India Organic Food Market Forecast & Opportunities, 2017
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1 Organic Food Market
2 Market Size Organic food market in India is likely to treble in four years organic food market in India at $0.36 billion in 2014 According to India Organic Food Market Forecast & Opportunities, 2017, Indian organic food market is anticipated to grow at a significant CAGR of around 19% during organic food market in India is estimated to jump to $1.36 billion by 2020 Pulses and food grains took a lion s share in the entire market size of organic food Estimate of 25-30% growth The major players in Indian organic food market are Conscious Foods, Sresta, Eco Farms, Organic India, Navdanya and Morarka Organic Foods
3 Sikkim first adopted 100% organic farming policy in early nineties Organic food items overall have the potential to fetch 10 times more value than chemical and fertilized used food items The government, meanwhile, has set a target to bring 0.5 million acres under organic farming, with an allocation support of Rs 412 crore in three years. In India, majority of the demand for organic foods is originating from Tier I cities such as Mumbai, Delhi, Chennai, Bangalore, Gurgaon and Pune. Entry of several new players in the organic food market offering an online channel for purchase Estimated Market size of organic fruits and dairy products at present is US$ 80 million and US$ 20 million respectively Organic fruits and dairy products are expected to grow at a CAGR of 13-14% and 10-11% respectively over the next five to six years
4 Market Size by Product Segments Apple, Mango, Orange and Banana, together account for the majority share in the overall market size of organic fruits at about 75-80%. Milk and Curd, together account for 45-50% of the overall market size of organic dairy products
5 Organic Production and Markets in India Major organic produces in India include plantation crops, spices, cereals, pulses, oil-seeds, fruits, and vegetables. Further classification under these product categories include Category Plantation Crops Spices Cereals Pulses Products Tea, Coffee, Cardamom Ginger, Turmeric, Chillies, Cumin Wheat, Jowar, Rice, Bajra Chickpea, Pigeon-pea, Green Gram, Red Gram, Black Gram Oil-Seeds Fruits Vegetables Other Products Groundnut, Castor, Mustard, Sesame Banana, Custard Apple, Papaya Tomato, Brinjal Honey, cotton, sugarcane Major Organic food products produced in India (Category-wise)
6 Based on the data provided by National Center for Organic Products (NCOP), following is the production of important commodities under the organic segment: Crop Quantity Produced in MT ( ) Cotton Rice Wheat Other cereals and millets Pulses Oil Seeds and Soybean Tea/Coffee Spices Fruits and Vegetables Herbal and Medicinal Other : Quantity of major organic food products produced in
7 Market Segmentation The market structure for organic products in India can be divided into two parts: 1. Organized Sector: This sector comprises of branded players and operates through traditional business channels. This sector is more prominent in urban India 2. Unorganized Sector: This sector comprises of certified or non-certified non-branded players and operates more on faith. This sector is much more prominent in rural India Based on the needs and demands of the market, we can classify the domestic market into three segments: Market Segmentation Open Market Mainstream Food Service Traditional Shops National Chains Hotels Wholesalers Regional Chains Restaurants Mom & Pop Stores Stand-alone stores Caterers Institutions
8 Open Market: This segment includes the traditional shops, wholesalers and small mom and pop stores Mainstream: This segment includes big retail chains and outlets (both national and regional level) and stand-alone stores Food Service/Institutional Buyers: This segment includes hotels, restaurants, caterers and other institutions
9 Channels of Distribution Farmers Manufacturers Middlemen Retailers
10 Market Potential of Top Metros Major distribution channels connect the organic food producers to the metros such as New Delhi, Chennai, Mumbai, Bangalore, Hyderabad, and Kolkata. The organic food products mainly localized to major retail outlets such as Big Bazar, Spencer, More and Easy Day. Additionally, some of the major consumer goods players such as ITC Foods, Reliance, FabIndia, Godrej Agrovet and Organic India operated out of stand-alone stores.
11 The pie chart represents the market potential by products in top metros
12 Diagrammatic representation of total annual market opportunity in organic food product segment Based on the data aggregated from NSSO 64th round survey, 2011 census data and IFMR Analysis using the survey data, the current consumption of major food Product Qty Price Cereals MT INR M Total Annual Market Opportunity ~ INR 1029 M (USD M) Pulses Edible Oil MT MT INR M INR M Fruits and Vegetables NA INR M
13 The pie chart represents the reasons for consumer preference for organic foods in Delhi-NCR region Consumer Preference Health Benefits Environmental Concerns Sustainable Eco-system 10% 5% 85%
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