Shoppers turn to budget friendly foods as inflation bits harder in Germany

Admin l Wednesday, December 28, 2022

 

BERLIN – The German organic food market shrank for the first time in history in 2022 as inflation-weary shoppers turn toward options seen as more budget friendly, an industry trade group said.

By October, sales had fallen by 4.1%, a report by the German Farmers’ Association showed. But organic food revenues are still forecasted to hit €15 billion ($15.9 billion) in 2022, which would be €2.7 billion above the pre-pandemic level in 2019.

Discount supermarkets have become winners of a broader “trend towards low-priced shopping,” according to the industry report seen by dpa.

This has resulted in declines at specialized organic food shops and direct sales, as German shoppers head toward low-cost chains.

The association’s report said “many ecological products are only slightly cheaper or the same price in the discount retailers, but the image obviously steers consumption patterns more than real price knowledge.”

If the economy picks up again, demand is also expected to grow, according to the report.

For the entire German agricultural market, the farmers’ association drew “a mixed” picture for the year. It pointed to big price fluctuations, especially in the grain markets; higher energy and input costs for farmers; and depressed yields for some crops due to extreme weather.