THE HISTORY AND EVOLUTION OF ORGANIC FOODS

Organic foods are nothing new our great grandparents and grandparents are probably grown
up eating organic foods. But nowadays we are just hearing more about organic food from
latest food trends going on and in the news. Earlier to World war II , all the crop were organic
naturally. Previously, Farmers they only used natural methods to make the soil fertile and to
control the pests. After the end of World War II, farmers started to use new farming
techniques which are not at all natural in that they included synthetic chemicals and
pesticides to get rid of insects, weeds, and other pests . During the time of World war,
scientific research revealed that the same chemicals used as nerve gas could also used to kill
the insects on crops. Thus, the bad seed of industrialized agriculture was planted. Because of
this new and industrialized ways of farming many were very concerned about the long term
effect of breathing these toxic chemicals. And previously people were also worried about the
impact of these toxic chemicals on environment , but greed and western culture adaptation
overthrow those whoever protested against the new ways of farming and result of that , the
industrial farming methods grow and expand over period of time and widely accepted
everywhere. Some people even says that the desire for more greenbacks in the pocket is more
significant than the common sense in the matter. Nonetheless, industrialized farming
methods have continued mould onward in many agriculture operations. However those
people who are promoting organic foods at the time were not sitting silent. And as
industrialized agriculture became popular side by side organic food movement also started .
Firstly it is started during 1920s in Australia and Europe. In order to reduce the effects of
health hazards related to use of chemicals in foods people start demanding for organic
farming techniques and demand for safer food production methods rise. Over the coming
years, informative books and organic farming societies played an important role in creating
awareness and need for organic farming practices throughout the world. In 1944 the world’s
first organic farming organization was started in Sydney, Australia, “The Australian Organic
Farming and Gardening Society “. In 1945, Sir Albert Howard, of England , published a
study of organic agriculture ,”The Soil and Health”. In 1962, Rachel Carson , published her
book,” Silent Spring”, which consist of effects of pesticides on health. Later on, during 1960s
and 1970s , more people are becoming interested in nutrition and health which gave birth to
green movement. Because of green movement started more people start showing concern
related to environment which lead to encouragement of Organic food Market and also
motivated American farmers and others to incorporate organic methods into their farming
operations. Basically, organic farming consists of growing food that is free of synthetic
pesticides , fertilizers, herbicides or genetically modified organisms. Organic food become
greater over period of time in responsible and sustainable manner that keep the people ,
crops, animals, and the environment safe. During the 1970s and 1980s, consumers moving
more towards organic products in health stores because consumers become more health-
conscious. During the 1990s, organic products were downgrade to specific corner of precise
supermarkets. Today, you can easily find organic products on utmost displays and shelves in
almost all big chain supermarkets in the nation. Organic foods are very much in demand ,and
their demand will not going anywhere soon.
 RESEARCH GAP AND PROBLEM IDENTIFICATION

After studying all the research papers, question or problem which has not been answered
appropriately in given field of study are firstly “trust in buying behaviour of organic food “ as
we have studied various research papers, in most of papers researcher they put more focus on
attitude factor in buying behaviour of organic food excluding the trust factor in buying
behaviour of organic food. Trust plays a significant role while entering into a transaction.
Trust is a variable which facilitates relationships to evolve and change over time. Trust is
psychological state comprising the intention to accept vulnerability based on positive
expectations of the intentions or behaviour of another. Secondly, question or problem which
has not been answered appropriately in given field of study is that in most of papers
researchers they have only cover hypermarkets and supermarkets but none of them have
cover small retail stores. Without a presence in retail stores, businesses rarely achieve the
high level of exposure or widespread product distribution that retail stores offer. Unlike a
large chain, where decisions about what products to stock are made through a lengthy and
bureaucratic process, the local shop owner hears directly from customers about what they
want and gets it in store. Fulfilling customer needs through taking special orders and bringing
in unique products is one way to make the small shop a go-to place for customers looking for
something special. The personal service also contributes to costumer’s loyalty and increases
word-of-mouth promotion of the business. Since the different store formats have also very
different characteristics (e.g. price level and number of products), it is likely that also the
consumer’s buying behaviour differs between different store.

PROBLEMS
 Firstly, this study concerned only processed and packed organic food , therefore the
results cannot be expected to explain consumer behaviour for all organically produced
products.
 Secondly, we won’t consider every segment like we are going to collect data from
only faculties and people outside university we are not consider lpu students as our
part of research ,therefore the results cannot be expected to explain every segment
consumer behaviour while making purchasing decision.
 OBJECTIVE OF THE STUDY

 To study the factors influencing the buying behaviour of organic food.

 To study the role of health consciousness and environmental concern in buying behaviour
of organic food.
 To check the relationship among factors influencing the buying behaviour of organic
food.
 REVIEW OF LITERATURE

In this paper writer Gracia and Magistris has done a study on the factors that influence
organic food purchases of urban consumes in south of Italy which is done by data collected
from 200 consumers in Naples in 2003. Survey indicated that consumers are willing to buy
larger amount of these products which totally depends on the knowledge about the product
and consumer income (De Magistris, T., & Gracia, A.2008). In this paper writer Arvola,
Vassalo, Dean, Lampila, Saba, Lahteenmaki, Shepherd has examined the usefulness of
integrating measures and moral attitudes in purchase intentions of organic foods.
Questionnaire data was gathered in 3 countries Italy, Finland, UK total 672 where asked to
fill the questions which focused on purchase intention of organic apples and ready to cook
pizza, the result varied between countries (Arvola, A., Vassallo, M., Dean, M., Lampila, P.,
Saba, A., Lähteenmäki, L., & Shepherd, R. 2008).In this paper writer Asif,Xuhui, Nasiri,
Ayyub has done a study on Pakistan, Turkey and Iran on purchase intention of organic food.
Total of 271 responses from Pakistan, 245 from Turkey and 220 from Iran using structural
equation modeling, result vary from country to country, but attitude and health are found to
be better predictor organic food purchase intention. Study also guides the policy makers of
the country to organic farming (Asif, M., Xuhui, W., Nasiri, A., & Ayyub, S. 2018).In this
paper writer Basha, Mason, Shamsudin, Iqbal, Salem has done a study to identify what
actually motivates consumers to turn towards organic food which includes environmental
concern, health concern and lifestyle, product quality and subject norms.The study also
shows that quality of products, environmental and health concern which motivate for organic
foods (Basha, M. B., Mason, C., Shamsudin, M. F., Hussain, H. I., & Salem, M. A. 2015). In
this study writer Zepeda and deal has done a study on why consumers buy organic food. The
findings are that environmentally significant behavior, various theory has been used in the
study to find out the result which actually motivates the consumers to buy organic food. It
was also found that the knowledge and habits are also important that why consumer choose
organic food (Zepeda, L., & Deal, D. 2009).In this paper writer Chen and Lobo has done a
study on consumers of urban China which influence them to purchase organic food, various
theory where used in this study and the data was collected in two stages from online 200 and
960 paper based response where collected from four major cities in China. The finding
revealed that purchasing decision depend upon product, regulatory and lifestyle (Chen, J., &
Lobo, A. 2012).

In this paper writer Cook, Kerr and More has done a study which reveals the nature, strength
and relative importance which influence the intentions of the consumer which motivated
them to purchase genetically modified (GM) food. Survey questions were developed using
focus groups, 266 surveys were conducted in the study at Canterbury, New Zealand. Findings
were self-identity, attitude, subjective norm and so on. Determinants were distinguished in
terms of their relationships with age, gender, prior behaviours (Cook, A. J., Kerr, G. N., &
Moore, K. 2002).In this paper writer Hsu and Chen has done a study at 2013 on consumer
attitude and purchase intension toward organic food, hypotheses has developed and subjected
to empirical verification using a survey, results from Taiwan was reasonable support for the
hypotheses. The findings from the analysis of variance confirm that the occurrence of a
regulatory fit leads to a more positive attitude and a greater intention to purchase organic
food than when no regulatory fit occurs (Hsu, S. Y., Chang, C. C., & Lin, T. T. 2016).In this
paper writer Hughner, McDonagh, Prothero, Shultz and Stanton has done a study on
rationales used by consumers while deciding to purchase organic food. Where the consumer
are not homogeneous in demographics, The organic and broader food industries must have
better understand the variety of motivations, perceptions, attitudes consumers hold regarding
organic foods and their consumption. If their own long-term interests, as well as those of
other stakeholders of food marketing, are to be best served (Hughner, R. S., McDonagh, P.,
Prothero, A., Shultz, C. J., & Stanton, J. 2007). In this paper writer Krystallis and
Chryssohoidis has mainly done the study on two main questions consumer willing to pay for
organic food? willing to pay vary for different product? Consumers were approached during
shopping for organic food at retail outlet.It was found from the study that consumers WTP
differ in according to the product (Krystallis, A., & Chryssohoidis, G. 2005). In this paper
writer Magnusson, Arvola and Hursti has done study on Swedish consumer in purchasing
intension for organic food like milk, bread, meat etc. a total of 2000 responses were collected
from age group of 18-65 ages out of which only 56% of them have responded. 13% stated
that they regularly purchase organic milk. Main intention of consumer was the good taste and
least was the organically produced (Magnusson, M. K., Arvola, A., Koivisto Hursti, U. K.,
Åberg, L., & Sjödén, P. O. 2001) In this paper writer Magnussona, Arvolaa, Hurstia, Abergb,
Sjo¨de´na has done a study to the attitude of consumer while buying organic food.
Questionnaire were mailed to the consumer nation wide in Swedish citizens aged 18-65 years
out of which 58% responded. The results indicate that egoistic motives are better predictors
for purchase of organic foods by the consumers (Jose, H., & Kuriakose, V. 2016).

In this paper Makatouni has done research on people of UK that what motivate them to buy
organic food? The main objective of the paper is to identify belief with respect of organic
food of parents who buy organic food who organic food and who do not buy organic food.
This paper includes total 40 laddering interviews, participants where mainly parents of
children age group 4-12 who were responsible to buy food for there family. Both laddering
and focus interview have generated certain hypotheses that were tested through quantitative
phase of the project (Makatouni, A. 2002). In this paper Michaelidou and Hassan has
examines the roles of health consciousness, food safety concern and ethical self-identity in
predicting attitude and purchase intention within the context of organic produce. A
conceptual model is derived and tested via structural equation modelling. Findings indicate
food safety as the most important predictor of attitude while health consciousness appears to
be the least important motive in contrast to findings from some previous research. In addition,
ethical self-identity is found to predict both attitudes and intention to purchase organic
produce, emphasizing that respondents identification with ethical issues affects their attitude
and subsequent consumption choices (Michaelidou, N., & Hassan, L. M. 2008). In this paper
Nasir and Fahri has done a research on consumers of Europe that what motivates them to
purchase organic food. The results indicate that socially responsible consumption, health
orientation, utilitarian, and hedonic consumption patterns are significant predictors of
intention to purchase organic foods and consumption while controlling for demographical
variables. In addition, environmental responsibility acts as a moderating factor in the
relationship between socially responsible consumption behaviour and intention to purchase
(Nasir, V. A., & Karakaya, F. 2014). In this research paper Fyoti Rana has done a research
with an objective for the study to understand the behaviour of ecological consumers and their
intention to purchase organic food. The study also aims to determine the factors influencing
consumer behavior towards organic food. Method used for data collection was face to face
interview by using structured questionnaire, 463 respondents participated in the survey. It
was found that proper education about organic food has influenced people to buy organic
food (Paul, J., & Rana, J. 2012). In this paper Yeon Kim, H., & Chung, J. E. has done a study
which basically deals with understanding the behaviour of ecological consumers and
intention to purchase organic food. The main aim is to determine the factor influencing
consumer behaviour regarding organic food. Method used was face to face interview, using
structured questionnaire, it was decided to use various analyses like multiple regressions,
factor analysis and cluster analysis with large sample size. The result was health, education
from demographic factor positively influence the consumer’s attitude towards purchasing
organic food. The objective was ecological awareness, consumer purchasing behaviour,
consumer satisfaction (Yeon Kim, H., & Chung, J. E. 2011). In this paper Huang, C. L. has
done a study which has two equation bivariate probit model which was formulated to
analysis consumer preferences and attitudes in organically grown produce. The results was
that consumer who are nutritionally conscious, are concerned towards the use of pesticides,
wanting to produce tested for freedom from the residues which would have higher propensity
to bring organically grown produce. Some potential buyers, customer who are white, better
educated, have huge families are most likely than others to tolerate sensory defects. It is
important to test and certification, sensory qualities and pricing would help to enhance the
marketing potential of organically grown produce (Huang, C. L. 1996).

PAPER 19

The main objective of this paper is testing the theory of planned behaviour of buying organic
food. The relationship between subjective norms, attitudes and intentions of buying organic
food was studied by putting structural equation modeling. It is involves the organic food
buying context, role of subjective norms is different from original theory of planned
behaviour. Main motive is to research is consumer behaviour, organic foods and linear
structure equation modeling and finland.

PAPER 20

Demand for organic food has increase globally, disputes has rises for organic food whether it
is more nutritious, safer, and better for the environment. Many consumer have a question
whether organic food taste different and specifically the price is premium or not and does it
taste better. Using sensory analysis trained panelists and testing consumer, the research was
done whether the organic food tastes better could be substantiated. Study found organic juice
is better than orange juice, there were no differences between organic and conventional milk,
and each product should be treated separately before a claim is made.

PAPER 21
This paper deals with the environmental and health consciousness, behavioural costs and
effectiveness on purchase of organic products. The consumption of organic products is
invested in individual health. The low cost hypothesis takes the environmental attitudes and
behavioural costs in a account and it is applied to organic food consumption. The survey was
done in three German cities using self administered questionnaires. Health consciousness has
a stronger association with organic food consumption than does by environmental concern,
behavioural costs and health or environmental consciousness shows no effect so low cost
hypothesis is not considered.

PAPER 22

Food consumption trend in India is rapidly changing from unprocessed unrefined low quality
of food products to processed, packaged unrefined products. The main motive of this paper is
finding the factors that lead to purchase of processed food. This research was done in three
cities of Punjab. Research revealed that external influence, health and brand consciousness
and quality are the major factors that influence people to eat processed cereal food.

PAPER 23

The main motive of this research was to examine the result of health consciousness,
environmental concern and food safety concern on two of the intention to purchase organic
foods and the reaction towards organic foods, and the effect of reaction towards organic
foods on the intention to purchase the organic foods. It also has motive to find whether
attitude has a mediation effect on the relationship between the intention to purchase and
health consciousness, environmental concern and food safety concern. Data were collected by
doing a survey from the consumer. The discovering suggested that the attitude and the
intention to purchase were concern by health consciousness, environmental concern and food
safety concern. This research is helpful to fill the space in the literature concerning the
mediation effect of the attitude on the relationship among the intention to purchase and food
safety concern.

PAPER 24

In this paper a questionnaire was designed it was concerned with attitudes and behaviour
towards organic foods, environmentally friendly behaviour, and perceived consequences of
organic food choice in terms of health of the human, the environment and animal welfare.
Self reported buying of organic foods was most strongly related to recognize benefit for
human health. Execution of environmentally friendly behaviour such as abstain from car
driving was also a good alert of buying frequency. The outcome indicate that egoistic aims
are better than alert of the purchase of organic foods than are self denying aims.

PAPER 25

The paper survey the main character of health consciousness, food safety concern and ethical
self identity in alerting attitude and buying intention concern for organic produce. A
conceptual model is obtain and trial via structural equation modeling. Discovering shows
food safety as the almost main alert of reaction while health consciousness seems to be the
minimum important aim in difference to discovering from some preceding research. The right
minded self recognition is found to alert each attitudes and intention to buy organic produce,
highlighting that respondent’s identification with right minded problem affects their attitude
and eventually consumption choices.

PAPER 26

The main focus of this paper is to identify consumer’s attitudes and behaviour towards
organic products. This paper produces on a non possibility share sample of 660 respondents
to search the attitudes and behaviour of consumers towards organic food products. The
discovering is consumer seemed to be informed about environmental and health problems.
They search for instruction about the nutritional value of food and desire more products free
from chemical residues.

PAPER 27

In this paper writer Lydia and David has present Organic and local food consumer behaviour
: Alphabet Theory . Under this research semi-structured interviews are conducted to
understand why consumer’s buy organic and local foods. In this research Value- belief -Norm
(VBN) and Attitude- Behaviour-Context (ABC) theory was used. Findings show that organic
food shoppers in particular are motivated by values , beliefs, norms. However, all these
interviews infer that habit of people, their knowledge towards organic foods and information
seeking are also an important factors to understand why consumer choose organic food.
(2010)

PAPER 28
In this paper writer Ramabalak and Govind has present study to investigate the consumer’s
intention to purchase organic food in the context of a developing nation like India using the
theory of Planned Behaviour. Responses were collected from 220 young consumers adopting
convenience sampling approach. The study has supported the incorporation of new constructs
in the TPB as it has improved the predictive power of the proposed framework in determining
consumer’s intention to purchase organic food.(2015)

PAPER 29

In this paper writer Biao and Liyuan has present consumer perceptions and attitudes of
organic food products in Eastern China. Mixed (quantitative and qualitative ) market surveys
approach were used to provide a potentially deeper insight into consumers perspective and
help to get a better picture of the complex factors involved , this research help organic food
industry in China to expand its market and improve its profitability and reliability. According
to this paper main thing which set going people towards organic food is health and safety and
main thing which fence people from buying organic food is lack of knowledge. (2014)

PAPER 30

In this research paper Dawn, Craig , Jennifer summarize much of the author’s research on
preferences of consumer’s buying organic food in the context of a theoretical model
regarding product and source choice. A particular focus is how local source and product
badge may connect with recognize private and public good proportion of such choices. In
addition , present a newly developed analysis of willingness to pay (WTP) . (2014)

PAPER 31

In this paper writer Jyoti and Justin present consumer behaviour and purchase intention for
organic food , in this they discuss the factors which affect the change in the consumer
behaviour towards organic food by draw out findings from various studies directed in
different countries and analyse those factors and provide suggestions for future research and
they find that health-conscious consumers show a growing preference for organic food over
the conventionally grown food .This shift in the attitude of the modern consumers is greatly
influenced by the rising incidence of lifestyle diseases, such as heart disorders and
depression. The need to purchase organic food to improve the quality of life will have huge
inference for the retail, distribution and marketing functions of business .(2017)
 PAPER 32

Under this research author Katie and John presents research on Influencing consumer
purchase likelihood of organic food. Organic food is a fast-growing niche market in the US.
Information in the marketplace tends to promote organic by reporting either the likely
benefits from organic methods or the likely negative consequences of conventional
agriculture. For this research, a survey was designed to test the effect of positive and negative
framing on the self-reported change in purchase likelihood of organic food. Respondents
were asked to directly evaluate whether the information in the survey made them more or less
likely to purchase organic food, or if there was no change. Over 40% of the respondents
reported greater likelihood of purchasing organic as a result of the survey information, and
less than 4% said they would be less likely to buy it. Tobit regression results revealed that
positive framing and perceived risk from standard agricultural methods increased the
influence of the survey. African-Americans and those with more preceding knowledge of
organic methods reported less impact from the survey. Overall, information and knowledge
variables had more effect on the impact of the survey than demographic variables. (2015)

PAPER 33

Under this research author K.D.L.R Kapuge presents determinants of organic food buying
behaviour special reference to organic food purchase intention of Sri Lankan customers. For
decades Sri Lankans are experiencing many non-communicable diseases and health problems
, since they were away from traditional food habits and traditional agriculture win through in
ancient Sri Lanka which was based on organic integral. Value of organic food behold
differently and many customers demonstrate slow buying behaviour and stay back from real
purchasing decisions. This research aims to examine the impact of health consciousness ,
environment concern ,reference group influence and awareness on purchase intention of
organic food. Data gathered through a survey questionnaire from 400 individuals from
Western Province of Sri Lanka. A Multiple Linear Regression Model was used to assess the
degrees of impact from each individual determinant on purchase intention. Extending
organic food consumption is a sound and sustainable solution for the environmental and
health problems prevails in Sri Lanka at present. Research findings underscore the existing
body of knowledge about element of purchase intention of organic food. (2017)

PAPER 34
This research paper by Kriwy and Rebecca examines environmental and health
consciousness, as well as behavioural costs and the effects on the purchase of organic
products. The consumption of organic food is an investment in individual health . The survey
conducted in three German cities in 2006 using self-administered questionnaires (n = 521)
does not investigate willingness to pay but rather self-reported behaviour. The results of the
reverting using the Heckman correction show that income does not affect the regularity of
organic food consumption but that it does influence individual expenditure on organic food.
Furthermore, there is an inverted u-shaped relation between age and the purchase of organic
products. Although health consciousness has a stronger association with organic food
consumption than does environmental concern, the interaction between behavioural costs and
health or environmental consciousness shows no effect. Thus, the low-cost hypothesis is not
supported.

PAPER 35

Under this research M.G. McEachern and P. McClean examine Organic purchasing
motivations and attitudes: are they ethical? . Despite the increased substantiation of
consumers’ purchases of organic food products, the motivations for such purchases are
relatively under-researched. An individual’s choice of food products can be linked clearly to
ethical stances, but ethical choices can also vary from individual to individual, from industry
to industry and among countries. This paper examine the degree to which ethical beliefs
influence Scottish consumer perceptions, beliefs, attitudes and purchasing decisions, with
regard to organic dairy products. Consumer purchasing motivations are revealed as being
self-interest- centered , rather than being unselfish. Therefore, to achieve future market
development, organic dairy producers cannot rely upon the minority of hardcore green
consumers to sustain growth, but must aim to modify perceptions and attitudes of larger
consumer segments by implementing educational marketing campaigns that strengthen the
ethical, environmental and societal benefits of organic production. (2016)
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http://naturalexpoindia.com/exhibition-description

https://www.marketresearchengine.com/organic-food-market

https://www.marketwatch.com/press-release/organic-food-market-by-regional-analysis-
global-forecast-by-2017-2023-2018-04-13

http://organic-market.info/news-in-brief-and-reports-article/asia-making-strides-in-
global-organic-food-market.html

https://www.grandviewresearch.com/press-release/global-organic-food-beverages-
market

https://www.statista.com/topics/3446/organic-food-market-in-europe/
 ORGANIC FOOD MARKET IN WORLD

The Global Organic Food Market is segmented on the lines of its product and regional. Based
on product type segmentation it covers Organic Meat, Poultry & Dairy, Organic Fruits &
Vegetables, Organic Bread & Bakery, Organic Beverages Organic Processed Food and Other.
Global Organic Food Market on geographic segmentation covers various regions such as
North America, Europe, Asia Pacific, Latin America, Middle East and Africa. Each
geographic market is further segmented to provide market revenue for select countries such
as the U.S., Canada, U.K. Germany, China, Japan, India, Brazil, and GCC countries.

The major driving factors of Global Organic Food Market are as follows:

 Growing awareness regarding health

 Rising per capita spending on organic food products
 Increasing health concerns due to growing number of chemical poisoning cases

ORGANIC FOOD MARKET IN INDIA

India organic markets are largely spread across the food and beverages, health and wellness,
beauty and personal care and textile industries. The highest growth which has been observed
in the organic food segment, followed by textile, beauty and personal care. Currently Indian
domestic market is estimated at INR40,000 million which is likely to increase by INR
100,000 million — INR 120,000 million by 2020 with a similar increase in exports. Organic
packaged food and beverages is an emerging in niche market in India and its primary
consumers are high-income urbanites. The total market size for organic packaged food in
India in 2016 was INR533 million, growing at 17% over 2015, and is expected to reach
INR871 million by 2021. India’s exports of organic products increased by 17% between
2015-16 and 2016-17.3 In India, the majority of the demand comes from tier 1 cities.
Companies are witnessing notable growth as demand from metro cities increase with the
entry of several new players in the organic food market such as Conscious Foods, Sresta, Eco
Farms, Organic India, Navdanya and Morarka Organic Foods to name a few. Organic India
manufactures, processes and markets certified organic, herbal and Ayurveda products.
Organic India was founded in 1997 in Lucknow. Organic India is engaged with more than
1,000 marginal farmers in several clusters of around 2.4 million ha in Uttar Pradesh, Andhra
Pradesh, and Rajasthan. They grow, fruits and vegetables, spices and herbs such as Tulsi, to
produce a host of herbal supplements, medicines, spices, edible oils and other food products.
The company has set up various retail outlets throughout the country. These have contributed
significantly to the company’s turnover. Additionally, the company earns 40% of its revenue
from domestic sales whereas close to 60% of its revenue is generated from exports to 35-40
countries including the USA, Australia, Israel, United Kingdom (UK), Germany and many
other European nations.

SOME MAJOR PLAYERS OF ORGANIC FOOD IN INDIA

● Suminter India Organics Private Limited

● Farm2Kitchen

● Organic tattwa

● Pride of cows

● Organic garden

● Organic harvest

● Mygreenkart

● Nature Bio-Foods Limited

● Organic India Private Limited

● Sresta Natural Bioproducts Pvt. Ltd.

● Phalada Agro Research Foundations Pvt. Ltd.

● Mehrotra Consumer Products Pvt. Ltd.

● Morarka Organic Foods Pvt. Ltd.

● Nature Pearls Pvt. Ltd.

● Conscious Food Private Limited

●Nourish Organics Foods Pvt., Ltd.

ORGANIC FOOD MARKET IN ASIA

Asia is showing some of the highest growth in the global organic food market. Ecovia
Intelligence (formerly Organic Monitor) shows that some Asian country markets are
reporting double-digit growth rates, with regional sales poised to reach US $10 billion in the
coming years.

As will be shown at the Asia-Pacific edition of the Sustainable Foods Summit, two of the
fastest growing markets for organic products are in China and India. Growing awareness of
organic production methods and rising disposable incomes are fuelling demand for organic &
sustainable foods.

Concerns about food safety & quality appear to be the main motive for consumer purchases
in Asia. The Chinese market has expanded significantly in the last decade partly because of
the high incidence of food scares, such as rotten meat, sewage oil, and contaminated beef and
pork. The melamine scandal – which involved dairy products and infant formula adulterated
with the industrial chemical – has had most impact. China now has the largest market for
organic infant formula products in the world, worth about US $200 million. The Indian
market is also showing accelerated growth. Like China, a burgeoning middle-class is willing
to pay a premium for organic foods perceived to be healthier and safer than conventional
foods. The announcement by the Indian government last week of a common organic logo and
domestic regulation is expected to boost consumer confidence in organic products. India
already has the highest number of organic producers in the world, 585,000. In 2016, a major
milestone was reached when Sikkim became the first 100% organic state in Asia. High
growth in the Asian organic products market is attracting investment. Inner Mongolia
Shengmu High-Tech Dairy Company, the largest organic dairy company in China, became
publicly listed in 2014. The leading organic food enterprise in India, Sresta Natural
Bioproducts, is partly owned by the investment firms Peepul Capital and Ventureast. It sells
over 200 organic products under the Mantra Organic brand in its domestic market, as well as
exports to international markets.Ecovia Intelligence expects more such investment in the
coming years. North America, the region with the premier organic products market, has seen
many dedicated organic & natural food companies ‘swallowed up’ by large enterprises.
Whole Foods Market was bought by Amazon for US $13.7 billion earlier this year. Prior to
that, the multinational Danone acquired Whitewave Foods for a similar fee. In a bid to
become one of the most sustainable companies in the world, Unilever purchased Pukka Herbs
(UK) and Mae Terra (Brazil) a few weeks ago. With the regional organic products market
poised to show high growth, Asian companies could be hot pickings for investors and large
food companies.

ORGANIC FOOD MARKET IN EUROPE

The organic food industry in Europe is a lucrative market, with a retail sales value of 29.8
billion euros in 2015. While the well-established Western European market experienced
growth of 5.4% between 2015 and 2016, Eastern European sales are catching up with a
growth rate of 8.8% in the same period. Germany is the leading market for organic
products in Europe with a 11.4% share of global organic sales, followed by France with 7.3
%.

Even though sales are booming, the state of organic production is yet to catch up with
demand: organic farmland as a proportion of all farmland area rarely exceeds 15 percent in
the majority of countries. Similarly, organic meat production is only a miniscule share of
overall livestock, particularly in the case of pork at only 0.6 percent. Nevertheless, arable
organic crop production in Europe is centered around cereals, while permanent crops are
predominantly made up of olives and grapes.

Although Germany has the largest market for organic food, the highest levels of per capita
consumption can be found in Switzerland and the Nordic countries. European consumers
have high levels of awareness for organic claims at 61 percent, with a further 11 percent
actively seeking such products. Furthermore, increasing numbers are buying more organic
food and drink products, with a relatively equal proportion willing to pay a premium for an
organic claim. Avenues for purchase tend to be general retailers or specialized organic
retailers, while the appeal of various products differs between countries: the United Kingdom
has the largest market for organic fish, for instance, whereas organic confectionery
launches are concentrated in Germany.

ORGANIC FOOD MARKET IN AMERICA

American organic food & beverage market is large and expected to reach USD 320.5 billion
by 2025, according to a new report by Grand View Research, including growing popularity of
non-GMO products among consumers, owing to the health benefits associated with their
consumption, is expected to drive the demand over the forecast period.

Fruits and vegetables dominated the global organic food market accounted for over 37% of
revenue share in 2015. Furthermore, increasing consumption of meat and poultry products
resulted in the fastest growth of the segment and is expected to grow substantially at a CAGR
of 13% over the forecast period.

Non-dairy beverages such as rice, soymilk, and oat beverages accounted for over 33% of the
total share of organic beverages market in 2015. However, beer and wine is projected to grow
substantially at a CAGR of 13.5% over the forecast period owing to increasing global
economic conditions and high consumption of a broad range of flavoured beverages.
 QUESTIONNAIRE
Dear Respondent,
These days Customers are more and more concerned about environment and their health.
Thus, they are beginning to change their habits of consumption and are demanding greener
products whose manufacture has the least impact on the environment. Green products
combine green concepts in the manufacturing and use- return process of these products while
allowing the products to meet the same manufacturing regulations. Green products are the
products which are sustainable, without the use of pesticides, made with recycled materials
and simple packaging. Therefore, green consumers can be defined as those who focus on the
purchase and consumption process especially as it relates to the production process and the
disposal of products, as well as their impact on the ecological environment. In a broad sense,
green consumers signify consumers who have chosen to purchase green products and who
have tried to minimize the impact of these products on the environment. It is also important
to note that the demands of traditional and green markets are quite different. Green marketing
has emphasized a balance of quality, function, price and convenience with the least impact of
these products on the environment.
You are requested to spare your precious time to fill up the questionnaire. Your views
And answers are important to us, Please answer all questions as we cannot use the
Questionnaire if it is incomplete.
DEMOGRAPHIC PROFILE
Name:
City:
Age: 20-30 Years ( ) 30-40 Years ( )
41-50 Years ( ) 51 Years & above ( )
Gender: Male ( ) Female ( )
Educational Qualification: Under graduate ( ) Graduate ( )
Post graduate ( ) Doctorate ( )
Employment status: In service ( ) Own Business ( )
Student ( ) Homemaker ( )
Monthly income: 25000-50000 ( ) 50001-75000 ( )
75001- 100000 ( ) More than 100000 ( )

Marital status: Married ( ) Unmarried ( )

Children: One ( ) Two ( )
3 & above ( ) None ( )

Please indicate your level of agreement or disagreement with each of the statements on a five
point scale as given below:

SD = strongly disagree
D = disagree
UD = undecided
A = agree
SA = strongly agree
I. ATTITUDE
SL.NO. STATEMENTS SD D UD A SA

1 I would like to buy more organic products if

more income

2 I would like to buy more organic products if

more accessibility in the market

3 I would like to buy more organic products if

better appearance and taste

4 I would like to buy more organic products if

more cheap rates

5 I would like to buy more organic products if

less packing material
6 I would pay extra for green products just
because they are safe for my health

7 I strongly consider the response of people

about the performance of the product, who
have already used the green products

8 Before buying green products I compare its

price with traditional products

II. AWARENESS
SL.NO. STATEMENTS SD D UD A SA

1 I am aware of the benefits of green

products for health

2 I am aware of the benefits of green

products for the environment

3 I am aware of the point of purchase for

green products

4 I am aware of various brands offering

green products

5 I am aware of various symbols /

certifications / other identifiers which

declare the product as green product

III. PERCEPTION
SL.NO. STATEMENTS SD D UD A SA
 1 I believe organic food product has a pleasant
structure

2 I intend to buy organic food as it tastes good

3 I believe consuming organic product is trendy

4 I think organic food is good value for money

5 I believe Organic food has no harmful effects

6 I believe organic food is good for

environment

IV. MOTIVATION
SL.NO. STATEMENTS SD D UD A SA

1 I believe organic products are healthy

2 I prefer green products because the word

‘Green’ sounds good.

3 I use green products because my friends

and colleagues use the same.

4 My culture/religion also affects my

 intention to buy green Products.

5 I believe using green products is a status

symbol.

6 I use organic product as it has less

chemical residue.

V. PURCHASE INTENSION
SL.NO. STATEMENTS SD D UD A SA

1 I prefer quality over price while

purchasing organic product

2 I am eager to checkout organic food

product because of advertisement

3 I am interested in experiencing the benefit

of using organic food

4 I prefer buying green products when price

discounts are

Offered

5 I look at the price of green products first

before taking decision to purchase it.

VI. HEALTH CONSCIOUSNESS

SL.NO. STATEMENTS SD D UD A SA

1 I choose food carefully to ensure good

health

2 I think of myself as a health conscious

 consumer

3 I think often about health issues before

consuming non-organic food

4 I prefer organic food as it reduce risk for

illness in my family

VII. BEHAVIOUR
SL.NO. STATEMENTS SD D UD A SA

1 I buy green products, if they are available

at the retail outlets I personally believe in.

2 I buy organic food as it is good for health.

3 I use green products because I want to

protect my family members from serious
ailments.

4 While purchasing green products I

consider specific features of the product
like: its shape, color, convenience to use
and maintenance required.

5 I buy green products of the brands which I

rely upon.

6 I believe in those green products

manufacturing companies which are also
involved in environment friendly
practices.
Subjective norms

Perceived behavioural control

Environmental concern

All the above factors are a part of Theory of planned behaviour