Future Group and Hain Celestial Formed a Joint Venture for Organic Food

Future Consumer Ltd and Hain Celestial Group Inc. are partnering through a joint venture for making food items more healthy   

India: The Future Group company and Hain Celestial are setting up a 50/50 joint venture to provide organic food in the Indian market by making snacks, food products and plant-based beverages for toddlers and kids. The motive behind establishing the joint venture is to provide distribution platform for Hain Celestial’s organic food items under the brands Terra, Garden of Eatin’, Sensible Portions, Dream and Earth’s Best in India. Future Group is active these days by establishing various partnership deals with multiple companies. In November 2016, the company partnered with the UK-based Booker Group to enter wholesale business, combined with the acquisition of retail business of Hyderabad-based Heritage Foods Ltd which helped Future Group in expanding its operations across India.

Currently, Future Group distributes its products through retail chains such as Easy Day, Big Bazaar, Nilgiris, Tesco Star Bazaar, Metro Cash & Carry and Heritage outlets. The company has sourcing and processing facilities across the country and manufacturing facilities in Tumkur, Karnataka.

TechSci Research depicts that the growth in the organic food market during the forecast period can be attributed to its increasing awareness, as the demand for organic products is increasing throughout the country. Moreover, increasing awareness among consumers about the harmful effects of chemical fertilizers and pesticides in non-organic food along with rising health consciousness is driving the shift towards organic food products. India is emerging as one of the major exporters of organic food in the world and to address the growing demand for organic food products across the globe, the production of organic food is increasing in the country. Favorable government initiatives and increasing profit margins due to high premiums are encouraging farmers to adopt organic farming practices and increase total land area under organic farming.

According to a recent report published by TechSci Research, “India Organic Food Market By Product Type, Competition Forecast and Opportunities, 2011 - 2021”, the market for organic food in India is anticipated to grow at a CAGR of over 25% during 2016–2021, on account of changing food consumption patterns and increasing instances of contamination of farm produce with chemical fertilizers and pesticides, surging investments in organic food market and rising use of bio fertilizers. Organic pluses and food grains segment dominates India organic food market, as pulses and food grains form an important part of staple diets in India. Further, West India is anticipated to continue dominating the organic food in the country through 2021, on account of high disposable income levels and rising health consciousness among consumers in the region.