Mysore J. Agric. Sci.

, 57 (4) : 344-352 (2023)

Organic Food Market in Bengaluru City: A Comprehensive Analysis of Stores

and Market Competitiveness

K. M. SUMAN1, SIDDAYYA2, M. S. GANAPATHY3 AND M. ARUN4

Institute of Agribusiness Management, College of Agriculture, UAS, GKVK, Bengaluru - 560 065
1,2&3

4
Department of Agricultural Economics, College of Horticulture, UHS, Bagalkot, GKVK Campus, Bengaluru - 560 065
e-Mail : sumankm246@gmail.com

AUTHORS CONTRIBUTION ABSTRACT

K. M. SUMAN :
The study presents a comprehensive analysis of the organic profile of food products in
Conceptualization, data
collection, data analysis, the Bengaluru city. Based on the data from 40 organic outlets, it was observed that the
tabulation of results and majority of retailers belongs to the middle age group (30-50 years), constituting 60.00
original manuscript draft per cent of the total sample size. The market was dominated by male retailers, accounting
writing; for 77.50 per cent followed by female retailers (22.50%). Most of the retailers had a
SIDDAYYA : graduation degree (75.00%), followed by post-graduation (22.50%). About 62.50 per
Conceptualization,
cent of the sample stores were exclusively selling organic certified products, while
supervision, data analysis
and correction of original 80.00 per cent of stores sold natural products, 7.50 per cent of stores had privately
manuscript draft; labelled/ self-claimed products and 30.00 per cent of stores had both organic certified
M. S. GANAPATHY & and other products. The study investigated the year of establishment of the organic
M. ARUN : outlets, revealing a gradual increase in store openings between 2017 and 2021. Oils,
Data curation and draft fruits and vegetables, emerged as the major demanded organic food products accounting
correction
for about 97.50 and 80.00 per cent of the shelf space, respectively. To promote organic
food products, word of mouth was found to be the most effective strategy. Herfindahl-
Corresponding Author :
Hirschman Index (HHI) value of 0.24 revealed moderate market concentrations of
K. M. SUMAN organic outlets in Bengaluru city, which indicated significant presence of a few firms,
Institute of Agribusiness
but the market was not overly dominated by a single entity. According to the study
Management, College of
Agriculture, UAS, GKVK, findings organic food market in Bengaluru is witnessing steady growth, with a diverse
Bengaluru range of products. The moderate concentration observed in the market indicates the
presence of healthy competition among firms, fostering a favourable environment for
both consumers and suppliers. It can serve valuable insights for organic food retailers,
Received : September 2023
marketers and policy makers to understand the market competitiveness, demand patterns
Accepted : October 2023
The Mysore Journal of Agricultural Sciences

and effective promotional strategies in this promising market.

Keywords : Organic food products, Market concentration, Demand, Promotional strategies

O RGANIC Food Products (OFPs) are produced

through methods abiding by the procedures of
organic farming. Organic farming is a system of
of Organic Agriculture) revealed that the organic
agricultural land has recorded highest growth in terms
of organic farmland in the year 2021 (Anonymous,
growing the produce with natural and traditional 2023). The share of the world’s agricultural land that
methods which avoids or minimises the use of is organic was 1.60 per cent. In 2021, Worldwide 76.40
synthetic chemicals. Thus, organic food products are million hectares of land contributed to organic
nutrient rich, chemical and pesticide free. Globally cultivation which was 74.90 million hectares in 2020.
there are 191 countries which are involved in organic This remarks a sizeable increase of 1.3 million
activities. A survey result of FiBL (Research Institute hectares or 1.70 per cent when compared to 2020. In

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Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

terms of organic agricultural land, Australia (35.69 1. To examine the profile of organic food products
million hectares) occupies first place followed marketed in Bengaluru City
by Argentina (4.07 million hectares) and France
2. To assess the market structure and potential of
(2.78 million hectares) whereas India occupies
organic food products
6th position with 2.66 million hectares of organic
agricultural land. In Asia, India ranks 2nd after China. Study Area
(Anonymous, 2023).
The study was conducted in Bengaluru City of
The organic food market is also witnessing Karnataka State. The primary data was collected from
tremendous increase in the number of organic the 40 organic food product firms. The information
producers. There are 3.7 million farmers worldwide collected from the respondents include age, gender,
practicing organic farming in 2021 out of which 48.60 literacy level, product certification, types of organic
per cent of them are from Asia, India stood first with food products, established year, promotional activities,
15,99,010 producers in the year 2021 (Anonymous, frequency of demand and supply, market share etc.,
2023). The great number of small and marginal were acquired from the sample respondents and
farmers present in India can be a major growth factor market intermediaries via personal interview using
in light of the fact that small holdings are found to be pre-tested schedule prepared for the purpose.
more productive especially in organic farming
practices. In the near future, organic agriculture and INDIA
other sustainable farming along with organic food BENGALURU CITY (STUDY AREA)
enterprises can become increasingly important in the
development of Indian economy.

The demand for local organic food products have

increased significantly in the past thereby offering a
big market potential for producers Indian traders,
retailers, entrepreneurs etc. The economic growth of
the country will also push the demand for the organic
food products. According to the Agricultural and
Processed Food Products Export Development
Authority (APEDA), India produced around 3.43 MT
(2021-22) of OFP as against 2.67 MT in 2019 which

The Mysore Journal of Agricultural Sciences

includes different varieties of cereals, pulses, millets,
oil seed, beverages, medicinal plants, fruits,
vegetables, sugar cane, organic cotton fibre etc (https:/
Fig. 1 : Map showing study area (Bengaluru City)
/apeda.gov.in). Hence, it holds significant importance
to conduct the study on the market structure of organic
Analytical Tools Used
food products in Bengaluru. This particular city, is
known for its sizable population, serves as a valuable To achieve the objectives of the study, by the nature
focal point for understanding the market potential and extent of information, appropriate quantification
of organic food products. Additionally, such an techniques were used and computed with the aid of
analysis aids in gaining insights into the marketing averages, frequency and percentage to obtain
efficiency of firms involved in the organic food meaningful results (Santhosha et al., 2022). For the
product sector within Bengaluru city. The objectives comprehensive analysis of stores Likert Scale was
of the study were : employed:

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 Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

Likert Scale Analysis RESULTS AND DISCUSSION

A Likert scale is composed of a series of four or more Profile of Organic Food Products Retailers
Likert-type items that represent similar questions
The socio-economic characteristics of sample
combined into a single composite score / variable.
respondents like age, gender, literacy level, product
Likert scale data can be analyzed as interval data, i.e.,
certification, types of organic food products,
the mean is the best measure of central tendency.
established year are discussed in this section. A
Likert items are used to measure respondent’s attitudes
comprehensive profile of organic food product stores
to a particular question or statement. The scales used
in Bengaluru, focusing on various aspects such as age,
were dichotomous, ranking order of preferences and
gender, educational status, certification of products,
a 5-point Likert scale to obtain the responses.
types of organic food products, type of delivery and
Ranking Order of Preferences year of establishment of the store are discussed in this
section.
Rank order preferences, also known as preference
ranking or preference ordering, is a method used to Age
determine the relative preferences of items or options
based on individual or group preferences. The study comprised of 40 organic food product
retailers spread over Bengaluru City. Table 2 shows
Herfindahl-Hirschman Index of Concentration the distribution of store owners by age, it revealed
that the majority fall within the middle age group
Herfindahl-Hirschman Index (HHI) is a commonly
(30-50 years), accounting for 60.00 per cent of the
accepted measure of market concentration. It is
total. Those below 30 years constituted 35.00 per cent,
calculated by squaring the market share of each firm
while individuals over 50 years made only up to 5.00
/ retailer and then summing the resulting number. The
per cent of the sample. The results showed a
HHI is expressed as:
significant trend among the organic food product
n
HHI =  S 2i retailers in Bengaluru, where the majority of store
1 owners fall within the middle-aged group. This group,
Where ‘Si’ is the market share. TABLE 2
Profile of organic food product store owners
The threshold levels for the market characterization
in Bengaluru
The Mysore Journal of Agricultural Sciences

are as follows (Praveena & Samsai, 2014 and

Sinha, 2023): Particulars Number Percentage of Total

TABLE 1 I. Demographic Profile of Proprietors

HHI threshold range for the market characterization Age
Young (<30) 14 35.00
HHI Range Market Characterization Middle (30-50) 24 60.00
Old (>50) 2 5.00
<0.01 Highly Competitive
Total 40 100.00
<0.1 Not concentrated
Gender
0.1 to 0.18 Low concentration Male 31 77.50
0.18 to 0.30 Moderate concentration Female 9 22.50
>0.30 High concentration Total 40 100.00
Table 2 Contd...

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Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

Particulars Number Percentage of total might have contributed to a higher proportion of male
representation in this sector.
Educational Status
Graduation 30 75.00 Educational Status
Post Graduation 9 22.50 The results pertaining to education indicated that
Diploma 1 2.50 as high as 75.00 per cent of the store owners/ retailers
Total 40 100.00 hold a graduation degree, 22.50 per cent possessed
II. Store Profile post-graduation and a minimal amount of i.e., 2.50
Certification of Products* per cent of the respondents had a diploma (Table 2).
Certified Organic Products 25 62.50 The results revealed high percentage of retailers with
Private Labelled/ Self 3 7.50 a graduation degree which suggested that a solid
Claimed Organic Products 12 30.00 educational foundation is prevalent among those
Both
involved in this sector. This could have implications
Natural Products 32 80.00
for decision-making, operational strategies and
Types of Organic Food Products* customer interactions, as a certain level of formal
Cereals 39 97.50 education often contributes to a well-rounded business
Millets 34 85.00 approach.
Oils 40 100.00
Fruits and Vegetables 32 80.00 Certification of Products
Milk and Milk Products 30 75.00 The study unveiled that 62.50 per cent of stores
Pulses 35 87.50 offer certified organic products. Private label /self-
Type of Delivery of Organic Food Products claimed organic products constituted 7.50 per cent
Door Delivery Yes 36 90.00 and an intriguing 30.00 per cent of stores provided
No 4 10.00 both certified and self-claimed organic products.
Total 40 100.00 Moreover, 80.00 per cent of stores offered natural
Online Delivery Yes 15 37.50 products (Table 2).
No 25 62.50 From the results it was observed that there is the
Total 40 100.00 presence of diverse range of product certifications and
* Multiple responses were given labelling among organic food stores, which reflected
ranging from 30 to 50 years, appeared to be combining the complexity of the organic market landscape. The
their experience with a clear enthusiasm towards the presence of certified organic products is a positive

The Mysore Journal of Agricultural Sciences

retailing of organic food products. sign, indicating adherence to recognized standards.
This diversity also reflected the industry’s efforts to
Gender accommodate various customer demands and the
Results pertaining to gender highlighted that 77.50 need for clear and transparent labelling practices to
per cent of store owners were male, while the maintain consumer trust and choice.
remaining 22.50 per cent were female (Table 2). The
Types of Organic Food Products
results indicated that substantial representation of
male store owners could potentially reflect various Table 2 shows the diversity of products offered by
factors, each contributing to the observed gender the Organic Food Product stores. Categories such as
disparity. The prominence of male ownership could cereals (97.50%), millets (85.00%), oils (100.00%),
be influenced by pre-existing gender norms and fruits and vegetables (80.00%), milk and milk products
societal perceptions regarding entrepreneurship and (75.00%) and pulses (87.50%) collectively catered to
business ownership. Traditional roles and expectations a wide range of consumer preferences.

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 Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

The results indicated that the presence of various TABLE 3

categories with high coverage rates indicated a Three year of establishment of store
(n = 40)
promising market potential for organic products. This
variety not only catered to different consumer tastes Year of Percentage
Number
establishment of total
but also showcased the commitment of these stores
towards promoting healthier and sustainable dietary 2007 1 2.50
choices. The availability of such a diverse range of 2013 1 2.50
organic options suggested a growing consumer interest 2015 2 5.00
in these products therefore encouraging the future 2016 5 12.50
growth of the organic food market in the area. The 2017 10 25.00
results are in line with the findings of Naveena and
2018 3 7.50
Arunkumar (2016).
2019 5 12.50
Type of Delivery of Organic Food Products 2020 4 10.00
2021 8 20.00
Results pertaining to delivery methods revealed that
2022 1 2.50
90.00 per cent of the stores offered door delivery
Total 40 100.00
services, while 37.50 per cent provided online
delivery options (Table 2). The results indicated that
the door delivery mode is particularly popular among the distribution of store establishments across the
consumers, as it offered the advantage of receiving years showcased the growing popularity and potential
their organic products at their doorstep, enhancing of the organic food market in Bengaluru City. The
convenience and saving time. Additionally, online increasing number of stores over time reflects the
delivery options highlight the growing influence of evolving consumer preferences and the rising demand
e-commerce and digital platforms in the organic food for organic products.
market. Thus, reflecting the adaptability of Organic
Food Product stores to changing consumer preferences Promotional Activities / Strategies followed by the
and technological advancements. The emphasis on Organic Food Products Stores
convenience and accessibility through these delivery
methods not only catered to modern consumer Data depicted in Table 4 reveals that ‘Word of Mouth’
expectations but also fostered the expansion and received the highest total score of 194 and ranked I,
sustainability of the organic food market. making it the most influential source of information
among consumers followed by social / digital media
Year of Establishment of the Organic Food
The Mysore Journal of Agricultural Sciences

and stalls at exhibitions / trade with ranks II and III,

Products Stores
respectively.
The results from Table 3 shows that the year 2017 TABLE 4
witnessed the highest number of new store Ranking based on the effectiveness of promotions
establishments, accounting for 25.00 per cent of the for organic food products
total stores followed by 20.00 per cent in the
year 2021. Particulars Total Score Rank

This result indicated that there was a significant Word of Mouth 194 I
expansion of the organic food market during the years Print Media 95 IV
2017 and 2021, potentially influenced by increased Visual Media 54 V
consumer awareness, changing dietary preferences Social/ Digital Media 149 II
and a growing demand for organic products. Overall, Stalls at Exhibitions/ Trade 108 III

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Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

TABLE 5
Frequency of demand for organic food products in Bengaluru
(n = 40)

Particulars Frequency of demand Number Percentage of Total

Cereals Do not Deal 1 2.50

Occasional 2 5.00
Moderate 9 22.50
Frequent 21 52.50
Very Frequent 7 17.50
Total 40 100.00
Millets Do not Deal 6 15.00
Occasional 2 5.00
Moderate 8 20.00
Frequent 10 25.00
Very Frequent 14 35.00
Total 40 100.00
Oils Moderate 1 2.50
Frequent 8 20.00
Very Frequent 31 77.50
Total 40 100.00
Fruits and Vegetables Do not Deal 8 20.00
Frequent 12 30.00
Very Frequent 20 50.00
Total 40 100.00
Milk and Milk Products Do not Deal 10 25.00
Frequent 14 35.00
Very Frequent 16 40.00
Total 40 100.00

The Mysore Journal of Agricultural Sciences

Pulses Do not Deal 5 12.50
Occasional 1 2.50
Moderate 22 55.00
Frequent 11 27.50
Very Frequent 1 2.50
Total 40 100.00

The results implied that personal recommend is crucial for businesses and marketers in the
ations and experiences shared by friends, organic food sector to effectively target their
family, or acquaintances play a pivotal role in communication strategies and leverage the
shaping consumer’s perceptions and decisions most influential sources to reach and engage
regarding organic food products. This information consumers.

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 Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

Frequency of Demand for Organic Food Products demand distribution. A significant proportion
in Bengaluru (40.00%) very frequently demanded these products,
followed by 35.00 per cent with frequent demand.
The results (Table 5) indicate that majority of retailers
Pulses showed diverse demand pattern. The highest
/ firms (52.50%) expressed a frequent demand for
percentage (55.00%) of retailers expressed moderate
cereals, while a significant percentage (22.50%) found
demand for pulses, followed by 27.50 per cent with
moderate demand. Millets also exhibit a varied
frequent demand. The results are in line with Sadia,
demand pattern. While 35.00 per cent of retailers
2020.
said millets are very frequently demanded, 25.00 per
cent believed they are frequently demanded. On the The results of the frequency of demand analysis
other hand, Oils had a clear trend towards high
provide insights into the preferences of consumers in
demand, with 77.50 per cent of retailers felt oils are
Bengaluru City for different organic food product
demanded very frequently and 20.00 per cent of them
said oils are frequently demanded. While fruits and categories. It is evident that certain categories, such
vegetables witnessed a substantial demand, with 50.00 as oils and milk products, have high and balanced
per cent of firms believing that fruits and vegetables demand, respectively. On the other hand, products like
are very frequently demanded, followed by 30.00 per cereals, millets and fruits and vegetables experience
cent expressing frequent demand. Among the varying degrees of demand, reflecting the diversity
surveyed, 20.00 per cent do not deal with fruits and of consumer preferences. This information is valuable
vegetables. Milk and its products had a balanced for producers, marketers, and retailers in tailoring their

TABLE 6
Frequency of supply for organic food products in Bengaluru
(n = 40)

Particulars Frequency of supply Number Percentage of total

Cereals Do not Deal 1 2.50

Moderate 2 5.00
Frequent 13 32.50
Very Frequent 24 60.00
Total 40 100.00
Millets Do not Deal 6 15.00
The Mysore Journal of Agricultural Sciences

Frequent 14 35.00
Very Frequent 20 50.00
Total 40 100.00
Oils Frequent 4 10.00
Very Frequent 36 90.00
Total 40 100.00
Fruits and Vegetables Do not Deal 8 20.00
Frequent 11 27.50
Very Frequent 21 52.50
Total 40 100.00
Table 6 Conti....

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Mysore J. Agric. Sci., 57 (4) : 344-352 (2023) K. M. SUMAN et al.

Particulars Frequency of supply Number Percentage of total

Milk and Milk Products Do not Deal 10 25.00

Frequent 6 15.00
Very Frequent 24 60.00
Total 40 100.00
Pulses Do not Deal 5 12.50
Moderate 11 27.50
Frequent 21 52.50
Very Frequent 3 7.50
Total 40 100.00

offerings and strategies to align with consumer witness substantial and steady supply, meeting
demands, ultimately contributing to the growth and consumer demands effectively. The results also
sustainability of the organic food market. unveiled the efforts of suppliers and retailers to
Frequency of Supply for Organic Food Products ensure consistent accessibility to a diverse range of
organic products. Stake holders in the organic food
in Bengaluru
industry can utilize this information to make informed
Data in Table 6 illustrates the frequency of supply for decisions and strategies to sustain the market’s growth
different categories of organic food products in and cater to consumer preferences effectively.
Bengaluru City. The results revealed that majority of
cereals (60.00%) are very frequently supplied to the Category-wise Market Share of Organic Food
market, followed by a significant proportion (32.50%) Products among the Sample Firms in Bengaluru
that is frequently supplied. Millets exhibited a The distribution of market share for different
balanced supply pattern, with 50.00 per cent being categories of organic food products among the sample
very frequently supplied and another 35.00 per cent firms in Bengaluru City. Fruits and vegetables capture
frequently supplied. Oils were highly supplied in the a significant market share of 34.00 per cent,
organic food market, with 90.00 per cent being very positioning them as a major driving force in the
frequently supplied. Whereas a minor percentage organic food industry, followed by oils and milk and
(10.00%) was frequently supplied. Fruits and milk products accounting for 31.00 per cent and 13.00
Vegetables are also supplied extensively. The majority
per cent respectively Fig. 2.
(52.50%) are very frequently supplied, while 27.50

The Mysore Journal of Agricultural Sciences

per cent are frequently supplied. The majority of milk Pulses Cereals
and its products (60.00%) are very frequently Milk and Milk
6% 10% Millets
Products
supplied, followed by 15.00 per cent that is frequently 13% 6%
supplied. A quarter (25.00%) does not deal with milk
products. While Pulses showed a varied supply
pattern. The highest percentage (52.50%) is frequently
supplied, followed by 27.50 per cent that is moderately
supplied. Sadia, 2020, in her study found the similar Oils
results. 31%
Fruits and
The results of the study frequency of supply Vegetables
showcased the robust availability of organic food 34%
products in the Bengaluru market. Certain categories Fig. 2: Category-wise market share of Organic Food Products
such as cereals, millets, oils, fruits and vegetables among the sample firms in Bengaluru

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consumer preferences and contribute to the sustainable products in Mysore district. Ph.D. thesis (Unpub),
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Market Concentration of Organic Food Products SANTHOSHA, K. M., GADDI, G. M. AND YADAVA, C.G., 2022,
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The results from Table 7 reveals that the Herfindahl
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Hirschman Index (HHI) value of 0.238 falls within
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The Mysore Journal of Agricultural Sciences

barriers to entry within the industry. Science, 70 (3-4) : 161 - 172.

The results suggested that while there is a level of h t t p s : / / a p e d a . g o v. i n / a p e d a w e b s i t e / o r g a n i c /

competition in the market, there might also be a organic_products.htm
certain degree of market power held by a few key
players or brands. This balance between competition
and concentration can influence pricing strategies,
product differentiation and overall market dynamics.
The results also implied that the organic food market
in Bengaluru City is diverse and competitive enough
to foster innovation and provide consumers with a
range of choices while also warranting attention to
ensure a healthy competitive environment.

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