Light Barriers to Imports
  • The total market size for organic packaged food and beverages in India in 2017 is US$54.6mn, making it the 30th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in India is US$0.04, which ranks as the 49th 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 26.8% 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 13% in 2018, which is on par with the rest of the Asia Pacific region.
  • India maintains a market size for organic packaged food and beverages of US$54.6mn in 2017, which is 0.1% of global category sales.
  • Within the Asia Pacific region, China, Japan and South Korea 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 a 10.8% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in India in 2017 is US$54.6mn, making it the 30th 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 their primary consumers are high-income urbanites.

Market Trends

Competitive Landscape

  • The organic food and beverages market landscape in India is fairly fragmented.
  • India-based Sresta Natural Bioproducts Pvt Ltd is the market leader, with 26.8% of the total market share in 2017, followed by Organic India Pvt Ltd with 15.1% share and Chamong Tea Exports (P) Ltd with 7.8% share.
  • As the market is emerging, it is also dynamic. Leading players Sresta Natural Bioproducts Pvt Ltd and Organic India Pvt Ltd have both lost share to smaller companies in recent years.

Prospects and Growth Opportunity

  • Sales of organic packaged food and beverages are projected to record strong growth in coming years, albeit from a 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, but the consumer base will continue to consist mainly of the more affluent.
  • 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 fruit/vegetable juice is projected to have the highest sales growth rates among organic beverages.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • India has been the fastest-growing large economy in the world in recent years, and real GDP growth is projected to be strong in the near term, driven by increased private consumption and a rebound in exports.
  • Inflation was 2.6% in 2017, and prices will rise by 2.4% in 2018.
  • Unemployment was 4.8% in 2017 and will increase to 4.9% in 2018.
  • India’s job creation is running at less than a tenth of what is needed to get its young people into the job market.

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 26.9 in 2016.
  • The fertility rate is projected to decrease in coming years, but it will still exceed replacement level through 2030.

Income & expenditure:

  • Disposable income per capita amounted to Rs99,491 (US$1,528) in 2017 and is projected to increase by 5.3% in real terms in 2018.
  • Consumer expenditure per capita was Rs74,490 (US$1,144) in 2017 and will increase by 5.0% in 2018.
  • During the 2018-2030 period, total disposable income and expenditure will grow at average annual rates of 6.4% and 6.2%, respecitively.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

     9,243.4

   10,678.2

   12,279.2

   14,198.9

   15,526.2

   16,848.6

   18,158.0

15.4%

8.5%

Organic packaged food and beverages consumption

USD million

          32.1

          38.6

          46.3

          54.6

          61.6

          69.0

          77.0

19.4%

12.1%

Organic packaged food consumption

USD million

            5.6

            6.7

            7.8

            9.2

          10.2

          11.1

          11.8

18.0%

8.7%

Organic beverages consumption

USD million

          26.5

          32.0

          38.5

          45.3

          51.4

          57.9

          65.1

19.6%

12.8%

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

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

     1,262.3

     1,277.1

     1,291.9

     1,306.5

     1,321.0

     1,335.4

     1,349.5

% Middle and upper class of total population

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population aged 65+

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population aged 0-14

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population with higher education degrees

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

Average number of children per household

children

            1.7

            1.6

            1.6

            1.6

            1.5

            1.5

            1.5

GDP per capita

USD per capita

     1,514.0

     1,645.1

     1,804.8

     1,990.6

     2,116.0

     2,249.5

     2,394.6

Consumer expenditure per capita (US$)

USD per capita

        884.0

        959.4

     1,067.3

     1,155.4

     1,225.2

     1,292.7

     1,364.4

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

USD per capita

        273.8

        284.5

        318.0

        344.3

        364.8

        384.3

        404.7

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Mumbai

           19.0

Top cities by population (2017)

2

Delhi

           17.7

Top cities by population (2017)

3

Kolkata

           14.6

Top cities by population (2017)

4

Bangalore

           10.1

Top cities by population (2017)

5

Chennai

             9.6

Top grocery retailers by sales (2017)

1

Big Bazaar

 -

Top grocery retailers by sales (2017)

2

D-Mart

 -

Top grocery retailers by sales (2017)

3

More

 -

Top grocery retailers by sales (2017)

4

Reliance

 -

Top grocery retailers by sales (2017)

5

Spencer's

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Oranges

Apples

1,082.0

Peas

4,111.0

Apples

1,295.0

2

Apples

1,900.0

Oranges

Apples

329.0

Oranges

357.0

3

Grapes

33.0

Grapes

71.0

Cherries

80.0

Cherries

100.0

4

Coffee Roast

5.0

Pears

26.0

Pears

65.0

Pears

49.0

5

Pears

60.0

Coffee Roast

Oranges

60.0

Peppers

21.0

Total

2,221.0

1,658.0

4,669.0

1,823.0

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.

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: 

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.