India franchise industry to touch USD 140-150 billion in next 5 years, says report
According to a report titled ‘FranCast Whitepaper on Franchise Forecast 2023-24’, the India franchise business is projected to reach USD 140-150 billion in the next five years. This growth is attributed to the increasing number of franchise opportunities and a rise in consumer spending.
Currently valued at around Rs 800 billion, the Indian franchise industry is expected to maintain a growth rate of 30 to 35 percent per year in the upcoming years. The report highlights the positive outlook for the franchise sector in India, driven by factors such as the expanding middle class, increasing urbanization, and the growing preference for branded products and services.
The franchise business model offers several advantages, including established brand recognition, operational support, and access to a proven business model. These factors, combined with the entrepreneurial aspirations of individuals, contribute to the growth potential of the franchise industry in India.
Furthermore, the report underscores the role of technology in shaping the franchise landscape. The digital transformation has opened up new avenues for franchise businesses, allowing them to reach a wider audience and operate more efficiently. With the increasing adoption of e-commerce, online platforms, and digital marketing, franchises have the opportunity to tap into a larger customer base and enhance their market presence.
The projected growth of the India franchise industry signifies the potential for job creation, entrepreneurial opportunities, and economic development. As the industry expands, it is expected to contribute significantly to the overall growth of the Indian economy.
In conclusion, the Indian franchise industry is poised for substantial growth in the next five years, reaching USD 140-150 billion. Supported by the availability of diverse franchise opportunities and the growth in consumer spending, the industry is projected to maintain a strong growth rate. The report highlights the positive outlook for the franchise sector in India and emphasizes the role of technology in driving its expansion. As the industry expands, it is expected to contribute to job creation, entrepreneurship, and overall economic development in the country.
According to the report, India currently holds the position of the second-largest franchise market globally. Looking ahead, the franchise industry in India is projected to reach a value of USD 140-150 billion in the next five years. This growth trajectory reflects the strong potential and promising opportunities within the Indian franchise market.
The significant growth of the franchise industry in India can be attributed to various factors. These include the rising consumer demand, increased urbanization, the expansion of the middle class, and the growing preference for established brands and standardized business models. The franchise business model provides entrepreneurs with a proven framework, brand recognition, and support systems, making it an attractive option for individuals looking to start their own businesses.
As the franchise industry continues to evolve and expand in India, it is expected to contribute significantly to the overall economy. The growth of the sector will not only generate employment opportunities but also foster entrepreneurship, drive innovation, and boost economic development at both local and national levels.
The report’s findings highlight the immense potential for growth and success within the Indian franchise market. With a favorable business environment, a large consumer base, and increasing market demand, the franchise industry in India is positioned for continued expansion and success in the coming years.
According to the report, the franchise industry in India is characterized by a significant number of active franchisors and a large number of outlets. Currently, there are 4,600 active franchisors across all sectors operating nearly 2 lakh outlets in the country.
Furthermore, the report highlights the steady growth of the franchise sector in India, with over 300 companies starting franchising every year. This demonstrates the increasing interest and opportunities for entrepreneurs to join the franchise business model.
Another notable finding is that 53 percent of all franchises in India are operated by multi-unit franchisees. This indicates that many franchisees choose to operate multiple outlets or units within a given franchise brand, showcasing the potential for expansion and scalability within the sector.
These statistics illustrate the robustness and dynamism of the franchise industry in India. The presence of a large number of active franchisors and outlets, along with the continuous influx of new franchising companies, signifies the attractiveness and growth potential of the franchise model in the Indian market. Additionally, the prevalence of multi-unit franchisees indicates the success and viability of scaling up within the franchise sector.
Overall, these numbers demonstrate the significant role of franchising in the Indian business landscape, contributing to job creation, entrepreneurship, and economic growth. The franchise industry in India continues to evolve and thrive, offering a wide range of opportunities for both franchisors and franchisees across various sectors.The report highlights the dominance of regional brands in the Indian franchise market, comprising 50 percent of the total franchises. National brands represent 34 percent of the market, while local brands account for the remaining 16 percent. This indicates the significance of regional brands in the franchising sector, reflecting the diverse and localized nature of business opportunities in different regions of India.
Within the franchise industry, the Food and Beverage (F&B) sector holds a notable presence, constituting 35 percent of all franchise concepts. This reflects the popularity and demand for F&B brands in the Indian market.
In terms of investment levels, the report states that 40 percent of franchisees have an initial investment ranging from Rs 5-10 lakh. This indicates that a significant proportion of franchise opportunities in India are accessible to individuals with relatively moderate investment capabilities.
Despite the Indian franchise market being relatively nascent, it already contributes significantly to the national economy. The report mentions that the franchise industry accounts for close to 2 percent of the country’s GDP. Moreover, the industry has played a role in job creation, having generated around one million employment opportunities.
These findings illustrate the diverse landscape of the Indian franchise market, with a mix of regional, national, and local brands. The prominence of the F&B sector highlights the importance of the food industry within the franchising landscape. Furthermore, the investment range indicates the accessibility of franchise opportunities to individuals with varying investment capacities. Overall, the franchise industry in India is making a tangible contribution to the economy and employment sector, signaling its growing significance and potential for further growth.The global franchise market has witnessed significant growth in recent years. In 2021-2022, the market size reached USD 100.7 billion. Looking ahead, the franchise market is projected to continue growing at a Compound Annual Growth Rate (CAGR) of 9.73 percent until 2030.
The growth of the global franchise market can be attributed to several factors. One key factor is the increasing consumer demand for standardized products and services offered by established brands. Franchise businesses provide a trusted and recognizable brand identity, which appeals to consumers seeking consistent experiences across different locations.
Additionally, the franchise model offers entrepreneurs an opportunity to start their own businesses with the support and guidance of a franchisor. This appeals to individuals who may not have prior business experience but are eager to enter the entrepreneurial landscape.
Furthermore, advancements in technology and the ease of global communication have facilitated the expansion of franchise businesses across borders. Franchise brands can now reach new markets more efficiently, leading to the growth of the global franchise market.
The projected CAGR of 9.73 percent indicates a positive growth trend for the franchise industry. This growth is expected to be driven by factors such as expanding consumer markets, international expansion of franchise brands, and the increasing popularity of the franchise business model.
It is important to note that the growth rate may vary across regions and sectors within the global franchise market. Different countries and industries may experience varying levels of growth based on their specific market dynamics and consumer preferences.
In conclusion, the global franchise market has experienced significant growth, with a market size of USD 100.7 billion in 2021-2022. The market is projected to continue growing at a CAGR of 9.73 percent until 2030. This growth is driven by factors such as consumer demand for standardized products and services, the appeal of the franchise model for entrepreneurs, and advancements in technology facilitating global expansion.
The franchise industry presents exciting opportunities for businesses and entrepreneurs worldwide.According to the information provided, the global franchise market is projected to grow significantly in the coming years. It is estimated to reach a value of USD 175.9 billion by the end of 2030. This growth forecast indicates a positive trajectory for the franchise industry worldwide.
The projected increase in the global franchise market is likely to be driven by various factors, including the expansion of established franchise brands into new markets, the rise of entrepreneurship, and the growing consumer demand for standardized products and services.
As more businesses adopt the franchise model and expand their operations through franchising, the market is expected to witness substantial growth. This growth will not only contribute to the overall economy but also create employment opportunities and foster innovation in various industries.
It is important to note that the projected market value of USD 175.9 billion is subject to market dynamics, industry trends, and economic conditions. The actual growth and value of the global franchise market may vary based on these factors and regional variations.
Overall, the projected growth of the global franchise market to USD 175.9 billion by 2030 indicates the industry’s potential for expansion and its significant role in the global economy. The franchise model continues to be an attractive option for businesses and entrepreneurs seeking growth opportunities and market penetration.
