With no vaccine in sight, consumers are turning to organic foods as ammunition against Covid-19.

◊ By Benefit Publishing Pvt Ltd

Note: To access contact details of organic brands, organic shops and organic wholesale suppliers in India, buy the Organic Directory

Despite the global economy being in tatters, with an estimated contraction of -3% in 2020, the global organic food industry, in contrast, is clocking in robust growth of 25-100% as consumers continue to recognise immunity as ammunition against coronavirus.

Research organisation, Ecovia Intelligence, expects organic product sales to continue the upward trajectory in the post Covid-19 world.

Whole Foods Market, the world’s largest natural food retailer, has started limiting the number of its online grocery customers due to unprecedented demand.

In the UK, Abel & Cole reported a 25% increase in sales orders, while Riverford Organic is also reporting an unspecified demand surge.

Brick-and-mortar retailers are also gaining from emergency measures introduced by governments. Organic and health food shops have remained open in many countries under the ‘Essentials’ tag. They’re attracting new shoppers, while existing customers are spending more than before.

In France, some organic food stores are reporting sales increases of over 40%.

INDIA WITNESSING HIGH SALES DURING PANDEMIC

In India, the outlook is even more optimistic. Demand has surged up to 100% for some organic food purveyors.

The prominent New Delhi-based organic food aggregator, I Say Organic, which has a retail store in Gurugram and primarily operates through its e-commerce website, www.isayorganic.com, has experienced 100% surge since lockdown was imposed on March 25, its founder, Ashmeet Kapoor, informs Pure & Eco India.

The pan-India e-tailer, Naturally Yours, has witnessed a surge of 70-80%.

Gujarat’s leading organic retail store chain, Suryan Organic, has witnessed increased sales of 25-30%.

North Indian modern trade retail chain, Modern Bazaar’s organic food sales have surged by 25%.

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

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

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

The surge in sales has encouraged several Indian organic online retailers to come up almost overnight in a bid to cash in on the increase in demand.

GLOBAL DEMAND UNMET DUE TO EXPORT DISRUPTION

The surge has brought with it supply issues, however. The organic food industry is global, with international supply networks that are now under pressure. Many of the raw food ingredients used by European and North American organic food companies are produced in Asia, Latin America and Africa.

Lockdowns are disrupting supply chains. For instance, India is a major source of organic tea, herbs, spices and related ingredients. Emergency impositions introduced in March have halted food processing and exports, leading to supply deficits.

DEMAND FOR ORGANIC FOODS WILL OUTLIVE PANDEMIC

Demand for organic foods is expected to remain strong in the post-Covid-19 era. Previous health scares also caused sales spikes, followed by sustained demand for organic products.

For instance, the BSE (Bovine spongiform encephalopathy) crisis in the year 2000 escalated demand for organic meat products in Europe—and sales remained buoyant thereafter.

Similarly, the SARS outbreak led to a spike in demand for organic foods in China in 2004, which was retained afterwards.

The melamine scandal in 2008 pushed up demand for organic baby food in China. As a consequence, within just a few years, the Chinese market for organic infant formula became the largest in the world.

In 2018, the global organic products market crossed USD 100 billion. With Covid-19 changing the way consumers perceive food and nutrition as the means to survive and thrive, the leap to USD 150 billion could occur within the next 5 years.

An update on the global organic and sustainable food market will be rendered at upcoming editions of the Sustainable Foods Summit.

DATES:

Asia-Pacific edition: 7-8 September, Singapore

European edition: 16-18 September, Amsterdam