Is India's Franchise Industry Set to Reach USD 140-150 Billion in Five Years?

A recent report titled 'FranCast Whitepaper on Franchise Forecast 2023-24' has projected remarkable growth for the Indian franchise industry.

With an estimated value of around Rs 800 billion, the industry is expected to witness a substantial increase in the next five years, reaching USD 140-150 billion. This growth can be attributed to the rise in franchise opportunities and a surge in consumer spending.

Current State of the Indian Franchise Market:

Currently, India holds the position of the second-largest franchise market globally. It boasts 4,600 active franchisors operating nearly 2 lakh outlets across various sectors. Furthermore, more than 300 companies venture into franchising each year. Interestingly, multi-unit franchisees account for 53 percent of all franchises, with regional brands leading at 50 percent, national brands at 34 percent, and local brands at 16 percent.

Dominance of F&B Brands and Initial Investment:

Within the Indian franchise market, the food and beverage (F&B) sector holds the lion's share, constituting 35 percent of all franchise concepts. Additionally, 40 percent of franchisees have an initial investment level ranging from Rs 5-10 lakh.

Economic Impact and Job Creation:

Although the Indian franchise market is still in its early stages, it already contributes close to 2 percent of the national GDP. Moreover, this thriving industry has generated employment opportunities, creating one million jobs in the country.

Global Franchise Market Outlook:

On a global scale, the franchise market reached a value of USD 100.7 billion in 2021-2022. With a projected compound annual growth rate (CAGR) of 9.73 percent until 2030, the market is expected to expand significantly. By the end of 2030, the global franchise market is anticipated to reach a value of USD 175.9 billion.