India Organic Food and Beverages Market Outlook to 2028

India Organic Food and Beverages Market Overview

• The India organic food and beverages market was valued at USD 15 Bn in 2023, indicating a significant growth trajectory fueled by government initiatives and growing consumer demand for organic products.

• Key players in the market include Organic India, Sresta Natural Bioproducts (24 Mantra Organic), Fabindia, Eco Farms, and Conscious Food. These companies are leading due to their extensive product ranges and strong distribution networks. Organic fruits and vegetables are the dominant segments due to their direct health benefits and high consumer demand for pesticide-free produce. 

• Primary drivers include increasing health consciousness, rising disposable incomes, expanding distribution networks, and supportive government policies promoting organic farming. Challenges include higher prices of organic products, limited consumer awareness in rural areas, and supply chain complexities in maintaining organic certification and quality standards.

India Organic Food and Beverages Current Market Analysis

• The market is experiencing rapid growth with organic packaged foods and beverages becoming mainstream in urban areas. Consumers are increasingly choosing organic products for their perceived health benefits and environmental sustainability.

• Organic fruits and vegetables are the leading product category, accounting for the largest share due to high consumer demand for fresh, pesticide-free produce. 24 Mantra Organic leads the market due to its wide product range, strong branding, and extensive retail presence, making organic products accessible to a broad consumer base.

• Organic packaged foods, particularly snacks and breakfast cereals, are among the bestsellers, reflecting a shift towards convenient yet healthy eating options. Urban consumers prefer organic products for their health benefits, while rural consumers are gradually adopting these products as awareness increases. Millennials and young families are the primary consumer groups.

India Organic Food and Beverages Market Segmentations

By Product Type: The India organic food and beverage market is segmented by product type into organic fruits and vegetables, organic packaged food, organic beverages, organic dairy product and others. Organic fruits and vegetables dominate due to the increasing demand for fresh, pesticide-free produce. Consumers perceive these products as healthier and safer alternatives to conventional produce. The rising trend of home cooking and healthy eating further boosts their popularity.

By Distribution Channel: The India organic food and beverage market is segmented by distribution channel into supermarkets & hypermarket, online retail, specialty stores and others. Supermarkets and hypermarkets lead due to their wide reach and variety of products. They offer a convenient shopping experience, making it easier for consumers to access organic products. These stores often have dedicated organic sections, enhancing product visibility and sales.

By Consumer Group: The India Organic Food and Beverage Market is segmented by consumer group into urban consumers and rural consumers. Urban consumers dominate due to higher disposable incomes and greater health awareness. They have better access to organic products through modern retail channels and online platforms. Their preference for healthy and sustainable products drives the growth of the organic market in urban areas.

India Organic Food and Beverages Market Competitive Landscape

• Organic India is a leading player known for its herbal supplements and teas. It has a significant market share due to its strong brand presence and extensive distribution network. Sresta Natural Bioproducts (24 Mantra)Focuses on a wide range of organic food products and has a robust supply chain from farm to retail.

• In 2023, Sresta Natural Bioproducts announced plans to expand its retail presence to 100 new cities across India. This expansion is part of the company's strategy to increase market penetration and reach a broader consumer base.

• Nature Bio Foods India formed strategic partnerships with several international retailers in 2022 to boost exports and enhance market presence globally.

India Organic Food and Beverages Industry Analysis

India Organic Food and Beverages Market Growth Drivers

• Health Awareness: This trend is bolstered by increasing incidences of lifestyle diseases such as diabetes and heart conditions, which have prompted a shift towards healthier diets. For instance, the prevalence of diabetes in India has increased by 64% over the past decade.

• Export Potential: The Agricultural and Processed Food Products Export Development Authority (APEDA) reported a 30% increase in organic product exports in 2022, reaching new markets in North America and Europe. 

• Government Support and Subsidies: As of 2023, over 1 million farmers have benefited from this scheme, leading to a significant increase in organic farming acreage. Furthermore, the Ministry of Agriculture reported a budget allocation increase for organic farming in the fiscal year 2023-24, reflecting the government's commitment to boosting this sector.

India Organic Food and Beverages Market Challenges

• Poor Harvest: The Indian Council of Agricultural Research (ICAR) reported that post-harvest losses for organic produce due to these infrastructural gaps. These losses not only reduce the profitability of organic farming but also affect the quality and availability of organic products in the market.

• Certification and Quality Assurance Issues: As of 2023, only about 10% of organic farmers in India are certified, according to the Organic Certification Department. This low certification rate hampers market growth as consumers are often skeptical about the authenticity of non-certified products.

• Lack of Infrastructure: The Indian Council of Agricultural Research (ICAR) reported that post-harvest losses for organic produce are as high due to these infrastructural gaps. These losses not only reduce the profitability of organic farming but also affect the quality and availability of organic products in the market.

India Organic Food and Beverages Market Government Initiatives

• National Programme for Organic Production (NPOP): The NPOP, implemented by the Agricultural and Processed Food Products Export Development Authority (APEDA), provides a framework for the development of organic farming and standards. In 2024, the government allocated INR 200 crore to enhance certification processes and support organic exports, bolstering the credibility and growth of the organic sector.
• Paramparagat Krishi Vikas Yojana: Launched in 2015, the PKVY scheme aims to promote organic farming through a cluster-based approach, providing financial assistance to farmers. By 2023, the scheme has supported over 1.2 million hectares of organic farming, significantly contributing to the market's growth.
• Jaivik Bharat: Introduced in 2018, the Jaivik Bharat initiative aims to create a unified logo and certification process for organic products. By 2023, the initiative has certified over 50,000 organic products, making it easier for consumers to identify authentic organic goods.

India Organic Food and Beverages Future Outlook

The organic food and beverages market in India is expected to continue its robust growth, driven by increasing consumer demand for healthier food options, government support, and expanding market reach.

Future Market Trends:

• Increasing Popularity of Organic Dairy Products: Organic dairy products are gaining popularity due to rising concerns about the use of antibiotics and hormones in conventional dairy farming. This trend is supported by initiatives from dairy cooperatives and private companies to promote organic dairy farming, ensuring better quality and safety for consumers.
• Innovation in Product Offerings: In 2023, there was a notable increase in the availability of organic ready-to-eat meals, snacks, and beverages. This trend is driven by the demand for convenient yet healthy food options, particularly among the urban working population.
• Rise in E-commerce Sales: The adoption of e-commerce platforms for purchasing organic food and beverages has surged, especially post-COVID-19. Online sales of organic products grew by 35% year-on-year, driven by the convenience of home delivery and a wider product selection.