Record growth of organic food consumption in India

According to “India Organic Food Market Forecast & Opportunities, 2019″, the organic food market revenues in India are expected to grow at a CAGR [combined annual growth rate] of around 25% during 2014-19.



Reasons attributed to the rapid growth of the Indian organic food market include a rising health-consciousness among Indian consumers, rising disposable income due to globalization of markets, and an expanding middle class in the nation of more than 1 billion people.



Nowhere to Go But Up, in Terms of Growth

In addition, the group noted that India is “emerging as a potential destination for organic farming due to growing number [sic] of certified farmlands, as well as diverse climatic conditions and soil types in different states across the country.”



Also, the availability of organic food products is rising gradually because of a steady increase in the number of retail and distribution stores. Various major retailers, including Sresta Natural and Morarka Organic Foods are enlarging their distribution networks in Tier I and II cities through associations with leading retail chains as well as the establishment of exclusive organic food stores and outlets.



Still, there are hurdles to further growth and expansion.



“The market for organic food products in India is highly unorganized. With rising cases of food adulteration across the country, the demand for organic food products has gone up significantly. Growing number of upper middle class people are becoming increasingly concerned about the food quality, and are willing to pay a premium of 10-20% for organic food products. As a result, this segment of the society is currently emerging as a major demand driver for the organic food products market in India,” said Mr. Karan Chechi, Research Director with TechSci Research.



The major organic-food-producing states in India include Maharashtra, Andhra Pradesh, Karnataka and Uttar Pradesh, the research firm noted.



Source: theepochtimes.com