Looking For A Profitable Franchise Sector For Investment? Consider these sectors.
Written by Deepak 27 Sep 2021
We all know how COVID 19 has created a job crisis in the country and impacted our health and economy as well. Let's not sugar coat and let's accept the fact that covid-19 has disturbed all businesses as a whole. Many became jobless because the maximum company reduced their workforce and many startups failed due to lack of support. In a pandemic, there is less demand and supply which resulted in the failure of many business Ideas because COVID 19 came out of the syllabus.No one was prepared for this pandemic and the result we all have seen.
Now as the vaccination rolls out in India, lifes and the economy are slowly coming back on track. After the introduction of Budget 2021, the Indian stock market is booming. The stock market jumped more than 9% in a week and Nifty also reached the level of 15 thousand. Experts are making predictions about the market growth and about the industries which are going to boom in 2022. People are curious about which sectors they can keep their eyes on. As per the expert's healthcare and IT sectors are going to dominate the market. There are some other sectors that can boom in 2022.
Best profitable franchise sectors to invest in 2021
1. Healthcare-related franchise businesses: The healthcare industry consists of hospitals, pharmacies, medical equipment, medical devices and medical insurances. The health care sector is growing at a rapid pace. The market size is $193.83 billion and is expected to reach $ 372 billion by 2022. The hospital industry contributes around 80% of the total healthcare sector and it is growing with a CAGR of 16-17%. Medical tourism is also growing at a good pace and is expected to reach $8-9 billion by 2022. The diagnostics industry almost contributes 25% in this segment. Health insurance also contributes around 15% to this segment. Recently our Finance Minister allocated around 64,180 crores in the next 6 years to strengthen the healthcare sector in the Budget. The plan is to open new healthcare institutions and to support the existing healthcare institutes. The government also announced an expenditure of 35000 crores for the COVID19 vaccine in 2021-2022. This will directly help the vaccine manufacturers in India. There is a huge demand for healthcare products and services in India due to the Covid pandemic and the demand for healthcare products will never end which makes this business recession-proof.
2. Agriculture related franchise business: Agriculture is considered the backbone of the Indian economy.The contribution of the agricultural sector raised from 17.8% ( 2019-2020) to 19.9 % ( 2020-2021) in India’s GDP. After 17 years the share of the agriculture sector in Indian GDP is around 20%. This shows us how the agriculture sector is growing even in pandemics and contributed to the growth of the agriculture franchise business. When we talk about the franchise business, people only talk about food franchises, pre-school franchises, automobiles etc but an evolution in the agricultural sector took place that is agriculture franchise business . Many government and private companies came to reform the agricultural sector and to attract more people towards this one of the important sectors by starting an agriculture franchise business. One should start a profitable agriculture franchise in this pandemic because there is much scope of this business in India. Maximum companies depend on the agricultural sector, food and beverages industry completely depends on the agricultural sector,that means this agriculture franchise business is going to get lots of business and the contribution of the agricultural sector in GDP is quite impressive. Another strong reason for buying an agriculture franchise business is that it is going to be modernized and the production is predicted to be doubled in the coming years. .There is going to be an increase in demand in India and the world as well. Export is going to increase in the upcoming 10 years.
3. Courier, delivery and logistics franchise business: This lockdown boosted the demand of courier, logistics and delivery franchises in India.Due to lockdown pharmacies, food restaurants and many others started looking for delivery partners to increase their reach and to survive in this pandemic. This helped many courier, logistics and delivery franchise companies to enter in the market. The Indian courier market is growing with a growth rate of 25% and it is creating a new opportunity for entrepreneurs and other people. We all know that how e-commerce is growing rapidly in India. In the last few years, e-commerce has expanded at a good pace and this helped in the growth of courier, logistics and delivery franchises in India. There is a prediction that some giant companies will enter into e-commerce in the upcoming year and they will definitely depend on the existing courier, logistics and delivery franchise in India to deliver their product. Lockdown pushed many retail businesses to go online. And many retail businesses are using the online delivery mode to promote social distancing in COVID19. This decision of going online helped courier, logistics and delivery franchises to grow in India and this is bringing lots of business.
4. Automobile service related franchise business:The main reason for the growth of Automotive servicing franchises during the slowdown is a change in customers preference. Now customers are choosing used cars over new cars. In fact, the market for second-hand cars is at its peak in India.. A large number of players entered into this market and started selling used cars and they are getting a good response from the customers. As per the data, the market for used cars marked 4 million sales in 2019 -2020 , which is 1,2 times more than the sale of the new cars.
The craze of buying a used car has contributed a lot in the growth of the automotive servicing franchise . Many automotive servicing franchises came into the market to give hassle-free service to the customers. Another reason for the growth of automotive servicing franchises in India is technology up-gradation. The introduction of the BS-VI engine and the introduction of electric vehicles became a challenge for some garages and workshops. They don’t have relevant skills for these and this makes them unreliable. This gave an opportunity for a multi-brand automotive servicing franchise in India to grow and cater for the needs of the customers. As per the data customers generally, close their relationship with authorized service centres after the expiry of the warranty. They start looking for flexible and alternative options. And around 65% of customers switch from authorized service centres in search of pocket-friendly service centres. The price charged by these multi-brand service centres is around 40% less than the price charged by authorized service centres. And this factor not only attracted the customers it also attracted the Insurance companies as well. You will not get the business only from customers, you will also get business from the insurance companies as well.
5.Edtech franchise business: While some sectors were fighting for survival in pandemic, Edtech was growing in a pandemic.In fact, edtech collected around 2 Billion in funding in a pandemic, average CAGR is around 64% supported by 10 million users and it is expected to be around 30 billion in market size by 2030. Due to the increase in cases of Covid in India, the government imposed a lockdown as a result all colleges, coachings and schools were closed and it contributed to the growth of online learning. The future of Edtech looks bright because people are adapting to the change. When all the syllabus, teaching plans became irrelevant due to the wave of COVID19, another positive wave of Edtech came as a saviour and transformed traditional teaching.
6. Cloud kitchen franchise business: COVID19 has affected the food and beverages sector very badly , Many businesses came to an end and many were about to close. Then Cloud Kitchen came as a new trend. Now people don’t go to the food, food comes to them.As per the data, there will be a growth of food deliveries in the coming 5 years and as a result many people are opting for cloud kitchens As per the data Cloud kitchens are going to dominate India’s food-tech industry. The number of cloud kitchens in India is going to increase at a rate of 50-60% . The market size of cloud kitchen in 2019 was $ 400 million in 2019 and now it is expected to reach around $ 3 billion industry by 2024. This is going to be the future and most demanded franchise opportunity because our next generation is going to be digital completely.
These sectors are also recession-free and there are lots of franchise opportunities available under these sectors and if you are planning to invest in any of these sectors through franchise business you can visit Franchisebazar and you can select from listed brands from the website as per your sector plan. You can also clear your doubts from experts.