India’s GDP development of 6.5% in 2017 was solid regardless of difficulties like the execution of GST. The conjecture for GDP development in FY2019 is anticipated to be more than 7%. This will absolutely enhance the execution of various enterprises like Organic Food processing, Pharmaceuticals, and FMCG.
As per TechSci Research report, the Global organic food market remained at $ 110.25 billion out of 2016 and is anticipated to develop at a CAGR of 16.15%, in value terms, amid 2017 – 2022, to reach $ 262.85 billion by 2022.
With Indian Organic Food industry developing in twofold digit amid 2013-2017, it would not be right to state that the business will perform well in 2019. There are numerous variables that have added to this development until now.
Primarily, development in eCommerce division has acted like a facilitator for the organic food industry to connect with the potential customers in Tier II and Tier III smart cities. Secondly, with free/minimal effort access to the Internet, an ever increasing number of individuals are getting the opportunity to find out about the advantages of organic food. In this manner, the interest has gone up amid 2018. Finally, the industry landscape is getting to be aggressive with an ever increasing number of players entering the business.
Passing by the trends in 2018, the organic food processing industry in 2019 will develop at a decent pace. Here are a couple of components that will quicken the development of the organic food industry:
The growth in Demand for Organic Food
As the digital proficiency rate in India is developing, the interest in organic food processing in India will see great development. Individuals are getting to be mindful of the hurtful impacts of synthetics and composts utilized amid farming in India. There is an extraordinary ascent inattention to organic farming strategies, making the food progressively solid and nutritious.
The increment in the Indian Organic Food exports
As indicated by the Agricultural and Processed Food Products Export Development Authority (APEDA), the interest for Indian organic food products is on the steady increment worldwide as India sent out organic products worth $515 million in the budgetary year 2017-18, from $370 million of every 2016-17. This trend will additionally quicken in 2019.
The government of India is advancing Organic Farming in the nation. Hon’ble Prime Minister, Mr.Narendra Modi presented Paramparagat Krishi VikasYojana (PKVY), under which 2 lakh hectares have been made reasonable for organic farming in this manner profiting 5 lakh agriculturists. This progression will additionally help organic farming in India in 2019.
Advanced Spending ability of the Middle Class
As indicated by an exploration by the India Brand Equity Foundation, the spending limit of the Indian middle class is foreseen to twofold by 2025. With the ascent in extra cash and access to credit, the Indian middle class will have a high spending limit on organic food.
Supply chain development
One of the real issues in the organic food market is the bungle in the supply chain of organic foods. The principal challenge is identified with the expense and coordination which are incorporated into the moving of locally or provincially created organic produce. On account of natural supplies, the season of achieving the leafy foods of the season of the creation to the end buyers matters the most because of its less time span of usability. In any case, since the interest of the organic products is rising, the requirement for taking care of the issues in the supply chain management will emerge and the upgrade in the supply chain is projected in 2019.
According to the above trends, the organic food market is relied upon to blast in 2019. as the organic food processing market in India is still on a rising stage, the space for development is huge.