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Supplier Price War and the HoReCa Market Racing Toward $7 Trillion
This week in the food and HoReCa industry brings a clash of two narratives: a hardball pricing game one retail giant is playing with its suppliers, and optimistic forecasts pointing to the global HoReCa market nearly doubling in value over the next decade. We take a look at what both of these stories mean for the food supply chain and the foodservice and hospitality sector.
01 · Supply Chain
Kroger Willing to Lose Suppliers in the Fight for Lower Prices
Kroger CEO Greg Foran leaves no room for doubt: lower prices for customers matter more than supplier comfort. One result of this policy has already been the removal of Boar's Head deli products from three Marketplace stores — reportedly due to a pricing dispute between the chain and the producer [1].
Kroger's strategy rests on two pillars: a stronger push into private-label brands and direct imports that cut out middlemen. The chain has also announced that before rolling out price cuts broadly, it will first test them in select locations [1].
The trouble is that Kroger is simultaneously fending off serious allegations. A report from the Center for Responsible Food Business found that in more than a third of the stores inspected across nine Ohio jurisdictions, inspectors uncovered pricing errors — shelf prices differed from checkout prices by more than 20%, and the discrepancies favored the chain over the customer nearly three times as often [1]. That undercuts the credibility of the "fighting for lower consumer prices" narrative.
On top of that there's a hard business fact: according to Numerator data, over the past year Kroger customers shifted more than $12 billion in grocery spending to Amazon, Walmart, and Costco [1]. Pressure on suppliers is meant to be the remedy for regaining price competitiveness — the question is whether it will backfire on relationships with producers, who may start looking for other sales channels.
02 · Market Forecasts
The HoReCa Market Is Set to Grow to $7.3 Trillion by 2035
Against the backdrop of tension in the American retail sector, the global picture for the HoReCa sector looks considerably brighter. According to an updated report from Market Research Future, the market was worth $3.81 trillion in 2025 and is expected to grow to $7.29 trillion by 2035 — a compound annual growth rate (CAGR) of 6.7% [2].
Hotels remain the largest segment, with a 29% market share, driven by the growth of both business and leisure travel. However, the fastest-growing segment is restaurants — mainly thanks to the expansion of delivery and takeout, whose volume has grown by nearly 20% in recent years [2].
Among the drivers of growth, the report cites rising interest in quality and wellness (the premium segment is growing about 8% annually), consumer pressure for sustainable practices (60% of customers prefer venues that care about the environment), and technology — modern operating systems are boosting the efficiency of foodservice establishments by as much as 30% [2]. This is a signal that investment in digitalization and process automation is no longer a nice-to-have, but a condition for staying competitive.
Putting the two stories side by side reveals an interesting contrast: while a tough margin battle is playing out between retail chains and suppliers at the grocery level, the HoReCa ecosystem as a whole has a decade of solid growth ahead of it. For companies in the food supply chain, this means one thing — a growing market doesn't let anyone off the hook when it comes to negotiating increasingly tough trade terms.
Summary
Summary
On one hand, pricing pressure and disputes along the retail chain–supplier line; on the other, a multi-trillion-dollar HoReCa market with an appetite for further growth. Both stories show that flexibility, strong trade relationships, and investment in operational efficiency will determine who benefits from this momentum and who gets left behind. Want to talk about these trends live with suppliers, distributors, and technology providers for the industry? Join us at HoReCa FoodService Expo — Targi Zaopatrzenia Żywnościowego i Łańcucha Dostaw dla Branży HoReCa.
Invitation
Big retail chains squeezing suppliers on price and the global HoReCa market's rapid growth are two signals that the industry's rules of the game are changing faster than ever. Want to build new trade relationships, meet suppliers ready for fair negotiations, and check out technologies that boost operational efficiency? Visit HoReCa FoodService Expo — you'll find the entire food supply and HoReCa supply chain industry in one place.
HoReCa FoodService Expo 2026Footnotes
[1] Supermarket News — https://www.supermarketnews.com/company-news/kroger-appears-ready-to-lose-suppliers-over-price[2] Market Research Future — https://www.marketresearchfuture.com/reports/horeca-market-10535