Light Barriers to Imports

OTA estimates total organic market consumer sales of India at about $88 million USD per year.

  • The total market size for organic packaged food and beverages in India in 2015 is US$71.9mn, making it the 27th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in India is US$0.10, which ranks as the 47th largest spending per capita in the world.
  • The largest company by sales in organic packaged foods and beverages is Sresta Natural Bioproducts Pvt Ltd, which maintains 62.6% of total sales, followed by Organic India Pvt Ltd and Chamong Tea Exports Pvt Ltd.
  • Organic packaged food and beverages in India will see strong year-on-year growth of close to 12% in 2015. This is slightly slower than the rest of the Asia Pacific region, which will experience greater than 13% year-on-year growth in 2015.
  • India maintains a market size for organic packaged food and beverages of US$71.9mn in 2015, which is 0.2% of global category sales.
  • Within the Asia Pacific region, only China and Japan surpass India in total value sales of organic packaged food and beverages.
  • India will experience strong forecast growth of sales of organic packaged foods and beverages, at 11.6% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in India in 2015 is US$71.9mn, making it the 27th largest market in the world by value.
  • An increasingly urban population that is growing more aware of the potentially harmful health effects of chemical pesticides and fertilizers will fuel demand and sales growth.
  • Organic packaged food and beverages is an emerging niche market in India, and its primary consumers are high-income urbanites.

Market Trends

Competitive Landscape

  • The market landscape in India is increasingly fragmented and competitive.
  • India-based Sresta Natural Bioproducts Pvt Ltd is the market leader, with 35.7% share of the organic food market and 7.8% share of the organic beverage market.
  • As the market is emerging, it is also dynamic. Leading player Sresta Natural Bioproducts Pvt Ltd has increased its share of the organic food market in recent years, while smaller niche players have taken significant share away from it in the organic beverage market. 

Prospects and Growth Opportunity

  • Sales of organic packaged food and beverages are projected to record strong growth in coming years, albeit from a relatively small base.
  • An increasingly urban population that is becoming more aware of the potentially harmful health effects of chemical pesticides and fertilizers will fuel demand and sales growth.
  • As organic sauces, dressings, and condiments are the only organic packaged food category with any recorded sales it will be the only organic food category with forecast growth, while organic soft drinks and fruit/vegetable juice are projected to have the highest sales growth rates among organic beverages.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy: 

  • India is the fastest-growing large economy in the world, and real GDP growth is projected to be strong in the near term, driven by increased private consumption and a rebound in exports.
  • In 2015, unemployment was 5.1%, but an estimated 1 million new job seekers enter the labor market monthly.
  • In order to keep up with the influx of entrants to the labor market, real GDP must grow at a rate of approximately 8% per annum.

Population demographics: 

  • India’s current population is nearly 1.3 billion, and the country is projected to overtake China as the world’s most populous country in less than 20 years.
  • Due to its relatively high fertility rate, India has a young population, with a median age of 26.6 in 2015.
  • The fertility rate is projected to decrease in coming years, but it will still exceed replacement level through 2030.

Income & expenditure: 

  • Annual disposable income has risen steadily since 2009 and is projected to maintain strong growth through 2030.
  • In line with rising income, consumer expenditure has also risen steadily since 2009 and will continue to do so through 2030, driven in large part by increased spending on health goods and medical services.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

                   

Health & wellness products consumption

6,773.4

8,010.5

9,316.8

10,730.1

11,571.6

12,459.3

13,362.9

16.6%

7.6%

Organic packaged food and beverages consumption

38.3

47.7

59.7

71.9

80.7

90.2

100.6

23.4%

11.8%

Organic packaged food consumption

19.4

24.8

31.3

37.5

41.8

46.5

51.4

24.6%

11.1%

Organic beverages consumption

18.9

22.9

28.4

34.3

38.9

43.8

49.2

22.0%

12.8%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

0.6%

0.6%

0.6%

0.7%

0.7%

0.7%

0.8%

-

-

Economic & demographic data

Data type

2012

2013

2014

2015

2016

2017

2018

               

Total population

1,228.1

1,246.0

1,263.6

1,281.1

1,298.2

1,315.2

1,331.8

% Middle and upper class of total population

26.6%

26.3%

26.1%

25.9%

25.6%

25.5%

25.3%

% Population aged 65+

5.1%

5.2%

5.3%

5.4%

5.6%

5.7%

5.9%

% Population aged 0-14

29.9%

29.5%

29.2%

28.8%

28.5%

28.1%

27.8%

% Population with higher education degrees

6.0%

6.1%

6.1%

6.2%

6.3%

6.3%

6.4%

Average number of children per household

1.7

1.7

1.7

1.6

1.6

1.6

1.6

GDP per capita

1,268.1

1,419.6

1,547.4

1,654.7

1,756.5

1,862.7

1,971.9

Consumer expenditure per capita (US$)

728.8

821.4

911.4

1,012.0

1,048.9

1,105.8

1,164.4

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

216.8

250.8

279.8

308.3

317.6

333.1

348.4

Retailer & urban area data

Data category

Rank

Urban Area/retailer

Population
(mns)

       

Top urban areas by population (2015)

1

Mumbai

19.1

Top urban areas by population (2015)

2

Delhi

18.0

Top urban areas by population (2015)

3

Kolkata

14.3

Top urban areas by population (2015)

4

Bangalore

9.6

Top urban areas by population (2015)

5

Chennai

9.3

Top grocery retailers by sales (2015)

1

Big Bazaar

-

Top grocery retailers by sales (2015)

2

Reliance

-

Top grocery retailers by sales (2015)

3

D-Mart

-

Top grocery retailers by sales (2015)

4

More

-

Top grocery retailers by sales (2015)

5

Spencer's

-

 

USDA GATS data

Rank

2015

2014

2013

2012

1

Peas

Apples

Apples

Oranges

2

Apples

Oranges

Oranges

Apples

3

Cherries

Cherries

Grapes

Grapes

4

Pears

Pears

Pears

Coffee Roast

5

Oranges 

Peppers

Coffee Roast 

 

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

Ministry of Commerce and Industry

Agency(s) Contact Information: 

Agricultural & Processed Food Products Export Development Authority (Ministry of Commerce & Industry, Govt. of India)
NCUI Building 3
Siri Institutional Area
August Kranti Marg, New Delhi - 110 016
Telephone : 91-11-26513204, 26514572, 26534186
Fax : 91-11-26526187

Email: headq@apeda.com
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

Date of Implementation: 

2000

Regulation and/or Standard Scope: 

The National Programme for Organic Production (NPOP) covers crop production, animal husbandry, food processing, labeling and storage and transport of organic agriculture and products (including wild harvest, aquaculture, live stock products). Includes guidelines for certification of grower groups; IFOAM’s accreditation for food production and processing and wild crops is equivalent to NSOP. Certified organic products of any registered foreign programs will be considered for marketing along with the certified products of the accredited domestic programmes.

Textile standards cover the cultivation and production of organic fibres, and the manufacturing, processing, packaging, labelling and distribution of organic textiles, particularly of cotton and silk.

Highlights of the Nov. 9 2017 operationalization of India’s standards include:

No person shall manufacture, pack, sell, offer for sale, market, distribute, or import any organic food products unless they comply with the regulations;
Organic foods should comply with provisions from at least one of the following:
National Program for Organic Production (NPOP)
Participatory Guarantee System of India (PGS- India)
Other system or standards notified by the Food Authority

Organic food which is marketed through direct sales by the small original producer or producer organization shall be exempted from the provisions;

Organic labeling requirements should be accurate, in addition to the standard labeling requirements;

Traceability should be established up to the producer level;

All organic foods should comply with the Food Safety and Standards (Food Product Standards and Food Additives) Regulation 2011, and the Food Safety and Standards (Contaminants,Toxins, and Residues), Regulations, 2011;

Sellers of organic foods will be required to display organic food items in a distinguishable manner from conventional food items

Imported Products Requirements

Imported Products: 

Organic food imports under bilateral or multilateral agreements on the basis of the equivalence of standards between NPOP and the organic standards of the exporting countries shall not be required to re-certify on import; 
All organic food consignments should be accompanied by a Transaction Certification (TC) issued by an accredited certification body covered under the terms of equivalence agreement.

Certification and Accreditation

Certification: 

NPOP is currently a voluntary standard, and the vast majority of domestic organic products are not certified. In order to be authorized to use the India Organic Seal, producers or processors must be certified by an independent third-party certification organization. Products for export from India must be accompanied by a Transaction Certificate issued by a Certification Body accredited by National Accreditation Body (NAB) for Organic Products under the National Programme for Organic Production.

Download a list of accredited certification and inspection agencies

Accreditation: 

The National Accreditation Body (NAB) accredits certifying agents who inspect organic production and handling operations to insure that they meet the NPOP. India accreditation (APEDA) is recognized by USDA

The United States has a recognition agreement with India

Additional Information

Reference Standards: 

The Indian National Programme for Organic Production was modeled after the IFOAM Basic Standards for Organic Production and Processing, EU regulations as well as that of the Codex Alimentarius. India’s recognition in the EU is limited to Unprocessed Plant Products (not including seaweed) and Vegetative propagating material for seeds for cultivation.

 

Additional Information: 

Definitions

Review definitions of terminology included in this website.