Jul 30, 2019

3

Min Read

By

Divya Kandwal

Survey- Does organic food tag help push more sales? NUMR finds out

Survey

NUMR recently conducted a survey enquiring about the perception of organic food products in the top 8 cities of India¹. Clearly, the Indian organic market is on the cusp of transformation. Currently, it is evaluated to be around INR 40,000 million and  estimated to increase to INR 100,000- INR 120,000 million by 2020. Additionally, it is growing at the CAGR of around 25%, tremendously faster than the global organic market (CAGR- 16%). With concerns about lifestyle illnesses continually on the rise, Indians have become more conscious of the food they consume; and where this food originates from. This, coupled with the increasing disposable household income has been driving the consumption of Organic food in India.  

Therefore, here is the result of Numr's Organic Market Survey.

QUESTION
Do you wish/plan to buy Organic Food Products in the near future?

QUESTION
Do you trust the Organic Food Tag or Certification?


QUESTION
Choose the articles that you would prefer to buy organic.

Unsurprisingly, it is no secret that organic products tend to much more expensive than their inorganic counterparts. Furthermore, the ‘Sustainable Living’ and ‘Farm to Fork’ movements have done much for the awareness around organic food but nothing for the affordability.

However, according to a report titled ‘The World of Organic Agriculture-Statistics and Emerging Trends, 2018’ by the world’s leading organic farming research organisation, FiBL, India has the highest number of organic producers in the world, with 835,000 organic farmers. Also, India ranks 9th in terms of area under organic cultivation. Yet, the price differential between organic and inorganic remains sizable.

Therefore, Numr’s next set of questions revolved around price.


QUESTION
How much more would you be willing to pay for a certified organic food product?


To summerise, the majority (71%) of respondents chose ‘Fruits and Vegetables’, with 84% stating to only be willing for pay a maximum of 30% more for organic. However, a quick study of an online grocery reveals the difference to be significantly more. For example, organic vegetables cost 50% more than their inorganic counterparts and organic fruits, 45% [2] more.

  • For Dairy, 90% of all respondents are unwilling to pay over 30% for Organic. Curiously, organic cow milk currently costs over 66% [3] more than inorganic.
  • For grains and pulses, 87% reported that they would not pay more than 30%.
  • For herbs and spices, 86% of the respondents would only consider paying 30% extra, while for Meat and Poultry, the number is 83%.

Surely, it is inevitable that the demand for organic products will keep on escalating in the next few years. Evidently, the Organic food tag is already pushing sales. With the rise in the collective consciousness around consumerism and climate change, people have been actively seeking out sustainable alternatives. But will the Indian Organic market be able to provide the consumers with affordable options? Only time will tell.

METHODOLOGY

[1] SEC A1. Online Panel.

A total of 500 respondents across various demographics were surveyed. These respondents all belonged to the top 8 cities, namely Delhi NCR, Mumbai, Kolkata, Bangalore, Pune, Hyderabad and Chennai and were at least 22 years of age, at the time of answering the survey. These respondents were affluent, tech savvy urbanites who routinely use OTT platforms, are extremely health conscious and keenly aware of changing market trends.

[2] All prices are taken from . Location- New Delhi. Date- May 13, 2019.

[3] From https://4sfoods.co.in/

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