For the complete report, get in touch with us at: info@netscribes.com The organic farming is an old concept in India in terms of the extensive farming carried out in the country. The organic food market is worth USD 129.3 mn and shows huge potential for growth in future. The increasing export market coupled with government’s support has driven the market. The report begins with an introduction to the organic food products highlighting their benefits over the similar conventional food. The report also provides a detailed overview of the status of organic farming in India and the status of certification process of organic food products in India. The market overview section compares the global and domestic organic food market. An analysis of the drivers explain the factors for growth of the industry including the huge export market, organized retail enhancing distribution network, government initiatives and increasing health consciousness among consumers. The key challenges identified encompass high prices of organic food, lack of integrated supply chain and difficulties for farmers, certification barriers. The competition section provides an overview of the competitive landscape including brief profiles of key domestic producers and promoters of organic food products. The key developments section provides an insight on sector related developments in last one year.

1. Organic Food Market - India
April 2010

2. Executive Summary
Total market for organic food in India was valued at USD X mn in 20--
Organic foods offer more health benefits as compared to the conventional food
Market
Government of India is leading from the front to ensure multi-fold growth in organic market
Exports of organic food products are expected to grow further in the near future
Certification
PLE
Certification of organic food products is a major concern for the producers to prove the
authenticity of their product and generate consumer confidence
Regulations
M
Government has shown positive signs by improving the status of the certification agencies
A
The process of certification is well defined, although it is costly for the small farmers
Drivers:
S Challenges:
– Huge export market – High prices of organic foods
Drivers & – Organized retail enhancing distribution – Lack of integrated supply chain and difficulties
network for farmers
Challenges – Government Initiatives – Certification barriers
– Increasing health consciousness among
consumers
The market is highly competitive with large number of producers and promoters
India enjoys the comparative advantage of being an agricultural country at a predominant stage
Competition with larger quantities of production
Major share of the market is occupied by the promoters who are involved in distribution of these
products to the end consumers through various retail outlets
ORGANIC FOOD MARKET IN INDIA 2010.PPT 2

3. •Introduction
•Organic Farming
•Certification Process
•Market Overview
•Drivers & Challenges
•Competition
•Key Developments
ORGANIC FOOD MARKET IN INDIA 2010.PPT 3

4. Organic food products are healthy and environment friendly
Organic Food Products
• Organic food products are those that are cultivated by methods that do not involve the use of artificial inputs like
chemicals to either enrich the soil, fight pests or increase productivity
• This method of cultivation provides for food produce that is healthy for consumption and at the same time protects
the soil and the environment
Parameters Organic foods Conventional Foods
Pesticides and • Grown without use of any synthetic pesticides and • Grown with extensive use of synthetic pesticides and
Chemicals synthetic chemicals chemicals which may lead to diseases like cancer
• Around n additives are used to improve the
• Only x additives are permitted which include Iron, appearance and taste of the food
Food Additives
Thiamine, Nictonic acid and are beneficial for health • Use of artificial colorings and sweeteners leading to
allergies and headaches
• Contains fatty acids which increases risks of heart
Hydrogenated Oils • Does not contain any fatty acids and oils
attacks
Vitamins • Contains higher levels of vitamin • Does not contain higher levels of vitamins
• Contains essential minerals such as calcium,
Minerals • Does not contain higher amounts of minerals
magnesium & Iron
Source:
SAMPLE
ORGANIC FOOD MARKET IN INDIA 2010.PPT 4

5. Various steps taken by the government has enhanced the
organic food certification process
Certification of organic food products is one of the major initiative that has been undertaken by the
government after realizing the potential of these products to reach the foreign market and also for
domestic consumption
• Setting up of a set of guidelines, referred to as the "National Programme for Organic
Production (NPOP)“ by The National Steering Committee (NSC) in the year 20--
under which the accreditation and certification procedures have been prepared and
Government steps approved
• Development of the national organic logo ‘A’, denoting compliance with NPOP
regulations, which is required to be used on all certified organic products
• Setting up of X major accrediting bodies for certification in India
• Monitor and supervise the producers and their farmlands so that the standards of
organic farming are adhered
Role of certification
• Provide an identifiable label (logo or symbol) to the product
agencies
• Provide an assurance to consumers that the product is truly organic and generate
consumer confidence
Source:
SAMPLE
ORGANIC FOOD MARKET IN INDIA 2010.PPT 5

6. Domestic consumption of organic food is still in a nascent
stage in India with a huge potential market
Overview Organic Food - Market Size (20--)
•Organic food cultivation in India has been a USD X bn
traditional concept which exists from centuries
•Products used for domestic consumption are
generally uncertified
PLE
•Increasing health consciousness of consumers,
their changing preferences coupled with support
from the government have driven the market
USD Y mn
AM
•A strong correlation exists between the growth
of organic food and development of the retail
S
formats such as supermarkets and exclusive
stores
Global
Market
India
Share of Organic Production (20XX-XX)
•Organic cultivation in our country ranges from Other Organic Products
organic food products to other organic products
like cotton, body care products, garments, and Y%
cosmetics
Organic Food Products
X%
Source:
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7. Drivers & Challenges
Challenges
Drivers High prices of organic food
Lack of integrated supply chain and
Huge export market
difficulties for farmers
Organized retail enhancing
distribution network Certification barriers
Government initiatives
Increasing health consciousness
among consumers
ORGANIC FOOD MARKET IN INDIA 2010.PPT 7

8. Organic food market is dominated by the promoters
involved in distribution of products to the end consumers
Overview Distribution Structure
• India has a comparative advantage over many other Producers / Farmers
countries in terms of farmlands used for organic food
cultivation
• The market is highly competitive with a large number
of producers and promoters Wholesalers/
Supermarkets Exclusive Stores
• Majority of the farming is done by small and marginal Traders/Promoters
farmers
• Many intermediaries have flourished who are
promoting organic production
• The large consumer base of these products lie in the Consumers
Tier 1 cities where consumers are aware of health
benefits of organic foods Major Players
Company Store Name State
SAMPLE
Company 1 X -
Company 2 M -
Company 3 A -
Source:
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9. Major Domestic Producers (1/4)
Company Business Description
Company A • It is a certified organization by X and has its own certified farms near Mumbai
• It cultivates, sources and supplies nearly x certified organic botanical products including
organic Indian herbs, spices, food, fruits, vegetables, extracts, oils, teas and other botanical
products
• Organic food products are exported to more than x countries in North America, Europe, SE
Asia, Australia and Japan
Company B • Farms are located in Punjab and certified by Y
• Specialize in cultivation of specific organic spices & guavas and also cultivate chillis, garlic,
turmeric, lemon and Haricot beans
Company C • Based in Mumbai and also present in Australia
• It works with marginal farmers from various parts of India to collectively grow, collect,
process and supply a wide range of organic products
• Products includes cereals, pulses, spices, herbs, flours, Oil Seeds, Beverages and processed
foods
Source:
SAMPLE
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10. Thank you for the attention
The Organic Food Market - India report is a part of Research on India’s Food & Beverage
Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Gagan Uppal
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