Published in February 2018
Interest in health is growing in India, which means that the organic food market is projected to grow at a CAGR of 25% through 2020. This makes it the ideal time for organic companies to enter the Indian market to take advantage of the growing customer base. There is untapped organic farming potential in India, but this can be combined with other sectors such as fashion and landscaping. Wherever organic products can be produced, there will be a market which looks set to grow continuously over the coming years.
“Alternative methods of farming, such as organic farming, introduced by the Indian government in several states is the right strategy to tackle food insecurity, improving nutrition and alleviating poverty in the country” – Gilbert F Houngbo, President – International Fund for Agricultural development (IFAD)
There has been an increasing emphasis on organic farming in India and the Union Budget 2018 gives a big push for organic farming. Due to the vast areas of farming land which lays vacant in India, US business owners have looked to buy these up in order to grow organic produce. They recognize the potential to feed the growing middle class of India, without causing too much damage to the environment. Also many farmers who can’t afford costly agricultural inputs, are turning to organic farming because of lower costs and higher margins.
The number of vegans and vegetarians is growing in India as it is globally. This means there will be increased demand for plant foods. However, this can cause environmental harm due to pesticides, something which many vegans are not comfortable with. If you plan on buying a farm, stick to organic practices to make the most of this emerging market. There are also several investment opportunities in areas of organic crop protection technologies and organic supply chains (pack houses, storage facilities).
Though less popular than the organic food industry, it is likely that organic fashion will become popular in a few years time. Vegans are not just interested in avoiding foods made from animals. They also don’t wish to purchase any clothing or cosmetics which are made from animals.
Organic makeup brands are changing the market, offering products which use minimal chemicals. As the price of these products come down, they will be the preferred choice of an increasingly environmentally aware consumer market. Organic clothing companies should be willing to enter the Indian market in coming years.
The benefits of going organic are not just for multinational farmers and fashion designers. Now everyone from ordinary city workers to tribal citizens of India are interested in growing organic produce. This is a great opportunity for landscapers to work with clients, teaching them to live sustainably.
It is clear that the organic industry will experience a boom in the next couple of years. Foreign companies should be willing to enter the Indian market. Organic Farming will be the biggest industry, but be willing to consider other organic industries, such as clothing, makeup and landscaping, if you want to stay ahead of the emerging competition.