Rise of Organic Food in India
As the digital literacy rate in India is growing, the demand for organic food in India will see good growth. People are becoming aware of the harmful effects of chemicals and fertilizers used during farming in India. There is a great rise in awareness of organic farming methods, making the food more healthy and nutritious.
Higher Spending Capacity of the Middle Class
According to a research by the India Brand Equity Foundation, the spending capacity of the Indian middle class is anticipated to double by 2025. With the rise in disposable income and access to credit, the Indian middle class will have a high spending capacity on organic food.
The Rise in the Export of Indian Organic Food
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), the demand for Indian organic food products is on the constant increase worldwide as India exported organic products worth $515 million in the financial year 2017-18, from $370 million in 2016-17. This trend will further accelerate in 2019.
Supply Chain Enhancement
One of the major issues in the organic food market is the mismanagement in the supply chain of organic fruits and vegetables. The main challenge is related to the cost and logistics which are included in the moving of locally or regionally produced organic produce. In the case of organic supplies, the time of reaching the fruits and vegetables from the time of the production to the end consumers matters the most due to its less shelf life. But since the demand of the organic products is rising, the need for solving the problems in the supply chain management is going to arise and the enhancement in the supply chain is expected in 2019.
As per the above trends, the organic food market is expected to boom in 2019. Since the organic market in India is still on an emerging stage, the space for growth is tremendous.