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Organic Food Market in Asia

The organic food market in Asia is growing rapidly due to rising consumer awareness and increasing retail distribution in major cities. While demand is growing in more developed countries like Japan, production is primarily located in agricultural countries like China, India, Thailand and Indonesia. However, organic food prices remain high in Asia due to low consumer spending power in many countries as well as high import and distribution costs. The market is forecast to continue expanding at a rate of 15-20% annually in the coming years as more Asian consumers pay increased attention to health and wellness.

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0% found this document useful (0 votes)
45 views

Organic Food Market in Asia

The organic food market in Asia is growing rapidly due to rising consumer awareness and increasing retail distribution in major cities. While demand is growing in more developed countries like Japan, production is primarily located in agricultural countries like China, India, Thailand and Indonesia. However, organic food prices remain high in Asia due to low consumer spending power in many countries as well as high import and distribution costs. The market is forecast to continue expanding at a rate of 15-20% annually in the coming years as more Asian consumers pay increased attention to health and wellness.

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arjun singha
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Organic food Market in Asia

Natural is a prestigious name and is developing in all over asia and its areas. In spite of the fact that
development of the natural segment is fundamentally determined fare markets, nearby markets are
supposedly taking off in huge numbers of the huge urban areas In creating nations, remembering for
Kuala Lumpur, Manila, Bangkok, Beijing, Shanghai , Jakarta , Delhi , Bangalore and others. Japan ,
South Korea, Taiwan and Singapore keep on filling in as motors of development for the natural area
here, be that as it may. With a lively territorial economy and a significant number of the greatest
urban communities on the planet situated in Asia, more prominent area development can be normal
for the prompt future (WAI, O. K. ,2010).

The Asian market is reporting healthy growth because of increasing retail distribution and rising
consumer awareness. Leading food retailers in the major cities are introducing organic products.
Investment is also coming in from large food companies that are setting up organic food production
and distribution businesses. For instance, the Singaporean company Yeo Hiap Seng has launched
organic foods since it entered a strategic tie-up with Hain Celestial in summer 2005 (WAI, O. K. ,
2010).

Shopper attention to natural nourishments is rising mostly as a result of the high frequency of
wellbeing alarms lately. The panics, some including nourishments, are raising purchaser
consciousness of medical problems and invigorating customer interest for natural items. Significant
wellbeing alarms were Avian influenza and Serious Intense Respiratory Disorder (SARS) and those
including nourishments included cola drinks (India, August 2006) and tofu (Indonesia, January
2006) (Willer, H., and Lernoud, J.,2017).
Although organic food sales are rising, consumer demand remains subdued partly because of the
low spending power of most Asian consumers. Organic food prices are exceptionally high in some
Asian countries. In Japan, Taiwan and Singapore, some organic foods are priced 4-5 times as much
as non-organic foods. Since most finished organic products come in from countries like Australia
and the US, distribution costs and import tariffs inflate product prices (Willer, H., & Lernoud, J. ,
2017).
The interest for natural nourishment in Asia has been developing at 15 to 20 percent consistently
throughout the most recent decade (FiBL and IFOAM, 2009). This continued development can be
viewed as amazing in an area where agribusiness needs to contend savagely for land and different
assets with the modern and development divisions As indicated by FAO's gauge, ordered from EBIS
information, natural nourishment deals speak to just 0.17 percent of the US$1 trillion nourishment
retail deals in Asia and the Pacific in 2006 (Cadilhon, J., and Official, M.,2009).
The natural agrarian items expended in Asia are of two sorts:

1. Local items, for example, rice, crisp produce, sugar, fragrant herbs and therapeutic plants;
2. Imported items, for example, counter-regular new produce, infant nourishment, breakfast oats,
refreshments and dairy items.
The absolute natural territory in Asia is practically 2.9 million hectares, oversaw by practically
130'000 ranches. For some nations there are still no exact figures accessible, however a few nations,
wherein information were not recently recorded, presently have factual data accessible (Cadilhon, J.,
and Official, M. ,2009).
Most of exercises and advancement in the locale is happening without advertise guideline and
affirmation. Natural rules have just been set up in various Asian nations, including India, Japan,
Korea, Philippines, Taiwan and Thailand. Natural rules will in general be compulsory in bringing in
nations and deliberate in trading nations. Just Israel and now India have achieved equivalency status
with the EU guideline (Willer, H., and Lernoud, J. ,2017).
66% of the natural land in Asia (practically 2.9 million hectares). Arable land is principally utilized
for oats, including rice. The most significant perpetual harvests are espresso, foods grown from the
ground just as grapes. Enormous regions of broad brushing land are in China. Asia is turning into a
significant district for natural nourishments. Nations like China and India are turning out to be
worldwide wellsprings of natural fixings, while nations like Taiwan and Singapore are turning out
to be enormous purchasers (WAI, O. K. ,2010).
The Japanese market contains the greater part of the 750 million US-Dollars (580 million Euros) of
incomes (a modification of earlier years gauge as information that are progressively exact became
profit capable). Interest for natural items is packed in industrialized nations like Japan, South Korea,
Singapore, Taiwan and Hong Kong. Interestingly, creation is chiefly in farming nations like China,
India, Thailand and Indonesia. For the most part, essential harvests are developed in these nations,
primarily for fare to North America and Europe (Willer, H., and Lernoud, J. ,2017).
All through the district, retail costs for natural nourishment items stay costly on account of their
shortage and high import costs. Natural items can be as much as multiple times more costly than
ordinary items in Asian markets. The four areas will take a gander at patterns that may affect the
improvement of natural creation in the locale: interest for more noteworthy sanitation, a
worldwide temperature alteration moderation, oil value shakiness and the current monetary
emergency (Cadilhon, J., and Official, M. ,2009).
The Asian market is described by this import of a lot of prepared natural items. The significant retail
showcases for natural nourishments are Australia, New Zealand, Japan, Singapore, Taiwan Area of
China, Hong Kong and the Republic of Korea. These are moderately increasingly industrialized
nations from the area. . Be that as it may, a developing minority of urban shoppers in rising Asian
nations is beginning to create in nations like the Philippines, Thailand, India, China and Malaysia
(Cadilhon, J., and Official, M. ,2009).
In December 2006, Natural Screen announced a yearly division development between 30 to 40
percent in an article titled 'Asia's natural nourishment industry transitioning'.Area development has
without a doubt been great, yet not a similar everywhere throughout the district. Most ensured
creation, with the exception of in Japan as detailed beforehand, keeps on being for send out. As
indicated by Natural Screen, up to 90 percent of guaranteed creation from nations like Indonesia,
Vietnam and the Philippines is sent out - to a great extent to Europe and North America.
Incidentally, imported handled items are fuelling household advertise development, even in China,
the main wellspring of natural fixings with 85 percent of the area's natural farmland. Absolute deals
from the district are required to stretch around 800 million US-Dollars in 2006 as per Natural
Screen, twofold the estimation of 2001. The Japanese market, representing around 60 percent of the
area, remains the most significant in the district. Two South Korean affirmation bodies are currently
IFOAM licensed (ACBs), pushing up the aggregate from three to five ACBs in the district,
mirroring the developing support of the locale in between national exchange (Willer, H., and
Lernoud, J. ,2017).

Organic food Market in India

Natural cultivating was rehearsed in India since a large number of years. The incomparable Indian
human progress flourished with natural cultivating and was one of the most prosperous nations on
the planet, till the English governed it. Expanding pesticide deposits in nourishment materials,
eutrophication of surface and ground-waters and expanding nitrous oxide discharges which are
unfavorable to the ozone layer of the air, drew consideration towards the hurtful impacts of present
day agribusiness and earthy people squeezed hard for a progressively economical horticulture. The
job of natural cultivating in India country economy can be utilized to relieve the regularly
expanding issue of nourishment security in India. With fast industrialization of rustic conditions of
India, there has been a smash for farmland. Further, with the exponential populace development of
India, the requirement for nourishment adequacy has become the need of great importance.
Moreover, the abuse of plant development inhibitor, pesticides and manures for quicker
development of rural produce is inconvenient to human wellbeing and nature in general
(Chandrashekar, H. M. ,2010).
A few people accept that natural nourishment is just an "idea" prominent in the created nations.
They believe that with regards to natural nourishment, India just fares natural nourishment and next
to no is expended. Be that as it may, this isn't valid. Despite the fact that half of the natural
nourishment creation in India is focused towards trades, there are numerous who look towards
natural nourishment for residential consumption(Dholakia and Shukul ,2012).
The most significant purpose behind purchasing natural nourishment was the worry for the strength
of kids, with over 66% guardians leaning toward natural nourishment to non-natural nourishment.
Despite the fact that natural nourishment is evaluated over 25% more than regular nourishment in
India, numerous guardians are eager to pay this higher premium because of the apparent medical
advantages of natural nourishment (Nandi et al., 2017).
Ecological mindfulness and expanding enthusiasm of buyers in natural nourishments and readiness
to pay for natural highlights lead to corporate enthusiasm for natural showcasing, starting significant
changes and advancements (Peattie and Crane, 2005). At the point when India had low populace,
agribusiness was practically natural and closer to nature. The arrangement of horticulture dependent
on the conventional information and practices passed on from age to age couldn't deliver enough to
sustain the expanding populace (APEDA, 2014).
In spite of significant spending on nourishments, the nourishment retailing in India has been sloppy.
Customarily, Indian purchasers used to burn through 90% of their nourishment spending on home
nourishment which has tumbled down to 80%. This is for the most part because of progress in
mentality and way of life of Indian buyers, where eating out is getting more pervasive than any time
in recent memory. Also, these shoppers wouldn't fret paying an exceptional cost for the nourishment
items which give benefits of both nourishment and wellbeing (Sondhi and Vani, 2007).
The natural nourishment showcase in India is at a beginning phase of its improvement; the greater
part of the produce is sent out to created nations (APEDA, 2014). The local market for natural items
is constrained to for the most part in the huge urban areas of India, and the market is foreseen to
develop at a significant pace of 40% to 45% in 2014 to 2017 (Oswald, 2013; Nandi et al., 2017).
Right now, the market for natural agribusiness has crossed ₹2500 crores, and the worldwide
exchange is today at USD $69 billion (₹360,000 crores approx) .By and by, in India, products of the
soil are the most elevated requested natural nourishment classes (Nandi et al., 2017).
India is having the most elevated number of natural makers on the planet, and the larger part less
than 80% of them are little and peripheral greater than 2 ha . Smallholder ranchers are being
prohibited from the fare natural stock chains (Singh, 2009). In this way, the alternative left for
smallholder ranchers is the residential market to sell their produce. In India, there are more than
15,000 certified natural homesteads and the number is developing quick throughout the years. Until
this point in time, there are in excess of 181 natural retail outlets in Bangalore alone . These natural
retailers are not composed, and there are considerable contrasts in their evaluating of the items. In
spite of this development potential, one of the ruining factors for natural shoppers is the significant
expense for natural items (APEDA, 2014).

As detailed by the Dholakia and Shukul (2012) natural purchaser study in north India, 71% of
respondents refered to that the significant expense as an obstacle to purchasing natural items. They
communicated that the eventual fate of natural horticulture would, to a huge degree, rely upon buyer
request and their rationale to pay an additional cost for naturally developed nourishments.
Buyer situated way to deal with understanding the market for the natural item is fundamental for
seeking after better administration of natural nourishment showcase in India. This is a perplexing
procedure, which is controlled by certain elements, for example, foundation, quality creation,
strategies, certification, and market condition (Aryal, 2008).
Notwithstanding, it is likewise basic to comprehend buyer basic leadership with respect to naturally
delivered nourishments and look for systems about how utilizations are controlled by shoppers'
convictions, dispositions, and reactions to natural items and willing-ness to pay a top notch value
(Dipeolu et al., 2009). A dominant part of past thinks about were done in created nations where
information and consciousness of nourishment are high. The customer mindfulness and inclinations
for natural nourishment items in the creating scene is generally obscure. Subsequently, there is a
pressing need to research the interest status of natural nourishment especially in creating nations
like India. The examination of customers' frame of mind and practices towards natural nourishment
items may help the two purchasers of natural premium and advertisers to drive development in the
natural nourishment showcase (Singh, 2009).
The Indian states engaged with natural cultivating in India are as per the following:-

- Gujarat

- Kerala

- Karnataka

- Uttaranchal

- Sikkim

- Rajasthan

- Maharashtra

- Tamil Nadu

- Madhya Pradesh
- Himachal Pradesh

In conventional India, the whole agribusiness was worked on utilizing natural


procedures, where the manures, pesticides, and so forth., were gotten from plant and
creature items. Natural cultivating was the foundation of the Indian economy and cow
was revered (is still done as such) as a divine being. The dairy animals, gave milk, yet
in addition gave bullocks to cultivating and waste which was utilized as manures
Chandrashekar, H. M. (2010).

Main organic agricultural products of India:-

 Bajra-mustard-wheat Dungarpur Pulses-cereals


 Cereals-cereals Bajra
 Cereals-pulses Mustard
 Kholar Til
 Maize Wheat
 Ginger Nagour Guar-cumin
 Soybean Guar-wheat
 Large cardamom Moong
 Passion fruit Mustard
 Bhilwara Urd Ganganagar Cotton
 Bharatpur Bajra and wheat Jaisalmer Bajra
 Alwar Wheat and bajra Jhunjhunu Pulses and wheat
 Cotton-grass Banswara Maize

The most important reason for buying organic food was the concern for the health of children, with
over 66% pa- rents preferring organic food to non-organic food. Though organic food is priced over
25% more than conventional food in India, many parents are willing to pay this higher premium
due to the perceived health benefits of organic food, (Nandi et al., 2017).
Organic food products in India are priced about 20 - 30% higher than non-organic food products.
This is a very high premium for most of the Indian population where the per capita income is
merely USD 800. Though the salaries in India are increasing rapidly, the domestic market is not
sufficient to consume the entire organic food produced in the country( Chandrashekar, H. M. 2010).
Of the numerous improvements in the district , India most likely takes the prize for accomplishment
and advancement in 2006. The Indian specialists figured out how to obtain both, USDA
identicalness for the NOP and the EU third nation posting, around the same time. Further-more,
perceiving the trouble smallholders face to get to outsider confirmation, the administration propelled
a national participatory assurance framework program with the help of the FAO India office to
encourage natural affirmation for the a large number of ranches and a huge number of sections of
land( Willer, H., and Lernoud, J. 2017).

Willer, H., & Lernoud, J. (2017). The world of organic agriculture. Statistics and emerging trends
2017 (pp. 1-336). Research Institute of Organic Agriculture FiBL and IFOAM-Organics International.

Cadilhon, J., & Officer, M. (2009). The market for organic products in Asia-Pacific. China
BioFach.

WAI, O. K. (2010). Organic Asia 2007. The World of Organic Agriculture: Statistics and Emerging
Trends 2008, 102.

Chandrashekar, H. M. (2010). Changing scenario of organic farming in India: An


overview. International NGO Journal, 5(1), 34-39.

Kumar, S., & Ali, J. (2011, June). Analyzing the factors affecting consumer awareness on organic
foods in India. In 21st Annual IFAMA World Forum and Symposium on the Road to (Vol. 2050, pp.
20-23).

Singh, A., & Verma, P. (2017). Factors influencing Indian consumers' actual buying behaviour
towards organic food products. Journal of cleaner production, 167, 473-483.

Sondhi, N., & Vani, V. (2007). An empirical analysis of the organic retail market in the NCR. Global
Business Review, 8(2), 283-302.

Dennis, C., Harris, L., Peattie, K., & Crane, A. (2005). Green marketing: legend, myth, farce or
prophesy?. Qualitative market research: an international journal.

Nandi, R., Bokelmann, W., Gowdru, N. V., & Dias, G. (2017). Factors influencing consumers’
willingness to pay for organic fruits and vegetables: Empirical evidence from a consumer survey in
India. Journal of Food Products Marketing, 23(4), 430-451.

Dholakia, J., & Shukul, M. (2012). Organic food: An assessment of knowledge of homemakers and
influencing reasons to buy/not to buy. Journal of Human Ecology, 37(3), 221-227.

Aryal, K. P., Chaudhary, P., Pandit, S., & Sharma, G. (2009). Consumers’ willingness to pay for
organic products: a case from Kathmandu valley. Journal of Agriculture and Environment, 10, 15-26.

Dipeolu, A. O., Philip, B. B., Aiyelaagbe, I. O. O., Akinbode, S. O., & Adedokun, T. A. (2009).
Consumer awareness and willingness to pay for organic vegetables in SW Nigeria. Asian Journal of
Food and Agro-Industry, 10(11), 57-65.

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