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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Organic packaged food and beverages in Germany are led by artisanal brands, commanding a value share of 7.6% in 2021. The key factor behind the success of artisanal brands is the sales of artisanal bread due to its wide availability and popularity among German consumers. Alnatura Produktions-& Handels GmbH follows in second with a value share of 7.0% in 2021 and Hipp GmbH & Co Vertrieb KG holding third place with a value share of 4.4%. 
  • Germany ranks second in global market size while ranking 41st in growth rate, indicating a mature market. This is reflected in the mainstream status of organic products among German consumers, in specific subcategories such as milk and bread.

 

  • Organic products in Germany recorded a value of US$6.3 bn in 2021, representing just over 10.0% of global demand, indicating the significant contribution Germany makes to the global market for organic products. 
  • With organic products becoming mainstream in most categories, the market in Germany is expected to witness some saturation in the short term. However, the growth is still expected to be positive, with a CAGR of 2.7% for the period 2021-2026, registering a value of over US$7.0 bn by 2025.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Home seclusion from COVID-19 drove sales growth in the organic category in 2021, as health- and eco-awareness strengthened, alongside a rise in home consumption.
  • In organic packaged food, 2021 value sales rose by 2.7% to USD$5.2 billion. Growth was driven by organic sauces (+10%) and organic spreads (+13%).
  • Organic beverages current retail value sales rose by 6% to reach USD$1.2 billion in 2021. The category is expected to post a retail value CAGR of 3.5%, with sales reaching USD$1.4 billion by 2025.
Market Trends
  • While the organic trend was already strong in Germany, it has been further strengthened by the Covid-19 crisis and rise in health awareness. The pandemic accelerated the demand for organic food and beverages in 2020-21. As well as being perceived as more sustainable, these products offer healthier nutrition, thus appealing in a holistic way to consumers who are becoming more conscious of the natural environment and more mindful of their everyday food and drink intake.
  • During lockdowns, empty shelves as well as supply chain issues fuelled interest in more regional products, thus also helping to boost interest in organic and regional beverages. This local trend is particularly strong within juice and even carbonates.
  • Organic dairy continued to show solid growth in 2021, following a double-digit expansion in 2020. Organic milk is not only becoming more affordable but also widely available even as private label. Consumers are increasingly willing to spend more money on organic milk as they want to support animal welfare and environmentally friendly products, with purchasing organic seen as a small contribution of this support.
Competitive Landscape
  • The largest baby food player Hipp (59% market share) has a product range almost entirely composed of organic products, with the company having a particularly strong presence in prepared, dried and other baby food. Hipp also holds a major share of organic milk formula sales with 46.5% share.
  • Sales of organic packaged food are being boosted by the continued development of organic ranges by major packaged food brands such as Mestemacher, regarding bread. In breakfast cereals, Kellogg’s seeks to increase the presence of its organic cereals brand Verival, acquired in 2016, which remains niche in Germany.
  • For the most part, however, sales of organic packaged food are largely driven by organic private label ranges in Germany, whose collective share is just over a third of the total category. In dairy, private label milk is a key battleground for retailers trying to improve their image as a provider of authentically organic milk while offering relatively cheap products for price-sensitive consumers.
  • There is also a strong private label presence in organic beverages, with all major modern grocery retailers in Germany having their own organic beverages product lines, such as supermarket chains Rewe and Edeka as well as the discounters Aldi and Lidl. Furthermore, Alnatura, the largest organic supermarket chain in Germany, is the second largest player in organic beverages behind Coca-Cola.
Prospects And Growth Opportunity
  • Organic is a major trend in Germany, with organic produce becoming increasingly
  • mainstream. Consumers continue to demand high quality, with organic products known to have undergone strict quality controls. Organic beverages is expected to continue to perform well as more consumers are willing to pay extra in line with the healthy living and premiumisation trends. German consumers are showing increasing interest in healthier lifestyles, with part of this trend including buying products with certification labels as proof of their quality.
  • Organic dairy is set to remain popular in Germany, with fresh products such as milk, yoghurt, butter and cheese predicted to make further gains. Indeed, it is projected that cheese will post the strongest volume sales growth rate among all organic ranges in the forecast period, continuing the review period trend.
  • Organic juice is seen as offering opportunities within juice, which is struggling due to sugar content concerns among local consumers. As Germans become more aware of growing processes, as well as the types of certifications available for fruit and vegetables that can be used in the production of juice, they are increasingly opting for beverages made from organic sources rather than conventional ones. Organic certification in juice often goes hand in hand with a generally premium experience.
General Health And Wellness Trends
  • Overall, the trend towards health and wellness beverages will continue to grow over the coming years as already strong consumer health awareness is further boosted by the desire to boost the immune system in response to the Covid-19 pandemic. Furthermore, the introduction of a growing array of new innovative products will also help to boost sales and attract new consumers, with reduced sugar beverages set to perform particularly well. The entry of larger players within organic beverages will also help to develop the overall market.
  • As a result of rising consumer health awareness, products like reduced sugar options will continue to grow in popularity. In addition, manufacturers will continue to respond to increased home consumption, with a growing focus on tailoring to consumers who now regularly have breakfast and lunch at home. E-commerce sales will continue to grow strongly over the forecast period as consumers become more used to purchasing all kinds of items online. Retail sales are also expected to continue rising, although growth will decline in 2021 due to the gradual reopening of horeca outlets as consumer confidence in the safety of being in crowded places gradually returns.
General Economics And Demographic Landscape

Economy: 

  • Following real GDP growth of 2.9% in 2021, Germany’s economy is expected to expand by an average annual real rate of 1.2% over 2022-2040.
  • Inflation in Germany is forecast to accelerate to 3.5% in 2022 from 3.1% in 2021.
  • Germany’s exports increased by 17.0% during 2021 as the country remained a net exporter.
  • Public debt in Germany rose to 72.1% of GDP in 2021 from 69.1% in 2020, driven by the public support measures to mitigate the pandemic’s impact.

 

Population demographics: 

  • Germany’s population is set to peak in 2024 but will decline thereafter up to 2040 as positive net migration rates fall and will no longer be able to mitigate increasingly negative rates of natural change. By 2040, Germany’s population will reach 81.6 million when it will be the second largest country in Western Europe, after being surpassed by Turkey in 2021.
  • Extended longevity and dropping birth rates will influence a hastening of the ageing trend. 70+ age cohorts will be the only groups to experience significant growth in 2019-2040, with particularly rapid expansion in the 90+ cohort.
  • Net migration inflows, although waning, are set to remain comparatively high in a regional context up to 2040. This trend will create increased diversity as the number of foreign citizens swells to account for 16.6% of the population by 2040.

 

Income & expenditure: 

  • Per capita gross income in Germany is forecast to increase by 32.7% in real terms over 2021-2040.
  • Later Lifers are projected to become predominant in the top income band by 2040, shaping luxury spending patterns in Germany. 
  • The North Rhine-Westphalia region is anticipated to remain the largest consumer market in Germany by 2040, accounting for 21.6% of total consumer expenditure.
  • Over the 2020-2030 period, Germany is projected to retain its position and rank 12th out of 84 countries in Euromonitor International’s Wealth Index.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

30,129.0

30,983.3

33,423.6

35,166.2

35,681.8

36,456.5

37,121.9

37,723.7

3.9%

1.4%

Organic packaged food and beverages consumption

USD million

4,898.8

5,069.0

5,830.7

6,295.3

6,499.6

6,735.3

6,902.3

7,056.1

6.5%

2.1%

Organic packaged food consumption

USD million

4,094.8

4,193.3

4,805.9

5,176.7

5,316.5

5,488.1

5,596.8

5,699.0

6.0%

1.8%

Organic beverages consumption

USD million

804.0

875.7

1,024.8

1,118.5

1,183.1

1,247.1

1,305.5

1,357.0

8.6%

3.5%

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

%

16.3%

16.4%

17.4%

17.9%

18.2%

18.5%

18.6%

18.7%

-

-

 

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

82.8 

83.0 

83.2 

83.2 

83.2 

83.2 

83.1 

83.1

% Middle and upper class of total population

%

31.6

31.5

31.5

31.5

31.5

31.5

31.5

31.5

% Population aged 65+

%

21.4%

21.5%

21.8%

22.0%

22.2%

22.5%

22.8%

23.1%

% Population aged 0-14

%

13.5%

13.6%

13.7%

13.8%

13.8%

13.9%

13.9%

14.0%

% Population with higher education degrees

%

28.2 

28.5 

28.7 

28.9 

29.1 

29.3 

29.4 

29.5

Average number of children per household

children

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

GDP per capita

USD per capita

48,118.7

49,490.3

47,897.8

50,612.9

52,484.7

53,708.0

54,599.8

55,306.4

Consumer expenditure per capita (US$)

USD per capita

23,826.1

24,461.1

23,117.1

23,974.3

25,450.5

26,107.1

26,539.6

26,960.6

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

USD per capita

2,582.3

2,642.7

2,769.7

2,602.9

2,731.0

2,800.9

2,837.9

2,869.2

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Berlin

5.2

Top cities by population (2021)

2

Hamburg

3.3

Top cities by population (2021)

3

Munich

2.9

Top cities by population (2021)

4

Stuttgart

2.8

Top cities by population (2021)

5

Frankfurt am Main

2.7

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Edeka Zentrale AG & Co KG

Top grocery retailers by sales (2021)

2

Rewe Group

Top grocery retailers by sales (2021)

3

Schwarz Beteiligungs GmbH

Top grocery retailers by sales (2021)

4

Aldi Group

Top grocery retailers by sales (2021)

5

Globus Holding GmbH & Co

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Germany

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

Germany

1

Organic Coffee Roast Not Decaf

271,485

2021

Germany

2

Organic Pears Fresh

48,910

2021

Germany

3

Organic Strawberries Fresh

11,996

2021

Germany

4

Organic Vinegar and Substitutes

11,220

2021

Germany

Total

Total Organics*

343,611

2020

Germany

1

Organic Asparagus Fr/Ch

308,062

2020

Germany

2

Organic Strawberries Fresh

135,852

2020

Germany

3

Organic Coffee Roast Not Decaf

114,212

2020

Germany

4

Organic Berries Fresh

35,375

2020

Germany

5

Organic Milk

25,000

2020

Germany

Total

Total Organics*

652,380

2019

Germany

1

Organic Berries Fresh

929,435

2019

Germany

2

Organic Strawberries Fresh

457,108

2019

Germany

3

Organic Asparagus Fr/Ch

129,213

2019

Germany

4

Organic Coffee Roast Not Decaf

63,225

2019

Germany

5

Organic Grapes Fresh

62,394

2019

Germany

Total

Total Organics*

1,708,772

2018

Germany

1

Organic Asparagus Fr/Ch

323,767

2018

Germany

2

Organic Coffee Roast Not Decaf

155,007

2018

Germany

3

Organic Lemons Fr/Dr

95,810

2018

Germany

4

Organic Strawberries Fresh

73,172

2018

Germany

5

Organic Peppers Fr/Ch

34,762

2018

Germany

Total

Total Organics*

698,247

 

Note : Total organics is the sum of all exports in a particular year   
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2018 – 2021 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2018-2021 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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:
Federal Ministry of Food and Agriculture
https://www.bmel.de/EN/topics/farming/organic-farming/organic-farming_node.html

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.

This consolidated version repeals and replaces previous organic regulations and contains the basic legislative act plus amendments and corrections that set the rules on organic production and labeling of organic products: EU 2018/848 (pdf in English) 

Key secondary acts not included in consolidated EU 2018/848 include: 

  • Retroactive recognition for the purpose of conversion, the production of organic products and information to be provided by EU countries: EU 2020/464 (pdf in English)
  • Conditions for authorization and lists of authorized products and substances for use in organic production: EU 2021/1165 (pdf in English)
  • Supplemental rules on the official control, traceability and mass balance checks for operators and groups of operators: EU 2021/771 (pdf in English)

A full list of basic legislative act and secondary acts are available here

Date of Implementation: 1992

Regulation and/or Standard Scope:

EU standards cover crop, livestock, processing, and certification of groups of operators. 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, sprouted seeds, chicory heads, wine, mushrooms, and salt. 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

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. EU requires that imported products must be from countries that have been recognized by the EU (third-countries) and certified by recognized control bodies (certifiers); or countries with bilateral equivalency arrangements (Canada, Japan, Korea, New Zealand, U.S.); or countries with equivalency agreements (Chile, Switzerland, UK).

List of third countries and the list of control authorities and control bodies recognized for the purpose of importing organic products into the EU: EU 2021/2325 (pdf in English)

Requirements have been established for importers, operators responsible for the consignments, first consignees and consignees for the import of organic and in-conversion products into the EU.

Documents and notification required EU 2021/2307 (pdf in English)

Beginning February 3, 2020, port of entry health authorities will only endorse a certificate of inspection if the certifier issued it prior to export. Certain sections of the certificates (boxes 13, 16, and 17) may be filled in with provisional information, since certifiers can not verify all of the data before the product is exported. The provisional information must be confirmed/updated within 10 days, and before the certificate can be endorsed at the port of entry.

Exports from the U.S. to EU must adhere to the EU procedures and require an EU Certificate of Inspection (COI). A USDA-accredited certifying agent must complete an electronic COI through the European Union's Trade Control and Expert System (TRACES) link before the product leaves the U.S. Certain edits to the COI may only be made within 10 days of issuing the original COI.

EU Trade in Organics

U.S. International Trade Administration: Germany – Country Commercial Guide

Certification and Accreditation

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

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

The EU has unified the control systems that Member States and control bodies implement for investigations, non-compliance, mediation, testing, reporting, exclusion from organic sale, emergency treatments and appeals.  Required reports, records and certificates are submitted in electronic format through the use of the Organic Farming Information System.  

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

Requirements for recognition of control authorities and control bodies: EU 2021/1698 (pdf in English)

Use of Organic Farming Information System and templates for annual reports: EU 2021/1935 (pdf in English)

Record keeping and declaration requirements from operators and groups of operators EU 2021/2119 (pdf in English)

List of control authorities and control bodies for equivalence 

Control bodies in the European Union

Additional Information

FiBL Country reports
U.S. International Trade Administration

USDA’s GAIN Report Germany Exporter Guide (2021)
USDA’s GAIN Report COVID Fuels Historic Growth in Organic Sales (2022)
USDA’s GAIN Report Opportunities for Organic Exports to Germany (2021)
USDA’s GAIN Report U.S. Organic Food Exports Expected to Reach Record Levels (2018)
USDA’s GAIN Report Changes to Germany’s Packaging Laws – An Exporter’s Guide (2019)
USDA’s GAIN Report Vegan Market is Cooking in Germany (2017)
USDA’s GAIN Report Germany Retail Foods (2020)
USDA’s GAIN Report Top Five Consumer Types and Trends in Germany (2020)
USDA’s GAIN Report Germany Food Service - Hotel Restuarant Institutional (2021)
USDA’s GAIN Report COVID-19 Triggers Structural Changes in the German Restaurant Sector (2020)
USDA’s GAIN Report Germany Food Processing Ingredients (2021)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA’s GAIN Report Opportunities for U.S. organics on German Market (2017)
USDA’s GAIN Report Voluntary GMO-Free Labeling Program Generates 11 Billion Dollars (2019)
USDA’s GAIN Report US Organic Food Exports will more than double in 2019 (2019)
Germany's Federal Office for Agriculture and Food Import of Organic Products from Third Countries 

USDA’S GAIN Report Update on Changing EU Import Conditions for Composite Products (2022)
USDA’S GAIN Report COVID-19 Boosts Organic Food Sales in the EU (2022)
USDA’S GAIN Report European Commission Launches Public Consultation on the Revision of EU Food Labeling Requirements (2022)
USDA’S GAIN Report New EU Labeling Rules for Wines (2022)
USDA’S GAIN Report Continuing Good Prospects for US Organic Exports to the EU (2021)
USDA’S GAIN Report New EU Organic Regulation Entering Into Force in 2021 Regulatory Update (2020)
USDA’S GAIN Report EU Launches Consultation on Future Organics Action Plan (Sept. 2020)
USDA’S GAIN Report Food Labeling Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report Pesticides Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2021)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report Annual (2021)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)