The Rise of Organic Food Brands in India

An agricultural system that avoids the use and application of man-made fertilizers, pesticides, growth regulators, and livestock feed additives produces organic food. The label on the food packet that reads ‘organic food’ is a reassurance to consumers that toxic pesticides, synthetic fertilizers, and genetically modified organisms (GMOs) aren't utilized in meal production, and the cattle have now no longer been fed antibiotics. In addition to this, organic food is also an assurance that strict cultivation standards have been adhered to concerning the impact on soil, water, and air. Organic food cultivation is a great support for environmental protection.

India introduced the organic farming policy in 2005. Since then, organic foods' public profile has been continuously rising as more and more consumers see the connection between diet, health, and the environment.

What Drives the Indian Organic Food Market
Market Overview
Best Organic Brands, Foods, and Distribution Channels
Challenges Faced by the Indian Organic Food Market
Conclusion

What Drives the Indian Organic Food Market

The Indian government’s strong support for organic farming is acting as a catalyst for the rise in demand for organic food. The government is providing financial support to farmers who are adopting organic farming, under various government schemes like the Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), Rashtriya Krishi Vikas Yojana (RKVY), National Mission for Sustainable Agriculture (NMSA), etc.

The major factor driving the growth of organic food in India is the increasing awareness about health in the country. The rising demand for organic food is due to the attention that Indian consumers are now giving to the nutrient content and the quality of the food they consume. Moreover, the increasing consumer expenditure on health and wellness products is also driven by strong economic growth, urbanization, and rising income levels.

Market Overview

While still in its nascent stages, the Indian organic food industry has a promising future. It has received a major boost post the covid-19 pandemic. Currently, India ranks first in Asia and fifth in the world with 23 lakh hectares of land under organic farming as per the Organics International Report of 2021 by IFOAM (International Federation of Organic Agriculture Movements).

Indian Organic Food Industry: Insights, Growth & Statistics

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The Indian Organic Food Market has steadily grown from USD 200 million in 2018 to USD 820 million in 2020. The omnichannel presence of organic food stores has also registered huge growth due to consumers moving to digital grocery shopping. While the pre-covid revenue split of the organic food brands was 5% online and 95% in-store, this number went up to 20% online and 80% in-store during the peak of the pandemic.

In the future, the organic food market in India is expected to exhibit a CAGR of 25.25% between the years 2022 and 2027.

Best Organic Brands, Foods, and Distribution Channels

The idea behind the consumption of organic food is to go back to survival basics which prompted sustenance on natural food. Organic Food brands in India have grown over the years and registered the highest growth in the pandemic and post-pandemic era. The best domestic organic food brands that have withstood the time and quality test are –

1. Organic Tattva – Brand owned by Mehrotra Consumer Products Pvt. Ltd.
2. 24 Mantra – Brand owned by Sresta Natural Bioproducts Pvt. Ltd.
3. Praakritik – Brand owned by Praakritik Natural and Organics LLP
4. Organic India – Brand owned by Organic India
5. Pure and Sure – Brand owned by Phalada Agro Research Foundations Pvt. Ltd.
6. Nutriorg – Brand owned by Rattan Organic Foods Pvt. Ltd.
7. Nourish Organics – Brand owned by Nourish Organics
8. Adya Organics – Brand owned by Adya Organics
9. Avadata Organics – Brand owned by Avadata Organics Pvt. Ltd.
10. Pro Nature – Brand owned by Pro Nature Organic Foods Pvt. Ltd.

Through these brands, various types of organic food items are now freely available in the market through Hypermarkets, Supermarkets, Specialty Stores, Convenience Stores, Online stores, and other channels.  The organic food item list consists of –

1. Organic Beverages
2. Organic Cereal and Food Grains
3. Organic Meat, Poultry and Dairy
4. Organic Spices and Pulses
5. Organic Processed Food
6. Organic Fruits and Vegetables

Challenges Faced by the Indian Organic Food Market

As growth-oriented the organic food market is within the country, it faces real challenges in terms of scalability, growth, and market share.

Limited Awareness

The current level of prejudice in Indian society has made organic food a status sign and luxury rather than a basic staple. The word-of-mouth publicity has increased awareness about the word ‘organic’ but not as a sustainable solution.

Choice of a Lower-Priced Product

The Indian consumer is price sensitive. This is also because of the huge variance in disposable income capability. This means that the automatic choice of product is led by price than quality, resulting in a large fraction opting out of the organic food market products.

Non-Friendly Retail Market

Retailers, understandably, prefer to fill shelves with fast-moving products. The lesser-known organic brands do not get premium shelf spaces or even a large amount of shelf space. This creates a gap between the buyer and the seller of organic foods.

Traditional Farming Habits

The results of chemical fertilizer-driven farming are quick and lucrative. Farmers are wary of the results of the organic way of farming. This is, however, slowly changing as the Indian government is taking steps to support farmers who are shifting to organic farming.

Demand and Supply Gaps

The supply of organic foods, currently, is not in tandem with the demand. Many times, the gap is quite visible with more supply than demand, or more demand than supply. This gap needs to be covered and balanced so as to even out the demand-supply scenario.

Conclusion

The Indian Organic Food Market has a long way to go. Currently, it is highly fragmented with the presence of several small and large players competing for price and quality. However, the past few years have seen organic brands gaining the spotlight and popularity. In the coming years, India is set to not only register growth in Organic Food brands but also innovatively deal with the challenges posing in front of this industry.

FAQs

Which organic food brand is best in India?

The top organic food brands in India are -

• Organic Tattva
• Prakritik
• Nutriorg
• Organic India
• Nourish Organics
• Adya Organics
• Avadata Organics
• Pro Nature
• 24 Mantra
• Pure and Sure

Why organic farming is popular in India?

Pesticides and chemicals in Indian agriculture contaminate water and soil. To address this, companies are emphasizing organic farming, which promotes food security, improves farmers' livelihoods, and eliminates harmful chemicals.

Is organic farming the future of India?

Organic farming has seen a drastic overall development in almost every crop type due to an increase in awareness of food security and environmental safety. Health-conscious consumers today will support the growth of the organic agricultural sector in many ways.

What are the challenges faced by the Indian Organic Food market?

A few challenges faced by the Indian Organic Food market are -

• Limited Awareness
• Demand and Supply Gaps
• Non-Friendly Retail Market
• Choice of Lower-Priced Product
• Traditional Farming Habits