1.

Executive Summary 1
2. Introduction 2
3. Problem Definition and Research Objective 3
3. Research Design 4
3.1 Information Needed 4
3.2 Research Method 5
3.3 Sampling Plan 6
3.4 Questionnaire Design 6
3.5 Specific measurement & scaling procedure 6
3.6 Field work plan 7
3.7 Analysis Plan 8
4. Data Collection 9
5. Data Analysis & Interpretation 10
7. Interpretation and Conclusion 13
6. Recommendation 14
• The paper gives a brief overview of organic farming, its practices and the market for
organic products in India.
• It studies the consumer perception of organic products and its effect on the demand
for organic products. Non-probability sampling and a structured questionnaire with
over 270 respondents was used to study the consumer perception.
• Respondents were in favor of organic products, considering the benefits for their
health and environment. Education, age and income of the consumers were important
factors affecting consumer perception.
• Majority of organic food customers are educated youth, have high paying capacity. In
India, higher prices prove to be a hurdle for the masses making it unable to afford
organic products.

1
• Organic farming is one of the antiquated practices of agribusiness. Any food product can be termed as organic only when
it is free from toxic pesticides, chemical fertilizers or genetically modified organism and it follows organic farming
standards.
• World of Organic Agriculture has declared India as the biggest producer of food produced organically, within the world.
• Organic food and beverages is an emerging niche market in India targeting high income segment.
• India has high demand for organic food growing at compound growth rate (CGAR) of 25% annually.
• India’s total market for packed organic food in 2016 was INR 534 million which has grown by 17.5% over 2015 16, and will
estimated reach INR 874 million in 2020 21.
• Health Benefits, Income, Status quo, Education & awareness and availability are found to be the drivers of organic food
products.
• There is an immense scope for further research in order to understand the reasons of gaps between the perception of
consumer and its impact on the demand of organic food products in India.

2
• Buying and understanding customers preference, we aim to study
the factors affecting consumers behavior towards “Impact of
consumer perception on demand of organic food products in India”

• To study Impact of consumer perception on demand of organic food products

in India

• To identify factor which influence the consumer’s perception on organic food

products in India
3
1. Information Needed

• To understand the impact of consumer perception on demand of organic food products in India.

• To study whether personal or social factors affect the demand for food products produced organically.

• To understand the role of demographics on the demand on organically produced food in India.

4
2. Research method

• Informative research was taken as a base to describe on the basis of attitudes & characteristics.
• It was used to highlight the consumers’ perception for the demand of organic foods products grown
in India.
• The attributes that were considered are awareness, usage of the organic products & purchasing power.
• For usage of the organic products attribute, dichotomous questioned has been asked.
• Nominal scale have been used for the close ended questions on consuming buying behaviour
attribute.

5
3. Sampling plan
• Sampling population – 270 respondents
• Sampling technique – Non-probability convenient sampling

4. Questionnaire design
The questionnaire has been designed on the basis of
• Consumer buying behaviour & usage of the organic products.
• It contains both, close ended and dichotomous type of questions.

5. Specific measurement & scaling procedure

• Nominal scale has been used for the research & scaling purpose, since the research aims to find the perception &
attitude of the consumers towards demand of organic food products. 6
6. Field work plan

• Exploratory research has to be conducted with the help of all the secondary data i.e. available literature
reviews, Journals, Articles.
• Primary data from the people targeted across various parts of India will be obtained.
• Data will be collected by approaching people at various malls, offices & educational institutes.
• Certain hypothesis, must be drawn to set up as a base for the analysis of the data collected.
• The hypothesis drawn would be based upon the demographic profile, personal factors, social factors of
people, influencing the demand for organic products.
• A structured questionnaire will be circulated in order to obtain the responses.
• Based on the analysis of the responses in relation with the hypothesis, the interpretation for the study
would be formed for further conclusions. 7
7. Analysis plan
Sr no. Questions Type of question Scale Graph Link with other
questions

On the basis of usage of organic products

1. I am a user of organic food products. Dichotomous Nominal Stacked bar No
graph

2. Are organic food products Safe? Dichotomous Nominal Bar graph No

3. Are Organic food products easily available in the stores near you. Dichotomous Nominal Bar graph No

4. Is non availability of organic food products a major cause of lesser Dichotomous Nominal Bar graph No
demand for organic food products?

5. Do you have wide choices of organic food products in your city? Dichotomous Nominal Bar graph No

On the basis of consumer buying behaviour

1. How Often do you buy Organic Vegetable Close ended Nominal Bar graph No
2. How Often do you buy Organic Fruits Close ended Nominal Bar graph No
3. How Often do you buy Organic Pulses Close ended Nominal Bar graph No
4. How Often do you buy Organic Masalas Close ended Nominal Bar graph No
8
• Primary Data

The primary data was collected through a

questionnaire where over 270 respondents filled the
survey.

• Secondary Data

To collate the secondary data, we referred to research

papers, journals, articles and case studies.

9
 Demographics Labels Percentage
Age 18 to 30 73.9%
31 to 40 20.3%

41 years and above 5.9% Interpretation:

Gender Female 43.7%
Male 55.9%
Prefer not to say 0.5%
• The table conveys majority of the respondents i.e.
Education
Elementary Education (Till
class 12th)
2.3% 73.9% belong to age group 18 to 30 years which is youth
of our country.
UG 29.7%
PG 59.9%
Ph.D 8.1%
Marital Status Single 65.8% • Secondly, 97.7% of the respondents are either
Married 34.2% graduates, post graduates or doctorates which means
Number of children None 77.9%
majority of the respondents would be very well aware
1 Child 12.2%
2 Children 9.0%
of organic products and its benefits.
More than 2 0.9%
Occupation Self Employed 18.9%
Service 37.8%
Neither 42.3% 10
Information on usage of organic foods-
Usage of Organic Food
General Information of Organic Foods Yes No Maybe

Availability of wide choices in your city 29.3% 55.4% 15.3%

Existing User 51.8% 48.2% 0.0%
Is non-availablility a cause for less demand? 71.2% 10.8% 18.0%
Safe 82.0% 2.7% 15.3%

Availability 30.6% 56.8% 12.6% Availability 30.6% 56.8% 12.6%

Safe 82.0% 2.7% 15.3%

Is non-availablility a cause for less demand? 71.2% 10.8% 18.0%

Existing User 51.8% 48.2% 0.0%

Availability of wide choices in your city 29.3% 55.4% 15.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No Maybe

Interpretation-
This table conveys more number of respondents have used or are currently using organic products. Secondly, majority of
respondents agree to the fact that organic food is safe to consume and there aren’t any ill-effects. Lastly, we can depict
availability of organic products is an issue and in order to increase its consumer base, companies should ensure products are
available on shelves of the stores.
11
Consumer buying behaviour towards organic food products-

Consumer buying behavior towards

Consumer buying behaviour towards Organic Food
organic food products
Once in a week Once in a month Never Products

Buying frequency Organic Masalas

0.0% 45.0% 55.0%

Buying frequency of Organic Vegetables 49.1% 32.0% 18.9%

Buying frequency of Organic Pulses
0.0% 50.5% 49.5%

Buying frequency of Organic Fruits 0.0% 29.7% 70.3%

Buying frequency of Organic Fruits
0.0% 29.7% 70.3%

Buying frequency of Organic Pulses 0.0% 50.5% 49.5%

Buying frequency of Organic Vegetables 49.1% 32.0% 18.9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Buying frequency Organic Masalas 0.0% 45.0% 55.0%
Once in a week Once in a month Never

Interpretation-
In this case, we observe consumption of organic vegetables is the highest and consumption of organic fruits is the lowest.
Respondents usually prefer to buy organic pulses once a month instead of buying it weekly. In order to augment sales of
organic fruits, marketers need to create awareness of its benefits amongst consumers.
12
• India is a large and fast growing market for organic farming
and products.

• Awareness about the side effects of the use of chemical

pesticides, the increasing awareness about organic
products, concern for the environment are all factors that
drive up the market for organic produce in India.

• It was found that people are reluctant to buy organic

products as they cost more. However, it was also found that
younger, more educated people shared a stronger
preference for organic products.

13
• The farmers and companies producing organic products must be promoted and
made aware of the various schemes for growing organic produce by the
government.

• Driving down the prices and increasing supply of organic products will increase
the consumption of organic produce.

• Organic is produce is valuable to export as well, which can boost the economy.

14