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Background

Global Scenario
The global organic food market saw impressive double digit growth between 2012 and 2016, and
this is estimated to accelerate over the next five years due to growing demand. The global organic
food market had total revenues of $98.5bn in 2016, representing a compound annual growth rate
(CAGR) of 10.9% between 2012 and 2016. The demand for organic foods is increasing globally.
This is due to increased knowledge about the impacts organic food has not only on health but also
on the environment. Though these foods tend to be more expensive, figures suggest that people
are willing to pay more if they see the positive impact. This is also backed up by the strict
regulations which many countries now have in place, which mean that consumers can be confident
that they are buying legitimate organic produce. The performance of the market is forecast to
accelerate, with an anticipated CAGR of 13.8% for the five-year period 2016 - 2021, which is
expected to drive the market to a value of $187.6bn by the end of 2021.

Year Market Value % growth


2012 65041.3
2013 71464.1 9.9
2014 79023.7 10.6
2015 88106.4 11.5
2016 98478.4 11.8

Indias organic food sector is estimated at Rs. 2800 crores (approximately USD 440 million) which
is less than one percent of the estimated global organic food market. Speaking for the organic
market, exports contribute nearly 80% of the driving sales whereas domestic consumption amounts
to mere 20%. So nearly Rs. 2250 crores market is based on exports. The domestic market again
comprises of the unorganized as well as the organized sector sharing roughly 50% presence each
with their estimate value ranging anywhere between Rs. 280 to Rs. 400 crores.
The fruit & vegetables segment was the market's most lucrative in 2016, with total revenues of
$35.8bn, equivalent to 36.3% of the market's overall value. The prepared food segment contributed
revenues of $19.3bn in 2016, equating to 19.6% of the market's aggregate value. Comparatively,
the European and Asia-Pacific markets will grow with CAGRs of 7.4% and 22.8% respectively,
over the same period, to reach respective values of $52.6bn and $33.2bn in 2021