India Organic Food Market Size, Analysis, Forecast & Opportunities, 2018-2023

India Domestic Organic Food Market is Expected to Grow at a CAGR of 25%

India is one of the fastest growing economies of the world, and it is home to over 1.3 billion people. The country recorded strong GDP growth of 6.5% in 2017, despite some headwinds from GST. India’s Organic Food Market industry showed promise and registered double digit value growth during 2013-17. India’s middle class continues to grow and IMF’s GDP growth forecast for FY2019 is much better at 7.4%, this will improve business sentiments and benefit different industries including Organic Food Market.

Organic food in India is a niche category and the wave which is still to sweep across the nation. Demand is expected to rise in the coming years due to increasing number of incidence of food adulteration, rising consumer consciousness coupled with increasing income. Growth in e-commerce sector is acting as facilitator for the companies as an appealing route to the potential consumers as channels margins in ecommerce are lower. There are dedicated as well as generalist e-commerce websites selling organic food. Companies are also opening up small kiosk at malls across major metropolitan cities.
Consumers in India are preferring to turn completely organic in their food habits. Non availability of organic fruits and vegetable is still a concern and there is need for stronger supply chain. Organic beverages like tea have the highest value share followed by pulses and dairy products.

As far as competitive landscape is concerned, there are a handful of players operating in the domestic organic space giving a plenty space for new players to create category leadership. To succeed in this market companies requires a right seed to have a bumper organic harvest. This requires a complete and organized supply chain.