According to ResearchAndMarkets.com’s latest report, online availability of organic food products and shifting consumer preference towards organic food market are among the major factors expected to boost the demand for organic food products in India. Expanding marketing and distribution channels coupled with increasing number of health-conscious people are also anticipated to fuel organic food consumption in India until FY2026.
The Indian Organic Food Market is projected to grow from US$ 177.14 million in FY2020 to US$ 553.87 million in FY2026 advancing with a CAGR of 21.00% by FY2026, on account of favourable government policies supporting organic farming coupled with rising land area under organic cultivation.
Furthermore, increase in awareness regarding the food people eat has resulted in the uplift of the market. Consumers in India have started paying attention to their health, the quality and nutrient content of the food they eat. Due to health concerns, consumers are shifting towards the organic food gradually, which is further giving boost to the market in India.
During to Covid-19, there was a shortage of workers working in organic process industry, as people were forced to stay at home for some time. So, the organic food processing companies were unable to gather sufficient workers for processing organic products. Also, farmers have faced difficulties in order to source the agricultural inputs due to the closure of the vendor stores.
Thus, the pandemic has impacted the organic food products market, in India. However, a rise in the demand for organic food products during the pandemic has been observed across the country as they are considered healthier in comparison to the inorganic products. In India, a paradigm shift of consumers, post lockdown, towards preventive health management practices is fuelling the growth of the market and is expected to drive the market of organic food in future as well.
Organic fruits and vegetables dominated the demand for organic food in the country in the historical period and the segment is anticipated to continue dominating the market through FY2026. The certified land under organic farming increased to 5.21 million hectares in 2012-13 from merely 1.08 million hectares in 2009-10, which is expected to increase the overall organic food production in the country.
The western region is the highest revenue contributor for the country’s market, followed by the southern region. The major organic food producing states in India include Maharashtra, Andhra Pradesh, Karnataka and Uttar Pradesh. Considering high distributor margins, food companies are collaborating with leading retail chains, which is expected to increase the availability of organic products in the future.
