An understanding of the organic market in India. Very useful for marketeers to get a perspective on insights on retail, consumer, brands, distribution and trends.

1. Organic Market India
October 2014

2. Structure
Organics –
raison d'être
Market
insights
• Trends and
growths
• Key players
Consumer
trends, facts
and figures
Retail
insights

3. Organics
raison d'être

4. Why Organics?
1. They’re safer. Fruits and vegetables labeled as organic are generally grown without chemical
fertilizers and pesticides. Livestock raised under organic practices aren’t fed antibiotics or
growth hormones.
2. They’re kinder to the environment. Organic farming practices are designed to be more
sustainable, emphasizing conservation and reducing pollutants.
3. They’re healthier. A few studies have suggested organic foods might be higher in nutrients
than their traditional counterparts.

5. Cont...
− As per the study conducted by Research on India “Organic Food Market – India” in April 2010,
organic foods may have benefits over conventional foods. Some of these are listed below

6. Organic market very buoyant
From 2007 to 2012, the average middle class income in India has shot up. The consumer is willing to pay more
for good quality food." The demand for organic foods will only grow in India, organic food producers claim,
with the implementation of the Food Safety and Standards Act from February this year. The new law sets more
stringent standards of food safety - raising the bar on the quality of food manufacture, storage, distribution,
sale and import. The stress on quality under the new Act will push up prices of foodstuff made using
conventional techniques, reducing the price differential with organic food, and boosting sales.
Mukesh Gupta, Director of Morarka Organic

7. Market
Trends, growth and companies offering
organic solutions.

8. Market – Size and growth
The domestic market for organic productswas estimated at
Rs. 1,000 Crore (or approximately 190 million US $) in 2011-12,
and is expected to grow to 1 billion US $ by 2015.

9. Reasons for Growth
− India is fast emerging as one of the largest potential markets for Organic Food products
− Completely natural
− Contains no chemicals or preservatives
− Healthy alternative to conventional foods
− Growing awareness towards health foods
− Surging income levels

10. Regulation and certification
In India, APEDA (Agricultural and Processed Food Products Export
Development Authority) regulates the certification of organic
products as per National Standards for Organic Production.

11. Organic products market
Major organic produces in India include plantation crops, sugarcane, cotton, Oil Seeds,
basmati rice, spices, cereals, pulses, oil-seeds, fruits, tea, fruits, dry fruits, vegetables,
coffee and their value added products.

12. Top Selling Products in the domestic market (in M.T.)
− Tea 1500
− Coffee 750
− Spices 500
− Rice 5000
− Jaggery, Sugar 6000
− Wheat & flour 3000
− Pulses 2500
− Fruits and vegetables 5000

14. Why Organic Food costs more?

15. The Organic circle in India
Restaurants
and cafes
Home-stays,
hotels
Retail
produce
India
Exports

16. Key players
Analysis basis market visit and secondary
research

17. 1. Organic India
2. Conscious Foods
3. Ecofarms
4. MorarkaOrganic Foods
5. 24 Mantra
6. Navdanya
7. Fab India
8. EcoTokri
9. BionaOrganics
10. BiofairOrganics

19. Organic India
− Presence - In 40 countries including India, Australia, Belgium, Canada, Germany, Indonesia and so on.
− Turnover
− has seen its revenue rise from Rs 25 crore in 2008 to Rs 175 crore in 2013.
− Looking at three-fold growth in turnover to Rs 200 crore by 2015-16.
− Product Offerings
− Tulsi Tea, Herbal Supplements, Chawanprash, Husk, Coconut Oil, Ghee, Spices, Grains, Beans and Lentils, Fruits
and Vegetables.
− Plans to launch organic grocery items such as rice, dal and spices by next year.
− Price Range -Rs. 200/- to Rs. 3000/- depending upon the product.
− Channel/ format present in - Online, Standalone Outlets, Fab India, MT stores such as Food Bazaar, Modern Bazaar.
"We have opened two stores in Lucknowand aim to have 20 stores across the country by the end of 2015," says Krishna
Gupta, CEO and Managing Director

20. Packaging

21. Standalone Outlets

23. Conscious Food
− Presence -Also sold in the UK and Europe through Conscious Food Ltd, UK, apart from India.
− Turnover - Looking at three-fold growth in turnover to Rs 200 crore by 2015-16.
− Product Offerings
− More than 100 natural and organic products including whole cereals and their flours, pulses, spices,
natural sugars, honey, coffee, green and herbal teas, cold-pressed oils, alfalfa, flax, sunflower and other
seeds, spirulinapowder, awla powder and healthy snacks made with various cereals, seeds, nuts, dried
fruits and herbs.
− Price Range -Rs. 50/- to Rs. 500/- depending upon the product.
− Channel/ format present in - Online, Exclusive Retails Outlets ( Bombay), Fab India, MT Outlets like Foodhall,
Spencer's in other cities.

24. Packaging

26. 24 Mantra
− Presence -Also sold in the UK and Europe through Conscious Food Ltd, UK, apart from India.
− Turnover - Looking at three-fold growth in turnover to Rs 200 crore by 2015-16.
− Product Offerings
− Over 800 products including Fresh Fruits & Vegetables, Cereals, Pulses, Flour, Spices, Culinary Pastes, Oils, Snacks, Breakfast Cereals,
Juices, Cookies, Processed and personal products .
− Price Range -Rs. 50/- to Rs. 500/- depending upon the product.
− Channel/ format present in - Online, Exclusive Retails Outlets ( Mumbai), MT Outlets like Foodhall, Spencer's, Food Bazaar, Modern Bazaar
etc in other cities.
− Also have a Organic food court at Hyderabad store named ‘Purity Prayag’
− Serve healthy salads, filling sandwiches, tasty vegetable and fruit juices and yummy fruit and nut ice creams. You can even try different types of cookies
here. Sandwiches cost Rs. 30-40, juices Rs. 30-45 and a single scoop of ice cream comes for Rs. 38.

27. Packaging

28. Standalone Store

29. Online contest

31. Morarka Organics
− Presence -Available across various states and cities in India.
− Turnover - Around 70 to 80 Cr.
− Product Offerings
− Offers a range of food products including cereals, pulses, spices, condiments, masalamixes, oils, ready-to-eat
snacks, various kinds of cookies, etc., along with English herbs.
− Price Range - Rs 100/- to 500/- depending upon the product.
− Channel/ format present in
− Morarka organic products are available at the Down to Earth stores.
− Products are also available at major supermarkets, modern trade outlets and stand alone organic stores
across the India.
− Also offers Online Shopping through company website.

32. Packaging

33. Standalone Stores

34. Event Promotion
BioFach Mumbai 2009 BioFach Mumbai 2010

35. Ecofarm

36. EcofarmsOrganics
− Presence -Started in Maharastra and some parts of Orrissa.
− Product Offerings
− Offers a range of products including Clothing & Home Furnishing, Fruits & Vegetables, Cereals, Oils, Spices,
Flour, RTE Snacks and Medicinal Herbs.
− Price Range –Rs. 50/- to 500/- depending upon the product.
− Channel/ format present in
− The food products are sold by the company under its brand name 'Ecofarms' in the domestic retail market,
available at all major retailers such as Big Bazaar, Reliance, Aditya Birla(More), Shoprite, Le Marche,
Piramyds(TruMart), Apna Bazaar, Metro Cash and Carry etc.

37. Packaging

38. Standalone Outlets

39. Fab India

40. Fab India
− Presence -Across 74 cities in India, as well as in 6 other countries such as Bhutan, Italy, Mauritius, Nepal,
Singapore and UAE.
− Turnover -Rs. 20 to Rs. 30/- Cr
− Product Offerings
− The major portion of Fabindia’s product range is textile based.
− Non- textile introductions to this range are Home Products , Organic Food Products & Range of authentic
Personal care products.
− Organic Range carries several types of cereals, grains, pulses, spices, sugar, tea, coffee, honey, fruit
preserves and herbs.
− Price Range –Rs. 50 to 500/- depending upon the product.
− Channel/ format present in – Standalone company outlets and through online orders.

41. Packaging

42. Packaging

43. Standalone Stores

44. A click away
Online stores

45. Ecotokri.com

46. Ecotokri.com
− An e-commerce site that sells only organic products
− The most popular items would be organic lipsticks and organic kajal, followed by organic coconut oil.
− Sells everything from organic tea and flour to organic soaps and accessories and solar Nuru lights, but organic
cosmetics contribute 60 to 70 per cent to its overall sales.
− Site is growing at 30 to 40 per cent month-on-month.
− "More and more people are looking for green and healthy alternatives. Traffic to my site has increased 200 per
cent in the last six months. What's still more amazing is that 40 per cent of my orders are coming from Tier II
and III towns."

47. Organic Shop

48. Organic Shop
− A one-stop shop for the largest product range of over 6,000 100% organic certified products in India.
− A platform for brands in the organic industry to access the internet consumers of India.
− An endeavor to support the unorganized retail of organic products in the country bringing together the consumers
and suppliers on one platform.
− Effort to bridge the gap between the farmers who produce products in small quantities and lack market exposure
for their products and bring their products close to the consumers.
− The brand offers a range of organic products, organic clothing, food, cosmetics and wellness products, textile
products like yoga mats, towels & comforters, organic spices, green tea, grocery, organic cosmetics, herbal and
health products to name a few.

49. isayorganics
− Within a year, Kapoor has managed to reinstate the faith of farmers in the agricultural industry and
achieve a monthly turnover of Rs 5 lakh.
− With a team of young minds using new age online stores to re-brand organic vegetable sales, Kapoor
now has a bigger dream.
− This new-age business model is sure to woo consumers with its fresh and healthy vegetables at
subsidised rates. Placing orders online for daily vegetables is a culture soon catching up, making the
rounds to sabzibazaar a thing of past.

50. Farm2kitchen
Seema Dholi, founder says soon we would
be launching Farm2Kitchen Organic Stores
all over India. These outlets will offer
certified organic foods and farm produce –
which follow food safety standards.
“Building healthy India. One kitchen at a time”.

51. Organic Stores
Stand alone and online options

52. The Altitude Store, Delhi
− A one-stop shop for all the organic needs ranging from
organic baby food, clothes and soaps to juices,
preserves, chutneys, butters, shitake, pickles, jams,
pasta, soups, teas, infusions, snacks, rice, flour, meat
products, fruits, vegetables, cosmetics, and so much
more.
− The Altitude Store produces a variety of organic food
products and undertakes deliveries across Delhi/NCR.
− Her annual growth rate is between 150 and 200 per
cent.
− Other Brands stocked include: Rustic Art cosmetics,
SOS Organics, SocieteNaturelle, Organica, Down to
Earth, Conscious Foods, German Bakeshop, French
Farm meats and foods, Soja, Naturo, Nirvana and so
many more.

53. The Altitude Store

54. Navdanya
− NavdanyaOrganization, a network of seed keepers and organic
producers spread across 16 states in India, which started out as a
research initiative, led by renowned scientist and
environmentalist Dr. VandanaShiva.
− They sell a wide range of products ranging from fruits and
vegetables, staples, spices, condiments, jams and spreads, dry
fruits, tea and coffee to seeds for cultivation.
− Have also set up an organic foods café at DilliHaat, Delhi.

55. Store-front

56. Organic Garden
(12 locations, Mumbai)
− Has a whole range of vegetables and fruits grown organically, certified by ECOCERT.
− It’s a small store, stocking only fresh and small quantities of different fruits and
vegetables grown in the region.
− Despite being higher priced than the regular vegetable seller, the price differential is
no longer the 25-50% that it used to be, it was only about 10-15% higher.

57. Store

58. Advt

59. Organic Haus
− They have a wide range of products and all of them are
vegetarian.
− One of the main points of difference between Organic Haus and
other Indian organic brands is that the former does not deal in
fresh produce since they are a representative of the pioneering
organic-food companies from Germany.
− The other organic stores in the country complement their
offerings. Together, the customer gets a full basket.
− One of the main points of difference between Organic Haus and
other Indian organic brands is that the former does not deal in
fresh producesince they are a representative of the pioneering
organic-food companies from Germany. The other organic stores
in the country complement their offerings. Together, the
customer gets a full basket.

60. Organic Haus (contd.)
− The products in the store are definitely much higher
priced, but the variety of products is huge as well as the
type of products stocked are quite different from the
regular organic fare (such as an organic slimming kit
which is a rage in Germany, nutrition supplements,
beauty cosmetics, etc.).
− Also, Organic Haus has been heavily marketing –with
billboards all along Marine Drive as well as creating a buzz
through Facebook.

61. Shop Interiors

62. Mother India Farms, Bangalore
− Used to export the organic fruit pulp, dehydrated fruit and
vegetables and a variety of spices it produced to France, Germany
and The Netherlands.
− Now it has a growing Indian market as well.
− "Sensing the market gap in organic fruit juices in India, we launched a
mango-flavoured organic fruit beverage in 2012, under the brand name
Organa. We now sell organic guava juice, organic apple juice and organic
mango pulp here as well," says GopinathR. Durairaj, Director of
Operations, Mother India Farms.

65. Spirituality on the path of marketing:
Cashing in on the craze
− IfOsho slippers are a craze among fashionable
youngsters, Baba Ramdev's Patanjali line of personal
care and packaged food products and Art of Living's
body lotions and Ayurvedic Energizers too are finding
takers beyond their followers.

66. Spirituality on the path of marketing:
Widening reach
− Some of them plan to widen distribution of their products-so far largely sold at their
ashrams - through kirana stores, supermarkets and online retailing.
− Some are entering into back-end integration for commodity sourcing and are building
distinct brands.
− Spencer's plans to sell such products at its outlets - there are more than 200 of them,
and is open to offer larger shelf space than even some mainstream brands.

67. Spirituality on the path of marketing:
Profits for charity
− Baba Ramdev started retailing his Patanjali line of FMCG products via through kiranas
and modern retail.
− Acharya Balkrishnan, promoter of Patanjali Ayurved Products and a close aide of
Ramdev, said this would allow the firm more than quadruple its sales to Rs. 2,000
Crore this fiscal from Rs. 455 Crore in 2011-12.
− If achieved, this would make Patanjali larger than Fair & Handsome and Boroplus-maker
Emami and at nipping distance of Colgate-Palmolive.
− Patanjali Ayurved says it achieved a net profit of 100 crore last fiscal.

68. Organic restaurants and
yes even hotels !

69. Lumiere, Bangalore
− Lumiere tries to get as close to fine dining as possible,
although it is primarily a Kerala seafood menu.
− Is the restaurant bringing in profits. Not yet, although
Rs 2 crorewas invested in setting it up and regular
cash infusions to keep it running.
− That does not seem to bother Manjunath, 46. “I sat
16 years in an office as a software professional. Now I
am doing something that invigorates me, and it is
environmentally sustainable.”

70. The dining area

71. Green Path, Bangalore
− Green Path is a 50-bedroom service apartment in Bangalore.
− Each apartment at Green Path has two-or-three completely furnished bedrooms
with all facilities for a comfortable, homely, and eco-friendly stay.
− These service apartments are ideal for both short and long term stays.
− “The cost of organic produce has come down in the last six years, now it is more
affordable than what it was before. To reduce the cost further, we need more supply
chains. As people ask for organic, more supply chains will be created. The only way to
beat the price is to buy organic.” –MrJayaram, owner.

72. Reception area

73. Room Decor

74. Organic Retailing

75. Modern trade
Organic Speciality
stores
Individual stores
which also stock
other ‘brands’ of
organic produce.
Godrej Nature's Basket,
Hyper City, Food Bazaar,
More, Nilgiris, Spencers
and Tesco - Starbazar.
Online
like Fab India, high
end gyms (Fitness
First) which attracts
the similar mindset
E.g.: The Altitude
store, Delhi
Work on the
home-delivery
mechanism.

76. Key pointers
− Most organic stores do not sell exclusively organic but also a number of conventional and “natural” products.
− Most stores in India sell only packaged, dry organic food products.
− Organic fresh produce – fruits and vegetables – is not as readily available, becausemany retailers avoid the risks of selling these
highly perishable products under uncertain market conditions.
− Lack access to separate facilities for transport, storage and processing of organic produce.
− These logistical challenges make it difficult to bring a reliable flow of fresh produce to urban consumers and it is also one of the
reasons that drive up the prices of organic produce.
− Online retail and home delivery are picking up fast.
− This enables more consumers to access organic products, as organic stores are scattered across large cities with high traffic
volumes and inadequate transport infrastructure.

77. Market Visit
Foodhall – Gurgaon
Spencers – Gurgaon
Food Bazaar – Delhi
Modern Bazaar – Delhi
Foodhall - Delhi

78. Spices
ASA Spice Specialists – Standalone Store at Foodhall Saket, that specializes in organic and home made spices

79. Spices

80. Pastas

81. Pulses & Cereals

82. Flakes & Muesli

83. Trail Mixes

84. Organic Quino

85. Wheat Grass

86. Mayo

87. Milk

88. Consumer POV
As awareness, interaction and conversation
keeps increasing

89. − In the survey, about 1,000 retailers cited that health and environment grounds are the main reasons for
purchasing organic products by customer.
− The majority of the respondents said that "parents are more concerned about the health of their children
and willing to spend more to ensure they get better and safer food, adding that organic products are 30% to
40% more expensive than usual food".
− High prices of organic food were a deterrent, but given the perceived health benefits they still opted for it.
Says SunithaMorampudi, 35, wife of a Hyderabad-based IT professional and a mother of two: "I prefer to take
food that is produced organically. Yes, it is priced higher but I think it is better for our health.“
Health and environment created the
boom for organics
Driven by growing concerns over food pumped with poisonous
pesticides and processed by artificial means, the consumer
movement to live healthy and consume safe and nutritious food has
been steadily growing. Adding to that all the bad publicity and alarm
generated by poor diet, junk food and rising levels of obesity caused
the boom in the organic sector.
The vast majority agreed with the statements:
'organic food is healthier to eat than
conventionally grown food because it generally
contains no pesticide residues' (98%);
− 'organic foods are better for the environment
than conventionally grown foods (97%)
− 'the amounts of pesticide residues remaining on
conventionally farmed produce are not likely to
be harmful to health' (5%).
Around 62% said that health related concerns influenced their decision to consume organic foods

90. Among organic consumers, 65% try
to eat organic whenever possible &
53 % of consumers are willing to
pay more for local food
Price is not such a big barrier
According to a survey of 1,000 consumers in ten cities done by Morarka
Organic Foods, around 30% of Indian consumers preferred organic
products and were even prepared to pay 10 to 20% more for them.

91. Organics part of the weekly food budget
Organic fruit and vegetables have the highest uptake by organic
consumers. The average weekly expenditure on organic food is
estimated at 50% of the weekly food budget, points out the survey.

92. Metro upswing
In just 5 years, over 62% of the population in metros has shifted to buying and
consuming only organic produce, especially vegetables and fruits, a 95%
increase, according to a survey undertaken by the Associated Chambers of
Commerce and Industry of India (ASSOCHAM).

93. Availability is still a concern
The majority of people said they would eat more organic food if: it is
'more available in convenient locations'(74%)

94. About 90% of social conversations
about organics is regarding food
safety fears discussing the
questionable process of producing
organics
65% said that scientific evidence had a moderate or strong influence on
their beliefs about organic food

95. The average consumer household in
2025 will contain at least one, if not
many, organic products on a regular
basis.
This includes not only food items but organic clothing, household
cleaning products and personal care items.

96. By 2020, consumers will be comfortable
buying organic products from their third
and fourth screens, namely, the tablets
and their mobile phones.

97. Younger shoppers continued to show
motivating interest in organic products,
indicating a promising future of the
organic industry in India

98. About 86% consumers of organic
products feel that there are less options
available in terms of brands and product
categories in India

99. Premium Amount over Conventional
5-10%
39%
10-15%
19%
Cant say
36%
15-20%
6%
Among organic consumers, 65% try to eat organic
whenever possible & 53 % of consumers are willing
to pay more for local food
Willingness to Pay (WTP) for organics is
more because of the failure of their
conventional counterparts, thereby looking
to avoid GMOs in their lifestyle
Only 21% of organic food buyers cut down or eliminated organic
purchasing during the recession, while 20% have switched to less
expensive organic options.

100. Need for ‘Organic’ fruit juices high
Among the various types of food categories offering organic options, vegetables (68%),
fruits (52%), pulses (51%), food grains (50%), milk (45%) and fruit juices (51%) are the
most regularly purchased items by Indian consumers. Packaged food, tea and beverages
are amongst the other products for which Indians prefer the organic option.

101. Source: Organic market surveys
− The survey 'Rising demand ofOrganic products in Metropolitan cities' is based on the response of 1,500 lead retailers selling
non-organic and organic products. Major metropolitan cities in which respondents were interviewed include Delhi-NCR,
Mumbai, Cochin, Chennai, Hyderabad, Indore, Patna, Pune, Chandigarh and Dehradun.
− Source: Qualitative understanding – research conducted amongst potential and current consumers. Potential: 50 interviews.
Current buyers: 20 interviews http://www.slideshare.net/monikabishnoi/organic-food-value-chain?related=1
− http://articles.economictimes.indiatimes.com/2013-09-26/news/42427055_1_crore-organic-products-ascent-capital

102. Books to get
− http://www.amazon.in/Organic-Marketing-Urban-Centres-India/dp/8192522628

103. Summing up

104. − India is emerging as one of the largest potential markets for Organic Food products.
− Health and environment created the boom for organics products.
− More and more players will be entering the segment offering a much wide product
range.
− Online retail and home delivery are picking up fast.
− There’s huge metro upswing as the urbanites are fast moving towards organic
products.
− Though price is not a huge concern for the buyers, it will play a critical role in the
near future.

105. Next Steps