Current Global Market Size
According to Entrepreneur.com (https://www.entrepreneur.com/article/324665): TechSci Research report, Global organic food market stood at $ 110.25 billion in 2016 and is projected to grow at a CAGR of 16.15per cent, in value terms, during 2017 – 2022, to reach $ 262.85 billion by 2022.
The Rise in the Export of Indian Organic Food
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), the demand for Indian organic food products is on the constant increase worldwide as India exported organic products worth $515 million in the financial year 2017-18, from $370 million in 2016-17. This trend will further accelerate in 2019.
The problem of local markets – required Supply Chain Enhancement
One of the major issues in the organic food market is the mismanagement in the supply chain of organic fruits and vegetables. The main challenge is related to the cost and logistics which are included in the moving of locally or regionally produced organic produce. In the case of organic supplies, the time of reaching the fruits and vegetables from the time of the production to the end consumers matters the most due to its less shelf life. But since the demand for organic products is rising, the need for solving the problems in the supply chain management is going to arise and the enhancement in the supply chain is expected in 2019.
The Rise in Demand for Organic Food
As the digital literacy rate in India is growing, the demand for organic food in India will see good growth. People are becoming aware of the harmful effects of chemicals and fertilizers used during farming in India. There is a great rise in awareness of organic farming methods, making the food more healthy and nutritious.
Higher Spending Capacity of the Middle Class
According to a research by the India Brand Equity Foundation, the spending capacity of the Indian middle class is anticipated to double by 2025. With the rise in disposable income and access to credit, the Indian middle class will have a high spending capacity on organic food.
The government of India is promoting Organic Farming in the country. Hon’ble Prime Minister, Mr.Narendra Modi introduced Paramparagat Krishi VikasYojana (PKVY), under which 2 lakh hectares has been made suitable for organic farming thereby benefiting 5 lakh farmers. This step will further boost organic farming in India in 2019.
As per the above trends, the organic food market is expected to boom in 2019. Since the organic market in India is still in an emerging stage, the space for growth is tremendous.
What’s in it for early investors?
Urja Organic Farms Private Limited plans to raise and invest INR 5 Cr in next 2 years with the resolve to set up 30 company owned stores spread across Nasik, Mumbai & Pune; which will provide access to organic vegetables and fruits to merely 30000 families (averagely 120000 consumers). Get in touch with us through phone/email to know more about the investment opportunities.
Include trend, expected growth, population of nashik, amount of money to be invested (consider own stores)