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Home Sectors Agriculture

CAGR 21%: Organic food market to grow to $553.87m

Fiinews by Fiinews
June 24, 2021
in Agriculture, Health, Investment
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Consumer preference for organic food to drive demand

The Indian Organic Food Market is projected to grow to US$553.87 million in FY2026, advancing at a CAGR of 21% on account of favorable government policies supporting organic farming coupled with rising land area under organic cultivation. It was valued at US$177.14 million in FY2020, according to a ResearchAndMarkets reports on 23 June 2021.

Online availability of organic food products and shifting consumer preference towards organic food are among the major factors expected to boost the demand for organic food products in India during the forecast period, said the report “India Organic Food Market, By Product Type (Organic Fruits and Vegetables, Organic Beverages, Organic Cereal & Food Grains, Organic Meat, Others), By Distribution Channel, By Region, Competition Forecast & Opportunities, FY2026”.

Expanding marketing and distribution channels coupled with increasing number of health-conscious people are also anticipated to fuel organic food consumption in India until FY2026, it said.

Furthermore, increase in awareness regarding the food people eat has resulted in the uplift of the organic food market. Consumers in India have started paying attention to their health, the quality and nutrient content of the food they eat. Due to health concerns, consumers are shifting towards the organic food gradually, which is further giving boost to the organic food market in India.

There was a shortage of workers working in organic process industry due to COVID-19 as people were forced to stay at home for some time. So, the organic food processing companies were unable to gather sufficient workers for processing organic products. Also, farmers have faced difficulties in order to source the agricultural inputs due to the closure of the vendor stores, noted the report.

Thus, the coronavirus pandemic has impacted the organic food products in the Indian market. However, a rise in the demand for organic food products during the pandemic has been observed across the country as they are considered healthier in comparison to the inorganic products.

In India, a paradigm shift of consumers, post lockdown, towards preventive health management practices is fueling the growth of the market and is expected to drive the market of organic food in future as well.

Organic fruits and vegetables dominated the demand for organic food in the country in the historical period and the segment is anticipated to continue dominating the market through FY2026.

The certified land under organic farming increased to 5.21 million hectares in 2012-13 from merely 1.08 million hectares in 2009-10, which is expected to increase the overall organic food production in the country, according to the report.

The western region is the highest revenue contributor for the country’s organic food market, followed by the southern region. The major organic food producing states in India include Maharashtra, Andhra Pradesh, Karnataka and Uttar Pradesh. Considering high distributor margins, organic food companies are collaborating with leading retail chains, which is expected to increase the availability of organic food products in the future.

Some of the major players operating in the Indian Organic Food Market are:
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
Nourish Organics Foods Pvt Ltd. #agriculture #food #economy #exports #banking #investment /fiinews.com

Tags: ResearchAndMarkets
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