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Know-How Franchising is a Proven Business Model for FMCG Business Expansion

Franchise Business

Turning your business into a franchise enables fast and economical expansion rather than setting up branches. However, many business owners hardly know about franchising, and due to this fact they might be missing growth opportunities. So, if you’ve successfully launched your FMCG business, and you’ve achieved a point where your company is stable and profitable. Now is the time to take your FMCG business to the next level! That’s to kick start with FRANCHISING

FMCG Sector Overview

What are FMCG goods?

FMCG goods are also known as consumer packed goods. It includes all consumables other than groceries/pulses. The items like toilet soaps, detergents, toothpaste are meant for daily use, indicating a high return. 

Market Size

The retail market in India is expected to reach US$ 1.2 trillion by 2022, with modern trade growing at 20-25% per annum. This growth is likely to boost the revenues of FMCG organizations. The direct selling sector in India is expected to cross Rs 159 billion by 2021 if provided with the required environment through desired rules and regulation.


In urban areas, purchasing trends have shifted from essential to premium products, due to the rise in disposable incomes. Reacting to this trend, firms have started enhancing their premium product segment. Indian and international FMCG companies are leveraging India as a strategic sourcing for cost-competitive products, so as to cater to the international markets.

Rural Areas to Rise

Rural areas are expected to be the major driver of FMCG products, as growth continues to increase in these areas. Brands are also working towards creating products, targeted specifically at the rural market.


Brands need to focus majorly on Research &Development and innovations for growth. Global and domestic FMCG brands are investing more in health and wellness, as this major trend is shaping consumer preferences as well as shopping habits.

As per the Franchise Forecast, the Franchise industry in India is showing no signs of a slowdown. In fact, the FMCG industry is growing beyond expectations. Report also highlight that grocery/FMCG is an emerging segment. Though, franchising in the FMCG market is still in its nascent stage with few regional players leading the space. Hence, there is a lot of unexplored space for organized players. So, if you want to grab this opportunity to diversify as an FMCG franchisor Click here.

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