Organic Food Industry in India – Growth Factors

Organic Food Industry India - Growth Factors

What are the major factors that support the growth of the organic food industry?

Indian Organic Food market is growing rapidly. Increasing health conscious among the customers is an important factor behind the growth of organic food industry in India. The awareness on the excessive pesticides and fertiliser usage in the production of food products has influenced the consumers in India to change their preference towards Organic Food Products.

Growth Factors of Organic Food Industry in India

Organic Food Industry India - Growth Factors

The increasing buying power of the customers is playing a significant role. Improving income level and living standard of people in India have been gradually increasing the sales of organic food products. However, the consumption of organic food product is high in the major cities in India such as New Delhi, Mumbai, Chennai, Kolkata, and Bangalore. The importance towards organic food consumption among customers in urban areas is high when compared to the rural part of India. The awareness level on health issues by the food products produced with the influence of pesticides and fertiliser among the consumers in urban areas is increasing in the recent days. This could be the reason for the increase in organic food consumption among people in urban areas. And obviously, living standard and financial status of these consumers are also considered as the major factors for their change in buying behaviour. The support and initiatives of the Indian Government towards improving organic farming activities are also supporting the organic farmers and the growth of the organic food industry. Indian Government has taken initiatives for organic farming promotion and organic food consumption.

The change in the consumers’ perception has increased the number of organic grocery stores and vegetable stores in the major Indian cities. A report of TechSci Research also mentioned that the Indian organic food sector is expected to grow 25% during 2015 to 2020 [1]. This trend has increased the business opportunities in India. The investment in the organic food industry is also increasing in recent years. Thus, increasing awareness of the benefits of organic food products is not only changing consumers’ buying behaviour but also supporting the growth of the organic food market in India.



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