The term “Organic” is prevalent today— organic food, organic skincare products, organic hair care products, organic oils, etc. With the world moving towards a healthier, environment-friendly lifestyle, the organic food market has been strongly growing in India too.
The Indian organic food market is at ~6000Cr ($850Mn) in 2020 and is expected to grow at ~20-25% for the next 5 years. India is one of the largest producers of organic foods, with exponential growth in exports to several of its trading partners.
Here are the 31 best business ideas worth exploring if you are looking to start one.
Agriculture & Farming:
1. Organic Farming
Organic farming is a new business idea which gained popularity in recent times. Many successful “farm to fork” businesses were set up. To set up a successful business, one needs strong business, inventory management, and disaster management plans. There are over 15,000 organic farms in India.
2. Organic Fertilisers and Seeds
Understand what organic waste is available in your zone of interest. This business can be capital intensive, but you can also choose to be a niche fertiliser provider and start with a small business and expand accordingly.
3. Organic Feed
For all the organic produce, farmers use organic feed. This is the best business to start with a little money in the organic market space. You can produce organic feed and supply it to other farming, poultry, and dairy segments.
4. Organic Poultry Farming
Many people now prefer a variety of organic eggs and meat and are willing to pay more. You can start a small free-range poultry farm to raise the birds organically. Source 100% organic feed and supplements for the birds. This business has a quick turnaround time and significant profits.
5. Organic Dairy Farming
In organic dairy farming, the cattle spend most of their time outdoors. Rich organic feed is fed to the cattle. The milk produced is high in nutrients like omega-3 fatty acids. This is the best business idea for someone in the dairy segment.
6. Organic Terrace Gardening
Kitchen & terrace gardening is becoming more and more popular in the country. If you have a small open area on your terrace, you can start growing organic vegetables for your daily needs. You can slowly begin producing more and selling to local markets. The demand is high, and this is one of the best business ideas to explore.
Technology & Social Media
7. Blogging — Everything Organic
You can start a social media page that talks about organic products. You can start writing about food recipes, reviews about various products in the market, benefits of shifting to organic products, etc.
8. Consultant — Organic home gardens
Home gardens are becoming a trend now. From small nurseries, terrace gardens to hydroponic gardening, almost everyone wants to start one of these. You can start consulting. Charge for your time, grow your client base, and earn good money.
9. Certification Consultant — For Organic Players
Many organic businesses need specific certifications to enter the market. If you’re someone who has expertise in this area, you can hand-hold these players with the processes and charge for your time.
10. Marketing Consultant — Farm to Fresh Businesses
The majority of the farm to fresh businesses need a strategy to reach their target audience. If you are a marketing expert, you can start providing consultancy services to these small businesses/startups and make money.
11. Organic Retail Store
With a unique strategy to differentiate yourself from the market, you can start a retail store for a holistic target audience. Focus on the collection, pricing, and marketing strategies.
12. Organic Beauty Store
Herbal & organic beauty products are gaining traction in the market. If you are interested in the beauty/skincare segment and are curious about ingredients, you can explore this unique business idea.
13. Organic Health Supplements Store
People are becoming more health-conscious and are more inclined towards Ayurvedic health supplements than allopathic medicines. To start this business, you need to have relevant educational background, certifications, and license. This is one small business idea that has a high potential in the market.
14. Organic E-Commerce Store
E-commerce stores are everywhere. You can create a brand of your own and have an attractive catalogue of organic products you wish to sell. Optimise the store for a diverse collection of products and easy discoverability. Try to collaborate with various suppliers, wholesalers, and retailers to provide the best products.
15. Become an Exclusive Organic Products’ Seller on Amazon/Flipkart
If you make organic products at home (soaps, shampoos, snacks, etc.), you can capitalise on the effort by becoming a seller on Amazon/any e-commerce platform. This is one of the best small business ideas with a low cost of investment and high profitability.
16. Start an Organic Café
“Direct from farm to table” café is a unique business idea you could explore. Have a creative & attractive menu for customers. Have interesting and tasty salads, juices, sandwiches, desserts that are made using fresh organic ingredients. You might have to burn money initially to gain traction. Once you become popular, you can draw amazing profits.
17. Start an Organic Restaurant on Wheels
You can start a food truck that sources local organic vegetables for the menu. You can start by providing healthy breakfast, lunch, dinner at affordable costs for people who are looking out for healthy options. Starting a food truck is cost-effective and flexible than setting up a restaurant.
18. Start a Chain of Organic Restaurants
You can start a unique restaurant that promotes eco-friendly products and provides fresh and healthy organic food. Differentiate yourself in the market, and this can become a successful business.
19. Organic Salon
There are many side effects of using chemical products on the skin, and people realise this. Organic skincare products are gaining a lot of traction in the market, with the industry growing rapidly at ~25% per annum. Setting up a small salon that only uses organic products for all the services is a great business idea.
20. Organic Pet Food Store
The pet market in India is huge. You can tap this market by setting up a store that sells organic food for pets. Research shows that pet owners now prefer organic and natural options for their pets to non-organic variants. This is the best business to start with little money.
21. Organic Boutique
Organic clothing is becoming famous. Customers are more conscious about choosing fabrics that are chemical-free and environmentally friendly. You can partner with weavers, wholesalers, retailers and start your boutique.
22. Manufacture Organic Disinfectants
Disinfectants are usually chemical-intensive and harsh. Eco-friendly, natural products using organic ingredients can be sold in the market. You can start this with very low investment and collaborate with retail stores and supermarkets.
23. Manufacture Eco-Friendly Toys & Gifts
Parents prefer toys made of natural products to ensure their child’s safety from any toxic/chemical ingredients. These environmentally friendly products can be great gifting materials too. This is a unique business idea that has a target audience.
24. Make Eco-Friendly Carry Bags for Businesses
Carry bags business is one of the popular small-scale business ideas. From the time the Indian government banned single-use plastic bags, eco-friendly carry bags like cloth, and paper bags gained enormous demand in the market. With a minimum investment amount, you can do a profitable business.
25. Make Homemade Snacks
Making organic snacks using organic jaggery, coconut milk, etc., can be a small business idea. You can either set up your brand or partner with sweet shops, hotels, or event management companies and cater to them.
26. Manufacture Organic Soaps
Most of the soaps available in the market are chemical-based. They are harsh on the skin and slowly cause acne and other issues. You can start manufacturing soaps using organic materials and do good business out of it.
27. Produce Natural Cold-Pressed Oils
Refined oil’s market share is being captured slowly by cold-pressed oils. Health-conscious individuals prefer them over refined oils. You can either act as a producer or an aggregator in this product segment.
Countries recognise India for its rich Ayurvedic and herbal market. The international markets are focusing more on natural and organic products across categories.
29. Organic Food products
Most of the NRIs and some foreign supermarkets which cater to them are willing to import and pay for Indian organic products, which boosts their sales. You can use social media websites (Instagram & Facebook pages) to promote and partner with a shipping agency to export your products.
30. Organic Herbs & Health Supplements
Organic herbal & health supplements are in high demand (for example, Moringa, Spirulina). Small & medium-level entrepreneurs in India are building small yet profitable businesses.
31. Organic Personal Care Products
Like food products & health supplements, organic personal care products are also in immense demand.
Before you venture into any of these business ideas, understand your target market better and define your target audience. Once you develop a solid business plan, go ahead and capture a slice of the market.
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Q. What are the basic steps to start an organic business?
Ans. There are certain formalities and permissions which are to be finalised before you start your business. You need the following:
- A permit from Health Department
- You need to file for EIN (Employer Identification Number)
- You must get your store certified by Organic Trade Association
- GST Registration
- A bank account for your business
Q. What are the challenges in the organic food business?
Ans. Some challenges are 1. The organic business in India is still at a nascent stage. Awareness has to be created. 2. Organic products are usually costlier than normal ones. 3. E-commerce brands are competing with organic stores.
Q. What food is considered organic?
Ans. There are two systems. NPOP System & PGS system. In NPOP, if 95% of ingredients are of certified origin, it is labelled as a “certified organic” product. In PGS, if 95% of ingredients are organic, it is labelled as a “certified organic” product.
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