Organic Food Market - India

April 2010

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 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 of organic food products is a major concern for the producers to prove the authenticity of their product and generate consumer confidence Government has shown positive signs by improving the status of the certification agencies The process of certification is well defined, although it is costly for the small farmers Drivers: Challenges:
High prices of organic foods Lack of integrated supply chain and difficulties for farmers Certification barriers

Market

Certification Regulations

Drivers & Challenges

Huge export market Organized retail enhancing distribution network Government Initiatives Increasing health consciousness among consumers

LE P M A S

Competition

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 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

Introduction Organic Farming Certification Process Market Overview Drivers & Challenges Competition Key Developments

ORGANIC FOOD MARKET IN INDIA 2010.PPT

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
Pesticides and Chemicals

Organic foods
Grown without use of any synthetic pesticides and synthetic chemicals Only x additives are permitted which include Iron, Thiamine, Nictonic acid and are beneficial for health

Conventional Foods
Grown with extensive use of synthetic pesticides and chemicals which may lead to diseases like cancer Around n additives are used to improve the appearance and taste of the food Use of artificial colorings and sweeteners leading to allergies and headaches Contains fatty acids which increases risks of heart attacks Does not contain higher levels of vitamins Does not contain higher amounts of minerals

Food Additives

Hydrogenated Oils Vitamins Minerals

Does not contain any fatty acids and oils Contains higher levels of vitamin Contains essential minerals such as calcium, magnesium & Iron

Source:

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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 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

Government steps

Role of certification agencies

Monitor and supervise the producers and their farmlands so that the standards of organic farming are adhered Provide an identifiable label (logo or symbol) to the product Provide an assurance to consumers that the product is truly organic and generate consumer confidence

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ORGANIC FOOD MARKET IN INDIA 2010.PPT

Domestic consumption of organic food is still in a nascent stage in India with a huge potential market
Overview
Organic food cultivation in India has been a traditional concept which exists from centuries Products used for domestic consumption are generally uncertified Increasing health consciousness of consumers, their changing preferences coupled with support from the government have driven the market A strong correlation exists between the growth of organic food and development of the retail formats such as supermarkets and exclusive stores Organic cultivation in our country ranges from organic food products to other organic products like cotton, body care products, garments, and cosmetics

Organic Food - Market Size (20--)

USD X bn

E L P M A S

USD Y mn

Global Market

India

Share of Organic Production (20XX-XX)

Other Organic Products

Y% X%
Organic Food Products

Source: ORGANIC FOOD MARKET IN INDIA 2010.PPT

Drivers & Challenges

Challenges Drivers
Huge export market Organized retail enhancing distribution network Government initiatives Increasing health consciousness among consumers High prices of organic food Lack of integrated supply chain and difficulties for farmers Certification barriers

ORGANIC FOOD MARKET IN INDIA 2010.PPT

Organic food market is dominated by the promoters involved in distribution of products to the end consumers
Overview
India has a comparative advantage over many other countries in terms of farmlands used for organic food cultivation The market is highly competitive with a large number of producers and promoters Majority of the farming is done by small and marginal farmers Many intermediaries have flourished who are promoting organic production The large consumer base of these products lie in the Tier 1 cities where consumers are aware of health benefits of organic foods
Consumers

Distribution Structure
Producers / Farmers

Wholesalers/ Traders/Promoters

Supermarkets

Exclusive Stores

Major Players
Company Store Name X M A State Company 1 Company 2 Company 3

SAMPLE
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Major Domestic Producers (1/4)

Company Company A Business Description
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 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 B

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

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Thank you for the attention

The Organic Food Market - India report is a part of Research on Indias Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com

Gaurav Kumar
Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com

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