Organic boom in the food trade - No end in sight
Dec 31, 2017 - Foods
Organic boom in the food trade - No end in sight
For market researchers, organic is 'the most successful trend ever.' Germans spent almost 10 billion euros last year on unsprayed fruits and organic meat. And the growth continues.
According to a recent study by the Society for Consumer Research (GfK), the organic share in food and beverage purchases has almost doubled in the past ten years - from just under three to almost six percent.
Whether it is about organic meat, unsprayed fruits and vegetables, or organic eggs, the demand is increasing. According to calculations by the Biomarket Working Group, Germans spent 9.48 billion euros last year on organic foods and beverages. This means an increase of around 10 percent compared to the previous year. "There were hardly any product groups where no sales increase was recorded," observes the Association of Organic Food Production (BÖLW).
In some areas, this occasionally brings trade to the limits of its possibilities. For example, Dirk Heim, Sustainability Manager at retail giant Rewe, reports: "We have been observing enormous growth rates in the area of organic meat for two years. The demand is so great that we sometimes cannot meet the needs." Rewe is now trying to ensure sufficient supply of organic products through long-term contracts with strategic partners. But when the harvest is as poor as it was with apples in Germany this year, that is 'a huge problem.'
Rewe alone made around one billion euros in sales with organic products last year. Almost 90 percent of these were accounted for by the retail chain's private labels. Brand-name products still play a subordinate role in the context of organic.
The days when environmentally conscious consumers had to laboriously search for organic products and could only find them in health food stores are long gone. Almost two-thirds of the sales with organic products are now made in supermarkets, discount stores, and drugstores - and their share is increasing.
For Edeka, Rewe, Aldi, Lidl, and Co., organic is attractive for several reasons. On the one hand, because the cash register rings: According to calculations by the GfK, organic products are on average 64 percent more expensive than conventional products. On the other hand, because of the target groups that can be reached with organic products: "Especially younger people and families with children, but also higher income groups can be addressed with them. All of these are interesting target groups," says Rewe manager Heim.
An end to the organic boom is not in sight for the head of the organic label Alnatura, Götz Rehn. He recently predicted in an interview with the industry journal 'Lebensmittel Zeitung': "Organic is just at the beginning."
However, not everyone shares this optimism without reservation. "Organic is still booming. But that does not always have to continue," says Rewe manager Heim. Other topics could quite possibly overtake organic in the future. "The organic label alone will not be enough in the future." Organic manufacturers need to start addressing other purchasing motives that are relevant to customers in the supermarket, he urges. "For example, regionality, fairness, and animal welfare."
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Source: bilacon Newsletter November 2017; Fresh Plaza Newsletter, October 24, 2017