Organic Food Market in India 2023

Organic Food Market in India 2023

Organic farming is the practice of growing food without the use of synthetic chemicals or genetically modified ingredients. Organic farmers and food producers cultivate and produce food without synthetic chemicals such as pesticides and synthetic fertilizers. They do not use genetically modified (GM) ingredients or irradiate food.

Market insights:

The organic food market in India was valued at INR 97.34 Bn in 2022. It is expected to reach INR 287.33 Bn by 2027, expanding at a CAGR of ~16.27% during the 2023 – 2027 forecast period. The organic food market in India is currently a niche market, but it is expected to grow in the coming years. The market is expanding rapidly due to rising consumer demand for healthy, chemical-free foods and the increasing penetration of organic food products.

Key growth drivers of the market:

Due to its diverse agro-climatic conditions, India has enormous potential for producing a wide range of organic products. With the rising demand for organic food, companies are launching a wide range of products to meet customers' nutritional needs and tastes and capitalizing on market opportunities. The growing health consciousness among consumers is also a major driving force in the Indian organic food market

Key deterrents to the growth of the market:

Due to higher labor inputs per unit of output and the inability to attain economies of scale due to the greater variety of businesses, organic food production prices are often higher. People prefer online ordering instead of traditional purchasing, and these products take time to reach the marketplace due to commuting long distances. For this reason, organic farmers need to find local channels for distributing their products which may not always be possible.