Sectoral Capsule-Organic Food Market in India (2009-2018)
Growing awareness about the health benefits accruing from the consumption of organic food isdriving the global market for organic food. The rising market size of organic food may be attributedto global awareness about the benefits of organic food and health consciousness among the people.Among the Indian states, Madhya Pradesh had the largest organic farming area of 2,866,000hectares. With a Compound Annual Growth Rate (CAGR) of 12.8 percent through 2009-2018, theexpected revenue from the global organic food market is USD 149.92 billion in 2018.
Organic food sales are high in India’s metro cities like Mumbai, Chennai, Delhi, Bengaluru, Pune andGurgaon. The increasing size of the middle income group, from 14.5 million households in 2005 to63.9 million households in 2015, is an important factor influencing this growth. The high productionof organic spices is another factor responsible for India’s expanding market size of organic food.It is expected that the popularity of organic food will continue to drive market size. Increasing healthawareness among Indians and a rising middle income group will be important stimulants. However,high organic food prices, problems related to certifications and availability, and quality control of theproducts need to be resolved.