India organic food market, which currently sized at 6000 crores is anticipated to grow at a CAGR of over 25% during 2018 - 2021. The last couple of years have seen a massive growth of demand in the organic food industry, especially in the urban and fast-growing markets of India. The organic food industry in India which is currently in its initial stages of evolution is growing due to high disposable income and increased health awareness are the key factors which have resulted in this augmented demand. The organic food market in India is still at a nascent stage wherein we are noticing an increasing demand from end buyers but due to limited availability the supply remains slow. The major problem faced currently is that organic products are priced at a high rate which makes market penetration challenging. The limited availability of organic foods coupled with the fact that majority of sales is concentrated in larger cities shows that supply chains of organic food from farms to domestic consumers are not very well established. There is a lack of knowledge about organic products leading to a low penetration amongst potential customers. The trend of organic and healthy eating is catching up again where an increasing number of Indian citizens have chosen a complete chemical free lifestyle and have turned towards eating natural and organic.
The India organic food market stood at a value of INR 63,326.53 Crores in 2020 and the demand for organic food is anticipated to rise in the coming years. The e-commerce industry growth also serves as an aid to enterprises as a way of appealing to potential consumers due to the lucrative offers and wider market penetration of the platforms. In the malls in major metropolitan towns, companies are also opening small kiosks, which is adding to the market growth. Organic beverages like tea have the greatest appeal, followed by milk products and pulses. The growing level of health consciousness in the country is a key factor driving the demand for organic food. The nutritional content and quality of the food they eat have begun to be paid attention to by Indian consumers leading to the growing demand for organic food. In addition, the consumer spending on health and wellness products has increased dramatically due to factors including strong economic growth, urbanisation, and rising income levels. Growing demand for products which are labelled with organic mark are unprecedented opportunities for farmers and food manufacturing companies. Consumers are increasingly preferring organic food products as it content antioxidants, which positively effects on overall health.
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