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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 7.8% in 2019. The key factor behind the success of Artisinal 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 7.2% in 2019 and Hipp GmbH & Co Vertrieb KG holding third place with a value share of 4.9% in 2019.
  • Germany ranks second in global market size while ranking 45th in growth rate, indicating a market entering the maturity stage. 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$4.8 bn in 2019, representing approx. 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 1.9% for the period 2019-2024, registering a value of US$5.3 bn by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Germany recorded a YoY growth of 3.3% for the period 2018-2019, reaching a value of US$4.8 mn in 2019. This growth was partially facilitated by a 2.0% increase in average unit prices of organic beverages in current terms in 2019.
  • With a current value increase of 17.0% in 2019, organic concentrates recorded the strongest growth in organic beverages, which is currently a small category but is the fastest-growing category in health and wellness beverages in Germany.
  • Growth in organic packaged food is led by organic milk, which recorded a current value increase of 9.0% in 2019. The key driver behind the growth of organic milk is the relaxed economic climate, allowing German consumers to justify the increased cost of purchasing organic milk over regular milk.
Market Trends
  • Organic packaged food and beverages are becoming mainstream in Germany, with an increasingly educated German population focusing heavily on the benefits of consuming organic products. Additionally, the favorable economic scenario has also helped sales as consumers can pay more for the organic variants of products.
  • There is also a declining share of private labels within organic beverages. While private labels currently enjoy a high share owing to their lower prices and easier accessibility through retailer brands, several consumers prefer to pay a higher price, opting for more premium products.
Competitive Landscape
  • Coca-Cola leads organic beverages in 2019 on the back of its popular organic non-cola carbonate Vio Bio Limo witnessing strong demand in Germany. Additionally, the brand also benefited from Coca-Cola’s available resources, mainly its strong distribution network. An example of the brand leveraging Coca-Cola’s resources can be seen in the Vio portfolio benefitting from a recent overhaul that saw the brand gain a new packaging design as well as an updated communication strategy.
  • Artisanal products have also performed well in organic packaged food, primarily due to the broad availability and positive performance of artisanal organic bread. Private labels also drove sales of organic packaged food. Within organic chilled processed meat and seafood, consumers currently prefer choosing private label products, with branded products remaining relatively niche.
  • Organic retailer chain Alnatura Produktions- & Handels remained the leading branded player in organic packaged food in 2019, leveraging its dual role as both a manufacturer and retailer. The company also opened new organic supermarkets across Germany over recent years as well as widened its organic portfolio to include more than 1,300 products.
Prospects And Growth Opportunity
  • With the increasing concerns over the risks of excessive sugar, German consumers are wary of consuming non-organic juices, leading to a slump in demand for non-organic juices, impacting the overall juice category in Germany. Germans prefer organic variants of juices, which are priced higher but are lower in sugar content. This shift is expected to provide relief to the struggling juice category and help drive sales for organic juices over the short term.
  • Organic hot drinks are now an essential category with consumers looking for high-quality coffee and tea and expecting their coffee and tea products to be organically produced by default. Additionally, with more consumers turning to coffee and tea for the functional benefits provided, there is likely to be an increase in demand for organic products in these categories.
  • Manufacturers specializing in organic tea are witnessing an increase in their contribution to overall tea sales, with Yogi Tee and, in particular, Cupper continuing to outperform traditional tea players. This growth is driven by consumers looking for more specific or differentiated experience in tea consumption, leading to increasing opportunities for new brands capable of attracting consumer attention. This has also led to many smaller domestic and international beverage producers increasing their focus on providing certified organic beverages as consumers are becoming increasingly conscious about the origin and content of the products they consume.
General Health And Wellness Trends
  • Consumers in Germany are increasingly focused on the contents of their products and are becoming more educated on the benefits of consuming organic products, leading to organic variants increased popularity in multiple packaged food and beverage categories such as tea and baby food.
  • German consumers are also focusing on more specific organic claims. With organic production becoming a norm, more consumers are focused on the additional claims provided on the product such as sustainable practices, Fairtrade, etc. indicating an environment where the specific positioning from manufacturers will be a crucial factor in the face of increasing competition.
General Economics And Demographic Landscape

Economy:

  • The economy of Germany is expected to grow moderately in 2020. Real GDP growth was recorded at 0.5% in 2019, with an increase of 0.7% expected for 2020. In the long term, GDP growth is expected to be 1.1% in 2021, reaching 1.0% per year by 2027.
  • Growth is supported by a healthy labour market, low rates of inflation and a fiscal approach centred around economic expansion. The value of exports is expected to recover post-Brexit. However, the US-China trade war and tensions between the EU and the US continue to be risks likely to inhibit economic development.
  • Unemployment was recorded at 3.2% in 2019 and is expected to rise to 3.4% in 2020. A factor for the increase in unemployment is the increasing competition faced by German firms due to a rise in labour costs.
     

Population demographics:

  • The population of Germany is witnessing a slowdown in the growth rate over time. The population in 2000 was at 83.1 million, which is expected to reach 83.5 million by 2030.
  • Germany has a significant elderly population, with a median age in 2018 reaching 46 years, 6.2 years higher than the median age in 2000 and well above the regional average. This increase in the elderly population is a significant driver of increasing healthcare costs.
  • With the highest rate of contraception usage in Europe, the fertility rate in Germany is also witnessing a slowdown in growth, with the fertility rate in 2019 reaching 1.6 births per female, increasing to 1.7 births per female by 2030.
     

Income & expenditure:

  • Germany’s savings ratio was recorded at 16.3% of disposable income in 2019, with the ratio expected to remain the same in 2020. Consumer expenditure per capita amounted to US$22,862 in 2019 with a growth of 1.0% projected in 2020.
  • Total consumer expenditure, which is expected to represent 49.7% of GDP in 2020 is expected to grow at an average annual rate of 1.1%, increasing by a cumulative value of 11.1% during the period 2020-2030. The highest expenditure is expected to be on healthcare owing to the proportion of the elderly population.
  • Disposable income per capita was US$27,955 in 2019. In 2020, the indicator is expected to grow by 1.0% in real terms. For the period 2020-2030, total disposable income is predicted to increase by a cumulative value of 10.2% in real terms – growing at an average annual rate of 1.0%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

26,931.8

27,835.5

28,816.8

29,664.9

30,213.6

30,674.6

31,092.4

3.3%

1.4%

Organic packaged food and beverages consumption

USD million

4,327.2

4,554.8

4,681.4

4,835.9

4,935.4

5,032.8

5,131.9

3.8%

2.0%

Organic packaged food consumption

USD million

3,668.5

3,850.6

3,911.8

4,013.5

4,066.9

4,120.4

4,174.8

3.0%

1.3%

Organic beverages consumption

USD million

658.7

704.2

769.6

822.4

868.5

912.3

957.1

7.7%

5.0%

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

%

16.1%

16.4%

16.2%

16.3%

16.3%

16.4%

16.5%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

82.2

82.5

82.8

83.0

83.2

83.4

83.5

% Middle and upper class of total population

%

31.6

31.6

31.6

31.5

31.5

31.5

31.5

% Population aged 65+

%

21.1%

21.2%

21.4%

21.5%

21.7%

21.9%

22.2%

% Population aged 0-14

%

13.2%

13.4%

13.5%

13.6%

13.6%

13.7%

13.8%

% Population with higher education degrees

%

27.6

27.9

28.2

28.5

28.7

28.9

29.1

Average number of children per household

children

0.3

0.3

0.3

0.3

0.3

0.3

0.3

GDP per capita

USD per capita

42,695.1

44,020.4

45,220.2

46,329.0

45,861.7

46,531.1

47,057.5

Consumer expenditure per capita (US$)

USD per capita

21,232.1

21,753.1

22,277.6

22,853.7

23,080.1

23,367.8

23,663.1

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

USD per capita

2,278.3

2,336.6

2,414.6

2,482.6

2,634.5

2,674.7

2,659.6

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Berlin

5.3

Top cities by population (2019)

2

Hamburg

3.3

Top cities by population (2019)

3

Munich

2.9

Top cities by population (2019)

4

Stuttgart

2.8

Top cities by population (2019)

5

Frankfurt am Main

2.7

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Edeka Zentrale AG & Co KG

Top grocery retailers by sales (2019)

2

Rewe Group

Top grocery retailers by sales (2019)

3

Schwarz Beteiligungs GmbH

Top grocery retailers by sales (2019)

4

Aldi Group

Top grocery retailers by sales (2019)

5

Metro AG

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$)

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

2017

Germany

1

Organic Berries Fresh

168,513

2017

Germany

2

Organic Beet Fr/Ch

148,368

2017

Germany

3

Organic Lettuce Not Head Fr/Ch

75,380

2017

Germany

4

Organic Strawberries Fresh

45,216

2017

Germany

5

Organic Lemons Fr/Dr

23,870

2017

Germany

Total

Total Organics*

494,385

2016

Germany

1

Organic Strawberries Fresh

382,007

2016

Germany

2

Organic Tomato Sauce Ex Ketchp

103,011

2016

Germany

3

Organic Lemons Fr/Dr

20,770

2016

Germany

4

Organic Coffee Roast Not Decaf

6,763

2016

Germany

Total

Total Organics*

512,551

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 2016 – 2019 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 2016-2019 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:

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).
Regulation (EU) 2019/2164, which amends Regulation (CE) 889/2008, changed some of the lists of inputs allowed in organic agriculture and processing.

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

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.

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.

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 for equivalence 

Control bodies in the European Union

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

http://www.organic-europe.net/country-info.html

USDA’s GAIN Report Germany Exporter Guide (2019)
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 (2019)
USDA’s GAIN Report Germany Food Service - Hotel Restuarant Institutional (2019)
USDA’s GAIN Report Germany Food Processing Ingredients (2020)
USDA’s GAIN Report Germany Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2019)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2019)
USDA’s GAIN Report Opportunities for U.S. organics on German Market (2017)
USDA’s GAIN Report Germany Product Brief Fresh Fruit (2016)
USDA’s GAIN Report Germany Organic Food Retail 2016 
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)

USDA’S GAIN Report New EU Organic Regulations for Early 2018 (2017)
USDA’S GAIN Report Electronic Certificate of Inspection Required for EU Organics Trade (2017)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’S GAIN Report U.S. Organic Food Exporters Set to Double Sales to EU (2019)
USDA’s GAIN Report Plenty of opportunities for U.S. organics in the EU market (2015)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’S GAIN Report EU-28 Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report EU-28 EU-U.S. Organic Trade Update - January 2014 
Germany's Federal Office for Agriculture and Food Import of Organic Products from Third Countries