India Organic Food Market to Advance with a CAGR of 21.00% until 2026

MARKET INTELLIGENCE . CONSULTING

www.techsciresearch.com

FY2016 – FY2026

INDIA ORGANIC FOOD MARKET

FORECAST AND OPPORTUNITIES

Published: February 2021

2

Scope of ReportProduct of Interest (POI): Organic Food

Review Period

FY2016 – FY2019

Base Year

FY2020

Estimated Year

FY2021

Forecast Period

FY2022 – FY2026

Year Range

India organic food market is expected to grow at a double digit CAGR until 2026, on account offavorable government policies supporting organic farming coupled with increasing land area underorganic cultivation. Online availability of organic food products and shifting consumer preferencestowards healthier food options are major factors boosting demand for organic food products in India.

Market Segmentation

REGION

• North

• South

• East

• West

DISTRIBUTION CHANNEL

• Modern Retail Channel

• Traditional Retail

Channel

• E-Commerce

• Institutional/Direct

Sales

PRODUCT TYPE

• Organic Beverages

• Organic Cereal and Food

Grains

• Organic Meat, Poultry and

Dairy

• Organic Spices and Pulses

• Organic Processed Food

• Organic Fruits and

Vegetables

• Other Organic Food

Products

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Scope of ReportProduct of Interest (POI): Organic Food

Fruits & Vegetables - All

Segments

Meat, Poultry & Dairy Products -Adults & Infants

Bread & Bakery -All Segments

Organic Food Products

Organic Fruits &

Vegetables

Organic Meat,

Poultry and Dairy

Products

Organic Processed

Food Products

Organic Bread & Bakery

Organic food products are grownwithout the use of pesticides, syntheticfertilizers, sewage sludge and GMOs.Environment friendly methods are usedto produce them.

Processed Food -Youth

Organic Beverages

Organic Food Products Segmentation

Other Organic

Food Products

Beverages - All Segments

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Table of Contents

S. No. Contents

1. Product Overview: Organic Food

2. Research Methodology

3. Impact of COVID-19 on India Organic Food Market

4. Executive Summary

5. Voice of Customer

6. India Organic Food Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1.By Product Type (Organic Beverages, Organic Cereal and Food Grains, Organic Meat, Poultry & Dairy, Organic Spices & Pulses, Organic Processed Food, Organic Fruits and Vegetables and Other Organic Food Products)

6.2.2. By Distribution Channel (Modern Retail Channel, Traditional Retail Channel, E-commerce, Institutional/Direct Sales)

6.2.3. By Company

6.2.4. By Region

6.3. Product Market Map, By Product Type

7. India Organic Fruits and Vegetables Market Outlook


7.1.1. By Value


7.2.1. By Distribution Channel

7.3. Pricing Analysis

8. India Organic Spices and Pulses Market Outlook


8.1.1. By Value




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Table of Contents

S. No. Contents

9. India Organic Cereal and Food Grains Market Outlook


9.1.1. By Value




10. India Organic Beverages Market Outlook


10.1.1. By Value




11. India Organic Processed Food Market Outlook


11.1.1. By Value




12. India Organic Meat, Poultry and Dairy Market Outlook


12.1.1. By Value




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Table of Contents

S. No. Contents

13. India Other Organic Food Market Outlook


13.1.1. By Value


14. Market Dynamics

14.1. Drivers

14.2. Challenges

15. Market Trends and Developments

16. Policy and Regulatory Landscape

17. India Economic Profile

18. Competitive Landscape

18.1. Suminter India Organics Private Limited

18.2. Nature Bio-Foods Limited

18.3. Organic India Private Limited

18.4. Sresta Natural Bioproducts Pvt. Ltd.

18.5. Phalada Agro Research Foundations Pvt. Ltd.

18.6. Mehrotra Consumer Products Pvt. Ltd.

18.7. Morarka Organic Foods Pvt., Ltd.

18.8. Nature Pearls Pvt Ltd

18.9. Conscious Food Private Limited

18.10. Nourish Organics Foods Pvt. Ltd.

19. Strategic Recommendations

20. About Us & Disclaimer

7© TechSci Research

RESEARCH METHODOLOGY

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Research Methodology

✓ Identifying Key Opinion

Leaders

✓ Questionnaire Design

✓ In-depth Interviews

Data Collection

Developing List of Respondents

Formulating Questionnaire

Market Profiling

Data Validation

Data Analysis

In-depth secondaryresearch wasconducted todetermine top playersin the India organicfood market, overallmarket size andsegmental marketsize.

In order toconduct industryexperts’ interviews,TechSciformulated adetaileddiscussion guide.

List of industryplayers andindustryspecialists wasdeveloped.

TechSci conductedinterviews withindustry expertsand industryplayers for datacollection andverification.

Data obtained asa result ofprimary andsecondaryresearch wasvalidatedthrough rigoroustriangulation.

The data wasscrutinized using MS-Excel, statistical toolsand internalproprietary databaseto obtain qualitativeand quantitativeinsights about theIndia organic foodmarket.

Data Collection

Data Filter& Analysis

Research &Intelligence

ActionableInsights

BusinessSolution

Primary Research Desk Research Company Analysis

✓ Recent Developments

✓ Market Changing

Aspects/Dynamics

✓ Government Policies

✓ Conclusion

✓ Market Participants

✓ Key Strengths

✓ LinkedIn✓ TechSci Internal

Database

✓ Factiva✓ Hoovers

Paid Sources

✓ Company Websites✓ Company Annual

Reports✓ White Paper Study✓ Financial Reports✓ Investor

Presentations✓ Regulatory Body✓ Associations, etc.

Secondary Research

Primary Research

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Baseline Methodology

Our dedicated team of industry experts has monitored and analyzed various aspects of India organic food market. The team has analyzed the

outlook of various segments of this market, while considering the major influencing factors such as favorable government policies supporting

organic farming coupled with increasing land area under organic cultivation. The study includes market forecasting, which would enable our

clients to take better decisions while planning their strategy to achieve sustainability in India organic food market.

Methodology Followed for Calculation of Market Size:

• Market Size By Value : Market size, in terms of value & volume, for the year FY2020 was calculated based on information collected through

exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as organic food manufacturers,

suppliers, channel partners, end users, industry experts and other industry participants.

• The team interviewed more than 30 organic food manufacturers & suppliers, 180 – 200 end users, and 15 – 20 industry experts and other value

chain stakeholders in the India organic food market to obtain the overall market size from FY2016 to FY2020. Taking standard deviation into

consideration, the market size was averaged out, to arrive at the market size data during FY2016-FY2020.

• Respondents were asked about the current and future market growth rates, market shares by product type, by distribution channel, by region

and by company. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across

various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further

triangulated from other stakeholders.

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Methodology Followed for Calculation of Market Shares:

• Market shares by product type, by distribution channel, by region and by company were calculated based on the responses received

through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from

various segments of organic food market. The final shares were calculated by taking the geometric mean of the responses gathered from

key opinion leaders after eliminating the outliers.

Methodology Followed for Forecasting:

• TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in

SPSS/Tableau Software.

• Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast India organic

food market, TechSci Research used various forecast techniques such as:

✓ Moving Average

✓ Time Series Analysis

✓ Regression Analysis

✓ Econometric and Judgmental Analysis

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TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research

also used the impact analysis during short, medium and long term period to estimate the demand and to reach accurate market numbers. It

should be noted that the figures compiled are only for the organized market including market share data.

Partial List of Companies Interviewed Key Secondary Sources

▪ ElWorld Agro & Organic Foods Pvt. Ltd.

▪ Suminter India Organics Private Limited

▪ Nature Bio-Foods Limited

▪ Organic India Private Limited

▪ Sresta Natural Bioproducts Pvt. Ltd.

▪ Phalada Agro Research Foundations Pvt. Ltd.

▪ Mehrotra Consumer Products Pvt. Ltd.

▪ Morarka Organic Foods Pvt., Ltd.

▪ Nature Pearls Pvt Ltd

▪ Conscious Food Private Limited

▪ Nourish Organics Foods Pvt Ltd.

▪ The Agricultural and Processed Food Products Export

Development Authority (APEDA)

▪ World Bank

▪ TechSci Research Proprietary Database & Knowledge

Repository

▪ Company Annual Reports

▪ Industry Magazines

▪ Industry Reports

▪ News Dailies

▪ Credible Paid Databases

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Industry Brief

According to a report released by TechSci Research, ‘India Organic Food Market By Product Type (Organic Fruits and Vegetables, Organic Beverages,

Organic Cereal & Food Grains, Organic Meat, Poultry & Dairy, Organic Spices & Pulses, Organic Processed Food & Other Organic Food Products), By

Distribution Channel (Modern Retail Channel, Traditional Retail Channel, E-commerce, & Institutional/Direct Sales), By Region, Competition Forecast &

Opportunities, FY2026’, the organic food market in India was valued at USD177.14 million in FY2020 and is projected to advance with a CAGR of

21.00% in the forecast period to reach USD553.87 million in FY2026. Due to increasing use of synthetic chemical fertilizers and pesticides in non-

organic products that lead to various health issues such as cancer, obesity and birth defects, consumers are opting for organic food products, on

account of growing health consciousness. Moreover, the government is making efforts to increase the adoption of organic food, by the way of launching

various policies and expanding land area under organic cultivation over the next five years. Moreover, the market is anticipated to witness tremendous

growth due to growing consumer consciousness towards healthy and natural food products coupled with rising availability of a variety of organic food

products to choose from through retail as well as online channels. Moreover, 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.

Suminter India Organics Private Limited, Nature Bio-Foods Limited, Organic India Private Limited, Sresta Natural Bioproducts Pvt. Ltd., Phalada Agro

Research Foundations Pvt. Ltd., Mehrotra Consumer Products Pvt. Ltd., Morarka Organic Foods Pvt., Ltd., Nature Pearls Pvt Ltd., Conscious Food

Private Limited, and Nourish Organics Foods Pvt. Ltd. are some of the major players operating in India organic food market.

With cancer and even birth defects being linked to the consumption of food containing residues of chemicals (Fertilizers, Pesticides, Fungicides,

Weedicides, etc.), consumer inclination towards organic food products is on the rise. In a survey conducted by TechSci Research, growing health

awareness among consumers about the harmful effects of these chemicals is among the most important factors driving the India organic food market.

Increasing willingness to spend more on healthier food products, rising consumer awareness and inclination, especially of the youth, towards organic

food and expanding urban population are anticipated to drive the demand for organic food products in India through FY2026. In FY2020, western and

southern regions were the leading demand generating regions in India organic food market. Also, these regions are expected to experience huge

demand for organic food throughout the forecast period, owing to rising population, changing lifestyles and increasing adoption of organic food by

consumers of all age groups.

India is a country with high agricultural biodiversity and favorable agro-climatic conditions, which are conducive for organic agriculture. A number of

farmers are adopting organic agricultural practices in order to get better monetary yields from their output. Moreover, Indian organic food manufacturers

have been focusing on improving the quality of organic food over the last few years which is anticipated to strengthen consumers’ trust in organic food

products in the country. In addition, the leading players in the market are also using various media platforms to popularize organic food products in the

country and this is anticipated to propel the demand for organic food products in the coming years.

“Rising awareness about health benefits associated with organic food products, increasing average household annual spending on food & beverages,

rapid urbanization and greater accessibility of these products are anticipated to fuel the sales of organic food products across India in the coming years.

Changing consumer preferences, improving supply chain network and implementation of initiatives to encourage farmers to switch to organic farming,

which would also contribute towards the growth of the country’s organic food market over the coming years.”, said Mr. Karan Chechi, Research Director

with TechSci Research, a research based global management consulting firm.

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Sample Data

India Organic Food Market Size, By Value (USD Million), FY'2016-FY'2026F

FY'2016 FY'2017 FY'2018 FY'2019 FY'2020 FY'2021E FY'2022F FY'2023F FY'2024F FY'2025F FY'2026F

CAGR (FY’2016-FY’2020)By Value: xx%

CAGR (FY’2021E-FY’2026F)By Value: xx%


Modern Retail Channel 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

E-commerce 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Traditional Retail Channel 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

Institutional/Direct Sales 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00%

India Organic Spices & Pulses Market Share, By Distribution Channel, By Value, FY'2016-FY'2026F

India Organic Meat, Poultry & Dairy Market Size, By Value (USD Million), FY'2016-FY'2026F


CAGR (FY’2021E-FY’2026F)By Value: xx%

CAGR (FY’2016-FY’2020)By Value: xx%

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Report Name: INDIA ORGANIC FOOD MARKET

FORECAST AND OPPORTUNITIESFY2016 – FY2026

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model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich

evaluation of the opportunities available in the market.

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely,accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considersreliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors oromissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of thisreport. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative marketsize and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

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