PESTLE Analysis of Organic Food Industry

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The PESTLE analysis of organic food industry gives a thorough discussion about the
political, economic, technological and environmental elements of the industry. These factors are
covered in the report and could impact on the organic food industry either positively or
negatively (Adamkasi, 2016). It is through determining such factors positively that assists
businesses in such an industry to develop strategies that can be used to leverage the many
opportunities and mitigate any risks that may arise.
Currently, there is an increasing concern and awareness regarding the need for quality
food while there are sparking debates regarding food products and the quality associated with it.
In the late 80s, there was a rising trend and demand for organic food, but as of today, it has
become the part of life for people to consume such foods every time they shop (Adamkasi,
2016). With the introduction of a variety of brands, it has led to an emerging trend in the market
and made organic popular among individuals particularly the working class who want to reach
on time in the work stations.
Political factors
India’s food market is characterized by political pressure since government stability is
associated with increasing the level of economic activity in India and the government introduces
various regulations aimed at regulating business activities (PESTLE Analysis, 2014). The
government should aim at raising awareness among the people regarding the changing trend in a
bid to make their population healthy and introduce policies in the agricultural industry. The need
to adopt a sensible health policy by the Indian government through encouraging agriculture has
led to the growth of healthy products for the Indian people and has also led to the establishment
of relevant and straightforward legislation that has led to the increase of agricultural production
in India. The organic food industry is significantly impacted by the policies adopted and

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implemented by the government in a country such as India translating to a change of business
trends in the country (Adamkasi, 2016). However, some legislation has it easier for the operation
of the organic industry.
In comparison to any other industry, the organic food industry is regulated by some
legislation similar to other sectors where free trade agreements provide an opportunity for
businesses to expand and thrive. The industry faces some challenges such as the low labor
standards in a country such as India and also the increasing pressure from the government to
effectuate some policies in the organic industry which may be pressing to businesses in such an
industry
Economic factors
The economic elements, environment, and cases impact the growth of any industry which
also has implications on the retail food industry due to several factors such as disposable income,
the rate of interest, spending habit by the consumer, level of unemployment, taxation and
economic recession witnessed in many countries. The organic food industry employs different
mechanisms in the sale of its commodities which are supermarkets, specialized outlets and
selling directly. However, some economic elements are vital in helping the business expand and
play a crucial function in increasing the demand for organic commodities among clients. The
economy of India has been relatively stable since the inception of industrial reform policies in
1991. The policy brought reforms such as reductions in industrial regulation, liberalization of
foreign capital which has contributed to an improvement of the economic environment in India.
India reported a GDP of about $5.07 trillion as of 2013, and this was followed by an improved
growth rate of about 5% as of 2012 in comparison to the 4.35% reported in 2013.