Organic Food Industry: 4 Reasons Why It Will Boom In Coming Years

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Swapping everyday goods with organic produce has gained a lot of attention and support from the last few years. It also exhibits convincing benefits.

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The organic food industry started to boom a decade ago and there has been no looking back ever since then. Rising consciousness amongst people about the side effects of artificial chemicals in food production has further boosted the growth of organic food in recent years. Given the kind of innovation coupled with this rising demand, organic food industry is yet to witness a full-fledged evolution. But one can safely assume that the organic food sector is here to stay.

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Growth in e-commerce has acted like a catalyst for the industry to reach out to consumers, and the numbers are only showing an upward trend since 2013. Here are some probable reason why the organic food industry is expected to see an accelerated demand in years to come.

1. Digital Literacy and E-commerce facilitation

Due to the surge of smart-phone usage India, coupled with low-cost internet, there has been an increase in access to information about organic food. Added with this, e-commerce platforms acted like a facilitator reaching out to potential customers across the country. This is the reason why the growth of organic food was initially harnessed by Tier I cities, but the industry eventually reached out to potential customers in Tier II and Tier III cities. E-commerce platforms also made the sector competitive with more and more players entering into the organic food industry. Experts are predicting an increased penetration of organic food into Tier II and III cities in the years to come, leading to demand for organic food at a continually increased rate.

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2. Insignificant price difference

The price difference between organic and inorganic food is insignificant; when compared to the health benefits carried by organic food. While organic food might be priced higher by a few pennies, it prevents the body from the needless intake of pesticides and fertilizers. This further cuts down the risk of health hazards and unnecessary medical expenses in the longer run.

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3. Indian government supporting organic food industry

The Indian government is supporting and promoting organic farming by extending financial help to farmers adopting organic farming. Various government schemes like Mission for Sustainable Agriculture (NMSA), Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM) and Rashtriya Krishi Vikas Yojana (RKVY) have been implemented to promote the sector. GOI also implemented the National Programme for Organic Production (NPOP) which involves accreditation programme for certification bodies, standards for organic production, promotion of organic farming etc.

4. Increase in export

The demand for Indian organic food has not only witnessed a steady rise in India but it is receiving appreciation on a global platform. Due to India’s favourable agro climatic conditions coupled with the inherited tradition of organic farming, the quality of organic food to export is very high. As per reports, the demand for Indian organic food is on the constant increase worldwide; India exported organic products worth $515 million in the financial year 2017-18. The export trend will increase in the next five years.

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One can say that the organic food industry will witness a humongous rise in the next five years. The industry is still naive and on an emerging phase; it has huge potential for growth and may even contribute to the economic growth of the country in the longer run.

About Author: Mr. Divakar Bhalla,  is the founder of Kesarwala. One of the first organic food restaurant in Delhi/ NCR.

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