An agricultural system that avoids the use and application of man-made fertilizers, pesticides, growth regulators, and livestock feed additives produces organic food. The label on the food packet that reads ‘organic food’ is a reassurance to consumers that toxic pesticides, synthetic fertilizers, and genetically modified organisms (GMOs) aren’t utilized in meal production, and the cattle have now no longer been fed antibiotics. In addition to this, organic food is also an assurance that strict cultivation standards have been adhered to concerning the impact on soil, water, and air. Organic food cultivation is a great support for environmental protection.
India introduced the organic farming policy in 2005. Since then, organic foods’ public profile has been continuously rising as more and more consumers see the connection between diet, health, and the environment.
The Indian government’s strong support for organic farming is acting as a catalyst for the rise in demand for organic food. The government is providing financial support to farmers who are adopting organic farming, under various government schemes like the Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), Rashtriya Krishi Vikas Yojana (RKVY), National Mission for Sustainable Agriculture (NMSA), etc.
The major factor driving the growth of organic food in India is the increasing awareness about health in the country. The rising demand for organic food is due to the attention that Indian consumers are now giving to the nutrient content and the quality of the food they consume. Moreover, the increasing consumer expenditure on health and wellness products is also driven by strong economic growth, urbanization, and rising income levels.
Organic Brands Bloom in the Indian Food Market
Market Overview
While still in its nascent stages, the Indian organic food industry has a promising future. It has received a major boost post the covid-19 pandemic. Currently, India ranks first in Asia and fifth in the world with 23 lakh hectares of land under organic farming as per the Organics International Report of 2021 by IFOAM (International Federation of Organic Agriculture Movements).
The Indian Organic Food Market has steadily grown from USD 200 million in 2018 to USD 820 million in 2020. The omnichannel presence of organic food stores has also registered huge growth due to consumers moving to digital grocery shopping. While the pre-covid revenue split of the organic food brands was 5% online and 95% in-store, this number went up to 20% online and 80% in-store during the peak of the pandemic.
In the future, the organic food market in India is expected to exhibit a CAGR of 25.25% between the years 2022 and 2027.
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Sikkim is India’s first fully organic state.
Best Organic Brands, Foods, and Distribution Channels
The idea behind the consumption of organic food is to go back to survival basics which prompted sustenance on natural food. Organic Food brands in India have grown over the years and registered the highest growth in the pandemic and post-pandemic era. The best domestic organic food brands that have withstood the time and quality test are –
Praakritik – Brand owned by Praakritik Natural and Organics LLP
Organic India – Brand owned by Organic India
Pure and Sure – Brand owned by Phalada Agro Research Foundations Pvt. Ltd.
Nutriorg – Brand owned by Rattan Organic Foods Pvt. Ltd.
Nourish Organics – Brand owned by Nourish Organics
Adya Organics – Brand owned by Adya Organics
Avadata Organics – Brand owned by Avadata Organics Pvt. Ltd.
Pro Nature – Brand owned by Pro Nature Organic Foods Pvt. Ltd.
Through these brands, various types of organic food items are now freely available in the market through Hypermarkets, Supermarkets, Specialty Stores, Convenience Stores, Online stores, and other channels. The organic food item list consists of –
Organic Beverages
Organic Cereal and Food Grains
Organic Meat, Poultry and Dairy
Organic Spices and Pulses
Organic Processed Food
Organic Fruits and Vegetables
Challenges Faced by the Indian Organic Food Market
As growth-oriented the organic food market is within the country, it faces real challenges in terms of scalability, growth, and market share.
Limited Awareness
The current level of prejudice in Indian society has made organic food a status sign and luxury rather than a basic staple. The word-of-mouth publicity has increased awareness about the word ‘organic’ but not as a sustainable solution.
Choice of a Lower-Priced Product
The Indian consumer is price sensitive. This is also because of the huge variance in disposable income capability. This means that the automatic choice of product is led by price than quality, resulting in a large fraction opting out of the organic food market products.
Non-Friendly Retail Market
Retailers, understandably, prefer to fill shelves with fast-moving products. The lesser-known organic brands do not get premium shelf spaces or even a large amount of shelf space. This creates a gap between the buyer and the seller of organic foods.
Traditional Farming Habits
The results of chemical fertilizer-driven farming are quick and lucrative. Farmers are wary of the results of the organic way of farming. This is, however, slowly changing as the Indian government is taking steps to support farmers who are shifting to organic farming.
Demand and Supply Gaps
The supply of organic foods, currently, is not in tandem with the demand. Many times, the gap is quite visible with more supply than demand, or more demand than supply. This gap needs to be covered and balanced so as to even out the demand-supply scenario.
Conclusion
The Indian Organic Food Market has a long way to go. Currently, it is highly fragmented with the presence of several small and large players competing for price and quality. However, the past few years have seen organic brands gaining the spotlight and popularity. In the coming years, India is set to not only register growth in Organic Food brands but also innovatively deal with the challenges posing in front of this industry.
FAQs
Which organic food brand is best in India?
The top organic food brands in India are –
Organic Tattva
Prakritik
Nutriorg
Organic India
Nourish Organics
Adya Organics
Avadata Organics
Pro Nature
24 Mantra
Pure and Sure
Why organic farming is popular in India?
Pesticides and chemicals in Indian agriculture contaminate water and soil. To address this, companies are emphasizing organic farming, which promotes food security, improves farmers’ livelihoods, and eliminates harmful chemicals.
Is organic farming the future of India?
Organic farming has seen a drastic overall development in almost every crop type due to an increase in awareness of food security and environmental safety. Health-conscious consumers today will support the growth of the organic agricultural sector in many ways.
What are the challenges faced by the Indian Organic Food market?
A few challenges faced by the Indian Organic Food market are –
The global wholesale market grew from $42,048.41 billion in 2021 to $45,502.44 billion in 2022 at a CAGR of 8.2%. In August 2022, total wholesaler sales in the US amounted to almost $700 billion, an increase of about $100 billion year-on-year.
Wholesalers’ Monthly Sales in the US from Jan 2017 to Aug 2022
Are you thinking of starting your wholesale business but confused about where to begin? Don’t worry! We understand how overwhelming it can get when you try to start a new business.
Right now, you might be struggling with questions like what to sell, where to sell, how to start selling, how much capital you need to invest, and so on.
Here are answers to all your questions related to wholesale business to help you get ready for future challenges.
Let’s start with the very basics. The companies manufacture the products that are ultimately sold to the customers by the retail shopkeepers.
However, there is a connecting link between these two units i.e. manufacturer and seller, those are known as wholesale distributors. They manage and transfer the goods from the companies to the retailers.
They make a profit by buying the goods at a lower price from the companies and selling them to small or big shopkeepers at a higher price.
Majorly, wholesale distributors sell their products to retailers, contractors, merchants, institutional and commercial users, etc., who need bulk supplies.
As a wholesale distributor, you run an independently operated firm that buys products directly from the manufacturer, thus, taking ownership of the products. These products are stored in the warehouse, from where they are supplied to your customers. It is similar to the retail business except that you will be dealing in a B2B realm.
The wholesale industry is large. In the US there are about 330,000 companies involved in the wholesale distribution industry with an annual sale of around $7 trillion.
In this situation, you need to have certain skills to succeed in this business such as great negotiation skills, the ability to find the next bestseller before anyone else, and above all, amazing salesmanship to make a deal appear irresistible to your customers.
In addition to these skills you also need good operational and management skills, especially to handle backend activities such as warehouse setup and organization, shipping and receiving, etc.
This is a service business where you have to understand the need of your customers and find ways to serve them well or we should say better than your competitors.
Also, you will need a warehouse to keep your purchased goods. The size of the warehouse will vary as per the product/s you are dealing with. It is always important to have enough storage space as many wholesale businesses suffer losses owing to storage shortages.
It is also suggested to have a warehouse not very far off from the market so you can easily supply goods to the customers without incurring a high delivery cost.
However, the problem is that the prices of land at such places are quite high and usually beyond a beginner’s budget. In such a situation, it is advised to lease or rent a place.
If you do not store the goods at your facility and instead directly supply them from the manufacturer to the seller, you are working as a broker. The difference between a broker and a distributor is that the distributor takes the title and legal ownership of the product before selling them further.
The broker, on the other hand, uses dropshipping services and supplies the products directly from manufacturer to customer without bearing the storage costs.
How to start your wholesale business?
There are three ways to start a wholesale business. The first option is to start from scratch. This would require a good amount of investment both in terms of time and money, as well as a great deal of hard work as you will have to do everything on your own.
Establishing a warehouse, finding the right product to sell, choosing the buyers and sellers, etc., alone can be very hectic. The investment in this case will vary depending on the type of product you want to sell.
Alongside, you would also require a good knowledge of sales and marketing. It is a complete “make or break” scenario where everything is on your shoulders.
The second option is buying an existing business. This is a costly option and in addition to that, it has its kind of risk involved. The reputation and level of success of the previous owner would have a great impact on your business.
However, there are certain advantages associated with this business model. You will inherit the customer base along with the business as well as you can have the seller’s knowledge bank from the previous owner.
The third option is buying a business opportunity. This is the riskiest option out of all. You will have to explore all the business opportunities thoroughly before you finally decide to invest your time and money into them.
However, if you can finally strike the right opportunity it would mean quick success as you get support and training from the originating company.
Before you choose any of the above-mentioned options you will first have to analyze your financial situation. How much capital are you willing to invest in the beginning? It is a major question that is posed to every businessman at the initial stage.
The answer to this question will also decide the products that you will sell through your wholesale business. While considering the financial requirements you must also include the miscellaneous costs such as telephone, computer system, delivery vehicle, etc.
However, there are many ways to make your business cost-effective. Just like you can lease a space for a warehouse similarly you can collaborate with shipping companies such as FedEx for the delivery of your products without having to purchase a delivery vehicle or having a regular driver.
Moreover, you must also be sure about the time you are ready to devote to your business. For example, if you are doing a job you might only be looking after it part-time. Although full-time commitment is usually associated with speedy success you must remember that it requires at least 2-5 years to make a business profitable.
Once you are sure about which product you want to sell and how much time you are ready to invest the next step is to find reliable suppliers, who sell quality products at a reasonable price, and develop a good customer base.
When all your background work and checks are done you are finally ready to start your wholesale business. But, wait there are certain legal formalities you also need to take care of. For example, in India, you will have to obtain a trade license for your business that can be obtained from a local government body, and a GST registration is required for businesses that have a turnover of more than 20,00,000.
It is better to discuss this with a professional lawyer before you start so you can get all the necessary paperwork. Having all the legal formalities complete will not just leave you stress-free for the future but will also give you the confidence to move forward rapidly.
Once you start running the wholesale business your daily routine would include work such as sales and marketing operations, regularly contacting existing customers, processing orders, supporting dissatisfied customers, inventory control, etc. that require regular attention.
Having control of all these activities is the key to a successful wholesale business.
Who can be your customer?
As the customers form the foundation of any business you must specify your customer base beforehand. This will also help you to plan your business strategies well to meet their requirements and demands.
Moreover, remember the larger your customer base the more profitable your business gets. There are majorly three types of customer bases in any wholesale business. They are:
Retail businesses: These include retailers such as local shopkeepers, grocery stores, independent supermarkets, etc.
Retail distributors: These include distributors who can approach some retailers that may be unapproachable to you.
Other wholesale distributors: These may serve as your customers only when you have some exclusive contracts or limited deals in hand.
It is not necessary to choose only one of them as your customer, you can explore your opportunities while being in the market and escalate your customer base irrespective of their background.
Choosing the right product to sell
This is the most important question as the success of your wholesale business is completely dependent on choosing the right product at the right time for the right market.
Thorough market research is required to be done before you can finally answer this question. Moreover, you will need to pay attention to the right strategy of planning, price factor, and unique selling points.
Although the market keeps fluctuating but depending on our research here is the list of the 10 best wholesale products that can help you earn profit in the Indian market:
Organic foods
Homepage of One the Fast-Growing Organic Food Startups
With people becoming more and more health conscious the demand for organic food is rapidly increasing in the market. Although large numbers of people are already in this business there is still space for more.
Several new and old companies are entering this field owing to its recent attraction and these companies need distributors. This is where your role comes into the picture. You can approach these companies and help them create brand value for their products through your marketing and selling skills.
If you can capture the market this will help you grow as a wholesale distributor not just in the domestic but international market as well.
Agrochemical business
India is an agriculture-dominated country. Even today 54.6% of our total workforce is engaged in agricultural activities. This makes the wholesale distribution of agrochemicals a potential business opportunity.
The agriculture industry requires several pieces of equipment that can help you earn huge profits and opportunities. Then there are fertilizers, pesticides, insecticides, organic seeds, crops, and multiple other options to choose from.
If you have land near the countryside and the opportunity to start a wholesale business, investing in this industry can prove to be a breakthrough for you.
Furniture distribution
With the real estate business at its hype and an increasing number of startups and offices, furniture is in high demand. Moreover, owing to the post-pandemic era as most companies and offices are reopening they are looking for new interiors.
Therefore, this business may help you earn huge profits. Also, it is an easy-to-handle business that is required both in rural as well as urban areas.
Further, with the new advanced technology variety of furniture options are available in the market such as portable, multipurpose, all-in-one, etc. You can choose any of these options depending on the market where you want to sell your products.
Textile business
This business has the potential to create huge profit opportunities in the Indian market. There are a lot of products that you can sell to become a part of this wholesale business. For example, sewing machines, threads, textiles, readymade garments, accessories, safety clothing, upholstery, footwear, etc.
This business has served the old as well as new entrepreneurs to make their presence felt in the market.
However, initiating this business would require good field knowledge and preferably some job experience in the same field.
Jewelry business
Although this business would require a large amount of initial capital investment, it is one of the evergreen business options.
This would also require you to build a spotless image that can be trusted by your customers. Being a costly item people usually prefer to buy it from renowned sellers. This would also need a huge client base.
Ayurvedic medicine
Homepage of One the Wellness Food Startups in India
This is one of the most high-demand businesses. Today, people are turning towards yoga and Ayurveda for most of their health issues. Allopathic doctors are only consulted in the time of emergency.
This makes the ayurvedic medicine business one of the most profitable in recent times. Several companies are selling ayurvedic products ranging from medicines to haircare, skincare, and groceries. Also, there are categories like luxury products, pocket-friendly items, etc.
All these companies require good retailers who can help them reach their products to customers and establish them as trustworthy brands. Considering all this ayurvedic medicine business can be a great business opportunity.
Stationery business
Whether it is a school, college, or even a corporate house, stationery items are required everywhere. This is also one of the most profitable wholesale businesses in the market. Moreover, it does not require much investment.
To run a profitable business you will have to select your target market and sell the products to their needs.
The demand for toys may change with time and age but you have to select the target customer you want to cater to. You will have to find the right manufacturers producing good quality products and then bring them to the market for your customers.
These products have a huge profit margin and are always in demand. Therefore, wholesale distribution of children’s toys is an area full of opportunities.
Snacks
Just like toys, this is also a large and always in-demand market. There are a variety of snack options available in the market which are consumed by people of every age.
Health-conscious people may go for baked or non-fried snacks, children may prefer a different variety. But the market is large and so is the opportunity.
If you can choose the right snacks that are liked by your target customers, your business can flourish in no time.
Kitchenwares
Homepage of One the Top Home Appliances Brands in India
The kitchen is the essence of every household, and every kitchen requires utensils such as pans, cookers, serving dishes, crockery, etc. There are a variety of items that can be sold.
You have to find quality products for your customers and make them available at attractive prices or with offers they cannot resist.
Conclusion
Wholesale distribution is a timeless business that can be profitable provided that you can choose your product and industry well. Also, having reliable suppliers and a good customer base is a must for the wholesale business.
Also, you should have great negotiation skills along with the ability to find the next best product before your competitors. Good operational and management skills will help you make your mark in this field.
Finally, if you work hard, can choose the right product, and craft deals that are loved by your customers, your wholesale business is sure to succeed.
FAQs
How do I start my own wholesale business?
First of all, analyze your financial situation. Having a good knowledge of sales and marketing is an added advantage. You must also be sure about the time you are ready to devote to your business.
If you start from scratch, you will have to put energy into establishing a warehouse, finding the right product, choosing the buyers and sellers, etc. If you are ready to take the risk and have enough money, you can buy an existing business or a business opportunity.
Is wholesale a profitable business?
Yes, wholesale is a profitable business if you do it right. In August 2022, total wholesaler sales in the US amounted to an estimated value of almost $700 billion, which is an increase of about $100 billion year-on-year.
What are the skills required to start a wholesale distribution business?
Here are some of the skills required to start a wholesale distribution business:
Great negotiation skills
The ability to find the next bestseller before anyone else
Amazing salesmanship to make a deal appear irresistible to your customers.
Good operational and management skills, especially to handle backend activities such as warehouse setup and organization, shipping and receiving, etc.
The startups today are revolutionizing the entire world’s marketplace. The technology used by startups not only brings profit to the company but also eases up various activities for people.
Startups can be of various kinds. For example- lifestyle, food, small and large businesses, social, etc. One of the most popular and lucrative startups is a food startup. Food is something, the need of which will always remain in the market. So, taking advantage of this need is always a good idea for a startup.
Nowadays another concept is gaining great popularity. These are D2C (Direct to Consumer) startups. In this, the brands sell directly to the customers. Many food startups are now indulging in this model.
In India, we have now various food D2C startups. For example- Dotshot, NatureBox, Evo Foods etc.
D2C stands for Direct-to-Consumer. In simple words, D2C is a type of business model. So, a startup that follows this model is a D2C startup. There are various business models. These include B2B (Business to Business), B2C (Business to Consumer), C2C (Consumer To Consumer), C2B (Consumer to Business).
The D2C startups are gaining huge popularity in the present times. In this, a company or brand produces its product and also sells it itself. This creates a direct connection with the consumers. In short, it cuts the role of middlemen.
D2C model can work in almost every industry. The days when businesses were completely dependent on the distributors are gone. Now, the businesses depend on the producers as well. With various technologies and digitalization, the producers can also be their own distributors. Thus, a D2C model of business is super lucrative for startups. All this has helped the model to gain huge popularity in recent times.
What is a D2C Food Startup?
A food D2C startup produces products and sells them to consumers without middlemen. These startups don’t rely on other platforms for their distribution.
They establish their website or application for this purpose. Food D2C startups cut the role of middlemen or middle platforms. This enables a food brand to have a direct connection with the customers. Also, this makes for a lucrative model for a food startup.
The D2C food startups are becoming a trend these days. Keeping up with the trend, various D2C food startups have come up in India. These are:
Nature’s Box
Nature’s Box Homepage
Nature’s Box is a food-tech startup. The founders are Gautam Gupta, Dilpreet Singh, and Kenneth Chen. They started this with the D2C model. The company delivers natural snack foods to the customers on monthly basis.
With this startup, Gautam aimed to bring healthy changes in people’s life. Nature’s Box is a great place for people to find themselves a healthy snack.
Nature’s Box is a great example of a D2C food startup that has constantly evolved itself with the changing times. It started with the mere D2C model. Later it indulged in corporate subscriptions. Following the pandemic, it provided automated solutions for delivering personalized snack packs to corporate employees.
Dotshot
Dot Shot Homepage
Dotshot is a startup that deals in anti-hangover drinks. Founded by Viraj Patel in the year 2016. Dotshot is a drink made with herbs with a zest of lemon.
Dotshot is the ultimate solution for people who take regular drinks. This prevents them from getting any hangover effects the next morning. These drinks are anti-ageing, anti-oxidant.
This is another startup that works with the D2C model. It is the producer as well as the distributor of its products.
The Whole Truth Foods
The Whole Truth Foods Homepage
The Whole Truth startup came into existence in 2019. Shashank Mehta is the founder of the startup. The company produces protein bars. These bars are free from sugar, preservative, artificial flavoring, or colouring agents.
The main idea behind the startup was to promote healthy eating with easy-to-eat bars. This health food startup delivers its products directly to the customers.
In the future, the food-tech D2C startup plans to expand its food areas. They will be launching new food categories soon with ensured taste and quality.
True Elements
True Elements Homepage
The food startup manufactures plant-based healthy food items. The startup was founded in the year 2014 by Puru Gupta and Sreejith Moolayil. The company works with a Direct-to-Consumer model.
The company offers a variety of breakfast cereals, grains, raw and roasted seeds, snacks, and others. Their products are made with hundred percent whole grains.
This D2C food startup has gained huge popularity for its variety of healthy and tasty snacks.
Evo Foods
Evo Foods Homepage
This Indian food startup produces a vegan substitute for eggs. It was found by Kartik Dixit and Shraddha Bhansali in 2019.
The startup aims to give the optimum egg proteins through green proteins. They follow the D2C business model. More people now want to turn vegan. Evo Foods bring the egg proteins to the greens. This concept has gained the startup great popularity in the Indian market.
Gourmet Garden
Gourmet Garden Homepage
This Indian food startup was founded in the year 2019. The founders are Arjun Balaji and Vishal Narayanaswamy. The startup offers fresh and pure fruits and vegetables. These are grown with great care without any contamination or chemicals.
Gourmet Garden is another startup that has a Direct-to-Consumer business model. One can get fresh fruits and vegetables delivered to their doorsteps. You can order them on their official website.
The Pandemic and the Rise of D2C Food Brands in the Industry
The concept of D2C is not a new one. It has always existed in the market. But the pandemic gave a boost to the growth of D2C startups. Due to the pandemic, people were shifting online for their needs. Be it clothing, food, or other essentials.
During the pandemic, the markets got disrupted. The connection between wholesalers, distributors, and retailers could not function well. This made various brands realize the importance of making direct sales to consumers.
Many brands decided to keep the middlemen out and make direct sales to the consumers.
Conclusion
The entire marketplace got disrupted during the pandemic. Manufacturing companies kept on producing but the delivery issues remained. The connection and coordination between producers, middlemen, and consumers got shaken.
This is one of the main reasons that gave rise to the Direct-to-Consumer model. D2C model has now become super popular. More businesses have started to think about its inclusion in their business model.
The D2C model of startups removes the role of middlemen. This makes it perfect for both the brand and the customers. The customers get to have the products at a lower price. The brands on the other hand get to enjoy more profit.
FAQ
What is a D2C food startup?
A D2C food startup is a startup that produces products and sells products directly to consumers without middlemen. These startups don’t rely on other platforms for their distribution.
What are some of the top food D2C startups in India?
Dot Shot, Evo Foods, The Whole Truth Foods, and Gourmet Garden are some of the top D2C food startups in India.
The Organic food industry in India commenced to increase in a decade within the past and there was no searching again ever because of the fact then. Rising focus among humans regarding the facet outcomes of synthetic chemical substances in organic meals manufacturing has similarly boosted the future of the organic food industry in India.
Given the type of innovation coupled with this growing name for, the organic food market in India 2020 is but to witness a full-fledged evolution. But it is simple to accurately remember that the organic food industry in India is proper here to stay. Growth in e-trade has acted as a catalyst for the enterprise to attain out to consumers, and the numbers are best displaying an upward fashion. Here are a few probable motives why the organic food industry in India is anticipated to peer an expanded name for in years to come.
India’s GDP boom of 6.5% in 2017 became sturdy in spite of annoying situations similar to the implementation of GST. The forecast for GDP boom in FY2019 is expected to be greater than 7%. This will truly enhance the normal performance of various industries like Organic Foods, Pharmaceuticals, and FMCG.
The global organic food market stood at $110.25 billion in 2016 and is projected to develop at a CAGR of 16.15%, in cost terms, throughout 2017 – 2022, to reach $262.80 five billion with the resource of using 2022.With the Indian Organic Food enterprise developing in double-digit throughout 2013-2017, it might now no longer be incorrect to mention that the enterprise will deliver out nicely in 2019. There are many elements that have contributed to this boom till now.
The Impact of Covid19 on the Organic Food Industry in India
The marketplace for Organics worldwide, similarly to in India, has grown steadily. The Indian Organic Industry specialists agree that the resurgence withinside the name for organic meals isn’t always any flash withinside the pan phenomena with the aim to subside as quickly as the virus scare recedes. It is proper here to live even if we develop to be corona-free. In that sense, the purchaser conduct in choice of natural meals seems to have developed to be greater deeply entrenched and ingrained and an element of the purchaser buying for dependency over a long-lasting time horizon.
There may also be an opportunity of at least a 20-25 % compounded growth of the organic food industry in India for the 12 months 2020-21. Taking this estimate into consideration, the Indian marketplace can be foreseen at approximately Rs3,000 crore and the International natural marketplace over $100 billion although the worldwide monetary system guidelines proper into a depression.
With the possibilities of the sector doing away with the Covid pandemic in advance than September this 12 months looking increasingly slimmer, mankind and humanity will want to learn the way to stay with this virus. Under the circumstances, the worries for fitness and the surroundings will stay a priority, and it is going to maintain the name for natural meals in an excessive orbit for the instances to come.
As in accordance with the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported organic food truly properly worth Rs. 30 billion (over $440 million) in 2017-18, from Rs. 24.77 billion in 2016-17. More recognition and an upward thrust in the name of natural meals have helped in growing sales. Now customers are greater conscious of the dangerous results of chemical compounds and pesticides. People have commenced looking out for organic food for themselves and in particular for his or her kids. Also, due to a growth in disposable earnings and recognition now households are spending a growing wide variety on their child’s health and are equipped to pay a higher/pinnacle class rate in phrases of best of the product.
The Global Market Share of Organic Packaged Food
The Growth of the Organic Food Industry in India
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), the name for Indian organic industry merchandise is at steady growth internationally as India exported organic food worth $515 million within the economic 12 months 2017-18, from $370 million in 2016-17. This fashion will in addition increase in 2019.
India’s organic meals intake has grown in current years due to the fact of its superior demographic dividend, progressed shopping power, and accelerated hobby withinside the perceived fitness and properly-being blessings of positive natural merchandise. In the marketplace 12 months (MY) 2019, the organic food industry in India retail income reached $69 million and is predicted to in addition upward thrust with the resource of using 12 % to $67 million in MY 2020.The organic food industry in India additionally analyzed the aggressive panorama of the marketplace with a number of of the essential thing gamers being Suminter India Organics Private Limited.
The Indian organic food industry stood at over Rs 1,200 crore ultimate 12 months and this 12 months the marketplace is predicted to move Rs 2,000 crore. With the resource of using a surge of name for withinside the wake of the COVID-19 pandemic, India is still a rising marketplace for growth of the organic food market with sturdy prospects. With anticipated favorable climate patterns, monsoons and a robust cognizance with the resource of using the Indian authorities toward exports to fill the U.S., European Union (EU), and South Asia name for India’s licensed natural cropland will probably grow.
Organic Food Industry Statistics India
Demographically, India is domestic to over 100million infants contributing around 11% of the sector population with an excessive beginning fee of 19.3 births in accordance to a 1000 in 12 months. Parents continually want to provide the high-satisfactory to their infants, without compromising on the best and protection elements of the product. We can assume greater manufacturers with natural merchandise to reach withinside the coming years withinside the child care category.
Online availability of organic food and moving patron desire nearer to organic meals are lots of the foremost elements anticipated to reinforce the name for the organic food industry in India for the length of the forecast period. Expanding advertising and distribution channels coupled with increasingly more fitness-conscious human beings is likewise predicted to light up the intake of organic food in India till 2022. While the organic food market is developing steadily, it is miles nonetheless away from turning into a mass product. Currently, the natural marketplace is likewise no longer patron-pushed and the best oldsters who can afford/inclined to pay the pinnacle class rate are the customers which ends up in a totally small percentage.
One of the predominant annoying situations that are available promoting natural culmination & veggies is the mismanagement of the delivery chain. It turns tough to satisfy the name as in step with requirement. There are diverse expenses associated with the procurement of natural FMV from a natural farm of different states in phrases of logistics, damages, and inventory which now no longer get a pinnacle rate charge.
High charge markups for the organic food industry than traditional merchandise additionally are one in every of the predominant elements affecting the sale of organic merchandise. While the excessive charge is due to the price associated with the product like shopping in bulk, the logistic price concerned withinside the procurement of natural merchandise from licensed natural farms and the distribution withinside the metropolis will increase the price of the product.
Other elements like perishable gadgets and their low shelf existence additionally pose a problem. In the case of natural culmination and veggies and comparable perishable gadgets having low shelf existence makes it tough to deliver the product withinside the time body in their shelf existence and which finally ends up in damages, returns, and last inventory. Also, the non-availability of wholesale Mandis like Azadpur marketplace inside metropolis limits reasons buyers/buyers you obtain it from the farm only.
Future of Organic Food Industry
India’s GDP growth of 6.5per cent in 2017 was strong despite challenges like the implementation of GST. The forecast for GDP growth in FY2019 is predicted to be more than 7per cent. This will certainly improve the performance of different industries like Organic Foods, Pharmaceuticals and FMCG.
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 16.15per cent, in value terms, during 2017 – 2022, to reach $ 262.85 billion by 2022. With Indian Organic Food industry growing in double-digit during 2013-2017, it would not be wrong to say that the industry will perform well in 2019. There are many factors that have contributed to this growth until now.
Firstly, growth in e-commerce sector has acted like a facilitator for the organic food industry to reach out to the potential consumers in Tier II and Tier III cities. Secondly, with free/low-cost access to the Internet, more and more people are getting to learn about the benefits of organic food. Therefore, the demand has gone up during 2018. Lastly, the industry landscape is becoming competitive with more and more players entering the industry.
FAQ’s
1. Is the organic food industry growing?
Ans- Organic is the fastest growing sector of the U.S. food industry. Organic food sales increase by double digits annually, far outstripping the growth rate for the overall food market. Now, an unprecedented and conclusive study links economic health to organic agriculture.
2. Why is organic food high in demand?
Ans- Organic food items are gaining popularity for pretty straightforward reasons i.e. GMO-free content, nutrient richness, zero growth hormones, zero antibiotics, fewer pesticides, improved freshness levels, and better environmental stability.
3. Why is organic food more expensive?
Ans- Organic food often costs more than conventional food. … If the demand for organic food continues to grow, the supply could be scaled up, and organic food could subsequently go down in price (your basic supply and demand). Another reason organic food costs more is because the production process is more expensive.
4. Do you live longer if you eat organic?
Ans- More than just produce, organic foods can be meat, dairy foods and grains. … The researchers assumed the health benefits that would result and calculated that if you ate the same amount of produce but switched to all organic varieties, your life expectancy would increase by 17 days for women and 25 days for men.
5. Are organic foods actually healthier?
Ans- Organic foods are not healthier, per se, in terms of nutrients. You are still getting the same benefits in conventionally grown foods as you are in organic foods.
6. Can you lose weight by eating organic?
Ans- Consuming more fresh produce, organic or conventional, such as fruits and vegetables has been a consistent link to weight-loss because they are high in fiber and nutrients, which can help control appetite.
Himangi Khare
