Agriculture

Organic packaged food market to cross 871 mn by 2021: Study

According to a joint study, conducted by ASSOCHAM and EY, the market size for Indian organic packaged food is expected to cross Rs 871 million by 2021 from Rs 533 million in 2016

Organic packaged food market to cross 871 mn by 2021: Study

The market size for Indian organic packaged food is expected to cross Rs 871 million by 2021 from Rs 533 million in 2016, growing at a compound annual growth rate (CAGR) of 17 percent. The substantial growth of this sector is attributed to an expanding urban population base, rising health concerns, growing consumer spending on food products and deterioration of food quality, a joint study, The Indian Organic Market: A new paradigm in agriculture, released today by ASSOCHAM and EY during the conference, ‘Organic World: Advantage India’, today at New Delhi.
 
Organic packaged food and beverages is an emerging niche market in India and its primary consumers are high-income urbanites. As demand for organic food in the metro cities increase, the companies in this sector are witnessing notable growth 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, said the joint report.

Organic farming is a way of farming, which excludes the use of chemical fertilisers, insecticides and other agrochemicals from cultivation. It is primarily based on the principles of use of natural organic inputs and biological plant protection measures. During the last six years, India has been increasingly supporting PGS (Participatory Guarantee System) for its national market, developing a unique example of large-scale government-facilitated PGS programme, coordinated by its National Centre for Organic Farming, under the Ministry of Agriculture.

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