The organic foods market in India has almost quadrupled in size in last three years with domestic market standing at around INR 300 crore and export market at around INR 700 crore. The growing health consciousness and awareness about the organic products have helped clock further scalable reach and critical mass over the past few years. The market which started off by occupying a handful of shelves at retail stores has nearly tripled its shelf space over the last five years. According to industry estimates, organic food market in India is projected to register growth at a CAGR of over 25 per cent during 2015-20.
In light of the health benefits associated with consumption of organic food and rise in the number of diseases on account of excessive chemical contamination of conventional food, the preference for organic food is growing rapidly. The gradual emergence of organic food as an essential part of the daily diet among the upper class population in India is also an encouraging sign towards the bright opportunities available for this sector in coming years.
In terms of exports, traditional markets like US, EU, Canada, Switzerland, Australia and New Zealand are among the largest consumers of organic products from India. While Europe and North America continue to be the largest consumers of organic food, the organic food market in Asia is expected to account for the highest growth rate over the next five years. In fact, the growing opportunities beyond the traditional export markets can provide additional growth avenues for Indian exporters in coming years.