Organic Food Industry in India: A Booming Industry with Huge Potential

What is Organic Food/Grocery?

Food that has been grown and prepared without the use of synthetic pesticides, fertilizers, or animal feed additives is referred to as organic food. Customers may be certain that hazardous pesticides, industrial fertilizers, genetically modified organisms (GMOs), and the use of antibiotics and growth hormones on cattle have not been utilized in organic farming. As a result, customers can be confident that the food they are purchasing is of a higher caliber and is better for them as well as the environment.

What is the expected growth rate of Organic Food Industry in India?

The market for organic food Industry in India, which had a value of USD 1238 million in 2022, is predicted to increase at a CAGR of nearly 22% between 2022 and 2028, reaching a value of over USD 4082 million by 2028.

A niche sector in India, organic food sales are anticipated to grow over the next few years. The demand for organic food is expected to increase due to rising worries about food adulteration and the desire for better and more sustainable solutions. Additionally, the expansion of the e-commerce market has aided in boosting the appeal of organic food among potential customers by utilizing online platforms.

The market can be divided into different product types, such as organic beverages, cereal and food grains, meat, poultry and dairy, spices and pulses, processed food, and fruits and vegetables. Organic beverages, such as tea, have the greatest appeal, followed by milk products and pulses.

Data for Production in India, 2019- Value (in tonnes)

In terms of distribution channels, the industry can be segmented into supermarkets and hypermarkets, specialty stores, convenience stores, online, and others. This makes it easy for consumers to access organic food products no matter where they live.

The Indian government has also been promoting organic farming and the use of organic goods, which is anticipated to further fuel the expansion of organic food Industry in India. The National Program for Organic Production (NPOP), for instance, was established in 2001 with the goal of promoting organic farming and offering certification for organic goods. In addition, a number of state governments have started their initiatives to support organic farming and raise awareness of the advantages of eating organic food.

How India can be a huge Industry for Organic Foods?

India’s vast landmass and comparatively low productivity make it a market with enormous growth potential for organic foods. With its extensive agricultural sector and second-largest population worldwide, India offers a solid platform for expanding the organic food market. However, despite having a sizable land area, India’s agricultural productivity is low compared to other nations. This offers a big chance for the organic food industry to boost productivity and utilize the available land more effectively.

Assam, West Bengal, Tamil Nadu, Kerala, and Karnataka are just a few of the states that make up India’s key regional marketplaces. Due to rising interest in healthier options and growing knowledge of the advantages of organic food, these states have significant demand for organic food items.

In conclusion, there is a significant market for organic food Industry in India and a strong demand for organic food items. The market is anticipated to expand over the next several years due to rising interest in organic foods and the need for healthier, more environmentally friendly alternatives. In addition, the development of the e-commerce sector, which makes it simple for customers to get organic food goods wherever they live, also supports the industry.

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