Global demand for organic food is on the up, as people are starting to view it as a much healthier food option. In India, where the middle-class population is expanding at a very rapid pace, demand for organic food products is also on the rise The Indian organic food market is expected to rise up to $2 billion mark by 2024. India is tipped to be the third-largest organic food economy by the end of this decade.
Observing these phenomena, Indian management firm Avalon consulting is eager to push its growth even further and believes that the organic food market in India might turn out to be the next success story in the making.
According to figures released by Avalon Consulting, the domestic consumption of organic food is growing at an annual compound rate of 13 percent, yet a number of challenges if resolved such as – the issue of authenticity, scattered supply chain, could see its growth increase even further. Avalon predicts that the nation’s food sector will reach a worth of $1.14 trillion by 2030.
This is the perfect time for management consultants like Avalon to invest in the fragmented supply sector by combining local suppliers (mostly exporters) to build a national footprint. Avalon has started to emphasize organic food’s “better for you” proposition, by creating greater awareness through media and regional associations. Avalon Vice- President Asish Puri states: “Communication of ‘health’ is high on the agenda for packaged food companies and there is a far greater urge among Indian consumers to reach out for products with ‘No preservatives’, ‘No added sugar’, and ‘Gluten-free’ labels”.
Through the help of government initiatives, the land under organic plantation is expected to triple to 2 million hectares by next year. India is intrinsically agrarian, natural manure is abundantly available, as are vast tracts of naturally organic virgin land. Avalon concludes that large catalysts in the form of supply chain debottlenecking and some of the out of line marketing might propel the Indian organic food industry to the next level.