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What Indian F&B players will focus on in 2024

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Leaders from the country’s Food & Beverage industry share their areas of focus, expansion strategies, growth projections and more for 2024

Bengaluru: Indian players in the food and beverage (F&B) industry are anticipating a massive expansion of their retail footprint and are optimistic about experiencing revenue growth in 2024.

With a renewed focus on innovation, diverse culinary offerings, and strategic business models, food businesses are poised to capitalise on the growing consumer demand. According to data analytics platform Statista, revenue in the Indian food market is expected to reach $997.30 billion in 2024.

Let’s look at the aspirations of various industry leaders as they navigate 2024, delving into their primary areas of focus, expansion strategies, growth projections and more.

Retail expansion

Each brand in the industry has a distinct objective for expanding its retail footprint. While some are strategising to establish a presence nationwide, others are concentrating on a more targeted approach by focusing on a limited number of locations.

“Our key focus areas for 2024 include expanding Roastea’s presence in 17 cities, securing pan-India contracts from major players, extending the number of cafes to cities like Bengaluru and Mumbai,” said Chaitanya Bhamidipaty, co-founder of Roastea, an Ahmedabad based omnichannel beverage company.

Meanwhile, the homegrown vegetarian burger chain Jumboking is focusing on a total of four cities. “In Q4 we will remain focused on Mumbai, Delhi, Hyderabad and Bengaluru as our major growth markets. We as a company believe it is better to have 300-400 stores in these four markets than to have a similar number of stores in 20-30 cities,” said Dheeraj Gupta, founder of Jumboking,

“We will be adding a net of 60 to 72 stores in the next financial year,” he added.

Gurgaon-based burger chain Burger Singh is aiming to focus on both aspects. “The brand is actively exploring opportunities to expand its presence in existing regions, with a particular focus on Northeast India. Additionally, we are eyeing entry into new regions, specifically targeting South India for further market penetration,” said Kabir Jeet Singh, Founder of Burger Singh.

“This dual strategy emphasizes geographical diversification to tap into untapped markets while consolidating its footprint in areas where the brand has already gained traction. In the calendar year 2024, Burger Singh is expected to reach an outlet count of 260 outlets pan India,” added Singh.

Chai Sutta Bar, the chai chain that serves its tea in kulhads (clay pots) is looking at fulfilling its global aspirations.

“The expansion plans are extensive, with more than 800 domestic outlets targeted for the near future. Internationally, we are set to expand into key markets, including Dubai, Oman, and Canada, among others. These expansions align with our vision of becoming a global player in the F&B sector,” said Anand Nayak, co-founder of Chai Sutta Bar.

Kerala-based banana chips brand Beyond Snack is eyeing more retail touchpoints this year. “Building on last year’s achievement of 5,000 retail outlets, we’re set to quintuple this reach to 25,000 touchpoints,” said Manas Madhu, co-founder of Beyond Snack.

Key areas to focus

Apart from geographical expansion, brands have also honed in on specific targets, directing their focus and investments accordingly.

Jumboking plans to spend on enhancing the skills of both its employees and franchisee network. “We will be investing heavily in training and development for our franchisee network. This is one soft power that comes in handy as the markets get more and more crowded. We are spending a lot of time in strengthening our core teams and making them upskill themselves to become world-class teams supporting our franchisees,” said Gupta.

“Within the retail sector, our prime focus is on standalone modern trades and A-class counters. This strategic expansion is designed to enhance our market presence and customer accessibility, ensuring that our products are readily available in key shopping destinations,” he added.

Roastea has outlined its investment strategy, with a clear allocation plan. “We plan to allocate the majority of our investments, approximately 75%, in vending machines and about 20% will be invested in cafes, while the remaining 5% will be dedicated to technology and product development,” said Bhamidipaty.

Expectations for 2024

As players within the sector gear up for opportunities that lie ahead, the industry sets its sights on achieving higher revenue growth than ever before in the promising year of 2024.

“For 2024, we’re setting our sights high with an ambitious goal of 200% growth. This surge is expected to stem from aggressive market and household penetration strategies, as we aim to make our banana chips a staple in every home,” said Madhu of Beyond Snack.

Roastea is expecting a three times growth in fiscal year 2024 over 2023. “We anticipate our revenues for Financial Year 2024 to range between Rs 35-37 crores, representing a 3 times growth over the previous year. As of now, our projected revenue for the next 12 months, from December 2023 to November 2024, is estimated to be Rs 60 crore,” said the co-founder.

Jumboking is setting its goal for a two-year timeframe. We are focused on doubling our systemwide revenue over the next two years. This amounts to upwards of 40% compound annual growth rate (CAGR) growth over the next 2 years. We feel that this growth is achievable and has a healthy dose of ambition and caution as we navigate the waters of profitable growth and scale,” said Gupta.

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