Open to Imports

OTA estimates total organic market consumer sales of Germany at about $9 billion USD per year.

  • The total market size for organic packaged food and beverages in Germany in 2015 is US$4,009.1mn, making it the 2nd largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Germany is US$49.5, which ranks as the 5th largest spending per capita in the world.
  • The largest company by sales in organic packaged foods and beverages is Artisanal, which maintains 8.8% of total sales, followed by Alnatura Produktions & Handels GmbH and Hipp GmbH & Co Vertrieb KG.
  • Organic packaged food and beverages in Germany will see slow year-on-year growth of close to 2% in 2015. This is slower than the rest of the Western Europe region, which will experience greater than 4% year-on-year growth in 2015.
  • Germany maintains a market size for organic packaged food and beverages of US$4,009.1mn in 2015, which is 11.5% of global category sales.
  • Within the Western Europe region, Germany is the leader in terms of total value sales of organic packaged food and beverages.
  • Despite the large market size, Germany will experience slow forecast growth of sales of organic packaged food and beverages, at 1.1% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Germany in 2015 is US$4,009.1mn, making it the 2nd largest market in the world by value.
  • As organic products are widely available and competition is strong, low-priced, often private-label products are in high demand from consumers.
  • Consumers are familiar with organic products and are looking for additional claims in their purchases, such as fair trade or GMO-free. An organic label is no longer enough to command a premium price.

Market Trends

Competitive Landscape

  • The organic packaged food and beverage landscape in Germany is fragmented and competitive.
  • Private-label companies in organic packaged food are growing as retailers provide more space on their shelves and are expanding across different product categories at lower price points than leading brands.
  • Most leading organic packaged food and beverage companies are in niche markets such as organic soup, baby food, coffee, and cola. 
  • Hipp GmbH & Co Vertrieb KG, specializing in baby food, continues to lead organic packaged food sales.
  • Organic packaged food company Lidl Stiftung & Co KG, alongside other private-label players, recorded strong sales in 2014 as demand for cheaper organic products increased. 
  • Alnatura Produktions & Handels GmbH is the largest player in organic beverages, with a 10% value share in 2014. 
  • In the organic beverages space, private label has little presence with the exception of organic fruit/vegetable juice, tea, instant coffee, and other hot drinks.

Prospects and Growth Opportunity

  • Organic packaged food and beverage sales have constantly increased in recent years and positive growth is anticipated in coming years. 
  • As the German economy improves, most organic packaged food and beverage manufacturers will continue to increase the quality and prices of their products to attract high-income consumers.
  • Consumers are becoming more educated and responsive to claims pertaining to food quality, fair trade, and sustainability, and thus organic labeling is no longer enough to command premium prices. 
  • Land available for organic farming is scare in Germany, which could put pressure on the supply side and force manufacturers and retailers to rely more on imported products.

General Health & Wellness Trends

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

Health & wellness products consumption

24,734.7

25,307.9

25,833.4

26,319.2

26,607.9

26,888.2

27,191.1

2.1%

1.1%

Organic packaged food and beverages consumption

3,644.8

3,785.9

3,905.3

4,009.1

4,070.3

4,121.4

4,166.6

3.2%

1.3%

Organic packaged food consumption

3,106.5

3,233.5

3,334.6

3,420.8

3,469.2

3,506.5

3,537.9

3.3%

1.1%

Organic beverages consumption

538.3

552.4

570.6

588.3

601.1

615.0

628.6

3.0%

2.2%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

14.7%

15.0%

15.1%

15.2%

15.3%

15.3%

15.3%

-

-

 

Economic & demographic data

Data type

2012

2013

2014

2015

2016

2017

2018

               

Total population

80.3

80.5

80.8

80.9

81.0

81.1

81.0

% Middle and upper class of total population

39.4%

39.4%

39.4%

39.3%

39.3%

39.3%

39.3%

% Population aged 65+

20.6%

20.7%

21.0%

21.2%

21.5%

21.8%

22.1%

% Population aged 0-14

13.2%

13.1%

13.0%

12.9%

12.8%

12.8%

12.8%

% Population with higher education degrees

25.9%

26.4%

26.8%

27.2%

27.5%

27.8%

28.1%

Average number of children per household

0.3

0.3

0.3

0.3

0.3

0.3

0.3

GDP per capita

38,035.6

38,851.6

40,036.7

41,452.6

42,125.9

42,801.9

43,402.6

Consumer expenditure per capita (US$)

20,033.4

20,322.5

20,628.1

21,121.9

21,458.6

21,770.0

22,029.9

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

2,003.1

2,069.2

2,105.3

2,184.9

2,236.5

2,272.2

2,293.2

Retailer & urban area data

Data category

Rank

Urban Area/retailer

Population
(mns)

       

Top urban areas by population (2015)

1

Berlin

5.0

Top urban areas by population (2015)

2

Hamburg

3.2

Top urban areas by population (2015)

3

Stuttgart

3.2

Top urban areas by population (2015)

4

Munich

2.9

Top urban areas by population (2015)

5

Frankfurt am Main

2.7

Top grocery retailers by sales (2015)

1

Edeka

-

Top grocery retailers by sales (2015)

2

Lidl

-

Top grocery retailers by sales (2015)

3

Aldi

-

Top grocery retailers by sales (2015)

4

Kaufland

-

Top grocery retailers by sales (2015)

5

Rewe

-

 

USDA GATS data

Rank

2015

2014

2013

2012

1

Lemons

Coffee Roast

Brocolli

Carrots

2

Tomato Sauce Grapes Strawberries Coffee Roast

3

Coffee Roast Strawberries Coffee Roast Oranges

4

  Lemons   Tomato Sauce

5

  Tomato Sauce   Cabbage

 

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

European Union (EU) Member States retain the authority to determine additional requirements for production within their country. They can also determine exceptions due to catastrophic circumstances, but cannot restrict access to products in compliance with EU regulations. In addition, the EC delegates most authority for the administration of organic programs to the Member States.

Agency(s) Contact Information: 

German Business Portal

Description: Includes import regulations such as packaging, hygienic requirements, food safety or German deposit regulations. Also includes tax and duty information, legal requirements, legal requirements and country information.
 

Federal Office of Economics and Export Control (BAFA)

Telephone: 49 6196 908-0 (Germany)

Description: BAFA is a superior federal authority subordinated to the Federal Ministry of Economics and Technology. One of its central tasks is foreign trade and it can help companies wishing to export to Germany.
 

US Embassy - Office of Agricultural Affairs

Contact: Office of Agricultural Affairs
American Embassy
Clayallee 170
14195 Berlin
Telephone: (49-30) 8305 1150
Fax: (49-30) 843 11935
Email: agberlin@usda.gov 

Description:  The Agricultural Affairs Office assists U.S. exporters with questions they may have about the German market, trade shows and other marketing/sales opportunities in Germany.

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

The European Union has an Equivalency Agreement with the United States.

General requirements; repeal of previous organic regulations: EC 834/2007 (.pdf in English)

Detailed rules on production, labeling and control including its first amendment on production rules for organic yeast: EC 889/2008 (.pdf in English)amended by (EU) No 1358/2014 (see below).

Rules concerning imported products: EC1235/2008 (.pdf in English)
Feburary 2013 amendment concerning imported products: (EU) No 125/2013 (.pdf in English)

Rules on organic aquaculture and seaweed production - Amendment in 2009 - implemented in 2010: EC 710/2009 (.pdf in English) 
Organic aquaculture and seaweed production updates (EU) No 1358/2014 effective January 1, 2015.

Detailed rules on organic wine: Regulation No 203/2012 (web; in English)

 

Date of Implementation: 

1992

Regulation and/or Standard Scope: 

EU standards cover crop, livestock and processing. Farm and handling plans are required, as well as detailed record keeping and detailed livestock feed standards.  Specific standards are included for aquaculture, seaweed, yeast, bees, and mushrooms. Criteria for determining allowed materials include consistency with the objectives and principles of organic farming, and materials must be of plant, animal, microbial or mineral origin. Synthetic substances, however, may be used when they replicate the natural sources and when they are approved for organic production in the EU.

Imported Products Requirements

Imported Products: 

EU requires that imported organic products meet EU standards. Non-EU organic products must include country of origin labeling if they wish to use the EU organic logo. Use of the EU organic logo is not required for products from outside the EU.

Certification and Accreditation

Certification: 

The EC requires organic certification for all those involved in production and handling, including importers. EC requires ALL processing operations to be certified, even if those products are below the 95% threshold for the "Organic" label.

EC delegates the authority for investigations, non compliance, mediation, and testing, as well as reporting, exclusion from organic sale, emergency treatments and appeals to the Member States in accordance with their respective control system plans.

The EC allows private sector standards for the product categories, such as cosmetics and textiles, which are not fully regulated by the EC.  In the EU certifiers (control bodies) can require additional organic crop, livestock and processing standards in association with the use of their certification seal.

List of control authorities and control bodies operating in third countries 

Other control bodies

Accreditation: 

Each EU Member State accredits certification bodies.

Additionally, the EU vests the authority for exchanging information on "infringements and irregularities" (enforcement) to certifiers through the Member State control systems as the vehicle to remove non-compliant product from the marketplace.  However, it is not clear how, or when, an organic certificate can or will be revoked.

In addition to the EC organic regulations for certification and accreditation procedures, the requirements of EN 45011 and ISO Guide 65 for accreditation must be met.

 

Additional Information

Definitions

Review definitions of terminology included in this website.