Organic food sales have spiked by 25%-100% in India since the pandemic began.

◊ By Rutaksha Rawat

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2020 may have been an unforgiving year but it has spared India’s organic food industry, which is in the pink of health, with a 25-100% spike in sales—more—for most players, than before the pandemic began.

Consumers’ ears are now pricked to the terms ‘Purity’, Adulteration’. ‘Clean Food’, ‘Organic’ and ‘Immunity’. They now scan labels and ingredient lists more keenly.

Indeed, the pandemic has proved to be a tailwind for an already progressing shift towards organic foods and products. The virus has only expedited migration to organic for discerning consumers, a trend that will percolate across strata over the next decade, even after the virus has been defeated.

The spike in sales of organic foods (since March 2020, when the first lockdown was announced in India) reflects the evolved consumer mindset.

The New Delhi-based organic food aggregator, I Say Organic, which has three retail stores Delhi NCR and also operates through its e-commerce website, www.isayorganic.com, has experienced a 100% spike in sales since lockdown was imposed, its founder, Ashmeet Kapoor, informs Pure & Eco India.

45-year-old modern trade retail chain, Modern Bazaar, which has 10 outlets in Delhi NCR, in addition to its e-store, modernbazaar.online, is witnessing a 25% rise in sales of organic foods.

“There has been a definite increase in the sale of organic and health food products as individuals want to lead a healthy lifestyle and ensure protection against the coronavirus. Sales at our stores have shown a 25% increase in organic food products,” says Kunaal Kumar, Modern Bazaar’s director.

The organic food company, Natureland Organics, which is headquartered in Rajasthan, has observed an uptick of 60%.

Gujarat’s leading organic retail store chain, Suryan Organic, which has multiple stores across the state, besides online stores, sose.in, has witnessed an increase in sales, of 25-30%.

The pan-India e-tailer, Naturally Yours (www.naturallyyours.in), has witnessed a demand increase of 70-80%.

Bengaluru-based organic e-tailer, Healthy Buddha (healthybuddha.in), is enjoying increased sales of 30%.

The health snacks company, Nourish Organics, also registered a 30% rise in sales.

Food brands Organic Tattva and 24 Mantra Organic; Bengaluru’s organic store retail chain, The Organic World; and natural and organic fruit aggregator, FarmerUncle (farmeruncle.com)—have all witnessed increase in sales.

“There has been a definite increase in the sale of organic and health food products as individuals want to lead a healthy lifestyle and ensure protection against the coronavirus. Organic food product sales at our stores have shown a 25% increase.”

– Kunaal Kumar, Director, Modern Bazaar.

PRODUCTS MOST IN DEMAND

Organic fruits and vegetables, as well as, organic staples are most coveted. At Modern Bazaar’s stores, atta, dals, and besan, nuts and seeds, and organic cereals are bestsellers.

24 Mantra Organic observed an increase in sales of basic essentials like atta, rice, pulses, spices, sugars, oils and cereals.

Organic Tattva has received maximum orders for atta and pulses.

Natureland Organic’s bestsellers include pulses, oils, atta, spices, cracked wheat and pearl barley.

At I Say Organic, demand is highest for fresh fruits and vegetables, pulses, grains, oils and spices.

The Organic World, which has 11 retail stores in Bengaluru, along with its e-store, theorganicworld.com, registered organic fruits and vegetables as bestsellers during this period.

FarmerUncle, which operates through its app, and procures fruits directly from farmers across India on pre-order basis, has also witnessed escalated orders.

“There is a surge in demand due to the lockdown. Prior to this crisis also we were receiving increased demand due to positive word of mouth. The lockdown has given a fillip to these numbers. As most people are at home, they have more time to order. Also, immunity has become ammunition against the virus, and people want to ensure they consume pure fruits that have no pesticide residue in order to gain optimum nutrition. So they are signing up faster than they would have, were the pandemic not in existence,” says Saazid Singha, founder, FarmerUncle.

Consumer focus is on boosting immunity. At Suryan Organic, sales of certain grain items have risen by 50%. Its brand Gir’s immunity-boosting Gir Giloy Gaumutra capsules and Gir Gaumutra Ark have sold out and the company had to produce new batches to cater for increased demand. The sales of its nasal lubricant, Gir Nasya, have spiked by 100%.

Healthy Buddha’s bestselling products include vitamin C-based fruits such as orange, sweet lime, lemon, as well as, drumstick leaves and greens. Immunity boosters like Chyavanprash, and wheatgrass powder are also much in demand.

CONSUMPTION TRENDS IN THE PANDEMIC ERA

– Immunity is the new buzzword. Therefore, organic foods are becoming important to consumers, and these will continue to be in demand even after pandemic has passed.

– There is maximum demand for organic staples and organic fruits and vegetables.

– There is also high demand for immunity-based natural concoctions and ingredients.

– Demand for organic foods has spiked by 25-100%. Post-Covid-19, 30-40% continued growth is expected

DEMAND FOR ORGANIC FOOD WILL REMAIN STRONG EVEN AFTER PANDEMIC

The uptick is expected to hold post-Covid-19 as well, as players expect Indian consumers to shift towards healthier consumption for greater immunity.

Gautham PB, co-founder, Healthy Buddha, believes people have had a reality check that they will not forget soon: immunity is key. “People will continue with chemical free produce for their family for better immunity in case Covid-19-like issues recur in the future. I also expect vendor-customer dynamics to change in the future, as customers will want to do business and have a relationship with local players rather than large chains. Especially, since local players are able to support customers much better in times of crisis such as the one this pandemic has posed,” he says.

Kumar of Modern Bazaar believes the inclination of consumers towards organic products will increase in the future. “Given the fact that the impact of Covid-19 is going to be present in the medium term, there will definitely be an emphasis on remaining healthy to be able to fight any such situation that may arise. Our assessment is that the current trend and movement towards consuming organic products will definitely continue to increase in the future,” he says.

“Demand will continue to grow in the future by at least 30-40% as consumers move towards healthier options to stay fit, even after the pandemic is over,” says Vinod Kumar, CEO and founder, Naturally Yours.

“Immunity has become key. People will continue with chemical free produce for their family for better immunity in case Covid-19-like issues recur in the future. I also expect vendor-customer dynamics to change in the future, as customers will want to do business and have a relationship with local players rather than large chains. Especially, since local players are able to support customers much better in times of crisis such as the one this pandemic has posed.”

– Gautham PB, Co-Founder, Healthy Buddha

“We expect a sustained increase of 25% or more post Covid-19, as organic food has higher antioxidants compared to non-organic food. The higher the antioxidants, the better the immunity,” says Raghuveer Reddy, AGM – marketing, 24 Mantra Organic.

“The awareness about organic foods and natural healthcare has anyway been growing, and we see this trend accelerating, going forward. With the world in the throes of the pandemic, people are relying more than ever on immunity—and they trust organic and natural foods and superfoods to help,” says Gopesh Sutariya, director, Suryan Organic.

Singha shares, the pandemic has allowed smaller players like FarmerUncle to become more visible to consumers owing to unfulfilled and delayed orders of big players such as Bigbasket and Grofers. He believes some of these new, satisfied consumers would stay on with them past the crisis.

He does not believe, however, that fly-by-night operators would benefit in the long term from the increased consumption. “A lot of operations have come up virtually overnight to cater for panic buying and increased demand, but these will not hold as they do not enjoy the loyalty and trust older players have acquired over time, nor have they had the time to build out a quality supplier network,” he says.

Previous global health scares caused sales spikes, followed by sustained demand for organic products.

For instance, the BSE (Bovine spongiform encephalopathy) crisis in the year 2000 created demand for organic meat in Europe—and sales remained buoyant thereafter. Similarly, the SARS outbreak led to a spike in sales for organic foods in China in 2004, which was retained afterwards.

The melamine scandal in 2008 drove up demand for organic baby food in China. Consequently, within only a few years, China emerged as the largest market in the world for organic infant formula.

The ascent of the organic industry is not expected to be a temporary one. It will carry on past the pandemic, with wider adoption of organic products over the next decade.