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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Sresta Natural Bioproducts Pvt Ltd leads the organic segment in India with a value share of 27.0% in 2021, followed by Organic India Pvt Ltd, with a value share of 13.1%. 
  • Despite ranking 49th in market size per capita, India ranks 3rd in terms of forecast value growth globally for organic products, indicating a strong potential increase in demand over the forecast period 2021-2026.

 

  • Organic products in India represent far less than 1.0% of global value demand, with a per capita expenditure of just US$0.08 in 2021. 
  • However, with the rise in demand for organic products in categories such as tea and organic juice, and consumers becoming increasingly aware on the advantages of consuming organic food, India represents a promising market over the coming years, reaching a value of US$153.3 million by 2025.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in India recorded an increase of 18.0% over 2020-21, registering a market size of US$104.3 million.
  • Growth in organic packaged food was fuelled by organic sauces, dresses, and condiments, which accounts for almost the entirety of the market.
  • Organic beverages have significantly larger sales than organic packaged food in India and recorded an increase of 18.3% over 2020-21, registering a market size of US$85.9 million.
Market Trends
  • Organic packaged food recorded an increase of 16.5% over 2020-21, registering a market size of US$18.4 million. Organic packaged food is a niche category in India. The only major category of organic packaged food present in India is organic sauces, dressings, and condiments. Strong growth was recorded over 2020-21, accelerated by the Covid-19 pandemic, as consumer health awareness and consciousness grew. However, prices of organic products are considerably higher than those of their non-organic counterparts, which limits demand to affluent consumers living in urban areas. This consumer base was also more robust to negative economic impacts of the Covid-19 pandemic and were willing to pay higher prices for their health, which led to an increase of organic sales over 2020-21. 
  • Growth in organic beverages was led by organic tea, which accounts for around 80% of category sales. Organic tea sales benefited during the lockdowns in 2020 and 2021 in India, as they portray a healthy image and were also consumed in the evenings to wind down after work, while consumers worked from home. Demand for organic tea increased over 2020-21 despite challenges faced by manufacturers. The lockdown that begun in March 2020 caused a sharp increase in wholesale prices of black tea during the second quarter of 2020. However, this did not result in substantial unit price increases in organic tea as most brands of organic tea were already priced considerably higher than standard tea brands and the leading category players were thus able to absorb the price rises more effectively than companies behind standard tea brands. Smaller players did however struggle to sell their products during the pandemic as the higher prices charged for these products made them unappealing at a time when consumer disposable incomes were shrinking. There was also a significant drop in the production of tea during the lockdown period, which caused supply chain disruptions. Further, the long rainy season seen in India during 2020 worsened the already unfavourable situation faced by organic tea brands in India.
Competitive Landscape
  • Organic packaged food in India continued to be led by Sresta Natural Bioproducts Pvt Ltd in 2021, capturing a 33.2% retail value share, with its leading brand 24 Letter Mantra. Mehrotra Consumer Products Pvt Ltd followed, capturing a 20.9% share in 2021, with its brand Organic Tattva. Sanjeevani Organics placed third in 2021, owning a share of 16.1%, with its brand Sanjeevani Nusobee (Danone group). Currently these companies face no competition from other categories and are unlikely to do so over the forecast period as they have already developed strategies to manage the complicated bureaucratic procedures and financial burdens involved with organic certification, having already developed strong and reliable supply chains for their organic ingredients. 
  • Organic beverages in India were also led by local company Sresta Natural Bioproducts Pvt Ltd in 2021, capturing a 25.6% retail value share. Organic India Pvt Ltd and Chamong Tea Exports (P) Ltd followed, accounting for respective shares of 15.9% and 7.9% in 2021. Sresta Natural Bioproducts Pvt Ltd retained its leading position in organic beverages thanks to the strength of its 24 Letter Mantra brand. This is the leading brand in organic soft drinks, where it offers a range of organic nectars (25-99% juice). The brand is also the leader in organic black tea. The company’s success can be attributed mainly to its ethical approach to farming and extensive organic product offering. The company is also a leader in terms of marketing and places a large focus on the promotion of its product ranges. For example, its Freedom from Pesticides campaign offers consumers the opportunity to purchase a select range of its products at a 30% discount during a brief period each year, which is equivalent to the mark-up that is claimed to be applied to organic products. The company’s products are also distributed widely and can be found in both modern and traditional grocery retail channels. The company also operates its own branded retail outlets under franchise.
Prospects And Growth Opportunity
  • Organic packaged food and beverages are forecast to exhibit a CAGR of 15.7% over the forecast period, 2022-25. Organic packaged food is forecast to exhibit a CAGR of 15.9% over the forecast period. There is currently low per capita consumption of organic packaged food in India, which means that the category has substantial potential for further sales growth moving forward. However, there are significant challenges ahead for the category. Farmers cultivating organic crops face significant hurdles and burdens, including the high annual cost of organic certification, as well as the further high cost per farmer for required internal audits, which is beyond the means of most Indian farmers. There are also lengthy procedures involved in obtaining organic certification and international validity, due to inadequacies in certifying agencies as well as an insufficient support infrastructure. Failure to obtain certification can result in prosecution for farmers and companies engaged in organic food production. These factors drive up the cost of organic packaged food, which limits the category’s consumer base and poses difficulties to its development during the forecast period and beyond. The high positive CAGR is mainly attributed the expected growth of the current key players. 
  • Organic beverages are forecast to exhibit a CAGR of 15.6% over the forecast period, 2022-25. Demand for organic beverages continues to rise as consumers increasingly demand healthy alternatives to sugary beverages and immunity-boosting beverages. There was growing demand for artisanal tea, including organic tea, even prior to the pandemic. India has almost 320 million millennial consumers who represent a huge potential consumer audience for artisanal tea in India. Brands such as Organic India and Tea Treasure represent strong examples of organic tea brands that have gained the attention of younger Indian consumers as they look for healthy products that cater to their lifestyles and have attractive branding. As the negative impacts of Covid-19 recede, a wide range of new brands are expected to emerge to fulfil the rising demand for organic tea in India.
General Health And Wellness Trends
  • The consumption of health and wellness products recorded an increase of 11.4% over 2020-21, standing at US$10,274.1 million in 2021. The  growth in beverages during the forecast period will be fuelled by retail sales for at-home consumption, with on-trade consumption expected to take at least two years to completely recover from the negative impacts of the Covid-19 pandemic. The big players in health and wellness beverages are expected to focus mainly on better for you (BFY) reduced sugar products to meet demand for alternatives for high-sugar beverages and immunity boosting beverages. Similarly, in BFY packaged food, products with reduced sugar are expected to be a key focus area throughout forecast period.
  • Naturally healthy products, one of the leading health and wellness categories over the review period, are also predicted to see success over the forecast period as consumers shift towards ingredients and products that contain few artificial ingredients and which are in line with traditional Indian principles of better health via nutrition. Fortified/functional packaged food, another category leader, is also forecast to witness strong growth as the Indian government is likely to continue with its policy of fortifying daily staples such as vegetable and seed oil, flour, and others to combat malnutrition, an issue which is still unfortunately prevalent in less affluent rural communities throughout the country.
General Economics And Demographic Landscape

Economy: 

  • The Indian economy is projected to expand by an average annual real rate of 5.8% over 2021-2040, supported by macroeconomic stimulus packages and economic liberalisation.
  • Inflation is projected to remain around 5-6% over 2022-23, but is likely to ease off and settle around 4.5% by 2025.
  • India aims to reduce its import dependence on China, and improve bilateral trade and investment relations with the US in upcoming years.

 

Population demographics: 

  • The population of India increased to 1,357.8 million in 2021 and is expected to rise to 1,407.9 million by 2025.
  • The gain in population is mainly driven by a widening gap between birth and death rates, low age at marriage and high fertility rates.
  • The median age in 2021 was recorded at an all-time high 28.4 years. This is further expected to increase to 31.7 years by 2030. 

Income & expenditure: 

  • Over the 2020-2030 period, India is projected to increase by one position and rank 19th out of 84 countries in Euromonitor International’s Wealth Index.
  • Per capita gross income in India is forecast to increase by 160% in real terms over 2021-2040.
  • The Uttar Pradesh region is anticipated to remain the largest consumer market in India through 2040, accounting for 12.6% of total consumer expenditure. Food and non-alcoholic beverages is forecast to be the largest consumer spending category in 2040, while health goods and medical services will record the fastest growth over 2021-2040.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

7,251.7

8,243.3

9,225.8

10,274.1

11,169.7

12,152.8

13,219.5

14,391.7

12.3%

8.8%

Organic packaged food and beverages consumption

USD million

61.1

73.9

88.4

104.3

120.9

140.6

163.1

187.1

19.5%

15.7%

Organic packaged food consumption

USD million

11.4

13.5

15.8

18.4

21.7

26.3

30.9

33.8

17.3%

15.9%

Organic beverages consumption

USD million

49.6

60.3

72.6

85.9

99.2

114.4

132.1

153.3

20.1%

15.6%

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

%

0.8

0.9

1.0

1.0

1.1

1.2

1.2

1.3

7.7%

5.7%

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

1,313.2

1,326.6

1,344.8

1,357.8

1,370.7

1.383.3

1,395.7

1,407.9

% Middle and upper class of total population

%

24.5

24.4

24.3

24.4

24.4

24.4

24.4

24.5

% Population aged 65+

%

6.3

6.5

6.7

6.9

7.1

7.3

7.5

7.7

% Population aged 0-14

%

26.8

26.4

26.0

25.6

25.1

24.8

24.4

24.1

% Population with higher education degrees

%

8.1

8.1

8.2

8.2

8.2

8.2

8.2

8.2

Average number of children per household

children

1.5

1.5

1.4

1.4

1.4

1.4

1.3

1.3

GDP per capita

USD per capita

1,945.1

2,074.7

1,985.8

2,306.0

2,477.5

2,580.8

2,725.6

2,862.0

Consumer expenditure per capita (US$)

USD per capita

1,161.0

1,260.7

1,169.3

1,318.4

1,421.6

1,490.2

1,564.6

1,638.4

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

USD per capita

320.8

343.2

326.5

365.8

388.6

403.8

422.3

440.7

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Mumbai

19.8

Top cities by population (2021)

2

Delhi

18.5

Top cities by population (2021)

3

Kolkata

15.1

Top cities by population (2021)

4

Bangalore 

10.6

Top cities by population (2021)

5

Chennai

10.0

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Avenue Supermarts Ltd

Top grocery retailers by sales (2021)

2

Reliance Group

Top grocery retailers by sales (2021)

3

Future Group

Top grocery retailers by sales (2021)

4

Aditya Birla Group

Top grocery retailers by sales (2021)

5

National Dairy Development Board

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To India

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

India

1

Organic Vinegar and Substitutes

428,919

2021

India

2

Organic Apples Fresh

113,287

2021

India

3

Organic Pears Fresh

45,960

2021

India

4

Organic Cherry Tomato Fr/Ch

39,113

2021

India

Total

Total Organics*

627,279

2020

India

1

Organic Apples Fresh

1,097,733

2020

India

2

Organic Vinegar and Substitutes

677,387

2020

India

3

Organic Pears Fresh

66,274

2020

India

4

Organic Cauliflower Fr/Ch

6,935

2020

India

5

Organic Milk

3,420

2020

India

Total

Total Organics*

1,851,749

2019

India

1

Organic Apples Fresh

1,004,484

2019

India

2

Organic Vinegar and Substitutes

647,644

2019

India

3

Organic Pears Fresh

38,000

2019

India

4

Organic Coffee Roast Not Decaf

29,770

2019

India

5

Organic Strawberries Fresh

24,499

2019

India

Total

Total Organics*

1,767,655

2018

India

1

Organic Apples Fresh

2,402,938

2018

India

2

Organic Vinegar and Substitutes

703,857

2018

India

3

Organic Carrots Fr/Ch

66,785

2018

India

4

Organic Strawberries Fresh

23,707

2018

India

5

Organic Peas Fr/Ch

21,023

2018

India

Total

Total Organics*

3,218,310

 

Note : Total organics is the sum of all exports in a particular year 

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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

Food Safety and Standards Authority of India 
https://fssai.gov.in/

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Food Safety and Standards (Organic Food) Regulation, 2017​​​​​​​  Standard not available in English.

National Standards for Organic Products (NSOP) under the National Programme for Organic Production (NPOP) 

Indian Standards for Organic Textiles

Maximum Residual Limits (MRLs) of Insecticides in Organic Food

 

Frequently Asked Questions (in English) 

Date of Implementation: 2001

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, livestock products, mushroom, seaweed, aquatic plants, greenhouse crops). 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.

India has implemented a Participatory Guarantee System (PGS) that is outside the framework of third-party certification that was launched in 2011. PGS-India covers standards for crops, livestock, food processing, handling and storage.

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 November 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

TraceNet is an on-line application tool managed by APEDA under NPOP for management of entire organic certification system in the country. Organic certifiers and operations in India are responsible for ensuring compliance with Government of India export requirements including TraceNet reporting and documentation. 

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.

Effective July 1, 2018, Food Business Operators in India are required to follow the Food Safety and Standards (Organic Foods) Regulations, 2017, which mandates the use of a Food Safety and Standards Authority of India (FSSAI) organic logo on the primary label of all certified organic products entering India. On August 21, 2018, FSSAI issued an order announcing that use of a non-detachable sticker to display FSSAI’s organic logo would be permissible until December 31, 2018.

Certification and Accreditation

Certification:

All provisions of organic regulations came into force January 1, 2019. 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. 

Effective January 11, 2021, the U.S. will no longer maintain an Organic Recognition Agreement with India, established in 2006. This decision starts a transition period which will allow organic operations certified by APEDA-accredited certifiers to apply for direct certification by USDA-accredited certifiers to the USDA organic standards. After July 12, 2022, USDA organic certification by a USDA-accredited certifier will be required to import organic products from India into the United States.

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:

U.S. International Trade Administration

USDA’s GAIN Report India Exporter Guide (2022) 
USDA’s FAIR Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA's GAIN Report US-India Organic Transitory Timeline for Market Access and Accreditation (June 2021)
USDA's GAIN Report USDA AMS Ends Organic Recognition Agreement with India (January 2021)
USDA's GAIN Report COVID-19 Accelerates the Growth of India's Online Grocery Market (2021)
USDA's GAIN Report Climate Change - Agriculture and Policy in India (2021)
USDA's GAIN Report India Retail Foods (2021)
USDA's GAIN Report Indian Organic Products Market Report (2021)
USDA’s FAIR Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2021)
USDA’s GAIN Report India Food Processing Ingredients (2021)
USDA’s GAIN Report India Food Service - Hotel Restaurant Institutional (2021)
USDA's GAIN Report New Government of India Order Requires Genetically Modified- Free Certificate on Imported Food Products (2020)
USDA's GAIN Report Update on GAIN Report IN2020-0108 Highlighting Details on New Government of India Order for Genetically Modified-Free Certificate on Imported Food Products (2020)
USDA's GAIN Report India Extends Compliance Timeline for Genetically Modified-Free Certificate for Imported Food Products (2020)
USDA's GAIN Report Organic Foods Regulation Amendments Proposed by Government of India (Sept. 2020)
USDA's GAIN Report FSSAI Publishes Frequently Asked Questions on Organic Food Regulations (2020)
USDA's GAIN Report New Directives on Organic Foods Regulations Benefit Small Producers (2019)
USDA’s GAIN Report Retail Sector Expansion Creates New Opportunities for High-Value Product (2019)