PUBLISHER: TechSci Research | PRODUCT CODE: 1348724
PUBLISHER: TechSci Research | PRODUCT CODE: 1348724
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The organic food market in India is set to experience robust growth with an impressive compound annual growth rate (CAGR) throughout the forecast period. India's organic food market is witnessing rapid expansion, primarily driven by shifting consumer perceptions towards health consciousness. The market's growth is further propelled by rising income levels, elevated living standards, and supportive governmental policies. Modern consumers are increasingly favoring organic products over conventional alternatives due to their safety and health benefits, resulting in heightened public awareness and surging demand. The availability of these products in various retail outlets and supermarkets underscores their popularity, driving the organic food market's expansion in India, particularly in the wake of heightened health concerns.
Organic food encompasses both fresh and processed food items, produced through organic farming practices that eschew synthetic chemicals like pesticides and fertilizers. Organic meat, poultry, eggs, and dairy products derive from animals not exposed to antibiotics or growth hormones. Government-approved certifiers meticulously inspect farms before labeling products as "organic," ensuring adherence to stringent USDA organic standards. Similarly, companies involved in handling and processing organic food must also attain certification.
According to the FiBL (The Research Institute of Organic Agriculture) & IFOAM (International Federation of Organic Agriculture Movements) Organics International Report 2021, India holds the top position in Asia and ranks fifth globally, with an expansive 2.3 million hectares dedicated to organic farming. The APEDA, Ministry of Commerce & Industries, and the Government of India report reveals that approximately 3,430,735.65 MT of certified organic products were produced in the country during 2021-2022, encompassing diverse food products alongside non-edible items like organic cotton fiber and functional food products. The export volume for this period totaled 460,320.40 MT, with organic goods finding their way to international markets like the United States, the European Union, Canada, Great Britain, Switzerland, and other nations. As such, the Indian organic food market is positioned for growth in the forecast period.
Market Overview | |
---|---|
Forecast Period | 2024-2028 |
Market Size 2022 | USD 1.2 Billion |
Market Size 2028 | USD 4.5 Billion |
CAGR | 19% |
Fastest Growing Segment | Online |
Largest Market | West Region |
The Ministry of Cooperation is driving organic farming initiatives to elevate the value of farmers' produce and facilitate Indian organic products' global entry. Programs like Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development in North East Region (MOVCDNER) support organic farming through incentives and assistance. These initiatives provide financial aid for organic inputs, group formation, Farmers Producers Organization (FPO) accreditation, value addition, and marketing of organic produce. PKVY extends to organic farming on either side of the Ganga river, aiming to expand organic cultivation using organic manure and bio-fertilizers. Such governmental efforts are propelling the organic food market in India during the forecast period.
Organic food's demand is expected to persistently increase due to its numerous benefits for consumers. High nutritional value, enhanced antioxidant content compared to conventionally grown counterparts, and the absence of harmful chemicals and toxins are driving forces behind the demand for organic food. Consumers are recognizing the positive impacts on energy levels and overall fitness that organic consumption offers. Those with allergies often experience relief from symptoms by exclusively consuming organic foods. Organic foods maintain their biological quality even after extended storage. As consumers become increasingly aware of these advantages, the demand for organic food in India is poised to grow substantially during the forecast period.
The growing demand for organic food products is underpinned by their high nutritional value. Studies indicate that organic foods may contain higher antioxidant levels compared to conventionally grown alternatives, thereby offering potential health benefits, including cancer prevention. Organic foods stand apart due to their absence of harmful chemicals and toxins, making them a preferred choice. Consumers are recognizing the potential of organic foods to boost energy and enhance fitness levels. Furthermore, organic consumption can alleviate symptoms for individuals with allergies to specific substances. Even after prolonged storage, organic foods maintain their high biological quality. As awareness of these benefits spreads, the demand for organic food is expected to escalate significantly in India during the forecast period.
India's organic food market is segmented into product types and distribution channels. Based on type, the market is segmented into By Product Types, the market is segmented into Organic Fruits and Vegetables, Organic Tea and Coffee, Organic Beverages, Organic Cereal & Pulses, Organic Dairy Products, Organic Herbs, Spices and Condiments, Organic Flour, and Others (Organic Nuts and Seeds, Organic Cooking Oil, Organic Meat and Poultry, Seafood)). Based on the distribution channel, the market is segmented into the modern retail channel, traditional retail channel, wholesales, online, and others (distributor & dealer sales, direct sales). The market also studies regional segment which includes the west, south, north, and east.
Suminter India Organics Private Limited, Nature Bio-Foods Limited, Organic India Private Limited, Sresta Natural Bioproducts Pvt. Ltd, Phalada Agro Research Foundations Pvt. Ltd, Elworld Agro & Organic Foods Pvt. Ltd., Nature Pearls Pvt Ltd, Conscious Food Private Limited, Nourish Organics Foods Pvt. Ltd., EcoFarms (India) Ltd are the major market players in India Organic Food Market.
In this report, India organic food market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in India organic food market.
With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: