Introduction

The organic industry in India is in the early stages of its life cycle. The industry can be characterised as innovative. In most of the commodities (such as sugarcane in UP, basmati rice in Haryana, Maharashtra and Madhya Pradesh, pulses in Madhya Pradesh, Rajasthan and Uttar Pradesh, cotton in Gujarat, citrus in Maharashtra and Orissa, mango pulp in Gujarat and Maharashtra), it is just beginning to emerge. At the same time, there are a few success stories to be found. For rice and sugarcane farmers in the hilly terrain of Uttaranchal, the switch to organic has been a life-changing experience; they have been able to return to traditional methods of farming without chemicals and yet increase their levels of production. Constraints apply a brake on the market growth. Price has been a dominant issue from the consumer’s perspective. The new system of certification is still causing some confusion and concern for different agencies and trade organisations. With further improvements in the implementation and standard of certification, we should see a greater level of assurance and integrity for consumers of organic products. Internal constraints within the industry also limit the potential at this stage. Due to poor infrastructure, systems of production are often isolated with little information and resource exchange between farmers. Improvement of this knowledge base and assistance for the change in infrastructure will facilitate an increase in production and quality of product. With the current upward trends, we can see that organic is a viable option for the future industry of all commodities. Globally, a predicted steep rise in the market of organic products provides an attractive environment for export. With greater levels of support, we could see India one day providing organic products for all over the world. The term ‘organic’ refers to the way agricultural food products are grown and processed. Organic food is recognised as a safer and healthier option and is only achieved by avoiding the use of artificial pesticides, fertilisers, and preservation. With growing health consciousness and willingness to pay a premium for healthier food, development in the organic agricultural sector is becoming an increasingly important factor in economic policy. India, with its well-diversified agro-climatic conditions, is potentially capable of being self-sufficient in food production provided its resources are utilised optimally. In order to meet the food requirements of the growing population, production and productivity of several crops need to be enhanced. The export of organic foods from India has registered a substantial increase, as the country has a unique position, nearly 15% of the land is certified organic, and it is also the world’s largest producer of organic farming. The export of organic products is expected to grow at a rate of 50%–100% in the coming years. The farming community is of the strong opinion that the organic food products business will bring a lot of cheer to the farming community, who are currently facing a livelihood crisis due to falling prices of Agri-commodities.

Objectives

• To examine consumer preferences, with a particular emphasis on the younger demographic.
• The factors that promote growth and the obstacles that affect the organic food market.
• Practical insights for maximising India’s potential with respect to the Organic Food Market in the international market.

Problem Statement

India, being one of the largest agricultural countries, the organic products have not been in the bigger picture in the International Market as of now, so in order to assess the potential of it with respect to consumer preferences, it is important to study the aspect of organic food acceptance in Indians.

Literature Review

The literature of various research articles examines different aspects of India’s organic food industry.

• Market Landscape: Several studies provide a comprehensive overview of India’s organic food sector, encompassing production, distribution, market size, and consumer sentiment. There is a substantial demand for organic food products in India and around the world, as evidenced by reports and studies. Although there is an increase in the demand for organic food products, it is necessary to investigate the consumer’s attitude and perception of organic food products. It is necessary to investigate the extent to which consumers are aware of the negative consequences of consuming non-organic food products. Numerous studies concentrate on consumer attitudes and perceptions; however, a comprehensive examination remains necessary (Kattige & Patil, 2022; Makadia & Patel, 2015; Ponniah & Sri, 2022).
• Consumer Behaviour: Research explores factors influencing organic food purchase decisions in India. Some studies delve into specific regions like Mumbai (Agarwal & Mittal, 2021; Kattige & Patil, 2022), while others offer broader insights (Patil, 2020). Key motivations identified include health benefits (HB), environmental concerns, and rising awareness of food safety (Agarwal & Mittal, 2021; Bhardwaj, 2017).
• Production and Challenges: Studies analyse trends and growth potential in organic production (Mahajan & Malik, 2020), highlighting the gap between certified organic land and its full potential (Mahajan & Malik, 2020). Challenges faced by organic agribusiness in India are also explored, emphasising the need for supportive government policies (Ravindran & Kalamkar, 2020).
• Business and Marketing Strategies: Research sheds light on the motivations, business models, and challenges faced by organic food companies in India (Mukherjee 2016). Additionally, studies explore marketing strategies for organic products, showcasing India’s success in the export market (Makadia & Patel, 2015).
• Impact of COVID-19: Research explores the influence of the pandemic on consumer behaviour towards organic food in India. Studies suggest a rise in demand and potential growth opportunities during this period (Chaturvedi 2020).
• Shifting Paradigms: Some studies explore the broader societal shift towards organic farming during the pandemic, highlighting its connection to food safety and security concerns. India’s western highland regions are characterised by extensive drylands, experienced traditional farmers, and ample rainfall, which present a promising opportunity for the adoption of organic farming. The current understanding of conventional agricultural methods serves as a solid foundation for the enhancement of contemporary organic production (Mishra & Mishra, 2020).
• The Online Market: Emerging research explores online purchasing behaviour for organic food, identifying positive attitudes as drivers for online purchases (Pahari 2023). The consumption of organic food has emerged as a significant area of interest due to the growing consciousness regarding health and environmental issues among consumers. Numerous scholarly investigations have delved into the diverse factors influencing consumer inclinations towards organic food products, encompassing health advantages, environmental sustainability (EB), food safety, and socio-economic dynamics.
• Health Benefits: According to scholarly discourse, consumers commonly perceive organic food as a healthier option owing to its reduced exposure to synthetic pesticides and chemicals. Various studies have underscored the pivotal role played by factors such as nutritional quality, absence of artificial additives, and perceived HBs in driving the consumption of organic food (Hughner et al., 2007; Smith 2016).
• Environmental Sustainability: Considerations related to EB significantly influence consumer preferences for organic food. Consumers often opt for organic products to endorse sustainable agricultural practices, mitigate environmental impact, and contribute to biodiversity conservation (Aertsens et al., 2009; Magnusson 2019).
• Food Safety: Concerns pertaining to food safety and the presence of chemical residues in conventional food items have propelled consumers towards organic alternatives. Studies have demonstrated that perceptions regarding food safety and trust in organic certification serve as crucial determinants shaping consumer preferences for organic food products (Fotopoulos & Krystallis, 2002; Hjelmar, 2011).
• Food Safety and Quality Assurance: Perceptions of food safety and quality assurance also influence consumer choices in favour of organic food. Organic certification schemes, which certify compliance with organic standards and regulations, serve as important signals of product quality and authenticity (Hughner et al., 2007; Yiridoe et al., 2005). Consumers often view organic certification labels as indicators of safer and more trustworthy food products.
• Socio-Economic Factors: Socio-economic factors, including income, education, and social status, play a significant role in shaping organic food consumption patterns. Research suggests that consumers with higher disposable incomes and greater educational attainment are more likely to purchase organic food products (Akaichi et al., 2021; Hughner et al., 2007). Additionally, cultural and lifestyle factors, such as urbanisation and exposure to health-related information, influence consumer attitudes towards organic food (Squires 2018).
• Consumer Attitudes and Perceptions: Consumer attitudes and perceptions towards organic food are complex and multifaceted. While some consumers prioritise health and environmental considerations, others may be driven by taste preferences, ethical concerns, or social identity (Davies 2010; Fotopoulos & Krystallis, 2002). Understanding these diverse motivations is crucial for marketers and policymakers seeking to promote organic food consumption.
• Socio-Economic Factors: Socio-economic variables such as income levels, educational attainment, and lifestyle choices also exert a notable influence on organic food consumption preferences. Individuals with higher income levels and greater educational attainment tend to be more inclined towards purchasing organic food due to heightened awareness and a willingness to pay a premium for perceived quality (Dubois 2015; Lockie et al., 2002).
• Cultural Influences: Cultural factors, including dietary traditions, culinary habits, and societal norms, can significantly shape preferences for organic food consumption. Scholarly investigations have emphasised the impact of cultural values and attitudes towards food production and consumption on the adoption of organic food choices (Hughner et al., 2007; Nielson & Thomsen, 2013).
• Health and Nutritional Considerations: One of the primary drivers behind the preference for organic food is the perception of its HBs. Studies have consistently shown that consumers associate organic food with higher nutritional value, lower pesticide residues, and reduced exposure to harmful chemicals (Brantsæter et al., 2017; Huang et al., 2020). This perception is often reinforced by scientific evidence highlighting the potential health advantages of organic food consumption (Barański et al., 2014).

Methodology

The consumer preferences regarding the Indian organic food industry utilising the Fishbein model are used to gain insights into consumer attitudes and predict potential purchase behaviour (Figure 1).

 

Figure 1. Fishbein Model.

 

• Survey Design: A structured questionnaire incorporated variables aligned with the Fishbein model. These variables assessed beliefs about HBs, EB, availability (AB), variety (VB), and certification (CB) of organic food products. Additionally, respondents rated the importance (BI) of each belief as shown in Figure 1.
• Sample Selection: A random selection process ensured a diverse demographic sample of 116 participants.
• Data Collection: Online platforms facilitated data collection.
• Data Analysis: The Fishbein model formula was applied to calculate individual Fishbein scores, reflecting overall intention towards organic food.

Attitude or Intention = Σ (Belief × Importance)

Survey Data

 

Graphical Representation of the Data (Refer to Appendix For the Questions)

 

Health Beliefs (Refer to Table 1):

 

Environmental Beliefs (Refer to Table 1):

 

Availability Beliefs (Refer to Table 1):

 

Variety Beliefs (Refer to Table 1):

 

Certification Beliefs (Refer to Table 1):

 

Analysis

The majority strongly agree that there is a significant availability of organic food products in their area. Most respondents find it important or very important to have a variety of organic dairy products. The majority agree or are neutral about looking for organic certification labels when purchasing organic food products. There’s a relatively equal split between finding a variety of organic dairy products important and very important. Most respondents either agree or are neutral about looking for organic certification labels when purchasing organic food products. This analysis provides insights into respondents’ perceptions and preferences regarding organic food availability, the importance of organic dairy product variety, and their behaviour regarding organic certification labels.

The majority strongly agree that there is a significant availability of organic food products in their area. Relatively equal split between finding it important and very important to have a variety of organic dairy products. Majority either agree or are neutral about looking for organic certification labels when purchasing organic food products. The table provides a clear overview of respondents’ perceptions, preferences, and behaviours regarding organic food availability, the importance of organic dairy product variety, and looking for organic certification labels.

 

Table 1. Numerical Statistics of Survey.

 

• Age Distribution: Most respondents fall within the 20–30 age bracket, indicating a younger population’s interest in organic food.
• Gender: There is a significant male majority in the dataset, suggesting a potential gender disparity in organic food consumption or participation in the survey.
• Educational Qualification: Most respondents have completed their post-graduate education, indicating a potential correlation between higher education levels and awareness or preference for organic food.
• Occupation: The dataset includes respondents from various occupations, with a notable presence of professionals and individuals classified as ‘others,’ such as homemakers or students.
• Monthly Family Income: A considerable portion of respondents falls into the higher income brackets, suggesting that affordability may not be a significant barrier to organic food consumption among this group.
• Perception of Organic Food: Most respondents perceive organic food to have a significant amount of nutrients and consider organic farming practices more environmentally friendly than conventional methods.
• However, there seems to be some variability in the perception of the availability of organic food products in their area.
• Preference for Organic Dairy Products: Respondents generally rate it moderately easy to have a variety of organic dairy products, indicating a somewhat positive attitude towards incorporating organic dairy into their diet.
• Consideration of Organic Certification Labels: Most respondents report looking for organic certification labels when purchasing organic food products, suggesting a strong emphasis on product authenticity and quality, the dataset highlights a growing interest in organic food among the younger, educated population in India, particularly among those with higher incomes. While there is a generally positive perception of organic food’s health and environmental benefits, challenges such as availability and affordability remain. However, the widespread consideration of organic certification labels reflects a desire for transparency and trustworthiness in the organic food market.

Factor Analysis

Factor analysis is a statistical technique used to identify underlying factors or dimensions that explain the correlations among a set of variables as shown in Table 2. In the context of analysing the Indian organic food industry and its potential to reach the global market, factor analysis can provide valuable insights into the key factors driving the industry’s growth, consumer preferences, market dynamics, and other relevant aspects.

The process of factor analysis typically involves the following steps:

• Data Collection: The first step in factor analysis is to gather data related to various aspects of the Indian organic food industry, including market trends, consumer behaviour, production practices, distribution channels, regulatory environment, and competitive landscape. This data can be collected from sources such as market research reports, industry surveys, government publications, trade journals, and academic studies.
• Variable Selection: Next, the variables to be included in the factor analysis need to be identified. These variables should represent different dimensions of the organic food industry and its potential to penetrate the global market. Examples of variables may include consumer preferences for organic products, awareness of organic food benefits, barriers to market entry, investment opportunities, and regulatory challenges.
• Data Preparation: Before conducting factor analysis, the collected data must be preprocessed to ensure its suitability for analysis. This may involve cleaning the data to remove errors or inconsistencies, handling missing values, and standardising variables to a common scale.
• Factor Extraction: These factors represent the common variance shared among the variables and capture the underlying structure of the data.
• Factor Rotation: Once the factors are extracted, they may be rotated to achieve a simpler and more interpretable factor structure.
• Factor Interpretation: The final step involves interpreting the extracted factors to understand their meaning and relevance to the Indian organic food industry. This may involve examining the pattern of factor loadings for each variable, identifying the key variables that contribute to each factor, and giving meaningful labels to the factors based on their interpretation as shown in Table 3.
• Strategic Implications: The insights gained from factor analysis can be used to inform strategic decision-making in the Indian organic food industry. For example, factors such as consumer preferences, market demand, supply chain efficiency, and regulatory compliance may be identified as critical drivers of industry growth. Understanding these factors can help industry stakeholders develop targeted marketing strategies, improve product offerings, optimise distribution channels, address regulatory challenges, and capitalise on emerging market opportunities to enhance the industry’s competitiveness and expand its reach in the global market.

 

Factor analysis offers a robust analytical framework for understanding the complex dynamics of the Indian organic food industry and identifying the key factors shaping its potential to succeed in the global marketplace. By systematically analysing the interrelationships (refer Figure 2) among various industry variables, factor analysis enables industry stakeholders to gain valuable insights into the industry’s strengths, weaknesses, opportunities, and threats, and develop informed strategies to drive sustainable growth and competitive advantage.

Cluster Analysis

Cluster analysis is a powerful statistical technique used to identify groups, or clusters, within a dataset based on the similarity of observations. In the context of the Indian organic food industry analysis and its potential to reach the global market, cluster analysis can provide valuable insights into various aspects such as market segmentation, consumer preferences, and industry trends.

The process of cluster analysis involves several key steps:

• Data Collection: The first step is to gather relevant data related to the Indian organic food industry, including market trends, consumer behaviour, production practices, and regulatory frameworks. This data can be collected from various sources such as market research reports, government publications, industry surveys, and academic studies.
• Data Preprocessing: Before conducting cluster analysis, the collected data must be preprocessed to ensure its quality and suitability for analysis. This may involve cleaning the data to remove errors or inconsistencies, standardising variables to a common scale, and handling missing values.

 

Figure 2. Factor Analysis Data.

 

Table 2. Factor Analysis Numerical Data.

 

Table 3. Factor Analysis Data.

 

• Variable Selection: Next, the variables to be included in the cluster analysis need to be identified. These variables can represent different aspects of the organic food industry, such as product types, consumer demographics, distribution channels, and market dynamics.
• Clustering Algorithm Selection: There are several clustering algorithms available, each with its own strengths and limitations.
• Cluster Analysis: Once the data is prepared and the clustering algorithm is selected, the actual cluster analysis can be performed. This involves partitioning the data into distinct clusters based on the similarity of observations. The algorithm assigns each observation to the cluster that maximises the similarity within clusters and minimises the similarity between clusters.
• Interpretation and Validation: After the clusters are identified, they need to be interpreted to understand their characteristics and implications for the Indian organic food industry. This may involve examining the profiles of consumers or businesses in each cluster, identifying common patterns or trends, and assessing the validity of the clusters through statistical measures or external validation.
• Strategic Insights and Recommendations: Finally, the insights gained from cluster analysis can be used to inform strategic decisions and recommendations for the Indian organic food industry. This may include developing targeted marketing strategies for different consumer segments, optimising supply chain management practices, identifying opportunities for product innovation, and exploring potential pathways for market expansion into the global arena.

 

Cluster analysis offers a valuable approach for understanding the complexity of the Indian organic food industry and uncovering opportunities for growth and competitiveness in the global market.

Output

Text: Organic food has a significant amount of nutrients. Healthy. | Sentiment: Positive

 

Text: Organic farming practices are more environmentally friendly than conventional farming methods. | Sentiment: Positive Text: Organic food products availability in my area is abundant. | Sentiment: Neutral

Text: Variety of organic dairy products is important to me. | Sentiment: Positive

Text: I always look for organic certification labels when purchasing organic food products. | Sentiment: Neutral

Descriptive Analysis (Refer to Table 4 for a Particular View of Details)

• Organic Food Nutrients Perception: A significant majority (about 95%) either strongly agree or agree that organic food has a significant amount of nutrients, indicating a strong positive perception of the HBs associated with organic food.
• Environmental Friendliness Perception: More than half of the respondents (about 63%) agree or strongly agree that organic farming practices are more environmentally friendly than conventional methods, suggesting a widespread belief in the ecological benefits of organic farming.
• Perception of Organic Food Availability: A substantial portion of respondents (about 70%) perceive organic food availability as abundant or moderate in their area, indicating a relatively positive outlook on the accessibility of organic food options.
• Importance of Variety in Organic Dairy Products: A considerable number of respondents (about 53%) consider it either very important or important to have a variety of organic dairy products available, highlighting the significance of diversity in organic dairy offerings to consumers.
• Preference for Organic Certification Labels: The majority of respondents (about 78%) agree or strongly agree that they look for organic certification labels when purchasing organic food products, indicating a strong preference for certified organic products among consumers.

 

The findings suggest a generally positive perception and preference for organic food among the surveyed individuals, emphasising the importance of health, EB, and product certification in their decision-making process when it comes to organic food consumption.

 

Table 4. Descriptive Analysis.

Perception of Organic Food Attributes

Perception of Organic Food Availability

Importance of Organic Dairy Product Variety

Preference for Organic Certification Labels

 

Results

Attitude or Intention = Σ (Belief × Importance)

Table 5. Fishbein Model Calculation.

 

Graphical Representation of the Analysis

Belief (Overall):

Figure 3. Belief (Fishbein Analysis).

 

Importance:

Figure 4. Importance (Fishbein Analysis).

 

Intention Score (Attitude):

Figure 5. Intention Score (Fishbein Analysis).

 

Fishbein score across all respondents was 11.04 (refer to Table 4 for the calculation).

Interpretation

There’s a shift in the Indian food scene, people are increasingly drawn to organic food, with health and environmental benefits topping the reasons why (as shown in Figure 3, Figure 4 and Figure 5). This presents a golden opportunity for the industry to take root not just in India, but globally also.

Growth Drivers

Exploding population middle-class with rising spending power is fuelling the demand for premium options like organic food.

More and more people are actively seeking organic options, believing they offer a healthier choice.

Rapid urbanisation is creating a need for convenient and healthy food, often leading to organic picks.

Heightened awareness about food safety issues is pushing consumers towards organic food, perceived as a safer alternative.

Challenges to Address

Organic food often carries a premium price tag, limiting accessibility for a large portion of the population.

Limited awareness, especially in rural areas, hinders understanding and appreciation of organic food’s benefits.

How Research can Show Positive Effects

Expanding distribution channels and streamlining supply chains can ensure organic products are readily available.

Pricing strategies that make organic food more accessible to a broader consumer base are crucial.

Transparency in labelling, robust certification processes, and quality assurance measures are essential for fostering consumer confidence.

Targeted marketing and awareness campaigns can educate consumers about the health and environmental benefits of organic food choices. Collaboration with government agencies, industry associations, and international organisations can promote the development and implementation of standards for organic food production and trade. Consumers want organic, but affordability, awareness, and trust need to be addressed. By taking strategic action, the Indian organic food industry can not only cater to a growing domestic demand but also emerge as a significant player in the international market.

Conclusion

India’s organic food market presents a landscape of promising opportunities alongside significant challenges. Despite facing barriers such as availability constraints and certification concerns, the country’s positive consumer attitude towards organic food remains a key driving force. With an expanding middle class embracing healthier lifestyle choices and an increasing awareness of EB, the demand for organic products is on the rise. However, several challenges persist, including the affordability gap that restricts access to organic food for many consumers, particularly those in rural areas. Limited awareness and understanding of the benefits of organic food further exacerbate this issue, highlighting the need for targeted education and outreach efforts. Moving forward, addressing these challenges will be essential for unlocking the full potential of India’s organic food market. By making organic products more accessible and affordable, while simultaneously raising awareness about their health and environmental benefits, stakeholders can capitalise on the growing consumer demand and drive sustainable growth in the organic food sector.

In the future, this research will help in coping up the specific challenges and opportunities that organic agriculture encounters in various regions and climates of India, as well as undertaking more comparative studies between organic and conventional agricultural methods. This will facilitate a more comprehensive comprehension of the potential advantages and disadvantages of transitioning to organic farming in India, as well as the economic and social factors that influence the acceptability and efficacy of such methods.

The Indian food landscape is undergoing a profound transformation, as organic food gains momentum, driven by a growing awareness of its health and environmental benefits. This paradigm shift not only presents a lucrative opportunity for the industry within India but also holds potential for global expansion. Health-conscious consumers are actively opting for organic alternatives, believing them to be a healthier option. Rapid urbanisation is fostering a need for convenient and nutritious food choices, often leading consumers towards organic selections. Heightened concerns regarding food safety are steering consumers towards organic produce, perceived as a safer choice amidst growing food safety issues. The premium price associated with organic food often renders it inaccessible to a significant portion of the population. Limited awareness, particularly in rural areas, poses a barrier to understanding and appreciating the benefits of organic food. By addressing these challenges and capitalising on the identified growth drivers, the organic food industry in India can not only thrive domestically but also emerge as a formidable player on the global stage, catering to an increasingly health-conscious and environmentally aware consumer base.

Limitations

• Sample size: The sample size of 116 respondents might not fully capture the nuances of India’s diverse consumer base.
• Self-reported data: The reliance on self-reported data introduces the possibility of bias and inaccuracies.
• External factors: Cultural norms, economic conditions, and regulatory policies were not extensively explored in this study.

Recommendations

• Enhance distribution channels and product variety to improve accessibility of organic food products.
• Implement stricter certification processes and promote transparency to address concerns about the authenticity of organic labels.
• Launch targeted marketing campaigns highlighting the health and environmental benefits of organic food choices.
• By addressing these aspects, the Indian organic food industry can bridge the gap between positive attitudes and purchasing behaviour, fostering its potential for international recognition.

Future Research

Segmentation can be carried out in vast scope, future research could delve deeper into consumer preferences within specific demographic segments, geographic regions, or product categories. Launching targeted awareness campaigns, collaborating with educational institutions, and leveraging media outreach can effectively educate consumers about the benefits of organic food. By leveraging its vast agricultural resources, India has the potential to become a global leader in the organic food industry. By implementing strategic measures to address affordability and awareness challenges, India can unlock its true organic potential and contribute to a healthier and more sustainable future for the global food market.

Appendix A

Questionnaire

1. Age

20–30

30–40

40–50

>50

2. Gender

Female

Male

Prefer not to say

3. Educational Qualification

Under graduate

Post graduate

Professional

Others

4. Occupation

Government Employee

Private Employee

Business

Others (Home Maker, Student, etc.)

5. Monthly Family Income

Less than Rs.2000

Rs.20000 to 30000

Rs.30000 to 40000

More than Rs.40000

 

On the scale from Strongly Agree to Strongly Disagree:

 

6. Organic food has a significant amount of nutrients. (Health Beliefs)

7. Organic farming practices are more environmentally friendly than conventional farming methods. (Environmental Belief)

8. Select the option that best describes your perception of the availability of organic food products in your area. (Availability Belief)

9. How important is it for you to have a variety of organic dairy products? (Variety Belief)

10. Do you look for organic certification labels when purchasing organic food products? (Certification Belief)

Appendix B

Proof of Acceptance:

 

Appendix C

Conference Certificate:

 

Appendix D

Conference Proceedings:

e-ISBN: 978-81-970159-9-1; DOI No.: 10.17492/jpi.VESIM.042401

 

Declaration of Conflicting Interests

The author declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding

The author received no financial support for the research, authorship and/or publication of this article.

ORCID iD

Stuti Bhardwaj   https://orcid.org/0009-0007-9481-6922