Franchise Industry Statistics – The franchise industry in the recent past has grown exponentially, according to a few stats, the franchise business in the country is at USD 47-48 Billion which is growing at a rate of 30-35% P.a.
How big is the Franchising Industry in India?
Franchise opportunities are endless in India, which has one of the world’s fastest-expanding economies. With a young population that is expanding rapidly, India’s franchise market will continue to grow over the next few years.
By generating a large number of jobs in many industries, the growth and escalation of these franchise firms will also provide possibilities for other people.
Furthermore, India is the 2nd largest franchise market globally. 5 years more the franchise industry is looking to touch USD 140-150 Billion. Franchise industry statistics for 2021 say on average, more than 300 companies start franchising every year.
The Indian franchise industry is looking to grow by about USD 140-150 billion. 53% of all franchises are by multi-unit franchisees.
Currently, in India, there are 4,600 active franchisors across all sectors like
- Retail Franchise
- Foodservice Franchise
- Healthcare, business services
- Beauty and wellness
- Technology-led business operating nearly 200,000 outlets.
Though the Indian franchise market is still very young, the industry accounts for close to 2% of the national GDP. Job creation is at an analysis to be to the tune of 1 million in the franchise industry in India.
Why entrepreneurs are rushing into the franchise industry?
Entrepreneurs are actively looking to enter the franchise industry for a variety of reasons. It is simpler for business owners to operate and function as their franchisees because the franchisors are already well-known, have their brand of goods, and have an established business model.
A highly young population also indicates high entrepreneurial energy in the country. This is where a franchise model helps through shared ownership. More entrepreneurs connect with brands that assure a relatively higher rate of success.
Sectors such as Retail, Food Service and Beauty & wellness, and healthcare contribute 60% to the overall franchising industry. The simple math is that the more successful a business is, the more it can grow and the more it can employ.
India’s Franchise Industry Statistics
The Indian Foodservice sector has already been termed as an engine for ‘Economic Growth & Development’ for India by the Federation of Indian Chambers of Commerce & Industry (FICCI).
The sector officially employs 5.5-6 million people in the country. The organized market or franchisees including large and small format restaurants & cafes in F&B account for 30% of the market. 15% of the F&B employment is an attribute to franchising.
By that statistic, if jobs were to grow proportionately and franchising gets a hold of the larger market and given the overall need to organize the F&B services for reasons of food safety and better tax services enablement, it has a potential to increase employment by 60 million.
An interesting fact to be noted over here is that the most searched job description in India was ‘work from home. One quick Google search can be a testimonial to how much of it is out there.
Franchising concepts strengthen the Work from a Home culture that brings many such jobs that primarily include consulting, man and a truck model and also micro franchising that is being done by Uber and OLA kind of large organizations. All of these business models have offshoots in the franchise industry.
To Sum up,
In India, the franchise industry is expected to pass several significant milestones in the next years. There will be more franchisees popping up everywhere. The small-scale industries ought to join the movement as well and expand their reach. Also, the government ought to make it possible for those living in rural areas to own a franchise.
Thus, get in touch with our consultants at Sparkleminds to know about how India’s franchise industry statistics are established.