4 Thumb Rules to Focus While Foraying into Organic Food Business in India

The organic food industry of India is disrupting its way through the advent of technology. The increased mobile applications have given enough opportunities for people to snatch organic food in a matter of time. Surveys predict that the Indian organic food market is anticipated to grow at a CAGR of 25 by 2021, making it one of the promising sectors to align your business. Having cited this, there are still enough concerns and challenges for online food startups to successfully roll out a business establishment. In this narrative, let’s evaluate what are the things that an entrant into the organic food industry should closely watch.

Market Research

Be it organic food industry or any sector, every entrant should keep a close observation and study of the market which they are entering. Try to figure out authentic information on what are the present pain points of the buyers, how they are approaching the existing solutions in the market, how are the existing business reacting to the ongoing demand, what are the buyer persona of the market etc. Today, customers are increasingly aware of being conscious of the food they consume. They are willing to pay more in order to benchmark quality. All these should be clearly understood before launching local food applications.

Market Persona

Understanding the market persona is significantly important for an entrepreneur. What are the target people - are they youngsters, millennials, or local households? What are their food buying traits in the market and how their interests are likely to align with the launch of your business? You must understand that the buyers today are informative. Before trying to tap them, understand their spending power and patterns. The thumb rule while running top hyperlocal delivery startups is to understand that the food industry is a prerequisite for all, which in turn makes everyone a potential buyer in the market.

Growth Opportunity

If we evaluate plot the food category and the scale of opportunity on two axes of the graph, then we can find that we can identify that organic food has a high margin and high scale opportunity bracket. This opportunity is driven by the fact that India’s organic food consumption is not even 0.1 percent of India’s $300 Billion annual consumption. These statistics make the food industry a great business model for entrants to target. Investors can are more aligned towards the typical organic food industry as its more efficient compared to conventional food as well.

Challenges and Policy Changes

As a food startup founder, you should be aware of the fact that every business sector has got challenges faced against policy norms and regulations. Understand that the organic food supply chain is underdeveloped. Several small and medium scale farms are unable to access the customers. There is a severe scarcity of proper logistics and most modern transit vehicles to facilitate proper transportation of the harvest. It is important to understand the policy schemes operated by the Government to run your business adhering to the laws. There are regulatory norms and eligible subsidiaries while running a food sector application.

About FoodPulsar

FoodPulsar is the latest hyperlocal food application launched in order to seize the market opportunity of organic food. The free application forges an ecosystem where the local customers, merchants, and households are equally benefitted from sharing and accessing organic food. Users can simply list down products across various categories and the needy community audience can browse to find out the dish that they want to have for the occasion.  Download the free app here.