The India franchise industry is expected to reach USD 140-150 billion within the next five years, aided by an increase in franchise opportunities and consumer expenditure, according to a report. According to a report titled 'FranCast Whitepaper on Franchise Forecast 2023-24', the franchise industry in India is worth approximately 800 billion rupees and is expected to continue growing at a rate of 30 to 35 percent per year in the future years.
India is currently the second largest franchise market in the world. In five years, the franchise industry is projected to reach USD 140-150 billion, according to the report.
In India, there are currently 4,600 active franchisors operating nearly 2 lakh outlets across all industries.
More than 300 companies begin franchising every year, and 53% of all franchises are held by multi-unit licensees, according to the report.
50% of this market is dominated by regional brands, 34% by national brands, and the remaining 16% by local brands.
35% of these franchise concepts are food and beverage brands, and 40% of licensees invest between Rs 5-10 lakh at the outset.
Despite the fact that the Indian franchise market is still in its infancy, the industry accounts for close to 2% of the country's gross domestic product and has created one million employment.
The capacity of the global franchise market reached US$100,7 billion in 2021-2022 and is projected to expand at a CAGR (Compound Annual Growth Rate) of 9.73 percent between 2021 and 2030.
The global franchise market is expected to reach $175.9 billion by the end of 2030, according to the report.
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