The gradual shaping up of the organic food industry – What investors should keep in mind?

Due to all this, we are seeing a shift in promoting healthy lifestyle and there is another switch to organic diets. As the celebs are endorsing this lifestyle, the organic trend is gradually becoming a chic factor in everyone’s lives. Indians have started getting inkling over the extent of contamination of food, right from the scratch. You can blame it on the social media that people have become more aware of all the harmful and toxic impacts of chemicals.

The urban metros are primarily driving this organic food trend

As per recent reports, it has been seen that the organic food trend has been getting popular in most of the urban metropolis like Delhi, Mumbai and Bangalore. Though the rural population is actually being responsible in growing all the food that we eat, yet they have still not been educated on the poor impacts of contaminated food.

There has already been a wide coverage regarding the pollution levels in soil, water and air in recent years and this has led to a rise in the fears among people and they’re always wondering what they’re being served on their plate. A growing number of parents are worried about the total amount of lead found in vegetables and fruits, which are being given to children and infants. Due to this doubt that people are having on the foods that they eat, they’re switching to the organic category. Nowadays, maida and sugar are all being bought under the ‘organic’ category.

Organic packaged food sale to cross Rs. 875 million by 2021

As per reports from New Delhi, it has been found out that the size of the Indian packaged food market is predicted to surpass the Rs. 875 million benchmark by 2021 and this will happen due to the enlarging urban population, growing concerns regarding health, increased consumer spending on the food products and the sudden fall in the quality of food products. Instead of investing in food to consume the right amount of proteins and minerals, people are investing in supplements like isowhey protein powder because they know that the supplements are safer than the original foods.

As per recent studies, the organic packaged beverage and food is being anticipated to be the largest emerging trend in India and the key consumers are certainly going to be the urbanites and the high-incomed ones. As there is a growth in demand for organic food in the metropolitan cities, the companies are also noting a considerable growth with the entry of the new players in the organic food industry. Did you know that apart from this surging domestic market, India is also considered to be the second-largest exporter of organic food products in the entire Asia while China is at the first position?

Among the several Indian states, Madhya Pradesh can boast of having the biggest area which has been devoted to organic certification (4.64 lakh ha). The next in line is Maharashtra (1.99 lakh ha), Rajasthan (1.55 lakh ha), Odisha (0.86 lakh ha), Sikkim (0.76 lakh ha) and may more. If you take into account their combined shares, they will probably have already covered 90% of the area which is under organic certification. This shows how the organic trend is spreading like an epidemic all over India.

Few things investors should keep in mind before investing in the organic market

As there are growth predictions of more than 25% within the next 3years, there is terrific opportunity and scope for the investors who are looking forward to investing in the organic food industry. Here are few things investors should keep in mind.

Opportunity in the organic market

Investors should always invest some time and effort to perform a background check before they enter the organic industry. With a sudden growth in demand, there will always be chances of food adulteration and this is constantly repeated all over the world. They should consider all these before joining the bandwagon.

Know your target audience

Try to understand your target audience in the best way you can. This is a generation which is smart as well as healthy and hence they prefer to choose only healthy foods. Hence, the minds of Indian consumer are ready to adopt anything that’s new. As health has become their topmost priority, the prices have become less important while purchasing organic products. The market for organic food is all around and hence it is vital that you know the correct amount of potential buyers.

Changes in policy and challenges

Before venturing into the market, you have to remain aware of all sorts of challenges that you may face along with the changes in policies and different norms in the organic food sector. You have to remember that the supply chain is still not developed in India and there are several small-sized farmers who find it tough to access the market. Organic products require special storage attention as compared to the traditional counterparts and hence the existing supply chain will not always offer you the right kind of facility.

Therefore, when you’re wondering about whether or not you should venture into the Indian organic food market space, you will have to take into account the above mentioned factors so that you can take a safe, measured and informed step. You also have to be ready to build a mutual and cohesive bond with the players who are already there in the market in order to create a sustainable ecosystem.