Is The Trend of Organic Food Taking Over India Not just affluent Indian, now even the middle class is slowly moving to organic food Pulses, Rice, vegetables & fruits. this trend will continue and grow in the next 1-2 years

By Chirag Arora

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Staying healthy is the new trend which is successfully marking its presence in India after transforming the lifestyles of numerous people in western countries. People are now opting for healthier products and services, independent of their economic statuses for enjoying a healthier and happier lifestyle.

According to TechSci Research report, Global organic food market stood at $ 110.25 billion in 2016 and is projected to grow at a CAGR of 16.15 per cent, in value terms, during 2017 – 2022, to reach $ 262.85 billion by 2022.

Initially, the consumption of organic products was fairly popular among the affluent Indians, but, as time is changing, the demand for such products are gaining popularity among a large mass of audience, providing numerous business opportunities to aspiring entrepreneurs.

These entrepreneurs are strategizing accordingly, designing healthier products and services that could be enjoyed by a large set of audience, including the middle-class population as well. After all, a healthy lifestyle is a blessing to anyone and everyone.

Organic is the Ultimate Future

Initially, when the "Organic Food' trend invaded India, it was assumed that it will be another fad which will eventually fade with each passing day. But slowly, many brands started going organic, increasing their focus on healthier cuisines which were later predicted to be the ultimate future in most of the existing segments in the country.

From entrepreneurs to the consumers, everyone was more inclined towards the "Organic trend' which eventually gained immense popularity among the Indian population. The consumers started to demand healthier, organic products that simultaneously increased the growth of the organic-products related firms in India.

The Growing Demand for Organic Products

One of the major reasons why the demand for organic food is growing in India is due to the country's constantly increasing digital literacy rate. People are now turning more conscious and familiar towards the benefits of organic products, trying to avoid the harmful effects of chemicals and fertilizers used during the framing in India.

There is a great rise in awareness of organic farming methods, making the food more healthy and nutritious.

Higher Spending Capacity of the Middle Class

The spending capacity of the Indian middle-class population is anticipated to get doubled by 2025, as per research by the India Brand Equity Foundation. It can't be ignored that the middle-class section contributes a massive population in India, who will be shifting their interest towards the organic products very soon.

The rise in disposable income and access to credit are some factors that are causing the growth of this industry, especially among the middle-class population.

E-Commerce: The Facilitator for the Organic Industry

The ever-growing E-commerce industry is certainly acting as a facilitator for the organic food industry. This industry is allowing the organic food and products to reach out to potential customers, belonging to both the rural and urban areas of India.

E-commerce is not only breaking the geographical barriers but also making sure that the organic products are available for every single individual, independent of their location. Furthermore, the low-cost availability of the internet is further allowing people to know and learn about the key benefits of organic products, which later might force them to buy such products.

Therefore, the demand has gone up during 2018. Lastly, the industry landscape is becoming competitive with more and more players entering the industry.

Government Regulations

The government of India is promoting Organic Farming in the country. Hon'ble Prime Minister, Mr.Narendra Modi introduced Paramparagat Krishi VikasYojana (PKVY), under which 2 lakh hectares has been made suitable for organic farming thereby benefiting 5 lakh farmers. This step will further boost organic farming in India in 2019.

Chirag Arora

Founder & CEO, Organisch Overseas Pvt. Ltd

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