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Organic Market

Organic Market

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Published by: chirag_scribd on Apr 29, 2011
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Organic Market
Global market
 Market expansion for organic foods depends on the outcome of a number of evolving issues like organicprice premiums, the price-quality trade off, country of product origin, genetically engineered content, andintegration of social goals into the production process. In the past five years, expanding global markets for organic foods have seen annual growth rates of 15 to 30 % in Europe, the United States, and Japan. Over 20 to 30 % of consumers surveyed across Europe, North America, and Japan claim to purchase organicfoods regularly. The worldwide market for organic foods is estimated at about US $ 17.5 billion, with the USaccounting for about $8 billion. The European organic market is estimated at $5.255 billion, while theJapanese organic market is estimated at $2.5 billion.
Market Growth Projections
 According to ITC projections, the organic market size in 2010 is estimated at $ 46 billion in the EU, $45billion in US and $11 billion in Japan. The exchange of organic products internationally is increasingdramatically. Markets are evolving to demand highly processed organic products as well as rawcommodities. In Europe, markets are expanding for ready-to-eat meals, frozen foods, baby food, snacks,and beverages. Organic food processing ingredients include juices, fruit powders, dried fruit, meat,flavorings, essential oils, herbs and spices, and nuts. Sample trade flows into Europe are from Israel (freshproduce), Brazil-Chile-Argentina (fresh produce, soy, and wheat), other European countries (baby food,processed foods, cereals, and meat), Canada (wheat, soy, and canola), Mexico-Central America (bananas,citrus, and coffee, cocoa), Sri Lanka-India (tea), and the United States (processed foods of all types, wheat).
International Organic Market
 • Current market sizeo World - USD 25 billiono USA - USD 8 billiono European Union - USD 7.5 billiono Japan - USD 3 billiono Growing market in metropolitan cities in India• World average growth rate 20-25%• Commands premium prices 15-50% over conventional produce• Entry barriers limited, as organic certification is criticalSource compiled by ITC-2002
Market potential- (INDIA)
 With the change in dietary need and enhanced income coupled with awareness for health there is a growingappreciation for organic products. Many of the hotels consume green food grown under the contracts.Organically labeled fruits and vegetables are also appearing on some of markets. Since India has muchlarger area, which have used minimal pesticides and chemical where potential for conversion exist, organicmovement has taken a root in many of the states and there is growing demand especially in cities andmarket is expected to grow more than 20 per cent annually. It is envisaged that 20 per cent of productionshall be organic in 5 years.
Existing Regulatory provision for domestic market
• Presently there is no regulatory mechanism for production & sale in domestic market.• Some private agencies/organizers are doing on their own in sporadic pockets.• Since country has enormous potential for organic agriculture, the Government of India has identified theorganic farming as major thrust area during X Plan.• The existing legal framework deals with export of organic products and not for sale in the domestic market.• The Government is proposed to be restricted to formulating standards and designating accreditationagencies.• The private sector, NGOs etc. will continue to have a major role in promotion of organic farming and also incertification process.Existing Regulatory provision for domestic market.
Most common organic products exported from India
Compared to other products, organic tea and spices is the most common organic Products being exported.Major Product Season States LocationsTea Throughout the year Assam, West Bengal,UttranchalDarjeeling,Guwahati,DehradunSpices Throughout the year Kerala, TamiNadu,KarnatakaCochin, Coimbatore,Idduki, CoorgCoffee Throughout the year Kerala, TamilNadu,KarnatakaCoimbatore,Coorg,Wayanadu,PeeremadeRice Kharif & Rabi Punjab, Haryana,Assam,Maharashtra, TamilNaduAmritsar, Jalandhar,Darrang, Ratnagiri,Kanchipuram,Thiruvallur Wheat Kharif & Rabi Punjab, Haryana, Uttar PradeshAmbala, Patiala,Bhatinda, FaridkotVegetables Throughout the year All States Various locationFruits Throughout the year All States Various locationCotton Kharif Maharashtra, GujaratMadhya Pradesh,Akola, Amravati,Amreli, Kheda,Indore
Growth in the domestic market for organic products
 The major organic products for which a growing demand is anticipated would be tea, spices and bananas.
Most organic food in India is exported
Over the past decade the production of organic food in India has grown rapidly to meet demand.Globally, an awareness of the health benefits of organically produced food, and knowledge of theterrible damage done to the environment by conventional, intensive farming methods, hascreated a huge demand for organic produce.In 2005, $26 billion was spent around the world on organic foods and that figure has been risingever since. By the year 2020, it is estimated that the organic food market will be at least a $102billion industry. The production of organic food in India seems set to benefit from this explosion of demand.The large amount of farm land available has created a substantial market for organic exports. Thecountry has more than 77,000 hectares dedicated to certified organic farming in India and up to70% of the 120,000 tons of organic products grown there are exported each year.
Domestic consumption is on the increase
In 2005, only 1% of the Indian population actually consumed the organic food produced in their own country, primarily because the products were too expensive for the average person, costingas much as 30% more than the same non-organic food.High prices were mainly due to the process of becoming a certified organic farm. This can be verycostly as years must pass for intensively farmed land to convert to organic. The fact that morehuman labour is required in order to provide soil with the care of cultivation it needs to producequality organic produce, also played a part.Of course, the fact that the rest of the world is willing to pay these high prices for the benefits of 
organically grown merchandise also plays a role in setting the average price paid by Indianconsumers – the price charged by mainstream, commercial outlets that is.However, as organic farming in India has expanded and become established, the costs havebeen coming down and many more Indian people are now, thankfully, able to afford them. Beinspired by this movie of 
Organic India
members visiting an organic farm!
The growth of organic farming in India
If you played the inspirational video above, you will have become aware of the company,
Organic India
. In the mid to late 1990’s, it was the founders of this company that introduced organicfarming methods to a small group of Indian farmers.These farmers, along with many others, had been watching the health of their land declinethrough the use of toxic, synthetic chemical pesticides, fertilizers, herbicides and fungicides. Thewildlife adjacent to their farms was also suffering as natural habitats were destroyed byconventional, industrial farming techniques for obtaining more crops, more quickly.As a result of these first steps taken by
Organic India
and the farmers with whom it worked,organic farming took off in India. Revenue generated by exports are bringing a better quality of life to organic farmers, their workers and families. Farming organically is bringing fantasticbenefits in health to the environment and to those who consume the foods it produces.Now, there are at least 15,000 certified organic farms in India and that number is growing rapidly.There are just as many small farmers using the same organic practices to grow their foods.As the domestic demand for organic food in India continues to grow , more stores and marketsare carrying both certified and uncertified foods that claim to be organic. While organic exportsmust be certified, there are no laws in effect as of yet to control natural foods sold domestically.A lack of knowledge among the general population and the absence of an organized system toregulate the sale of organic products create a great deal of confusion regarding the differencebetween natural and organic foods sold within India.However, organic markets are becoming increasingly common throughout the country and thishelps community members find foods that are truly organic, being produced at the many knownand trusted small local farms that do not seek certification for whatever reason.The first organic food store in India opened in 1997, before the heightened interest indomestically grown organics.
still supplies the residents of Mumbai with affordableorganic products from about 20 local farms that use chemical free, organic cultivation.
Conscious Foods
was started two years later, also supplied by small local farmers, and todaythere are organic grocers, organic markets, and even organic restaurants in every major city inIndia.The market for organic food in India has seen tremendous growth over the past decade. India isquickly becoming an organic centre for all types of crops and is making terrific progress towardssupplying their own residents with the high quality and healthy benefits of organic food.How about growing your own organic produce? Our organic vegetable gardening guide showsyou how to do so. You don't need a big garden and you don't even need soil. With just a few feet

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