Forecast Period | 2026-2030 |
Market Size (2024) | USD 1,602.4 Million |
CAGR (2025-2030) | 12.1% |
Fastest Growing Segment | Online |
Largest Market | North |
Market Size (2030) | USD 3,185.7 Million |
Market Overview
India Organic Food Market was valued at USD
1,602.4 Million in 2024 and is anticipated to grow with a CAGR of 12.1% through 2030.
The organic food market in India has experienced significant growth in recent
years, driven by increasing health consciousness among consumers and a growing
awareness of sustainable agricultural practices. This sector encompasses a wide
range of products including organic cereals, pulses, fruits, vegetables, dairy,
and processed foods. According to a 2022 survey covering 187 countries
practicing organic agriculture, conducted by the Research Institute of Organic
Agriculture (FiBL) and the International Federation of Organic Agriculture
Movements (IFOAM), India ranks as the fifth largest country globally in terms
of organic food cultivation, with organic farming conducted across 2.6 million
hectares of land. The survey highlights that organic farming occupies 1.5% of
India's total agricultural land, and over the past decade, the country has seen
a significant 145.1% increase in the area dedicated to organic agriculture.
Furthermore, as per the Economic Survey 2022-2023, India boasts the highest
number of organic farmers worldwide, totaling 4.43 million.
According to the Agricultural and Processed
Food Products Export Development Authority (APEDA), Ministry of Commerce &
Industries, Government of India, India produced approximately 2.9 million
metric tonnes (2022-23) of certified organic products. These include a wide
range of food items such as oilseeds, fibers, sugarcane, cereals, millets,
cotton, pulses, aromatic and medicinal plants, tea, coffee, fruits, spices, dry
fruits, vegetables, and processed foods. Organic production in India also
extends beyond edible goods to include organic cotton fiber and functional food
products. Among the states, Madhya Pradesh leads as the largest producer,
followed by Maharashtra, Rajasthan, Karnataka, and Odisha. The primary
categories of organic commodities produced in India include fiber crops, oilseeds,
sugarcane, cereals and millets, medicinal and aromatic plants, spices and
condiments, fresh fruits and vegetables, pulses, and tea and coffee.
Key Market Drivers
Increasing
Health Awareness and Wellness
In India, the organic food market is intricately
intertwined with increasing health awareness and a growing emphasis on wellness
among consumers. As awareness about health risks associated with conventional
agricultural practices has heightened, more Indians are seeking safer and
healthier alternatives in their diets. Organic foods are perceived as a natural
choice to mitigate these concerns due to their reduced exposure to synthetic
pesticides, chemical fertilizers, and genetically modified organisms (GMOs).
This heightened awareness is not just limited to urban areas but is
increasingly penetrating rural communities where traditional farming practices
are being re-evaluated in light of health considerations.
The rise in lifestyle diseases such as diabetes,
hypertension, and obesity has further propelled the demand for organic foods in
India. Consumers are increasingly mindful of the quality and purity of the food
they consume, preferring products that are free from harmful residues and
chemicals. This shift in consumer behavior is driven by a desire for
preventative healthcare, where organic foods are perceived as a proactive
measure to maintain optimal health and well-being. Moreover, India's rich
cultural heritage of Ayurveda and traditional medicine systems has reinforced
the belief in the healing properties of natural foods. Many consumers view
organic foods not only as nutritious but also as therapeutic, aligning with
holistic health practices that emphasize the balance between mind, body, and
spirit. This cultural perspective has contributed to the mainstream acceptance
and adoption of organic foods as part of a holistic lifestyle choice.
Environmental
Sustainability, Government Support and Policies
India's agricultural practices have faced challenges
related to soil degradation, water scarcity, and biodiversity loss due to
intensive farming methods. Organic farming, which promotes biodiversity,
conserves water, and maintains soil health, is increasingly recognized as a
sustainable alternative. Consumers and farmers alike are turning to organic
agriculture to mitigate environmental impact and ensure long-term
sustainability of food production systems.
The Indian government has been actively promoting
organic farming through various policies and initiatives. Programs like the
National Programme for Organic Production (NPOP) and the Paramparagat Krishi
Vikas Yojana (PKVY) provide financial support, training, and certification
assistance to farmers transitioning to organic practices. These initiatives not
only incentivize farmers but also ensure the credibility and integrity of
organic products through stringent certification standards.
Rising Disposable
Income and Urbanization
Economic factors such
as rising disposable incomes and rapid urbanization have bolstered the demand
for organic foods in urban centers across India. Urban consumers, with higher
purchasing power and access to health information, are willing to pay premium
prices for organic products perceived as safer and healthier. This demographic
shift towards organic consumption is further fueled by lifestyle choices and
preferences for sustainable and ethical food options. Trust in the authenticity and quality of organic
products is crucial for market growth. Certification bodies like the
Agricultural and Processed Food Products Export Development Authority (APEDA)
and third-party agencies play a pivotal role in verifying compliance with
organic standards. Certification assures consumers of product integrity,
safety, and adherence to organic principles, thereby building trust and
stimulating demand in the organic food market.
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Key Market Challenges
Lack
of Awareness and Education
In India, a significant challenge facing
the organic food market is the lack of awareness and education among consumers.
Many people are unfamiliar with the concept of organic farming, the benefits it
offers in terms of health and environmental sustainability, and how it differs
from conventional agriculture. This lack of understanding leads to
misconceptions and uncertainties about the quality and reliability of organic
products. Moreover, there is a shortage of accessible information and
educational resources about organic farming practices, certification standards,
and the significance of choosing organic foods. Addressing this challenge
requires comprehensive awareness campaigns, educational initiatives, and
training programs aimed at both consumers and farmers. By increasing awareness
and knowledge about organic food production and its benefits, India can foster
a more informed consumer base and encourage greater adoption of organic farming
practices, thereby promoting sustainable agriculture and expanding the organic
food market.
Higher
Cost of Organic Products
A significant challenge in the Indian
organic food market is the higher cost of organic products compared to
conventionally grown alternatives. Several factors contribute to this price
differential. Organic farming practices often require more labor-intensive
methods, such as manual weed control and natural pest management, which
increase production costs. Additionally, organic farmers incur expenses for
organic certification, which involves rigorous standards and regular
inspections to ensure compliance.
Limited economies of scale in organic
farming further contribute to higher prices, as smaller yields and lower
productivity can result from natural inputs and sustainable practices.
Moreover, the lack of widespread infrastructure for organic farming and distribution
in India adds logistical costs, such as transportation and storage of organic
produce.
The higher cost of organic products
poses a barrier to their accessibility for a large segment of the population,
particularly in lower-income groups. To mitigate this challenge, initiatives
are needed to support organic farmers with subsidies, promote sustainable
agricultural practices, and improve distribution networks. Increasing consumer
awareness about the long-term benefits of organic foods may also help justify
their higher cost and stimulate demand in the market.
Limited
Infrastructure and Supply Chain Challenges:
In India, the organic food market faces
significant challenges related to limited infrastructure and supply chain
inefficiencies. Unlike conventional agriculture, which benefits from
well-established supply chains and infrastructure, organic farming often
operates with fewer resources and support systems.
One major issue is the inadequate
infrastructure for organic farming, including insufficient cold storage
facilities and processing units. This deficiency leads to post-harvest losses
and compromises the quality and shelf-life of organic produce. Additionally,
transportation logistics are often underdeveloped, resulting in higher costs
and longer transit times for organic products to reach markets.
Moreover, the fragmented nature of the
supply chain poses challenges in maintaining the integrity and traceability of
organic products. This can lead to inconsistencies in quality and certification
standards, impacting consumer trust and market growth. Small-scale organic
farmers, who constitute a significant portion of producers, often lack access
to efficient marketing channels and face challenges in reaching urban markets
where demand is concentrated.
Addressing these infrastructure and
supply chain challenges requires investments in storage facilities, processing
units, and transportation networks tailored to the needs of organic farming.
Improving market linkages and distribution channels can enhance efficiency and
reduce costs, making organic products more competitive and accessible.
Government support through subsidies, infrastructure development schemes, and
capacity-building programs can play a crucial role in overcoming these barriers
and fostering a resilient organic food market in India.
Key Market Trends
Increasing
Consumer Awareness
Increasing consumer awareness is a
significant trend shaping the Indian organic food market. There is a growing
recognition among Indian consumers about the health and environmental benefits
of organic foods compared to conventionally grown alternatives. Consumers are
becoming more informed about the potential health risks associated with
pesticides and chemical residues found in non-organic products. This awareness
is driving a shift towards organic foods perceived as safer, healthier, and
more nutritious.
Various factors contribute to this
trend. Health-conscious individuals, including millennials and urban
middle-class families, are actively seeking out organic options as part of
their dietary preferences. Media coverage, educational campaigns, and online
information have played crucial roles in disseminating knowledge about organic
farming practices and certification standards. Additionally, endorsements from
health professionals and influencers further validate the benefits of organic
foods, boosting consumer confidence.
As awareness continues to spread, more
consumers are willing to pay a premium for organic products, considering them
as investments in long-term health and well-being. This trend is not only
influencing purchasing decisions but also encouraging farmers to adopt organic
farming practices to meet the growing demand. Overall, increasing consumer
awareness is driving the expansion of the organic food market in India, shaping
its trajectory towards a more sustainable and health-conscious food system.
Shift
Towards Health and Wellness
A prominent trend in the Indian organic
food market is the significant shift towards health and wellness among
consumers. This trend reflects a growing preference for organic foods perceived
as natural, wholesome, and free from synthetic chemicals and additives commonly
found in conventional foods. As lifestyles become more health-conscious, there
is an increasing awareness of the potential benefits of organic produce, such
as higher nutritional content and lower pesticide residues.
The shift towards health and wellness is
driven by a broader societal trend where individuals are prioritizing
preventive healthcare and sustainable living practices. Consumers are
increasingly aware of the link between diet and overall health, leading them to
seek out foods that support their well-being and vitality. Organic foods, known
for their adherence to natural farming methods and environmental
sustainability, are seen as aligning with these values.
Furthermore, the trend towards health
and wellness is amplified by the influence of digital media, health experts,
and wellness influencers who advocate for organic diets and lifestyle choices.
This has contributed to the mainstream acceptance of organic foods as part of a
holistic approach to personal health management.
In response to this trend, the Indian
organic food market is witnessing a rise in demand for a variety of organic
products, including fruits, vegetables, dairy, grains, and packaged foods. This
growing consumer preference is driving market expansion and encouraging more
farmers to adopt organic farming practices, thereby fostering a more
sustainable and health-oriented food system in India.
Segmental Insights
Product
Type Insights
In the Indian organic food market,
organic beverages have emerged as a dominant segment by product type, driven by
shifting consumer preferences towards healthier and natural beverage options.
This segment encompasses a wide range of products including organic tea,
coffee, fruit juices, herbal drinks, and functional beverages. Organic
beverages appeal to health-conscious consumers who prioritize natural
ingredients and sustainable production methods. Organic tea and coffee, for
example, are popular choices due to their perceived health benefits, distinct
flavors, and the absence of synthetic pesticides and fertilizers. India's rich
cultural heritage in tea production further enhances the popularity of organic
teas, such as Darjeeling and Assam varieties, which are sought after both
domestically and internationally.
The demand for organic fruit juices and
herbal drinks is also on the rise, driven by concerns over the presence of
additives and preservatives in conventional beverages. Consumers perceive
organic juices as fresher, more nutritious, and environmentally friendly
alternatives. Additionally, the growing awareness of functional beverages,
which offer health-promoting properties beyond basic nutrition, further
contributes to the segment's growth. Government initiatives promoting organic
farming and certification, along with increasing retail availability through
specialized organic stores and e-commerce platforms, have bolstered the
accessibility and visibility of organic beverages in the Indian market. As
health and wellness continue to be key consumer trends, the organic beverages
segment is poised for continued expansion, offering diverse choices that cater
to evolving consumer preferences for natural and sustainable products.
Distribution
Channel Insights
In the India organic
food market, supermarkets and hypermarkets have emerged as the dominating
distribution channel for organic products. These retail formats offer a
convenient one-stop shopping experience that appeals to urban consumers seeking
organic alternatives to conventional foods. Supermarkets and hypermarkets
provide a wide range of organic products, including fruits, vegetables, dairy,
grains, packaged foods, and beverages, catering to diverse dietary preferences
and consumer needs. The dominance of supermarkets and hypermarkets can be
attributed to several factors. These retail formats benefit from their ability
to stock a large variety of organic brands and products under one roof,
providing consumers with ample choices and ensuring visibility for organic
options. Secondly, supermarkets and hypermarkets often have well-established
supply chains and distribution networks, which help maintain product
availability and freshness. Moreover, these retail outlets invest in consumer
education and promotional activities, raising awareness about the benefits of
organic foods and influencing purchasing decisions. The presence of trusted
brands and the assurance of quality through certification further enhance
consumer confidence in organic products sold through supermarkets and
hypermarkets.
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Regional Insights
In the India organic food market, the
northern region has emerged as a dominating segment due to several key factors
that contribute to its prominence. This region includes states such as Punjab,
Haryana, Uttar Pradesh, Rajasthan, and Delhi, where organic farming practices
have gained significant traction among farmers and consumers alike. One of the
primary reasons for the northern region's dominance is its fertile agricultural
lands and favorable climatic conditions, which support a variety of crops
amenable to organic cultivation. States like Punjab and Haryana, known for
their agricultural prowess, have seen a notable shift towards organic farming
methods as farmers seek sustainable alternatives to conventional practices.
Moreover, the northern region benefits
from a robust infrastructure for organic farming, including established farmer
cooperatives, organic certification agencies, and processing units. These
facilities facilitate the production, certification, and distribution of
organic products, ensuring quality and adherence to organic standards. Consumer
awareness and demand for organic foods are also higher in urban centers within
the northern region, such as Delhi and Chandigarh, where health-conscious
consumers and affluent households drive market growth. The presence of organic
food festivals, farmers' markets, and specialty stores further promotes the
visibility and availability of organic products in these areas. Overall, the
northern region's combination of agricultural potential, supportive
infrastructure, and consumer demand positions it as a leading segment in the
Indian organic food market. Continued efforts to strengthen organic farming
practices, expand distribution networks, and educate consumers are expected to
further consolidate its dominance in the organic food sector.
Recent Developments
In 2023, Union Home and Cooperation
Minister Amit Shah launched the 'Bharat Organics' brand under the newly
established National Cooperative Organics Limited (NCOL). He emphasized that
this initiative would not only be India's largest endeavor over the next five
years but also aimed to become the most reputable and prominent brand in the
global organic products market globally.
In 2024, Tata Consumer Products has
announced the signing of definitive agreements to acquire Organic India, a
leading organic brand known for its offerings in Food & Beverages as well
as Herbal & Traditional Supplements. This acquisition aligns with Tata
Consumer’s strategy to broaden its product range and enhance its presence in
rapidly expanding and high-margin segments. The move will establish a Health
& Wellness platform within Tata Consumer Products, leveraging Organic
India’s strong position in the 'better for you' category.
Key Market Players
- Suminter India Organics Pvt. Ltd.
- Nature Bio-Foods Limited
- Organic India Pvt. Ltd.
- Sresta Natural Bioproducts Pvt. Ltd.
- Nature Pearls Pvt Ltd
- Conscious Food Pvt Ltd
- Nourish Organic Foods Pvt Ltd
- EcoFarms (India) Limited
- Mehrotra Consumer Products Pvt. Ltd. (Organic
Tattva)
- Morarka Organic Foods Limited
|
By Product Type
|
By Distribution
Channel
|
By Region
|
- Organic Fruits and Vegetables
- Organic Beverages
- Organic Cereal & Pulses
- Organic Dairy Products
- Organic Herbs, Spices and Condiments
- Organic Flour
- Others
|
- Departmental Stores
- Supermarket/Hypermarket
- Online
- Others
|
|
Report Scope:
In this report, the India Organic Food Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Organic Food Market, By
Product Type:
o Organic Fruits and Vegetables
o Organic Beverages
o Organic Cereal & Pulses
o Organic Dairy Products
o Organic Herbs, Spices and Condiments
o Organic Flour
o Others
- India Organic Food Market,
By Distribution Channel:
o Departmental Stores
o Supermarket/Hypermarket
o Online
o Others
- India Organic Food Market,
By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Organic Food Market.
Available Customizations:
India Organic Food Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Organic Food
Market is an upcoming report to be released soon. If you wish an early delivery
of this report or want to confirm the date of release, please contact us at [email protected]