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 –
Wholesaling is the process of selling your products in huge amounts to another retailer normally at a discounted price then the retailer sells the products to their customers. Wholesale business ideas are one of the most profitable options available in India. India, being the second largest populated country in the world, allows people to conduct business and earn profit in a planned way. If you choose to start a business then it is a very profitable position in India if the strategy of selling is correct.
Reasons to start a wholesale business channel:
Increase sales without increasing marketing spending.
Leverage other brands’ audiences to sell your product.
Enter new markets with less risk.
The benefit of wholesale business is that you can save money through discounts. In the wholesale business, you need a good network of suppliers and manufacturers. To run your business smoothly, you must make the deliveries on time, products must be of a high standard, and relationships must be honoured. Through researching and selling products in this business, you can become an expert.
This is one of the most common types. Merchant wholesalers engage in purchasing larger volumes of products that they sell in smaller quantities for a slightly higher price to make a profit.
Broker
Brokers typically don’t own the products they’re selling; they are the intermediary between a wholesale operator and their clients.
Growth of Business
Distributor
A manufacturer will reach out to wholesale operators to offer their products to them, creating wholesale deals that are tailored to individual cases.
List of Most Profitable Wholesale Business Ideas
A wholesale enterprise is a setup where products travel from a chain of suppliers. The cost is decreased when the producer sells objects to the wholesaler. Wholesalers buy items from producers at a low price and sell them to distributors and retail businesses at a greater price. They hold a greater earning margin and make a lot of money. Due to the greater extent and fat income margin, most people venture into a wholesale business. Here is a list of some of the most profitable wholesale business ideas in India:
Furniture Business
Furniture is a must in all households with a lot of flats and private houses coming up. The furniture business is easy to handle as it is a desire in rural and urban areas. Nowadays, people want portable, multipurpose, and lightweight furniture. The furniture business is one of the most profitable businesses and the target audience may be interior designers, educational or professional institutions, government or corporate offices, and others.
Here is a list of some of the furniture that can be sold:
Wooden chairs
Sofas
Tables
Almira
Stationery Business
The stationery business sells custom-printed and designed paper products for event promotions and personal announcements, such as weddings or baby showers. Choosing a business structure for your stationery business is very much important. This will also not include much investment but will require the proper targeted market. This is another great marginal business that could be started with minimum investments. The target audiences could be educational institutions, corporate or governmental offices, and others.
Here is a list of some of the stationery items that can be sold:
The agrochemical industry has significantly transformed the agricultural landscape in India. Agrochemicals largely include insecticides, herbicides, fungicides, and bio-stimulants. Indian agrochemical market is highly fragmented, and intense competition between organized and unorganized players. The equipment of agriculture nurtures huge profits and opportunities when done as a wholesale business helping in retail distribution as well. Most retailers are very keen to know the latest technologies being used in agriculture. The target audiences could be big farmers, agro-based factories, food processing plants, and others.
Here is a list of some of the agrochemicals that can be sold:
The kitchen supplies store is a traditional retail business globally. The kitchenware business is lucrative for almost every location. The demand for kitchen utensils is huge, and the business of selling kitchen utensils will be a profitable option. The target audiences could be restaurants, hotels, catering business groups and others.
Here is a list of some of the kitchen items that can be sold:
knife
Chopping/cutting board
Kitchen shears/scissors
Kitchen Chimney
Textile Business
India’s textile sector is one of the oldest industries in the Indian economy. India’s textile industry contributed 7% of the industry output. It contributed 2.3% to the GDP of India in FY 2021-22 and contributes 5% in global trade in Textile and Apparel. Textiles will always be in demand as long as humans remain civilized. There is a wide range of products available like footwear, apparel and accessories.
Here is a list of some of the textile products that can be sold through a wholesale business:
Thread
Fabric yarns
Readymade garments
Canvas
Cashmere
Jewellery Business
The jewellery industry in India is one of the booming and growing sectors that contributes 6-7% of India’s GDP. The jewellery business is highly competitive. It involves a lot of creativity, effort, investments, and standards. Imitation jewellery is another wholesale business that can also be started with a minimum capital in hand. The future success of your business rests on a solid foundation. Globally, India is the largest consumer of goldand the target audience could be from common people to large firms.
Here is a list of some of the jewellery products that can be sold:
Necklace
Bracelets
Rings
Earings
Organic Food Business
Organic food is food that is grown organically without the use of pesticides and fertilizers that are chemical-based. Organic food is incredibly good for human health. Indian organic food market is anticipated to grow by over 25% in the next 3 years. Organic farming is also good for the environment since it reduces pollution, reduces soil erosion, conserves water, increases the fertility of the soil, and uses far much less energy. Manufacturers are looking for distributors to reach every town to sell their products. The demand for organic food is very high and the customers can range from all corners of society.
Here is a list of some of the organic foods that can be sold:
Organic Sugar
Organic Spices
Organic food Grains
Organic Vegetables
Organic Oils
Medical Equipment
The requirement for medical equipment has grown exponentially in recent times. It is another profitable business. Medical equipment means any instrument, apparatus or machine, intended for use in the clinical diagnosis, treatment, monitoring and direct care of users that need to be calibrated, maintained, repaired and decommissioned. The products could be supplied to hospitals, health and wellness centres, and gyms.
Here is a list of some of the medical equipment that can be sold:
Oximeter
ECG machines
Biochemistry Analyzer
Ultrasound imaging machines
Snack Distribution Business
Value of the Savory Snacks Market in India (2019-2026)
People carry snacks while commuting and store all types of snacks at home. Snack food distributors are an important part of the supply chain for a variety of businesses. They are the people who sell wholesale snacks to retailers. It is one of the evergreen distribution businesses as the snacks are consumed by all of us. The target audience could be canteens, hotels, malls and others.
Snack distribution opportunities to research and consider include:
The biggest market growing these days is children’s toys. For starting this wholesale business, decide on the raw material as well as the prototype required for manufacturing it. This industry is coming up with a lot of unique designs in children’s toys which turns into growing the wholesale retail market. The demand for cheap and best toys is very high. Toys could be supplied in the mall’s playing areas, creches, and schools.
Here is a list of some of the children’s toys that can be sold:
Plastic Toys
Baby Toys
Fidget Spinners
Dolls and Teddy bears
Ayurveda Product
Ayurveda is a preferred option by many as it offers chemical-free products. Ayurveda is based on the principle that to achieve and maintain health throughout your life. There are a variety of Ayurveda products that are sold wholesale with correct pricing and discounts. The demand for natural and Ayurveda products is hitting high and more people able now becoming more conscious about their health therefore the products could be supplied to parlours, wellness centres and recreation centres.
Here is a list of some of the Ayurveda products that can be sold:
Nowadays plastic can be found almost everywhere, whether it is bottles, tiffin, chairs, or flasks. You can think of starting a wholesale business in plastic products. You can start this wholesale business in a village or small town too. The product could be supplied anywhere such as institutions, corporate firms, hotels and restaurants.
Here is a list of some of the plastic products that can be sold:
Plastic Containers
Toys
Medical Components
Outdoor Furniture
Luggage bags
Paint Business
The paint business is one of the most profitable businesses around the world. India’s paint industry’s trade value is more than ₹57 trillion, and it’s the second-largest industry globally. The target audiences will be homeowners, apartment buildings and condominium complexes, businesses large and small, interior designers, and real estate agents who may need help with vacant property.
Here is a list of some of the paint-related products that can be sold:
Painter’s Tape and Tray
Paint Brush
Canvas drop cloths
Plastic Buckets
Paint Solvents
Personal Care and Beauty Products
Today personal care and beauty are two major concerns of mankind. Personal care and beauty encompass a variety of products, including fragrances, makeup, hair care, colouring products, sunscreen, toothpaste, and products for bathing, nail care, and shaving. The products could be supplied to wellness centres, parlours, and beauty institutions.
Here is a list of some of the personal care and beauty products that can be sold:
Skin and Hair care
Wellness
Ayurveda and Herbals products
Men’s and Women’s grooming kits
Building and Construction Items
Building materials are those which are used for constructing buildings, highways, dams, bridges, and others. Many naturally occurring substances, such as clay, rocks, sand, and wood, even twigs and leaves, have been used to construct buildings. Building construction materials come in different grades, Sizes, and Brands which are used for different purposes in construction based on their functionality and strength. The building and construction items could be supplied to construction firms, real estate firms, and local builders and contractors.
Here is a list of some of the building and construction products that can be sold:
Structural Steel
Bitumen
Concrete
Bricks and Blocks
Paints
Electrical Appliances
Successful electrical business requires a different skill set than that of a first-rate electrician. The first thing you’ll want to do before starting an electrical business is to figure out how much your area needs another electrical business in it. Providing quality goods and prompt services would help you in expanding your business. This is another high-margin business and products can be supplied to institutions, offices, malls, processing plants and others.
Here is a list of some of the electrical products that can be sold:
India is the biggest producer of rubber. So, this provides a giant market for wholesalers. The commodities in this are rubber bands, medical consumables, industrial belts, erasers, vehicle gaskets, tires, etc. The products could be supplied to interior designing firms, household retailers, paint distributors and others.
Here is a list of some of the latex and rubber products that can be sold:
Latex-based paints
Shower and Floor mats
Toys
Automobile accessories
Gifts & Handicrafts
Wholesale in gifts and handicrafts is a high-profit business idea if penned down properly. The target audiences are small gift store proprietors and handicraft sellers. Ensure high-quality and well-timed transport of objects and see your enterprise climbing heights of accomplishment. This is one of the excessive margin wholesale enterprises to begin from home.
Here is a list of some of the gifts and handicrafts products that can be sold:
Starting a glassware wholesale business can be surely moneymaking work. After all, you are fixing an instantaneous problem for your client and you are working on something you surely care about.
When it comes to your glassware wholesale business, you must spend a desirable quantity and quality of time examining the market and underlining the places where the demand lies.
With beginning a glassware wholesale business there is no cap as to how good profits you can make. The stronger your professional abilities and the more extra energy/time you put into your career, the more you can earn. The products can be supplied to educational institutions, interior designing firms and construction firms.
Here is a list of some of the glassware products that can be sold:
Beakers
Coffee Cups/Mugs
Wine Glasses
Housing Accessories
Automobile Products
The traffic jams are proof of the growing variety of bikes and cars on road, it includes not only fossil fuel-based but also new-generation electric vehicles. With the growing number of bikes and cars, the demand for vehicle products also increases, which can be one excessive income point. Starting a wholesale enterprise of automobile parts or vehicle merchandise can be very profitable. The returns will develop by your investment, work, and the proper approach and advertising skills. Selling automobile products at wholesale is one of the most profitable wholesale distribution businesses in the country. This business could target garages and service centres.
Here is a list of some of the automotive products that can be sold:
Tubes and Tiers
Sound System
Interior and Exterior accessories
Battery and Radiators
Wholesaler of Grains
India is one of the most populous nations in the world and the demand for food grains continuously keeps growing. Many states produce different types of grains and use different types of agri-tech and take help from agritech-startups to produce and disburse the grains around the country. You can be a wholesaler of grains. It is one of the most profitable wholesale business ideas and the target customers could be food processing plants, canteens and others.
Here is a list of some of the grains that can be sold:
Maize
Barley
Wheat
Oats
Wholesale Seed Distribution
India is an agricultural country. So agricultural gear has a notable demand here. Moreover, agriculture can be viewed as a quality wholesale enterprise to start. Consumers are usually keen to use new and modern-day technologies. One who begins an agricultural business has a very big market. The market can be from organic seeds or HYV seeds to equipment like a tiller, tractor, etc. the target audiences could be farmers, the food industry and others.
Here is a list of some of the seeds that can be sold:
Flax Seeds
Poppy Seeds
Chia Seeds
Sesame Seeds
Conclusion
A profitable wholesale venture requires a robust community of suppliers and manufacturers, a precise chain of communication, and magnificent marketing skills. Start any wholesale enterprise in which you have some knowledge and work towards it to take your enterprise to a new pinnacle of success.
Himangi Khare
