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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 28.4%, followed by Organic India Pvt Ltd, with a value share of 14.3%.
  • Despite ranking 49th in market size per capita, India ranks 4th in terms of value growth globally for organic products, indicating a strong potential increase in demand over the forecast period 2019-2024.

  • Organic products in India represent far less than 1.0% of global value demand, with a per capita expenditure of US$0.06 in 2019.
  • 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$138.5 by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in India recorded robust growth, increasing by almost US$10.0mn in 2019 to reach a value of approx. US$62.5 mn.
  • Organic sauces, dressings and condiments led growth in organic packaged food, recording current value growth of 17.0% for the period 2018-2019.
  • Organic fruit nectars (25-99% juice) led the growth in organic beverages with current value growth of 31.0% in 2019. The increase in value growth, at least partially indicates higher volume growth as average unit prices for organic beverages witnessed a decline of 4.0% in 2019.
Market Trends
  • Organic packaged food and beverages are rapidly emerging in India among health-conscious and high-income consumers as more Indians are gradually becoming aware of the harmful effects of pesticides leading to an increasing preference for organic variants.
  • With the high popularity of tea consumption in India, organic tea leads in terms of value share in organic beverages, representing 78% of sales in 2019. Considering organic products in India are still in the early stages, with most sales coming from high-income urban consumers, there is still considerable potential for sales growth over the forecast period 2019-2024.
  • There is a growing exposure of the high-income segment of the Indian population towards organic consumption, with luxury hotels such as the Trident in Gurgaon offering an organic menu. Furthermore, other foodservice establishments, which are organic food specialists, such as the Birdsong Café in Mumbai and California Burritos in Bangalore, are increasingly focusing on safer food options in an attempt to focus on the increasing consumer priority of food safety and gain consumer confidence. These emerging attempts from foodservice operators are expected to further improve the level of awareness of organic products in India.
Competitive Landscape
  • Sresta Natural Bioproducts Pvt Ltd retained its leading position in organic beverages in 2019 thanks to its 24 Letter Mantra brand, which leads organic soft drinks with its range of organic nectars (25-99% juice) and organic black tea. The company has an ethical approach to farming and takes various steps to promote its range. For example, its Freedom from Pesticides campaign offers consumers a brief period each year during which they can purchase a selected range of its products at a 30% discount, which is the mark-up claimed to be applied to organic products.
  • Improvements in product distribution through modern grocery retailers and specialist outlets contributed to the performance of organic packaged food in 2019. Different varieties of fresh organic foods such as fruits, vegetables, eggs and milk are becoming increasingly available across various channels, including online retailers such as BigBasket and Grofers, helping raise awareness on the benefits of organic food in general. This is expected to continue to strengthen demand for packaged varieties over the forecast period 2019-2024.
  • Organic tea and coffee witnessed several new launches in 2019, such as Lavazza Coffee launching its Tierra Bio-Organic brand in India. Araku Coffee also entered the market in 2019 by launching four variants of its Araku brand: Signature, Selection, MicroClimate, and Grand Reserve, all of which are only sold online. New developments like these indicate a growing interest among younger generations in particular, who are seeking variety in flavors and are also keen on knowing the origins of the food and drinks they consume.
Prospects And Growth Opportunity
  • Currently, the high price of organic products is a key barrier towards the adoption of organic food amongst Indian consumers, as they are priced between 2-3 times more than non-organic variants and most Indian consumers are from the lower-income brackets. However, efforts by the government to make labelling and certification processes cheaper are expected to cause a price drop for organic products, allowing them to become more affordable for consumers across the country, which is expected to help drive a boost in sales.
  • Improvements in product distribution through modern grocery retailers and specialist outlets contributed to the performance of organic packaged food in 2019. Different varieties of fresh organic foods such as fruits, vegetables, eggs and milk are becoming increasingly available across various channels, including online retailers such as BigBasket and Grofers thus, helping raise awareness on the benefits of organic food in general. This is expected to continue to strengthen demand for packaged varieties over the forecast period 2019-2024.
  • Organic tea and coffee witnessed several new launches in 2019, particularly in organic coffee, such as Lavazza Coffee launching its Tierra Bio-Organic brand in India. Araku Coffee also entered the market in 2019 by launching four variants of its Araku brand: Signature, Selection, MicroClimate, and Grand Reserve, all of which are only sold online. New developments like these are indicate a growing interest among younger generations in particular, who are seeking variety in flavors and are also keen on knowing the origins of the food and drinks they consume.
General Health And Wellness Trends
  • Consumers in India are increasingly concerned about the impact of pesticides and other chemicals in their food and beverages, with many Indian consumers preferring to purchase products without any preservatives as well. Rising concerns have spurred the interest for organic claim labels in products across various categories such as tea, coffee, juice, fruits, vegetables, baby formula and organic dairy. Brands such as Akshayakalpa, an organic dairy player, is leveraging this trend and encouraging consumers in urban areas to switching to primarily organic products, while the focus on rural areas is set to progress over the forecast period 2019-2024.
  • Increasing health care costs are leading people towards adopting healthier lifestyles. Urban metros, including Delhi and Mumbai, have primarily driven the trend towards organic food. However, rural dwellers are also becoming more aware of the importance of precautionary food-based measures to reduce the possibility of lifestyle-based diseases. Celebrities in the country facilitate a large portion of this awareness, as they highlight the extent of food contamination and encourage a “return to roots” approach in terms of food, particularly with regards to organic foods. This trend is helping stimulate the growth of small start-ups, supporting the emergence of local producers and helping spur innovation for organic products in India in the long term.
General Economics And Demographic Landscape

Economy:

  • India is one of the world’s fastest-growing economies. However, growth in 2020 is predicted to slow to 5.2% post growth of 6.0% in 2019. Despite performing far better than most economies, the growth in India is not able to keep up with the increasing population.
  • A new income scheme for farmers and a good monsoon season are expected to help private consumption while a cut in corporate tax is expected to improve corporate investment.
  • Unemployment is expected to reach 5.1% in 2020 from 5.0% in 2019, primarily due to 12 million individuals ready to join the workforce each year, for which job growth is struggling to maintain the pace.

Population demographics:

  • The population of India has witnessed a nearly 300 million increase for the period 2000 to 2019, reaching a total of 1.3 billion in 2019. While population growth is slowing down, the high proportion of youth allows for continued economic gains for some time, with consumption and production expected to rise in the coming years.
  • The median age in India has witnessed an increase but is still only at 27.9 years in 2019, which is younger than most countries. In 1980, 267 million people were between the ages of 0 and 14 years. By 2019, that number had reached 360 million, representing 27.8% of the population, and while it is declining, it is expected to reach 346 million by 2030.
  • The fertility rate in India is dropping, but it is still relatively high at 2.3 births per female. Projections by the Indian government estimate that there will be about 400-500 million people in the workforce by 2025. However, if female empowerment continues to increase, that figure might reach 600-700 million.

Income & expenditure:

  • India’s savings ratio exceeds the regional average, amounting to 19.2% of disposable income in 2019. This ratio is expected to dip to 18.9% in 2020.
  • Consumer expenditure, which amounted to US1,308 in 2019 and will register a share of 60.1% of GDP in 2020, is expected to rise by 5.1% in 2020 with healthcare and medical services acquiring the highest expenditure. Overall, consumer expenditure is expected to grow by a cumulative value of 77.2% for the period 2020-2030, with an average annual rate of 5.9%.
  • Disposable income per capita amounted to US$1,609 in 2019, with the indicator expected to rise by 4.7% in real terms in 2020. A cumulative increase of 73.1% is expected for the period 2020-2030, averaging 5.6% annually.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

5,942.8

6,795.6

7,779.7

8,849.6

9,628.5

10,458.3

11,350.3

14.2%

8.6%

Organic packaged food and beverages consumption

USD million

45.3

53.5

63.7

75.0

84.8

95.9

108.4

18.3%

13.1%

Organic packaged food consumption

USD million

7.6

9.1

10.7

12.5

13.9

15.3

16.6

18.0%

9.3%

Organic beverages consumption

USD million

37.7

44.4

53.0

62.5

70.9

80.6

91.8

18.4%

13.8%

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

%

0.8%

0.8%

0.8%

0.8%

0.9%

0.9%

1.0%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

1,285.9

1,299.7

1,313.2

1,326.6

1,339.8

1,352.8

1,365.7

% Middle and upper class of total population

%

27.7

27.6

27.5

27.4

27.3

27.2

27.2

% Population aged 65+

%

5.9%

6.1%

6.3%

6.5%

6.7%

6.9%

7.1%

% Population aged 0-14

%

27.7%

27.3%

26.8%

26.4%

26.0%

25.5%

25.1%

% Population with higher education degrees

%

8.0

8.1

8.1

8.1

8.2

8.2

8.2

Average number of children per household

children

1.6

1.5

1.5

1.5

1.4

1.4

1.4

GDP per capita

USD per capita

1,699.7

1,868.2

2,051.4

2,193.1

2,284.8

2,406.9

2,538.0

Consumer expenditure per capita (US$)

USD per capita

1,007.5

1,101.9

1,220.1

1,307.6

1,372.3

1,448.3

1,525.4

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

USD per capita

304.3

328.1

357.2

383.8

400.6

420.1

440.8

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Mumbai

19.4

Top cities by population (2019)

2

Delhi

18.1

Top cities by population (2019)

3

Kolkata

14.8

Top cities by population (2019)

4

Bangalore

10.5

Top cities by population (2019)

5

Chennai

9.8

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Future Group

Top grocery retailers by sales (2019)

2

Avenue Supermarts Ltd

Top grocery retailers by sales (2019)

3

Reliance Group

Top grocery retailers by sales (2019)

4

Aditya Birla Group

Top grocery retailers by sales (2019)

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$)

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

2017

India

1

Organic Apples Fresh

2,805,680

2017

India

2

Organic Peas Fr/Ch

166,730

2017

India

3

Organic Pears Fresh

89,935

2017

India

4

Organic Tomato Sauce Ex Ketchp

40,202

2017

India

5

Organic Grapes Fresh

32,700

2017

India

Total

Total Organics*

3,156,783

2016

India

1

Organic Apples Fresh

1,081,544

2016

India

2

Organic Peas Fr/Ch

444,504

2016

India

3

Organic Grapes Fresh

71,150

2016

India

4

Organic Pears Fresh

25,900

2016

India

5

Organic Tomato Sauce Ex Ketchp

12,002

2016

India

Total

Total Organics*

1,656,720


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 2016 – 2019 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 2016-2019 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

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Food Safety and Standards (Organic Food) Regulation, 2017 

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

Indian Standards for Organic Textiles

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

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. 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:

USDA's GAIN Report New Directives on Organic Foods Regulations Benefit Small Producers (2019)
USDA's GAIN Report FSSAI Grants Extension in Use of Organic Sticker (2018)
USDA's GAIN Report Organic Sticker Temporarily Allowed on Imported Organic Products (2018)
USDA's GAIN Report FSSAI Organic Standards Operationalized (2017) 
USDA's GAIN Report FSSAI Publishes Manual for Food Imports (2017)
USDA's GAIN Report India Implements Food Fortification Regulation (2017)
USDA's GAIN Report Nutraceuticals and Food Health Supplement Standards Made Operational (2016)
USDA's GAIN Report India Proprietary Food Standards Updated and Made Operational (2016)
USDA’s GAIN Report India 2016 Food Import Regulations
USDA’s GAIN Report India Exporter Guide (2019) 
USDA’s GAIN Report India Exporter Guide Position Your Products Now to Leverage the Demographic Dividend (2017)
USDA’s FAIR Report India Food and Agricultural Import Regulations and Standards Narrative (2016) 
USDA’s FAIR Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s FAIR Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's GAIN Report India Retail Organized Sector Consolidating While Mom and Pop Format Dominates (2018)
USDA’s GAIN Report India Food Processing Ingredients (2020)
USDA’s GAIN Report India’s Food Processing Sector Poised for Growth (2018)
USDA’s GAIN Report India Food Service - Hotel Restaurant Institutional (2019)
USDA’s GAIN Report India Restaurant Sector Growing...Back on Course (2018)
USDA’s GAIN Report Retail Sector Expansion Creates New Opportunities for High-Value Product (2019)
USDA’s GAIN Report Retail Foods Food and Grocery Product Opportunities Stemming from Internal Sector Shifts (2018)