The demand volume for organic food saw a vast increase in the last years
If we take a closer look into German FMCG shopping baskets, consumers show a clear preference for organic when it comes to fresh food.
Product groups with a high organic relevance include eggs, dairy products and fresh fruit/ vegetables/ potatoes.
Another development worth mentioning is that in 2020, consumers also increased their shopping volume and spend on organic meat and poultry. It seems that the public debate on meat prices and animal welfare slowly translates into a behavioral change.
Recent announcements of discounters to ban cheap meat in favor of more livestock-friendly meat categories could well strengthen this change.
Similarly, buying regional products has become very popular and consumers manifest a high trust in local sourcing.
As a result, farmers were able to expand their direct sales through farmers markets and own on-site farm shops.
While regional products do not necessarily have to be organic, regional origin for many shoppers represents an important step towards sustainability, for example lower carbon emissions.
First results from the new GfK study ”Real regional – Grow with Regionality”, to be published in October 2021, support this, indicating that consumers also link regional to more animal welfare.
Of course, buying organic is also a matter of consumer budget. On average, organic products pay a premium of +50% compared to conventional FMCG, however this varies across products.
While organic milk costs nearly as much (or rather as little) as conventional milk, organic soft (alc-free) drinks are often priced more than double compared to conventional.
The promise of premium price has recently led to significant up trading in numerous product categories, especially soft drinks, oil and fat, and sweets.
