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Organic Food Market in India 2012-2016

India organic food market: 21% CAGR between 2012-2016

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2014-02-18 20:07:03 - Organic Food Market in India 2012-2016 - a new market research report on

The Organic Food market in India is to grow at a CAGR of 21.34 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increased number of health conscious consumers. The market has also been witnessing an increased focus on organic farming. However, the high cost of organic food could pose a challenge to the growth of this market.

Organic farming is the production of crops without the use of chemical fertilizers and synthetic pesticides. Organic farming provides long-term benefits to the environment and consumers. The market is witnessing the increasing adoption of organic farming because of the increasing demand for organic food products. In India, agriculture plays a vital role in the national



economy; the government of India is offering strong support and promoting organic farming as it will increase the contribution of the Agricultural sector to the GDP of the country.

The government is also promoting organic farming for its positive impact on the biodiversity and effective soil management, which could go a long way in mitigating and even reversing the effects of climate change, as also minimizing carbon emissions. Thus, the adoption of organic farming is a positive trend that could increase the contribution of the Agriculture sector to the GDP of the country during the forecast period.

In recent years, the market has witnessed an increase in health concerns among consumers globally. There has been a growing awareness among Indian consumers about the importance of nutrition, health, and quality of food they eat, thereby resulting in an increasing adoption of organic food. Consumers are attaching more significance to healthy diet than physical activities. Therefore, the increasing health-conscious population in India is driving the growth of the Organic Food market during the forecast period.

One of the major challenges in this market is the higher cost of organic food products than conventional food products. The high cost of organic foods will restrict the purchasing of these products to the affluent class of consumers. As a result, organic food is not affordable by a majority of consumers, which could reduce the profitability of the market.

The key vendors dominating this market space include Conscious Food Pvt. Ltd., Eco Farm Ltd., Morarka Organic Foods Pvt. Ltd., Organic India Pvt. Ltd., and Sresta natural Bioproducts Pvt. Ltd. The other vendors mentioned in this report are Fabindia Overseas Pvt. Ltd., Navdanya, Phalada Agro Research Foundation Pvt Ltd., Poabs Organic Estates, and Pro Organic Farmacy.

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