Source :NEWS18 NEWS
Last Updated:January 13, 2025, 09:22 IST
The hospitality and F&B sectors will thrive in 2025 by balancing technological advancements with the core human aspects of service
As technology continues to shape the industry, sustainability, personalization, and health-conscious dining will remain critical to meeting the needs of the modern traveler and diner
The hospitality and food & beverage (F&B) sectors in India are set for remarkable growth, with predictions indicating a 10.5% annual increase in the hospitality industry over the next three years. Rising domestic and international travel, as well as the expanding MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, are driving this growth, generating an additional Rs 8,200 crore annually. The F&B industry is also experiencing rapid expansion, with projections showing a rise from Rs 5.69 lakh crore in FY24 to Rs 7.77 lakh crore by FY28, with the organized segment growing at a robust 13.2% CAGR.
Several transformative trends are shaping the landscape as we approach 2025, from technology advancements to a growing focus on sustainability and evolving consumer preferences. Let’s explore the key trends to watch.
related stories
AI and Automation Revolution
AI is playing a pivotal role in transforming the hospitality industry. According to Hotel Tech Report, 70% of guests find chatbots useful during their stays, and 58% report improved booking experiences with AI technology. The global AI in hospitality market is projected to grow at a CAGR of 60% until 2033. AI-driven chatbots provide 24/7 multilingual support and streamline booking processes, while service robots are improving operational efficiency by handling tasks like room service delivery, cleaning, and security, all of which help enhance guest experience and maintain consistency.
Immersive Dining and Experiential Spaces
The F&B industry is shifting towards creating immersive dining experiences, where guests seek more than just food—they want a journey of storytelling through flavors, carefully designed spaces, and unique cultural or artistic elements. As noted by Manish Sharma, Co-Founder & COO of Karigari Restaurants, “Immersive dining will continue to grow, where restaurants focus on creating unique, memorable experiences. This will include thoughtfully designed spaces and stories behind the food.” Sustainability is also central to this shift, with practices such as zero-waste kitchens, locally sourced ingredients, and energy-efficient operations becoming more common.
Health and Wellness Integration
With growing health-consciousness among consumers, the demand for healthier food options is on the rise. This includes plant-based alternatives, gluten-free dishes, and meals made with fresh, authentic ingredients. As Swati Kansal, Founder of Say Fontina, highlights, “Health-conscious dining will dominate menus, featuring plant-based alternatives, functional foods, and allergen-friendly options.” In parallel, wellness tourism is evolving, with hotels offering integrated wellness programs, including personalized nutrition, health technology, and mindfulness experiences tailored to travelers’ well-being.
Sustainability and Resource Management
Sustainability is taking center stage in both the hospitality and F&B sectors. AI and IoT technologies are helping businesses reduce waste, optimize energy use, and improve resource management. Smart systems are enabling real-time monitoring of energy consumption, while AI analytics assist in reducing food waste and streamlining operations. According to Naresh Sharma, CEO, IRHPL Group of Companies, “Sustainability will play a central role in shaping the future of the industry, with businesses focusing on eco-conscious practices and offering more sustainable options to align with consumer values.”
Smart Hotel Technology
Smart hotel technology is becoming increasingly popular, with IoT-enabled devices improving guest experiences. Voice-controlled features, smartphone-integrated services, and automated environmental controls are becoming standard in modern hotels. These innovations enhance guest comfort while contributing to operational efficiency and sustainability goals. As the technology evolves, hotels are finding new ways to offer guests a seamless and intuitive experience, ensuring both luxury and sustainability.
Localization and Authentic Experiences
There is a growing demand for authentic, regional culinary experiences as travelers increasingly seek more localized dining options. As Swati Kansal points out, “Hyper-localization will take center stage, with diners craving authentic, regional culinary experiences.” Restaurants and hotels are responding by sourcing locally, embracing indigenous flavors, and adopting eco-friendly practices to create memorable dining experiences that connect guests to the culture and heritage of the region.
Growth of Premium Beverages and Airport F&B
The demand for premium beverages, particularly craft and locally brewed beers, is surging, especially among younger consumers. As Naresh Sharma notes, “In 2025, we will see a significant rise in premium beverages, particularly locally brewed beers. Travelers are seeking unique and high-quality drinking experiences, which airports are capitalizing on by offering craft beers and artisanal drinks.” The trend toward healthier, more nutritious food options is also evident, as travelers opt for fresh, wholesome meals and plant-based alternatives in airport dining settings.
Virtual Reality and Digital Engagement
Virtual tourism is transforming how guests engage with properties before their visit. Hotels are leveraging virtual reality (VR) technology to offer immersive tours, allowing guests to explore rooms, amenities, and facilities remotely. This not only enhances the guest’s decision-making process but also boosts conversions by providing an engaging and accurate preview of the guest experience. As the virtual tourism market grows, hotels will continue to incorporate VR into their marketing strategies to attract potential guests.
Personalized, Technology-Driven Dining
Technology is enabling restaurants to offer more personalized dining experiences. AI tools are helping tailor menus to individual preferences, dietary needs, and flavor profiles. This customization allows businesses to better serve their guests, creating unique dining experiences while improving operational efficiency. Manish Sharma emphasizes that “Technology will continue to support the industry, helping restaurants personalize experiences and streamline operations.”
Balancing Innovation with Human Connection
The hospitality and F&B sectors will thrive in 2025 by balancing technological advancements with the core human aspects of service. Businesses that can successfully integrate AI, robotics, and virtual experiences to enhance guest and customer experiences—while maintaining a personal touch—will lead the way.
As technology continues to shape the industry, sustainability, personalization, and health-conscious dining will remain critical to meeting the needs of the modern traveler and diner. The sector’s future lies in offering meaningful, authentic, and innovative experiences that resonate with an increasingly dynamic customer base.
SOURCE : NEWS 18
