The use of organic products among general public rushed in the early 2000s when the drive for environmental conservation agitated the entire world. After all, environmental conservation and the use of organic products go hand-in-glove. As per recent reports, the organic products market in India has been growing at a CAGR of 25 per cent and is expected to reach Rs 10,000 – 12,000 crore mark by 2020. The products are being demanded by a huge share of consumers across India.
As these products are being heavily demanded, various brands are either starting their own category of organic products or new brands are disrupting the market to reap benefits of the growing demand. Take the example of Patanjali Ayurved Limited – it is one of the latest entrants in the organic industry and has created its niche in a few years. However, the major issue that both the old and new brands are concerned of is the supply of these products to the end-users. Distribution plays a huge role in the supply chain of organic products across India and abroad to meet the demands of the end-users. This makes the distributorship of these products a lucrative business opportunity.
Becoming an Organic Products Distributor
The organic products industry markets a wide variety of products to cater to different types of consumer groups. The organic product industry is classified into three main categories – organic food products, organic clothing products, and organic personal care products. With a wider range of products and brands, the ways of distribution also vary, creating more distributorship opportunities in the industry. The health and wellness industry, especially, is a vast prospect where owning a distributorship of organic products is a small yet promising section.
As urban public are becoming more and more aware about their wellness, they are demanding organic products in whichever way possible. This is one of the biggest reasons why the industry is going through a success path. With franchises of organic products brands are opening here and there more often, it has become easier to get a franchise, and hence distributorship opportunities increase further.
The section of organic products is a big sector which includes health supplements, beauty products, daily kitchen necessities, and anything related to food. Starting a franchise is very easy as brands reach out to the enthusiasts with their full support and resources.
Types of Distributorship in Organic Products Category
With the extended product categories in three different markets (food, clothing and personal care), there are many more opportunities for those who wish to start entrepreneurship as a distributor. Let’s discuss some of the opportunities, investment, space requirement, and RoI in these different types of markets.
#1 Organic Food Distributorship
Organic food is one of the biggest segment for which the demand is exceedingly high. Many FMCG brands that deal with the food and beverage products are actively using organic products, and are seeking a fair distribution among the end-users. Here are a few distributorship facts about the segment.
Investment: Rs2-5 lakhs
Space Requirement: 1000 sq ft
Return on Investment: 10%
Distributorship Level: City Level
#2 Organic Clothing Distributorship
Organic clothing is yet another arena which is gaining a lot of popularity among millennials, seeing the environmental conservation drive. As the whole clothing industry works on distributorship, organic clothing distribution is a whole new niche to be explored by the aspirants.
Investment: Rs 2-5 lakhs
Space Requirement: 200 sq ft
Return on Investment: 30-35%
Distributorship Level: City Level
#3 Organic Personal Care products Distributorship
The most demanded segment in the organic industry – organic personal care products or organic beauty products are taking the organic industry to another level. Therefore, the aspiring distributors can try their luck on this segment.
Investment: Rs 1-2 lakhs
Space Requirement: 300 sq ft
Return on Investment: 40%
Distributorship Level: City Level
