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India-Origin ★ Growing Demand for Organic Products: Online Sales Drive Expansion
Online sales of organic food with reduced pesticides and chemical fertilizers are thriving in India. Riding the wave of growing health consciousness, demand for organic daily consumer goods has recently diversified, driving continued market expansion. This was reported by NNA, which distributes economic information on Asia.
Natural Mantra (headquartered in Mumbai), an online retailer specializing in organic products, is seeing sales grow at a pace of 40% month-on-month. While the company also handles baby food, cosmetics, toys, and home care products, "over half of the orders are for food" (CEO Anand Agarwal). According to local media Business Line, CEO Agrawal expressed confidence in the company's future outlook, stating, "We expect to turn profitable in 2016, with sales reaching 500 million rupees (approximately 930 million yen)."
BigBasket.com, an online retailer specializing primarily in fresh food, stocks 10,000 products from 1,000 brands and operates in three cities: Bengaluru, Mumbai, and Hyderabad. According to Bipal Parekh, CFO of Innovative Retail Concepts, which operates the site, the company's organic food sales are 10 million rupees per month, accounting for 20% of total sales. "The proportion of organic food is increasing month by month," said Parekh.
Raul Lalra, who runs the organic cafe "Organic Express" (pictured) in Gurgaon, Haryana state, told NNA, "I established a company dealing in organic food four years ago. We have contracts with 70 farms nationwide to supply our products." He currently operates 12 organic food stores in the state and plans to launch online sales in mid-November.
India's organic market exceeds 10 billion rupees and is growing at an annual rate of 20%. A study by the non-governmental organization MR Morarka GDC Foundation for Rural Studies notes, "Demand for organic food is rising not only in urban areas but also in small towns in rural regions. While prices are higher than conventional products, Indian consumers are willing to pay a premium of around 20%."
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