Market Trends of india organic fertilizer Industry
Growing number of organic producers helping the increase in area under organic cultivation, primarily in row crops
- India is the largest country, in terms of the total number of certified organic producers in the world, with 1.3 million organic producers in 2019. Despite a large number of organic producers, organic cultivation areas in the country account for around 2.0% of the total agriculture area in the country. In 2021, the organic area in the country was 711,094.0 ha, which increased by about 3.4% compared to 2017.
- Organic farming in the country is concentrated in only a few states. The top ten organic farming states in the country account for about 80.0% of the total organic crop area. A few states have taken the lead in improving organic farming coverage. Madhya Pradesh, Rajasthan, and Maharashtra are the top three organic farming states in the country. Madhya Pradesh accounted for about 27.0% of India’s total organic cultivation area in 2019.
- Organic cultivation of row crops is dominant in the country. Row crops accounted for about 59.7% of the total organic crop area in 2021. Cereal crop production dominates in the country, with rice, wheat, millet, and maize being the major cereals produced. Most cereal crops are grown in the Kharif season (June-September). The crops grown in this season mainly depend on rain or require more water, like rice, maize, cotton, soybean, etc.
- There has been an increasing trend in the overall organic cash crop cultivation area, from 270,000 ha in 2017 to 280,000 ha in 2021. The major cash crops produced in the country include cotton, sugarcane, tea, and spices. Currently, there is limited growth of organic horticultural crops in the country. The increasing demand for organic products and initiatives by the Indian government to go organic are anticipated to increase the organic crop area during the forecast period.
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Growing demand and their easy accessibility through e-commerce channels, rising the per capita spending on organic food
- India's per capita spending on organic products is relatively low at USD 0.23 compared to the average per capita spending on organic products of the Asia-Pacific region. However, in recent years, consumer demand has been increasingly shifting toward organic products as these items offer better immunity, higher quality, and more accessibility through e-commerce channels. India is a promising, developing market for organic foods and beverages. India's domestic organic food and beverage industry is expected to be worth USD 138.0 million by 2024, a CAGR of 13% between 2019 to 2024.
- In 2022, organic food and beverages worth USD 108.0 million were consumed in the country. The consumption value of organic products in the country increased from USD 45.0 million in 2016 to USD 96.0 million in 2021. Organic food sales increased mainly due to increasing consumer awareness, and high-income consumers are propelling organic food and beverage consumption. Categories that experienced the most demand included essential foods such as organic eggs, dairy, and fruits and vegetables.
- The consumption of organic beverages dominated the market and accounted for about 85.2% of the total combined organic food and beverages market value in 2022. The organic beverages segment includes organic packaged food and beverages that are certified by the approved certification body. The consumption value of organic beverages registered growth with a CAGR of 14% between 2020 to 2022. The price premium associated with organic products hampers lower-income consumer access and is the major limiting factor for organic food consumption. However, the active promotion and advantages of organic products are expected to drive the organic food market in the forecast period.
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