Highway boom ignites roadside retail revolution in India

Improved highways are fuelling growth in consumer goods and foods sectors, as an uptick in work-related or leisure travel is made possible by expanding connectivity to previously inaccessible regions and increasing car ownership, unlocking untapped markets.

- Suneera Tandon

Alongside improved connectivity, the end of the pandemic has also spurred a wave of domestic travel, with families and friends opting for short road trips, often to nearby hill stations.

This trend is spurring a surge in demand for roadside snacks and beverages.

In a recent interview, Nestle India's boss, Suresh Narayanan, said retail real estate quality along the country's highways has improved, allowing large companies to open outlets.

"With the improvement in highways, two things are happening. One is that distribution and access are becoming more seamless, and therefore, purchase rates of brands are more robust. Second, this whole highway thing is becoming a big deal. I was surprised to see that the Lucknow-Varanasi stretch is now covered in four hours. On both sides, there are hotels and restaurants; these are decent ones, not the old ramshackle sheds, and they stock Maggi, Nescafe and KitKat because consumers are asking for them. We have about 750 odd (Nescafe) stalls across the country some of them are quite big. Consumers there are happy to buy the Nestlé brand. So, whether it is tourism sites, whether it is highways, there is a significant improvement," Suresh Narayanan, chairman and managing director of Nestlé India, said.