India Organic Food Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

India Organic Food Market Size

The India organic food market reached a value of USD 1,510.36 million in 2023 and is expected to grow at a CAGR of about 22% in the forecast period of 2024 and 2032 to reach a value of about USD 9,043.00 million by 2032.

India Organic Food Market Outlook

• In 2023, India produced around 2.9 million metric tons of certified organic products, covering various food categories such as oilseeds, fibre, sugar cane, cereals, and millets.

• As per industry reports, the total cultivated area under organic farming in India was 1,764,677.15 hectares as of 2023, increasing the India organic food market value.

• The states with the highest organic cultivated areas in the same year were Madhya Pradesh with 831,168.8 hectares, Maharashtra with 1,025,675.6 hectares, and Gujarat with 851,526.64 hectares.

• In terms of trade, India exported 0.312 million metric tons of certified organic products in 2023, generating USD 708.33 million in foreign currency revenue. The major export markets for Indian organic products included the U.S, the EU, Canada, and the United Kingdom.

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India Organic Food Market Growth

Organic food refers to the product of an agricultural system that avoids the use of inorganic fertilisers, pesticides, and animal feed additives. Organic farming assures customers that toxic pesticides, synthetic fertilisers, and genetically modified organisms (GMOs) are not used in the processing of food and that no antibiotics or growth hormones have been administered to the livestock.

The India organic food market is a niche market, with the market expected to see wider penetration in the coming years. Owing to the growing incidences of food adulteration, the demand for organic food is anticipated to rise in the coming years, which increases the market size of organic food in India. Companies are also opening small kiosks in malls of metropolitan cities, which is adding to the India organic food market development. The e-commerce industry growth also serves as an aid to enterprises as a way of appealing to potential consumers due to the lucrative offers and wider market penetration of the platforms. Organic beverages like tea have the greatest appeal, followed by milk products and pulses.

Key Trends and Recent Developments

Shift in consumer preferences, growth of e-commerce, and expansion of leading company’s product portfolios are shaping the India organic food market outlook.

January 2024

Tata Consumer Products Ltd (TCPL) has signed definitive agreements to acquire some equity shares of Organic India which can aid organic farming market in India. The acquisition is expected to help TCPL gain access to products with a wider taste profile, enter new markets, and broaden its portfolio with organic items.

December 2021

Organic India launched a campaign called #TowardsHealthyEating to promote healthy eating practices among children and encourages parents to teach their children to distinguish between Omega3, proteins, and vitamins, and trans-fat, artificial sweeteners, and food dyes, which can promote demand of organic products in India.

March 2021

Nature Bio Foods BV inaugurated a cutting-edge organic food processing plant in the Netherlands, showcasing its commitment to sustainable supply chains and quality organic ingredients sourced from various regions like India and Africa. The facility enables direct access to customers in the US and Europe.

Shift in consumer preferences towards health and wellness

This shift is primarily attributed to the growing awareness about the negative impacts of synthetic chemicals and pesticides on health. As a result, consumers are opting for organic products that are perceived as safer and healthier. As per the organic food consumption statistics in India, a survey by Nielson in 2021 found that 63% of Indian consumers were willing to pay a premium for organic food products.

Online availability and e-commerce growth

The ease of availability of organic products on e-commerce platforms such as Amazon, Flipkart, and grocery websites like BigBasket and JioMart has significantly contributed to India organic food market growth.

Product innovation and portfolio expansion

The leading players in the organic food market share India are constantly innovating and expanding their product portfolios to cater to the diverse needs and tastes of Indian consumers. Organic India has expanded its product portfolio by entering the staples segment with organic Basmati rice, Dalia, pulses, etc.

India Organic Food Industry Trends

The market is experiencing a robust growth with the rising awareness about benefits of organic food products. The growing level of health consciousness in the country is a key factor driving the market growth. The rising awareness about the nutritional content and quality of the food consumed by Indian consumers is leading to the growing demand for organic food.

In addition, the consumer spending on health and wellness products has increased dramatically due to factors including strong economic growth, urbanisation, and rising income levels. The strong government funding is providing impetus for organic food market growth in India. The Government of India encourages organic farming through financial assistance to farmers who are implementing organic farming under various government schemes, such as the Mission for Integrated Horticulture Development (MIDH), National Food Security Mission (NFSM), NMSA, and Rashtriya Krishi Vikas Yojana (RKVY).

Industry Outlook

Trends in the Production and Exports of Organic Products in India

Agricultural and Processed Food Products Export Development Authority (APEDA), in the marketing year 2021-22, organic production in India varied significantly across different commodities. Fiber was the leading product with 1,440,603 metric tons. Sugar followed with 336,883 metric tons. Cereals and millets reached 242,417 metric tons, underscoring their importance in the Indian diet and the growing preference for organic grains, which boosts the overall organic food industry in India. Fresh fruits and vegetables accounted for 85,548 metric tons, reflecting the increasing demand for organic produce among health-conscious consumers. Pulses, another staple in the Indian diet, were produced at 73,765 metric tons, showcasing the emphasis on organic farming to meet domestic consumption needs. Tea, a major export commodity, recorded 42,845 metric tons, while coffee production stood at 20,071 metric tons. This diverse production landscape aligns with the increasing demand for organic food products produced in the country, fuelling the growth of organic food industry.

India's organic product exports experienced significant growth during 2019-2021, with total export values rising from USD 681.29 million in 2019-2020 to USD 1,032.98 million in 2020-2021, before slightly declining to USD 765.97 million in 2021-2022. The United States and the European Union were the top destinations for these exports, with the former importing 1,063 billion tonnes worth USD 1,237.25 million and the EU importing 613.51 billion tonnes worth USD 909.9 million between FY19 and FY22. As per the India organic food industry analysis, other notable importers included Canada, Great Britain, and Switzerland, with values of USD 152.6 million, USD 61.11 million, and USD 28.14 million, respectively. This upward trend in exports indicates a growing international demand for Indian organic products. This trend underscores the importance of maintaining high-quality standards and expanding organic farming practices and eventually boosting the organic food industry in India.

Increasing Awareness About the Health Benefits of Organic Food

• There is increasing awareness among Indian consumers about the health benefits of organic food, leading to a rising demand for organic products.

• The Indian government supports organic farming through various schemes and subsidies, such as the Paramparagat Krishi Vikas Yojana (PKVY) and the National Programme for Organic Production (NPOP).

• As per the analysis of India organic food market, India's diverse agro-climatic zones enable the cultivation of a wide variety of organic crops, providing a competitive edge in the market.

• India's organic food products have significant export potential, with growing demand in markets such as the United States, Europe, and Southeast Asia.

Higher Production Costs, Complex Certification, Price Sensitivity, and Conventional Food Market Competition, Hinder the Growth of India's Organic Food Market

• Organic farming involves higher production costs due to the need for organic fertilisers, pest control, and labour, making organic products more expensive for consumers.

• Despite growing interest, a significant portion of the population remains unaware of the benefits of organic food, limiting market penetration.

• The organic food supply chain in India faces issues such as inadequate infrastructure, lack of cold storage facilities, and inefficiencies in distribution, can affect India organic food demand forecast.

• Obtaining organic certification is complex and costly, especially for small-scale farmers, which can hinder market growth.

• Indian consumers are generally price-sensitive, and the higher cost of organic products can deter them from purchasing organic food regularly.

• The well-established conventional food market poses significant competition, with lower prices and greater availability.

• Adverse effects of climate change, such as unpredictable weather patterns and natural disasters, can negatively impact organic farming yields and organic food demand growth.

Rapid Urbanization, and Innovative Farming Techniques are Driving Growth Opportunities in India's Organic Food Market

• The rapid urbanisation in India is leading to a shift in dietary preferences, with urban consumers showing a greater inclination towards organic food.

• The rise of e-commerce platforms provides a significant opportunity for organic food producers to reach a wider audience and increase sales.

• As per the India organic food market dynamics and trends, there is potential to expand the export market for Indian organic products, especially in regions with high demand for organic food.

• Adoption of innovative farming techniques such as vertical farming, hydroponics, and precision agriculture can increase the efficiency and output of organic farming.

Competitive Factors in the India Organic Food Market

• Obtaining and maintaining organic certification is crucial for credibility, consumer trust and boosting organic food market share in India.

• High-quality organic products, free from synthetic pesticides and fertilisers, attract health-conscious consumers. 

• Competitive pricing strategies are necessary to balance affordability and profitability, making organic products accessible to a wider audience.

• Efficient supply chain management and economies of scale can help in reducing costs, allowing for competitive pricing without compromising on quality and boosting organic food demand.

• Highlighting the health benefits of organic food, such as the absence of harmful chemicals and higher nutritional value, can attract health-conscious consumers.

• Online sales channels are increasingly important for reaching a broader customer base.

• Establishing a strong presence in supermarkets, hypermarkets, and specialty organic stores ensures visibility and accessibility for consumers.

• Expanding the product range to include organic snacks, beverages, and ready-to-eat meals can cater to diverse consumer needs and preferences and fuel the growth of the India organic food market.

Key Players in the India Organic Food Market and Their Strategic Initiatives

Suminter India Organics Private Limited

• Works with over 80,000 farmers across India to source organic products, ensuring a steady and quality supply.

• Continuously expanding its product portfolio to meet growing consumer demands can offer lucrative India organic food market opportunities.

Sresta Natural Bioproducts Pvt. Ltd. (24 Mantra Organic)

• Collaborates with over 30,000 farmers across 15 states to ensure sustainable and organic farming practices.

• Actively expanding its product lines and market presence both domestically and internationally can increase India organic food industry revenue.

ORGANIC INDIA Pvt. Ltd.

• Launched a new line of organic tea beverages in January 2024 to cater to the growing demand for health-conscious products.

• Emphasizes sustainable farming practices and fair trade, enhancing its brand image and consumer trust.

Nourish Organic Foods Pvt. Ltd.

• Continuously adding new organic snack options to its product lineup.

• Strengthening its presence in both online and offline retail channels to reach a wider audience and to boost India organic food market revenue.

Phalada Agro Research Foundations Pvt. Ltd.

• Investing heavily in research and development to improve organic farming techniques and product quality.

• Ensures all products meet stringent organic certification standards.

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India Organic Food Industry Segmentation

The EMR’s report titled “India Organic Food Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Organic Fruits and Vegetables

• Organic Beverages

• Organic Meat, Fish and Poultry

• Organic Dairy Products

• Organic Processed Food

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Speciality Stores

• Convenience Stores

• Online

• Others

Market Breakup by Region

• North India

• East and Central India

• West India

• South India

India Organic Food Market Share

Organic products like beverages, meat, cereal, and pulses are high in demand due to their health benefits and chemical-free properties

The organic beverages segment in the market includes a wide range of products such as organic tea, coffee, juices, and other beverages. Organic beverages are popular among consumers due to their perceived health benefits and the absence of harmful chemicals and additives.

As per India organic food market analysis, the organic cereal and food grains segment comprises products like organic rice, wheat, millets, and other grains. This segment is gaining traction as consumers are becoming more aware of the benefits of organic grains, which are free from synthetic pesticides and chemicals.

The organic meat, fish, and poultry segment includes organic meat products, poultry, eggs, and dairy items like milk, cheese, and yogurt. Organic meat, poultry, and dairy products are produced without the use of antibiotics, hormones, or synthetic feed additives, making them a healthier choice for consumers.

Supermarkets and hypermarkets hold a significant market share due to their competitive pricing

Supermarkets and hypermarkets dominate the India organic food market share as these large retail outlets offer a wide range of organic products, leveraging their broad reach and customer trust. Supermarkets and hypermarkets invest in advertising, in-store displays, and labelling campaigns to educate consumers about the benefits of organic products, which can aid the demand of India organic food market. They also provide competitive pricing and reward programs for organic items, making them more appealing to budget-conscious consumers.

The online sales channel has emerged as a significant distribution platform for organic food products in India. Online platforms offer convenience, variety, and accessibility to a wide range of organic products, catering to the increasing trend of online shopping and the preference for doorstep delivery. The online segment provides a platform for small and medium-sized organic food producers to reach a broader audience and expand their market presence.

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Competitive Landscape

Market players are focused on product innovation, competitive strategies, online expansion, regional market penetration, and leveraging government support to drive growth

Suminter India Organics Private Limited has established itself as a producer and supplier of a wide range of 100% certified-organic, all-natural, non-GMO organic products, including spices, herbs, oil seeds, cereals, sweeteners, and more. Suminter India Organics works with over 80,000 farmers across India to source its organic products.

Sresta Natural Bioproducts Pvt. Ltd., which operates under the brand name "24 Mantra Organic," was founded in 2004 and is headquartered in Hyderabad, Telangana. The company offers over 200 organic food products including staples, processed foods, fruit juices, ready-to-cook items, and more which can boost organic food consumption in India. Sresta Natural Bioproducts works with over 30,000 farmers across 15 states in India.

ORGANIC INDIA Pvt. Ltd., headquartered in Delhi, India is a prominent organic food brand in India. Founded in 1997, the company focuses on providing high-quality organic products, such as green tea, pulses, honey, and rice to meet the growing demand for healthier and more sustainable food options in the market.

Other key players in the organic food market in India include LT Foods Ltd. (Nature Bio-Foods Limited), Nourish Organic Foods Pvt. Ltd., Rattan Organic Foods Pvt. Ltd., Phalada Organic Consumer Products Pvt. Ltd., Mehrotra Consumer Products Pvt. Ltd. (Organic Tattva), EcoFarms (India) Ltd., and Conscious Food Private Limited, among others.

India Organic Food Market Regional Analysis

Northern India leads the market due to a surge in demand for organic products and presence of several key brands

North India, encompassing cities like Delhi, Chandigarh, and Jaipur, holds a significant India organic food market share. The region is witnessing a surge in demand for organic products driven by the increasing health consciousness among consumers. For instance, Organic India, a leading organic food brand, has a strong presence in North India with a wide range of organic offerings.

Meanwhile, West India, including Maharashtra, Gujarat, and Goa, stands out as one of the largest markets for organic foods in India. Cities like Mumbai, Pune, and Ahmedabad are key hubs for organic food consumption in the region. The market in West India is driven by the surging demand for organic products and the growing accessibility through online platforms.

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