Organic India: The Promise, the Pitfalls, and the Path Ahead

The global organic food and beverages industry is on course to touch US$ 620 billion by 2026, fuelled by consumer demand for clean, sustainable, and chemical-free living. India, with its 1.93 million hectares under organic cultivation and millions of farmer-producers, stands at a decisive moment. The opportunities are vast—from a Rs.25,000 crore domestic market potential to global leadership in value-added exports. But so are the challenges: fragmented certification, fake organics, pricing hurdles, and policy confusion.

- By Sunil Kumar

The global organic food and beverages market is no longer a niche-it is a juggernaut. Valued at about US$ 220 billion in 2019, it is projected to touch US$ 620 billion by 2026, growing at a steady CAGR of 16%. Demand is fuelled by rising consumer awareness, environmental consciousness, and a preference for chemical-free living. At the same time, global organic farmland has nearly doubled from 36 million hectares in 2010 to 72 million hectares today. Oceania dominates, accounting for 50% of this land, followed by Europe at 22%, while Asia lags at 9%.

Interestingly, while the U.S. remains the single largest market, commanding 42% of global retail organic sales, India has emerged as the country with the largest number of organic farmer producers—a paradox that highlights the gap between India's production strength and its limited domestic consumption.

The Indian Market: Small Base, High Potential

India's organic food and healthy foods sector currently stands at a modest US$ 1.5 billion, but is expected to double to US$ 3 billion by 2026. The real potential, however, is far larger. Rising incomes, rapid urbanisation, the spread of e-commerce and quick commerce, and a growing burden of lifestyle diseases are reshaping consumer choices.

With 1.75 crore Indians earning between Rs.75 lakh and Rs.100 crore annually, the addressable market for authentic organic products could exceed Rs.25,000 crore, if even half of these consumers adopted organic staples as part of their daily diets. Future demand is likely to concentrate around organic ghee, khaand, millet-based cookies, desi wheat atta, honey, rice, and cold-pressed oils.

India's Organic Story: Driven by Exports