German organic sector defies the crisis
GfK Panel Services analyzes German market for organic products
Nuremberg, February 16, 2010 – The organic sector was able to sustain its position in 2009, despite the financial crisis. The quantity of organic food and drink sold increased by 2%. However, falling prices reduced consumer expenditure by approximately 1%. Organic products have been appealing to the whole population for some time. According to an analysis by GfK Panel Services, which was presented at the international BioFach trade fair in Nuremberg today, 94% of German households purchased organic products last year, spending an average of EUR 84.
Fears that consumers’ purchases of organic products would be the first to suffer in times of financial and economic crisis were not realized. In 2009, the organic sector’s share in total expenditure on food and drink was 3.2%, therefore maintaining the level in 2008. On average, organic products landed in consumers’ shopping baskets 20 times over the year, which is actually once more than in the prior year.
Sectors that particularly profited last year, enjoying increases in their sales of organic food and drink, were delivery services, recording a sales increase of 20%, and health and beauty retailers, with an almost 18% rise. Natural food retailers also experienced around 2% growth in sales of these products. However, drugstores suffered a decline of almost 5% and sales of organic products also decreased by roughly 3% among discount stores and full-range retailers.
Organic products from Germany preferred
The expansion of organic product ranges in both food retail outlets and discount stores and the emergence of large organic supermarkets are now starting to show their impact. While approximately one in three Germans desired a broader range of organic products five years ago, this figure has now fallen to one in four. The proportion of those also willing to spend more money on organic products has remained relatively stable, standing at almost 29% in 2005 and currently in the region of 25%. Organic products also count as an active contribution to climate protection. Approximately one in four German households regards this as a positive aspect of buying organic products. Environmental concerns also influence the significance ascribed to the origins of organic products. If given a choice, some 48% of consumers currently prefer organic products from Germany. An additional reason for choosing local products is the consumer belief that adherence to organic regulations is more strongly monitored for German products. Approximately 43% of German households are convinced of this.
The analysis
The analysis is based on the GfK ConsumerScan household panel of GfK Panel Services Germany. The panel is made up of 30,000 representatively selected German households, who report their purchases, opinions and consumption behavior to GfK.
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