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Market: Organic food set for 10.94% CAGR

Fiinews by Fiinews
September 12, 2025
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India is a major exporter of organic food worldwide, says report

The India Organic Food Market is expected to post a CAGR of 10.94% to reach US$21.99 billion by 2033 from US$8.63 billion in 2024, an industry report said on 10 Sept.

Growing awareness of the health benefits of organic food products, the health risks associated with chemical pesticides and fertilizers, and the increasing investments made by Indian corporate firms in agribusinesses, agritech, and organic farming are some of the main factors propelling the organic food market in India, said the “India Organic Food Market Share Analysis and Size, Key Player, Growth Trends and Forecast Report 2025-2033” report has been added to ResearchAndMarkets.com’s offering.

India’s organic food market has grown significantly in recent years due to rising consumer demand for sustainable and healthier food alternatives. The demand for organic goods, such as fruits, vegetables, dairy, grains, and packaged meals, has increased as customers grow more ecologically concerned and health conscious, said the report.

With programs like the National Program for Organic Production (NPOP) and subsidies for organic farming, the Indian government has helped facilitate this shift. The industry has grown as a result of farmers being pushed to use organic methods. Consumption of organic food has increased nationwide as a result of urbanization, the growing middle class, and better distribution methods like e-commerce http://commerce.gov.in.

India is a major exporter of organic food worldwide in addition to being a developing consumer for organic food. The wide range of commodities grown organically in the nation, including tea, oilseeds, and spices, are becoming more and more well-known due to their high demand worldwide. Strict certifications and conformity to international norms have supported organic product exports, noted the report.

Notwithstanding obstacles including increased production costs and the requirement for improved certification procedures, India’s organic food market is expected to expand further and present substantial prospects for growers, producers, and enterprises. India’s organic food industry is poised to become a major player in the global organic product market as consumer tastes shift toward sustainable living https://fieo.org/.

Additionally, the Indian government is promoting organic farming by providing incentives to growers of organic food products through the National Horticulture Mission (NHM) at a rate of Rs.10,000 per hectare, up to a maximum area of four hectares per beneficiary, and organic farming certification at a rate of Rs.5.00 lakh for a group of farmers in India that cover 50 hectares.

Conventional farming methods have had considerably more detrimental effects than beneficial ones. Along with pesticide-resistant pests, declining soil fertility, widespread human illnesses, costly cleanups, and dead zones, traditional farming also has the unintended consequence of contaminating ocean water. Long-term market growth is anticipated to benefit from supply trade laws and regulatory support for biological farming.

India’s rural-to-urban migration has greatly increased demand for high-end organic food items. Due to an urban lifestyle that prioritizes sustainability and well-being, there is a growing need for high-quality, healthier food alternatives as more people relocate to cities. Organic food is more likely to be purchased by urban customers, who are often more health-conscious and prepared to spend money on high-end goods, according to the report https://www.bseindia.com/.

As a result of this change, organic products are now more widely available because to the expansion of specialty organic shops, supermarkets, and internet marketplaces. Furthermore, a greater percentage of educated and well-off customers reside in metropolitan areas, which fuels demand for organic food as a component of a sustainable, healthful lifestyle.

Tea, spices, oilseeds, and other organic food items from India are becoming more well-known abroad, opening up new export markets. The nation’s wide range of organic products satisfy the rising demand for natural, chemical-free goods across the world. India is well-known for its high-quality organic tea, and its spices, such as cumin and turmeric, are prized in international markets for their health benefits and purity https://www.nseindia.com/.

India’s standing in the worldwide organic market has improved as a result of the government’s promotion of organic cultivation and international certification. Trade agreements, international trade shows, and rising global consumer awareness all contribute to increased export potential. India’s economy is strengthened by this rising demand, which also reaffirms its position as a major participant in the world market for organic foods.

Strict international certifications and regulations that improve marketability and customer trust are supporting India’s rising demand for organic food. Customers may be sure that the items they are buying adhere to established organic agricultural and production standards when they see certifications like India Organic, USDA Organic, and EU Organic.

Gaining access to more domestic and foreign markets requires these qualifications. By following these guidelines, the items are guaranteed to be devoid of dangerous chemicals, pesticides, and genetically modified organisms (GMOs). Both domestic consumption and exports of certified organic products from India are being driven by consumers’ growing desire for certified organic products as knowledge of the value of organic food rises https://sbi.com.in/.

Company in the sector 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 and Nourish Organics Foods Pvt Ltd. Fiinews.com

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Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

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