GERMANY ORGANIC FOOD MARKET

Major Germany Organic Food Market Drivers

Shift towards healthy eating owing increasing health concern among the consumers coupled with rising vegan population is driving the demand for Organic food market. In Germany organic foods are getting enough attention among the consumer is further aiding the market growth. The demand for high quality remains strong, as organic products are identified for their strict quality standards. Organic beverages are projected to maintain a strong performance, propelled by consumers’ willingness to invest extra in alignment with health-conscious and premiumization trends. German consumers are interested in adopting healthier lifestyles, including purchasing products bearing certification labels as evidence of their quality. 

Organic dairy products are projected to remain highly sought-after in Germany, with fresh items including butter, yogurt, milk, and cheese projected to see continued growth. Cheese is projected to exhibit the most robust volume sales growth rate among all organic ranges throughout the forecast period, continuing the trend witnessed in the review period. In addition, organic juice presents opportunities within the juice market, which faces challenges owing to concerns about sugar content among local consumers in Germany. As Germans become more informed about rising processes and the certification available for fruits and vegetables used in juice production, they are significantly choosing beverages made from organic sources over conventional ones. Organic certification in juice signifies a premium experience, further propelling its demand among consumers. 

Furthermore, the trend toward health and wellness food and beverages is projected to continue growth in the coming period, propelled by robust customer health awareness further amplified by the demand to bolster the immune system due to the COVID-19 pandemic. In addition, the introduction of an expanding array of innovative products will contribute to increased sales and attraction of new consumers, with reduced sugar beverages projected to function effectively. In addition, the entry of larger players into the organic beverages sector will contribute to the development of the overall market.

Due to rising consumer health awareness, products such as decreased sugar options will continue to attain popularity. Manufacturers will continue to adapt to an increasing trend of home consumption, with increased prominence on catering to consumers who now repeatedly have lunch and breakfast at home. E-commerce sales are projected to maintain robust growth in the forecast period as customers increasingly do online purchasing in different product categories. While retail sales are also anticipated to continue growing, growth may moderate during 2021, due to the gradual reopening of HORECA stores, as consumer confidence in security of crowded locations steadily returns. 

Hipp, the dominant player in the baby food industry with a 59% market share, specializes in offering a product line predominantly comprised of organic items. The company excels in different categories of baby food, including dried, and prepared options. In addition, Hipp holds a significant position in the market for organic with formula, boasting a 46.5% share. Furthermore, the growth of organic packaged food sales is being boasted by a consistent expansion of organic product lines by popular packaged food brands including Mestemacher, specifically in the bread category. In the breakfast cereal segment, Kellogg’s focuses on improving the market presence of its organic cereals brand, Vesival, acquired during 2016, which presently holds a niche position across Germany. 

Segments covered in the Report:

The Germany Organic Food Market has been segmented on the basis of Category and Distribution Channel. Based on the Category, the market is segmented into Dairy, Frozen & Processed Foods, Fruits & Vegetables, Cereals & Grains, Meat & Poultry, Fish, Others. Based on the Distribution Channel, the market is segmented into Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Stores, Other Distribution Channels.

Market Segmentation

Germany Organic Food Market by Category

• • Dairy
  • Frozen & Processed Foods
  • Fruits & Vegetables
  • Cereals & Grains
  • Meat & Poultry
  • Fish 
  • Others

Germany Organic Food Market by Distribution Channel

• • Supermarkets/Hypermarkets
  • Convenience Stores
  • Specialty Stores
  • Online Stores
  • Other Distribution Channels