According to Euromonitor, the Indian organic market for packaged food and drinks grew by 18.8% in 2017 to Euros $378M and is expected to reach $1.36B - $1.76B by 2020.
According to ICOAA, the Indian domestic market was worth only Euro 10M in 2008. Indian organic exports accounted for a far greater share (Euro 400M) and is expected to have grown at a similar rate.
According to Ecovia Intelligence, the Indian market is also showing accelerated growth. Like China, a burgeoning middleclass is willing to pay a premium for organic foods perceived to be healthier and safer than conventional foods. 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.
Consumer Preferences & Channels
The majority of organic sales occur in the largest population centres where there are higher concentrations of high income middleclass. Tier 2 and 3 cities have under- developed markets and domestic supply chains are thought to be weak between producers and retailers, with most investment in production for export. Channels for domestic organic are mixed, ranging from direct product to supermarket, to farmers markets and speciality stores. Baby and Health & Beauty products represent key import categories.
According to OTA India’s 2012 report, the main reasons stated by consumers for buying both organic fruits and dairy products are similar health (both personal and family’s), absence of harmful chemicals & pesticides, freshness and taste. Consumer can expect to pay a 20-30% premium , which presents a challenge as Indian consumers are highly price sensitive.
The National Program for Organic Production (NPOP) set standards for cropping products in 2001, these were extended to Livestock and Aquaculture as recently as 2015. Two tiers of certification exist, PGS - a self-regulated grower group scheme for smaller producers and NPOP for other supply chain actors (inc. processors and exporters) . NPOP standards are largely based on EU organic standards, so are similar in requirement.
Gov . agency APEDA manage exports of agricultural products , whereas imports are approved by India’s (GOI) Food Safety and Standards Authority of India(FSSAI) who published the Food Import Regulations in 2016. It’s understood that lack of coordination between gov. agencies responsible for different areas of the supply chain has led to variability in interpretation of requirements and access issues. However, the announcement by the Indian government in Nov 2017 of a common organic logo and domestic regulation is expected to boost consumer confidence
in organic products.
SA Certification does not currently have specific approval to deliver organic certification in India and there is no specific recognition of our certification, (or other EU certifications). Soil Association certification partnerships in India offer access solutions (contact us to find out more)
BIOFACH INDIA - November- ORGANIC , Biofach India 2016 welcomed 177 exhibitors and 3720 B2B trade visitors (excluding farmer groups) from all over the world. Find out more
Sources & Links to Further Info
The National Program for Organic Production (NPOP)is controlled by APEDA - http://www.apeda.gov.in/
Market news: http://economictimes.indiatimes.com/topic/Assochaml