The Indian organic food market has been forecast to increase at a compound annual growth rate (CAGR) of 21.34% through to 2016, driven by the increasing number of health conscious consumers, and the increase in focus on organic farming.
The country's budding organic food market is transforming into world's fastest growing industry, backed by a shift in consumer behaviour and spending patterns.
Organic farming is the production of crops without the use of chemical fertilizers and synthetic pesticides. Organic farming provides long-term benefits to the environment and consumers.
The market is witnessing the increasing adoption of organic farming because of the increasing demand for organic food products. In India, agriculture plays a vital role in the national economy; the government of India is offering strong support and promoting organic farming as it will increase the contribution of the agricultural sector to the GDP of the country.
In recent years, the market has witnessed an increase in health concerns among consumers globally. There has been a growing awareness among Indian consumers about the importance of nutrition, health, and quality of food they eat, thereby resulting in an increasing adoption of organic food. Consumers are attaching more significance to healthy diet than physical activities.
The organic foods industry presently is very metro-based, with approximately 95% of the brands existing in top 10 metros like Delhi (NCR), Kolkata , Mumbai, Pune, Chennai, Bengaluru and other tier II cities.
One of the major challenges faced by the Indian organic foods market is the higher cost of organic food when compared with conventional food products. The high cost of organic foods will restrict the purchasing of these products to the affluent class of consumers. As a result, organic food is not affordable by a majority of consumers, which could reduce the profitability of the market.
Key players currently dominating the Indian organic food market include Conscious Food Pvt. Ltd., Eco Farm Ltd., Morarka Organic Foods Pvt. Ltd., Organic India Pvt. Ltd., and Sresta natural Bioproducts Pvt. Ltd.
For more information on the Indian organic food market, see the latest research: Indian Organic Food Market
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