Rising popularity of Organic Foods in India

ORGANIC FOOD

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Organic food is the product of a farming system which avoids the use of man-made fertilisers, pesticides; growth regulators and livestock feed additives. Irradiation and the use of genetically modified organisms (GMOs) or products produced from or by GMOs are generally prohibited by organic legislation.

Rising popularity of Organic Foods in India
Organic pulses and food grains dominated demand for organic food in the country since 2015 and it is believed that the segment is anticipated to continue dominating the market through 2021.

  • India organic food market is anticipated to grow at a CAGR of over 25% during 2016-2021, due to increasing use of synthetic chemical fertilizers and pesticides in non-organic products that lead to various
    health issues such as cancer, obesity and birth defects.
  • Reports suggest that the government is making efforts to increase adoption of organic
    food, by the way of launching various policies and expanding land area under organic
    cultivation over the next five years.
  • Organic pulses and food grains dominated demand for organic food in the country since
    2015 and it is believed that the segment is anticipated to continue dominating the
    market through 2021.

Here are a few points to vouch that India is the next destination for organic segment:

Rising popularity

Recently a lot of videos showing chemically produced vegetables, fruits and eggs
became viral. These videos somewhat helped the popularity of organic segment in
pushing forward.

Moreover artificially grown chicken and chemically shaped eggs have been proved to
have spread many diseases in around the country.
People have witnessed the benefits of organic food on the health of stars and sports
stars, who not only endorse but recommend to stay healthy and fit.

Awareness

This generation is educated and smart, thus they prefer to eat healthy and spend on
healthy food than to spend on medical treatments.
They are well aware of the harmful effects of chemicals and fertilizers on the food
products.

Moreover the plants and insects too have evolved with time, thus they are immune to
these fertilizers, insecticides and pesticides. To stay a step ahead, the chemical
composition keeps getting stronger and remains deposited on the outer layer of the
fruits and vegetables, which does not get washed by simple water and result in working
as slow poison or other harmful effects on human body.
To opt for safe food and healthy lifestyle, people prefer organic food over others.

Growth drivers

The global organic foods & beverages market is expected to grow at a CAGR of more
than 15% from 2017 to 2021.
Sprout Intelligence expert team estimated that the global organic foods & beverages
market in 2016 was worth more than USD 80 billion.
Rising lifestyle diseases such as diabetes, blood pressure and obesity, coupled with
excessive contamination of conventional food are driving organic food sales, not just in
the country but globally.

Opportunities

Conclusion:

The profitability of many U.S. farms, especially large grain producers, is partly determined by federal government commodity support programs. Some modern agricultural practices adversely affect soil quality by affecting soil physical, chemical, and biological factors through erosion, compaction, acidification, and desalinization. They also reduce biological activity as a result of pesticide applications, excessive fertilization, and loss of organic matter.

Indian market is very fresh for the organic segment and there are very few companies,who are ruling right now, thus there is opportunity for startups as well as franchisees to try their hands on and grab the opportunity.

Moreover India’s food market size is quite big, to replace it with organic food, more
business and brands will have to jump in the game.

Thus there is a sea of opportunity for brands and entrepreneurs in this field.
People are opting for quality lifestyle over chemically charged lifestyle. Thus organic
segment is going to take rapid shape in near future.

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