Consumer behaviour analysis towards organic foods in India

Abstract

In India, metro cities witness growing awareness about organic food consumption and there is colossal demand for the organic food which in turn triggers sales growth. The global organic food and beverages market is expected to grow from USD 57.2 billion in 2010 to USD 104.5 billion by 2015 with a CAGR of 12.8 per cent while in India the market has CAGR of 20-22 percent. Interestingly, the price range of organic food is generally 20-30% more than conventional food. Thus, the booming trend in shift to organic foods is attributed and backed by two factors: increased health consciousness and rising disposable income. Consumers in urban setting especially in metro cities like Bangalore, Mumbai, Delhi, Chennai, Gurgaon and Pune are considered to be the largest demand creators for organic foods. Evolving perception of organic food from being a luxury only for elite to a necessity will drive the domestic consumption. With this increasing demand for organic food, there are not many nationalised brands to cater the demand. Without getting into economics of demand and supply, this paper attempts to identify the consumer perspective of organic food. The papers explores in depth motivations and barriers in the consumption of organic food. The paper also covers underlying beliefs and attitudes of organic food users and their impact on purchase decision