India Organic Food Market to Advance with a CAGR of 21.00% until FY2026

Increasing land area under organic cultivation, rising use of bio fertilizers and implementation of favorable policies for increasing production of organic products to drive India organic food market through FY2026.

According to a report released by TechSci Research, ‘India Organic Food Market By Product Type (Organic Fruits and Vegetables, Organic Beverages, Organic Cereal & Food Grains, Organic Meat, Poultry & Dairy, Organic Spices & Pulses, Organic Processed Food & Other Organic Food Products), By Distribution Channel (Modern Retail Channel, Traditional Retail Channel, E-commerce, & Institutional/Direct Sales), By Region, Competition Forecast & Opportunities, FY2026’, the organic food market in India was valued at USD177.14 million in FY2020 and is projected to advance with a CAGR of 21.00% in the forecast period to reach USD553.87 million in FY2026. Due to increasing use of synthetic chemical fertilizers and pesticides in non-organic products that lead to various health issues such as cancer, obesity and birth defects, consumers are opting for organic food products, on account of growing health consciousness. Moreover, the government is making efforts to increase the adoption of organic food, by the way of launching various policies and expanding land area under organic cultivation over the next five years. Moreover, the market is anticipated to witness tremendous growth due to growing consumer consciousness towards healthy and natural food products coupled with rising availability of a variety of organic food products to choose from through retail as well as online channels. Moreover, the market for organic food products in India is highly unorganized. With rising cases of food adulteration across the country, the demand for organic food products has gone up significantly. Growing number of upper middle-class people are becoming increasingly concerned about the food quality and are willing to pay a premium of 10-20% for organic food products. Suminter India Organics Private Limited, Nature Bio-Foods Limited, Organic India Private Limited, Sresta Natural Bioproducts Pvt. Ltd., Phalada Agro Research Foundations Pvt. Ltd., Mehrotra Consumer Products Pvt. Ltd., Morarka Organic Foods Pvt., Ltd., Nature Pearls Pvt Ltd., Conscious Food Private Limited, and Nourish Organics Foods Pvt. Ltd. are some of the major players operating in India organic food market.

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With cancer and even birth defects being linked to the consumption of food containing residues of chemicals (Fertilizers, Pesticides, Fungicides, Weedicides, etc.), consumer inclination towards organic food products is on the rise. In a survey conducted by TechSci Research, growing health awareness among consumers about the harmful effects of these chemicals is among the most important factors driving the India organic food market. Increasing willingness to spend more on healthier food products, rising consumer awareness and inclination, especially of the youth, towards organic food and expanding urban population are anticipated to drive the demand for organic food products in India through FY2026. In FY2020, western and southern regions were the leading demand generating regions in India organic food market. Also, these regions are expected to experience huge demand for organic food throughout the forecast period, owing to rising population, changing lifestyles and increasing adoption of organic food by consumers of all age groups.

India is a country with high agricultural biodiversity and favorable agro-climatic conditions, which are conducive for organic agriculture. A number of farmers are adopting organic agricultural practices in order to get better monetary yields from their output. Moreover, Indian organic food manufacturers have been focusing on improving the quality of organic food over the last few years which is anticipated to strengthen consumers’ trust in organic food products in the country. In addition, the leading players in the market are also using various media platforms to popularize organic food products in the country and this is anticipated to propel the demand for organic food products in the coming years.

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“Rising awareness about health benefits associated with organic food products, increasing average household annual spending on food & beverages, rapid urbanization and greater accessibility of these products are anticipated to fuel the sales of organic food products across India in the coming years. Changing consumer preferences, improving supply chain network and implementation of initiatives to encourage farmers to switch to organic farming, which would also contribute towards the growth of the country’s organic food market over the coming years.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“India Organic Food Market By Product Type (Organic Fruits and Vegetables, Organic Beverages, Organic Cereal & Food Grains, Organic Meat, Poultry & Dairy, Organic Spices & Pulses, Organic Processed Food & Other Organic Food Products), By Distribution Channel (Modern Retail Channel, Traditional Retail Channel, E-commerce, & Institutional/Direct Sales), By Region, Competition Forecast & Opportunities, FY2026” has evaluated the future growth potential of India organic food market and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in India organic food market.

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