The Hindu Business Line : Organic food still out of reach for consumers: Nielsen study

Mumbai, Dec. 4 Organic food has yet to make its mark in the Indian market, as price and availability are the main hindrances to the growth of this category, according to a new study by The Nielsen Company.

“Though Indians are getting more conscious about health, organic products are yet to make a mark in the average Indian household. Marketers of organic food need to not only take up the job of educating consumers about the benefit it offers, but also build credibility for the products to buy consumers’ trust before they can expect any takers,” said Ms Sonia Pall, Executive Director, Client Solutions, The Nielsen Company.

Interestingly, for Indians, artificial flavours and preservatives act as a hindrance when selecting a product. Thirty-three per cent of those surveyed consider a product high on sugar content but without artificial flavours, coolers or additives a healthier option over a product less in calories but made with artificial substitutes (16 per cent).

Artificial = unhealthy

“The word ‘artificial’ is associated with ‘unhealthy’ in India and so a product with full sugar content but no artificial flavours is considered healthier any day over a product with some artificial additives,” added Ms Pall.

Even though organic products have yet to capture the market, Indians are quite conscious when it comes to purchasing foods that promote specific health benefits. Eighty-two per cent regularly buy iodine-enhanced cooking salt — the highest for any country globally.

Other items regularly bought include whole grain, high fibre products (61 per cent), cholesterol-reducing oils and margarines (47 per cent), fruit juices with added supplements (38 per cent), milk with added supplements/vitamins (29 per cent), bread with added calcium or other vitamins (26 per cent), cCereal with added folate (16 per cent), yoghurts with Acidophilus cultures/probiotics (14 per cent), fermented drinks containing ‘good’ bacteria (8 per cent), and soy milk (7 per cent).

Environment concerns

The main reason cited by Indians for purchasing organic products is that it is healthier (52 per cent) and better for the environment (21 per cent). “Environmental concerns have taken over in a big way when it comes to the choices people make while purchasing products. This percentage is also the highest amongst the countries surveyed in the Asia Pacific region, which is an indicator of the growing environmental concerns of Indians,” said Ms Pall.

Among the various types of food categories offering organic options, vegetables (48 per cent), milk (47 per cent), fruits (44 per cent), and fruit juices (35 per cent) were the most regularly purchased items by Indian consumers.

Eggs, poultry, meat, packaged food, tea, and carbonated beverages were amongst the other products for which Indians prefer the organic option.

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