses FSC certified raw materials.
Packaging challenges in the HoReCa industry: And possible solutions
Although each business in this market segment may have challenges, some issues are widely prevalent in the industry. Here are some such roadblocks and what businesses can do to overcome them.
- Sustainability in packaging
Not all kinds of packaging are environment friendly. And with the race to become carbon-neutral in the near future, hotels and restaurants are under tremendous pressure to adopt eco-friendly packaging policies.
While making the switch may take a while, your business can start by introducing circular packaging. This packaging is easier to reuse and recycle, thus reducing the carbon footprint.
- Supplier and vendor management
Fragmented supply chains for packaging can be another roadblock for HoReCa businesses. This not only makes vendor management harder but also reduces margins significantly.
To make your business’s packaging procurement more streamlined, you can implement standardized vendor contracts, track vendor management, and establish effective lines of communication with your vendors.
- Rising costs of HoReCa supplies
Another major challenge in this market segment is the issue of rising costs associated with the HoReCa supply chain. Reports show that packaging can account for around 10% of the total costs incurred.
Cost analytics can help you identify the areas where you are overspending, so you can control your spending. However, cost-cutting is only a temporary solution. To enjoy reduced costs and improved margins over the long run, your business must focus on strategic procurement partners.
Choose the right packaging solutions provider for an easy transition to sustainable packaging.
Reduce your organization’s carbon footprint and meet your sustainability goals with Moglix. We offer innovative and competitive packaging solutions to help your business transition to sustainable packaging smoother and more effectively. Visit our website to know more.