The juice & shake market is estimated to grow at the rate of 25%-30%
The juices and shakes’ industry is brimming in India. Previously dominated by local shops in an area, fresh organic juices and shakes have now emerged as a profitable franchise business opportunity. The market is in a transition state from unorganised to organised chains.
The market is estimated to grow at the rate of 25%-30% owing to factors such as growing health consciousness, disposable incomes, the rise of fruit imports in India and changing consumption patterns are boosting this market in India. A shakes and juices’ franchise promises a plethora of opportunities for franchise aspirants who are looking to invest low and earn high returns.
Factors Propelling the Growing Investment
Juice bars have already become a craze in India. With today’s consumer being ever more health conscious the demand for a healthy yet tasty alternative to high fat fast foods and sugar-based beverages is rapidly growing. The eagerness to spend extra on maintaining a healthy lifestyle, especially in the middle classes and working population, are the major catalysts driving the growth of juices and shakes’ market in India.
With urbanisation and exposure to the west, Indian consumers today are increasingly becoming conscious of their lifestyle including food and beverage choices, in some cases prompting a shift from colas to healthier options such as juices, and milk-based flavoured beverages such as shakes, smoothies, etc.
With this paradigm shift in the preference of consumers, industry players are offering juice bars and shakes’ franchises to satisfy the need of people and cash in on this trending opportunity. Even the likes of McDonald’s are now offering customers the choice to opt for milk-based beverages (chocolate milk, smoothies or shakes) with their meals.
From street-side shops to air-conditioned outlets and kiosk in malls, the juice & shakes’ markets in India have undergone a major revolution in the last few years.
And, consumer behaviour has been one of the propelling reasons behind this major transformation of the industry. Consumer trends have been a prime influence on any industry’s growth and how it operates.
Consumer trends have been constantly shaping the shakes and juices’ market and thus it is important to take note of them.
Earlier, juices often came from closed kitchens and consumers had no clue about the water that was being used and what quality of fruits was going into the mixers. Today, live kitchens have opened up in juice bars and that’s caught the attention of consumers, not only in metros but also in smaller cities.
Another major trend is the availability of a wide variety of flavours. Consumers now are not satisfied with traditional flavours like chocolate, strawberry, but want exotic flavours like Oreo, Belgium chocolate etc. Even in the juice segment, juices of exotic fruits such as kiwi, blueberries etc are high in demand. Nowadays, every college going kids love to hang out at these places since they are quite a health-conscious generation. Even parents like to come with their children and love to have these fresh juices and shakes instead of sugary treats. Many businesses underestimate the family and the residential crowd, but they are also an important section of the target audience.
With the increase in demand, there is an influx of juices and shakes’outlets in India. Many startups have established themselves as major franchise brands and are enjoying huge profits; brands such as Keventers, Juice Lounge, London Shakes, Drunken Monkey, Thick Shake Factory to name a few.
A franchise of The London Shakes brand requires an investment of INR 6-8 lakhs depending upon the area with the arrangement of 2-3 working staff. The area requirement is approximately 150+ sq ft. The equipment would cost up to INR 1 lakh and interiors will cost (approx) 2-2.5 lakhs. The anticipated return on investment is around 30-40%.
Juice Lounge demands an investment of 5-10 lakhs for its franchise. With an area requirement ranging from 80-500 sq. ft, the anticipated return on investment is around 40%.
The investment range of Drunken Monkey Franchise ranges from 20-30 lakhs depending upon the size of the area. The required area ranges from 200-1000 sq. ft. with an anticipated return on investment of around 84%.