The Organic World, a Bengaluru-based omnichannel marketplace hosting a range of gourmet food brands like Naturally Yours, Bon Appetit and Pink Harvest, has seen a surge in enquiries in the last few months as brands look to cash in on the growing market for “better-for-you foods”, its founder Gaurav Manchanda said. The brand is looking to expand its retail presence to 100 stores by 2026 and gets more than 80% of its revenue from the offline channel.
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Premium popcorn brand majority owned by multiplex chain PVR, 4700 BC, is using its presence on e-commerce and quick commerce platforms to drive offline placement in the top eight metro cities, including Mumbai, Delhi and Bengaluru, according to the firm’s founder Chirag Gupta.
“Our offline expansion follows a strategic approach rather than aggressive scale-up. Investments are being directed towards strengthening availability in formats that align with consumer behaviour—whether that’s modern trade, travel retail, or high-footfall locations,” Gupta told Mint.
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India’s healthy snacking brands generated revenue of $3.85 billion in 2023 and are expected to reach $6.4 billion by 2030, as per market research firm Grand View Research estimates. The organic product market is also witnessing a 25% year-on-year growth and is well on track to reach $8.9 billion in the next seven years, according to market intelligence firm iMARC Group. For context, the global market for organic foods is about $230 billion, according to Praxis Global Alliance.
There has also been heightened activity in recent months, with large consumer companies recognizing opportunity in the space. LT Foods, the global fast-moving consumer goods (FMCG) company that makes Daawat rice, introduced a Jasmine Thai Rice variant last year, expecting it to drive sales among Indian audiences who want to try international flavours. It is also looking to expand its organic foods portfolio to bolster double-digit growth in the coming years.
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Additionally, the government’s recent introduction of a production-linked incentive scheme (PLI) to support millets in food products has pushed brands to focus on organic ingredients in ready-to-eat and ready-to-cook formats. Tata Consumer Products acquired Capital Foods—the owner of Fabindia-backed Organic India—for a combined enterprise value of ₹7,000 crore last year, sensing a burgeoning opportunity.
Retailing veteran Kishore Biyani’s daughters returned to food retail with Food Stories, a gourmet food and experiential retail format on the lines of their previous Foodhall venture, in March last year.
“Offline expansion is crucial for a gourmet food brand to encourage trial and adoption. In a crowded market, it can help widen brand visibility and appeal to a user that could be wary of products and brands that are unknown and sometimes expensive,” Shivaraj Jayakumar, practice member (Consumer and Internet) at Praxis Global Alliance, said.
Less is more
The brand 4700 BC is eyeing retail formats beyond retail shelves and wants to capture travel retail, corporate accounts, and kiosks in select retail stores and cinemas. Travel retail—which includes the Indian Railways as well as Indian and international airlines like IndiGo, Qatar, and Cathay Pacific—has helped the brand reach consumers in high-attention environments where brand recall is stronger and the customer is more likely to engage with a product, according to founder Gupta.
“Most importantly, offline isn’t just about retail shelves. It’s about presence in the right spaces—airports, corporate accounts, and high-footfall kiosks in cinemas and premium retail, ensuring that we engage consumers meaningfully beyond just availability. This has allowed us to drive significant awareness and trial,” Gupta added.
Brands are seeing an uptick in demand, which is further encouraging them to explore retail formats. The Organic World has seen its gourmet category, which includes makhana, nuts and kombucha, among others, witness a 144% growth, fuelled by a growing appetite for healthier and premium food choices. “I believe it is not just a trend—it has evolved into a need. For example, our healthy snacks category (no maida or chemically refined oils, made with healthier alternative ingredients) has grown by 19% over the last year, highlighting the accelerating and persisting demand for gourmet, health-focused alternatives,” Manchanda added.
Brand 4700 BC’s Gupta said that the brand has crossed ₹100 crore in sales this year, reflecting a 40% YoY growth, with an omnichannel approach helping bring a strong validation of the growing consumer appetite for premium snacking. “The category is expanding, and while premium snacking remains a niche, there’s increasing consumer interest in differentiated products.”
However, offline expansions come with significant costs, making it essential for brands to focus on specific channels instead of spreading themselves too thin across formats, according to Praxis Global Alliance’s Jayakumar. “The required investment varies based on the brand’s strategy and target market. A multi-channel approach—combining a physical retail presence with strong online sales—can be the most effective way to scale. New channels like quick commerce have access to gourmet food customers and are relatively less price-sensitive. So, offline channels, especially speciality channels like bakeries, are of immediate relevance offline.”
Premiumisation
Despite growing adoption, the premium tag on gourmet food products remains a hurdle in a brand’s scaling journey. With prices at least 30-40% higher than their non-organic counterparts, these products are less appealing to price-sensitive consumers.
“Gourmet food is more expensive, and therefore, demand pockets are concentrated in metro regions. Expansion beyond these pockets has been difficult due to poorer economics. Moreover, reaching a broad consumer base is challenging due to a fragmented distribution network, which limits accessibility for many brands,” said Akshat Gupta, practice member (Food & Agriculture) at Praxis Global Alliance.
Gupta of 4700 BC acknowledges the challenge, noting that there’s a point beyond which mass adoption slows. “For gourmet products to justify their price, differentiation needs to be evident in both quality and experience. Without that, the willingness to pay more declines. Distribution is another hurdle, as traditional retail models don’t always align with how premium consumers shop.”
The brand works on different price-pack formats to ensure relevance across different occasions. It already has a multi-pack and combo variant with 10 popcorn pouches of various flavours, which offers a price advantage compared to a single box.
“Premium pricing can limit first-time trials, so we are strategically introducing accessible price points without diluting brand equity. These formats help consumers experience the product without a high upfront commitment while maintaining the brand’s premium positioning,” Gupta added.
