Do Indian consumers value organic & eco-friendly products?

How big is this market as a business opportunity?

TerraChoice, one of the leading marketing companies globally, conducted a study on the eco-friendly products in the market, and the results were astounding. It was discovered that the eco-friendly market has increased by around 73% with new products and companies entering the market. This clearly shows that the demand for eco-friendly products is really high, and India is no different.

Indian audience has now realised the benefits of eco-friendly products and prefers organic and eco-friendly products. The various advantages of organic products have made consumers shift from inorganic products to organic products. This article highlights the various benefits of organic products, a perspective of the Indian audience towards organic products, and the value of this market as a business opportunity.

What are eco-friendly and organic products?

Eco-friendly and organic products are terms that are interchangeably used in the market, but are completely two different terms. Eco-friendly products are those products that are good for the environment, and do not contribute to pollution. In contrast, organic products are products that are produced using organic methods like zero use of fertilisers. Organic products usually include organic vegetables and organic drinks, free from harmful chemicals and artificial flavours. Following are the various advantages of eco-friendly products and the benefits of organic food.

Advantages of eco-friendly products

• It protects the environment by not contributing to air, land and water pollution.
• Eco-friendly products help improve the mental and physical health of the consumers as they are free from hazardous substances and chemicals.
• It reduces the wastage of natural resources, thus allowing resources to regenerate by time and ascertains that these resources are available for future generations.

Benefits of organic vegetables and food

• As organically produced vegetables are fertilisers and chemicals free, so it does not carry any harmful substances in our bodies and protects us from various diseases.
• Organic food contains a lot of antioxidants, which are good for our health, and have a positive impact on our mind.
• As vegetables and fruits are allowed to grow naturally in organic farming, a lot of people find this natural taste better than artificial sweeteners.
• It protects the environment by not contributing to air, land and water pollution.
• Organic products help improve the mental and physical health of the consumers as the products are free from harmful chemicals and fertilisers.
• Using organic food leads to better peace of mind as it improves health, and you know it is safe to eat.

Do Indian consumers value organic & eco-friendly products?

Recent studies by Nielsen shows that Indian consumers prefer buying products that are sustainable to the environment. Nowadays, consumers in India have started realising the importance and advantages of organic food on human health and environmental benefits of using these products. Though around 86% of Indian consumers consider eco-friendly products while shopping, only 44% actually buy organic and eco-friendly products because they are a little expensive.

Indian consumers are rational and do compare the quality and price before actually buying products. It is always perceived by Indian consumers that eco-friendly and organic products are little more expensive than inorganic products, and they end up buying inexpensive inorganic products.

India has a big market for eco-friendly and organic products with consumers becoming increasingly environmentally conscious, but they do not always end up buying these products due to the following reasons:

• Indian consumers feel that organic fruits and vegetables are expensive for them to buy on a regular basis.
• Though the Indian audience is conscious about climate change and global warming, while shopping consumers tend to be rational rather than environmentally conscious.
• India is a developing nation with a lot of consumers in the middle class and lower middle class category who do not have enough money to buy organic and eco-friendly products.

How big is the market for eco-friendly and organic products as a business opportunity?

Consumer market research shows that the growth rate of eco-friendly products is much higher than that of other products. Consumers' interest in corporate social responsibility (CSR) is the same as their interest in eco-friendly products or services. From recycled paper to biodegradable idols and eco-friendly shopping bags, environmentally friendly is leading the consumer market. There are a lot of eco-friendly and organic business ideas to start in India, which are expected to be highly profitable and lead the consumer market in the future.

A sustainable eco-friendly business is one that produces products without using harmful chemicals. They use environmentally friendly raw materials to protect the environment and save natural resources. Following are a few eco-friendly business ideas that are expected to grow in future:

• Organic catering business: Food catering business is never a loss-making business in India, and with people becoming more environmentally conscious, organic catering is the new normal. This business idea involves serving organically produced food on different occasions. This is one of the most profitable organic business ideas because of the increasing number of health enthusiasts and nature lovers in India.
• Green consultancy business: This is one of the best business ideas for people who have experience in the field of environmental sustainability. Companies who want to survive long-term need to be environmentally conscious, and green consultants provide such companies with ideas to improve their business to be more environmentally friendly.
• Urban gardening and composting business: Due to the limited space in big metropolitan cities, urban gardening is a very viable and commercial option that can make it easier for urban residents to learn gardening techniques. You can also start a composting business along with urban gardening businesses to provide customers with organic compost and save them from harmful fertilisers.
• Recycling business: One of the easiest eco-friendly business ideas to start in India. This business can help reduce massive amounts of waste that gets accumulated in landfills. You can start a recycling paper mill or a recycling cloth business depending upon the demand in the market.
• Organic cosmetics business: In order to protect their skin, more and more people are turning to natural or plant substitutes which are produced without harmful chemicals. Making cosmetics with natural ingredients is a promising and profitable business for aspiring entrepreneurs.

Conclusion

Indian audience has now realised the benefits of eco-friendly products, and prefer organic and eco-friendly products. The various advantages of organic products have made consumers shift from inorganic products to organic products. The eco-friendly market is undoubtedly one of the fastest-growing markets globally, and aspiring entrepreneurs should consider this a business opportunity that is a profitable business and a medium to protect our environment and planet earth. This article highlights only a few eco-friendly business ideas; it is advisable to conduct thorough research before actually starting an eco-friendly and organic business.

Also Read:

1) How to start a business of eco-friendly & organic cleaning products?
2) How To Start An E-waste Recycling Business?
3) How Can Stock Summary Reports Optimise Inventory Management?
4) How Safe and Secure is Online Software?

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FAQs

Q. How can a consumer be more eco-conscious in his/her lifestyle?

Ans. Following are a few steps to be more eco-conscious in your lifestyle:

• Use reusable products and limit the use of single-use products.
• Try to buy recycled products like recycled paper, recycled shopping bags, etc.
• Try separating your waste into biodegradable and non-biodegradable waste.

Q. Which is the best profitable eco-friendly business idea to start with low capital investment?

Ans. Recycling business is an eco-friendly, profitable business idea that can easily be started with a low capital investment. This business can help reduce massive amounts of waste that gets accumulated in landfills. You can start a recycling paper mill or a recycling cloth business depending upon the demand in the market.

Q. Is there a demand for eco-friendly toys in India?

Ans. Yes, there is a high demand for eco-friendly toys in India, which are either made from bamboo or wood. Eco-conscious consumers are shifting from plastic toys to eco-friendly toys as these toys are environmentally friendly and durable, and safe to use.

Q. Do I need to get any specific license or approval before starting an eco-friendly business?

Ans. No, there is no specific approval required to start an eco-friendly business, you just need to get basic business licenses and approvals like GST registration, business operation license, government approvals, trade approval from authorities, etc.