CONSUMER BEHAVIOUR TOWARDS LOCALLY MADE ORGANIC PRODUCTS POST COVID-19: A RESEARCH
Author: Sakshi Jain,Tanya Kumari,Sakshi Singh, NDIIT
Corresponding Author: Asst. Prof. Zofail Hassan, NDIIT, New Delhi
(An AICTE approved institute)

Introduction –

If we look at 6-7 years back, we as consumers never trusted our Indian products and always preferred foreign brands over it for meeting our daily requirements. Also, if we talk about organic products, they had very little market penetration, and there were very few Indian brands who were making organic products. People were not aware about organic products, and they didn’t know their benefits and how it can add value to their life. However, a lot has changed post COVID. People have started buying products that are organic, and good for health. Also, after initiatives like Vocal for local, Make in India, people understood that we need to be self-reliant to strengthen our country, consumers have started buying products that are made locally. Post COVID, we witnessed drastic change in consumer behaviour. People are aware, health conscious, concerned about environment, inclined towards local brands, and wants to consume products that are environment friendly, do not harm animals, organic and on the top of it are produced locally in our country. We have Locally made organic brands in each segment from food industry to skin care or make up industry. Brands like Plum, Soul Tree and Patanjali are few examples that have made their place and proved that local sustainable brand can be successful in the Indian market.

Through our research we will try to identify if there are any changes in behaviour of Indian consumers towards locally made organic products.

Organic means things that are natural and are free from harsh and harmful chemicals, Organic products are safe to use and good for environment, animals and for human beings’ Organic things are sustainable, and holistic, prioritize environmental and human health over profit or convenience.

 Organic Products –

The production of organic products places a priority on environmental sustainability, animal welfare, and consumer health and wellbeing. In order to guarantee that farm-workers are treated fairly and paid a liveable wage, organic products are frequently made utilising fair labour practises. Finally, because they lack potentially hazardous chemicals and preservatives that can be absorbed through the skin or consumed through food, organic products are frequently seen as healthier for customers.

Types of Organic Products

Organic products are of different types, few of them are mentioned below-

1. Organic food: Food that is labelled “organic” has not been grown or processed with artificial fertilisers, pesticides, sewage sludge, or genetically modified organisms (GMOs). Instead, organic farming uses organic techniques to control pests and preserve the health of the soil, including crop rotation, composting, and the employment of beneficial insects. Fruits, vegetables, grains, dairy products, meat, and processed foods created from organic ingredients are a few examples of organic food.

2. Organic Clothing: Made without the use of harsh chemicals or dyes, organic clothing is produced from natural and sustainable materials like organic cotton, bamboo, or hemp. Frequently made using ethical labour practises, organic clothing is devoid of dangerous chemicals that can be absorbed via the skin.

3. Personal care products: Products for organic personal care are free of synthetic chemicals and preservatives, and they are manufactured from natural and organic substances. Hair products like shampoo, soap, lotion, and cosmetics are examples of organic personal care items.

4. Cleaning products: Natural and organic components are used to make organic cleaners, which are devoid of synthetic chemicals that may be hazardous to both human and environmental health. All-purpose cleansers, dish soap, laundry detergent, and glass cleaners are a few organic cleaning goods examples.

Rise of Organic product in the Indian market.

In past there were very few Indian companies that used to make Indian products. The lack of customer demand for and understanding of organic products was one of the key causes. The market for organic goods was constrained since they were thought to be pricey and only available to the wealthy. Additionally, small and medium-sized enterprises found it challenging to enter the organic market due to the high cost of certification for organic products, a lack of government backing, and inadequate infrastructure.

But in recent years, Indian customers, particularly those in metropolitan areas, have become more conscious of and interested in buying organic items. Customers are getting more concerned about their health and seeking for goods that are free of pesticides and dangerous substances. Indian businesses now have the chance to enter the organic sector and meet this expanding demand.

Along with rising consumer demand, the organic industry has seen a rise in government backing and funding. The Indian government has introduced a number of programmes and programmes to support organic farmers and businesses and promote organic farming. This has contributed to the development of an atmosphere that is favourable for the organic sector in India.

The COVID-19 pandemic may also have played a role in the growth of the organic industry in India. The pandemic has highlighted the importance of health and wellness, and consumers are increasingly looking for products that are safe, healthy, and environmentally sustainable. This has led to a surge in demand for organic products, particularly in the food and personal care sectors.

The organic industry in India has been growing steadily over the past decade. According to a report by the Agricultural and Processed Food Products Export Development Authority (APEDA), the organic market in India was valued at around $1.36 billion in 2020 and is expected to grow at a CAGR of 10% over the next five years. The growth of the organic industry in India is expected to continue as consumers become more aware of the benefits of organic products and as the government continues to support and promote the organic sector.

Impact of Locally made Organic products on Our lives.

Local here mean Indian, organic products that are made by Indian companies. Indian organic products have mostly had a favourable influence on Indian people’s lives. Here are a few ways that organic products have impacted Indians’ daily lives:

1. Improved Health: Organic foods are produced without the use of artificial fertilisers, pesticides, or other hazardous chemicals, making them safer and healthier to consume. Particularly organic food is recognised for being more nutritious and devoid of hazardous pollutants, which can enhance the general health of those who consume it.

2. Environmental Sustainability: Organic agricultural methods are more environmentally friendly and sustainable since they avoid the use of pesticides and hazardous chemicals that might harm the environment Indian organic products have mostly had a favourable influence on Indian people’s lives. Here are a few ways that organic products have impacted Indians’ daily lives:

3. Supporting Local Farmers: Local farmers who engage in organic farming now have access to a new market thanks to India’s booming organic industry. Indian consumers may support local farmers and advance sustainable agriculture by purchasing organic goods.

4. Economic Development: India’s organic sector has the potential to boost the country’s economy, especially in rural areas. Indians can assist create new job opportunities and boost the nation’s economic development by encouraging the expansion of the organic industry.

5. Improved level of Living: Indians can raise their level of living by consuming organic products, which encourage healthier and more environmentally friendly lifestyles. Organic goods can support healthier lifestyles, which can enhance general wellbeing and quality of life.

Rationale of the Study –

The study on consumer attitudes towards organic goods created locally is crucial since it can shed light on the expanding market for organic goods in India. Consumers are getting more knowledgeable about the advantages of organic products as they have greater concerns about their health and the environment. Indian customers are looking for products that are both healthy and sustainable as they become more conscientious of their purchase choices.

Manufacturers, distributors, and decision-makers of organic products will all profit from the study’s findings. The research findings can be used by manufacturers to create efficient marketing plans that target particular consumer groups. The insights can be used by marketers to create appealing product labelling and messaging that appeals to customers. The findings can be used by policymakers to create rules and policies that support the expansion of India’s organic products market.

Literature Review –

The COVID-19 pandemic has significantly impacted global consumer behaviour. The rising desire for organic goods is one notable trend that has evolved. In the post-pandemic world, this tendency is anticipated to persist, especially in India where consumers are becoming more aware of the advantages of organic products. In order to better understand how COVID-19 has affected consumer behaviour toward organic products created in India, a literature review has been conducted.

1. Health Concerns: The pandemic has raised awareness about the importance of health and well-being. Consumers are becoming more conscious of the link between their diet and their health, and are seeking out products that are perceived to be healthier and safer. Organic products are seen as a natural and healthy alternative to conventionally produced products, and this is expected to drive demand in the post-pandemic world (Gupta & Bansal, 2020).

2. Price Sensitivity: The economic impact of the pandemic has led to many consumers being more price-sensitive. Organic products are generally more expensive than conventionally produced products, and this could impact demand in the post-pandemic world. However, consumers who prioritize health and sustainability may still be willing to pay a premium for organic products (Gangwar et al., 2020).

3. Trust in Organic Certification: The trustworthiness of organic certification is essential for consumer behaviour towards organic products. In India, the certification process is regulated by the Agricultural and Processed Food Products Export Development Authority (APEDA). However, there have been instances of fraud and mislabelling, which have undermined consumer confidence in organic products. Improving the transparency and credibility of the certification process is crucial for promoting consumer trust and increasing demand for organic products in the post-pandemic world (Gangwar et al., 2020).

4. Online Shopping: The pandemic has accelerated the shift towards online shopping, and this trend is expected to continue in the post-pandemic world. Online shopping offers convenience and reduces the risk of exposure to the virus. E-commerce platforms such as Amazon, Flipkart, and Bigbasket have made it easier for consumers to purchase organic products online. This trend is expected to drive demand for Indian made organic products in the post-pandemic world (Gupta & Bansal, 2020).

5. Local and Sustainable: The pandemic has highlighted the importance of local and sustainable Consumers are becoming more conscious of the environmental impact of their purchases and are seeking out products that are locally sourced and sustainably produced. Indian made organic products are seen as a more sustainable alternative to imported organic products, and this is expected to drive demand in the post-pandemic world (Gupta & Bansal, 2020).

Research Methodology –

Objectives

1. To study the consumer behaviour towards locally made organic products post Covid
2. To examine factors that prevent customers from buying locally made organic products

Hypothesis of the study

• H₁: There is an increase in demand of locally made organic products post COVID
• H₀: There is no change in the demand of Locally made organic products post COVID

Research Design

The study includes use of exploratory, descriptive, and quantitative (survey) procedures. A comprehensive research study may collect data more successfully and effectively than a hastily conducted survey. A sort of investigation called exploratory research aims to provide you a theoretical or speculative grasp of the subject under study. Descriptive research concentrates on the what, when, where, and how of the studied issue rather than the why. Since participants must enter their own responses, open-ended questions do not supply a set of answers.

Data Collection Technique

A questionnaire will be used as the primary data collection tool in a descriptive research design, just as it was in the study. Depending on how well responders understood the study’s findings, the question would be adjusted accordingly.

Examining Method

Source of Data: The source of data for our research is survey (question answers), form filling and observations. We used T-test to analyse the result, and draw conclusions from it.

Conclusion

Covid left a significant impact on people’s life and made people more conscious about their health and wellbeing. Furthermore, organic foods and products gain popularity as they’re free from harsh chemicals and also good for the environment, meanwhile, people also started giving more preference to products that are locally made and manufactured. This had a positive effect on the sales of organic products especially those of Indian origin.

Indian products directly refer to our problem statement and can solve the root cause of it, they’re not like other products that are not made with consideration of Indian climate, style, skin, and body. Organic Indian products are getting popular among all age groups.

Through T-test we analysed the sample and collected enough data to reject the Null hypothesis.

Hence, we accept the alternative Hypothesis to conclude that “There is an increase in demand for locally made organic products post-COVID.”