Steady Growth in the Organic Packaged Food Market in Germany



    Organic packaged foods are certified food products, which are made using raw materials obtained through organic farming. Organic farming is a specialized farming practice that utilizes sustainable farming methods with natural and biological procedures and raw materials. Pesticides, fertilizers, and other chemicals are not used in the production process. Therefore, it is healthy and does no harm to the human body. Owing to the increased awareness among consumers, the organic packaged food market is growing. The rise in consumption of organic dairy products is one of the primary growth factors for the organic packaged food market in Germany. Increasing health awareness about the health benefits of organic milk has encouraged the consumption of organic dairy products. 

    “The market analysts estimate that the market will grow steadily at a CAGR of almost 3% by 2021”

    Higher content of omega 3 fatty acids, conjugated linoleic acid (CLA), antioxidants, and vitamins in organic dairy products helps preventing various diseases and reducing the incidence of heart disease, inflammation, cancer, arthritis and amyotrophic lateral sclerosis (ALS). According to Technavio, the market will grow steadily at a CAGR of almost 3% by 2021. Organic food are products that are produced using processes and techniques associated with organic farming. When it comes to the organic packaged food market in Germany, it has shown to be an essential part of the food and beverage portfolio under the fast-growing subdivision like food. Private label organic food products having low carbon footprint and unique selling points of high quality and high nutrition values that are traceable and contain transparency in the value chain, and that are customized for German consumers will have high growth potential in the market. Consumers prefer to buy private label products as they are deemed to offer high value for money and they are cost-effective compared to branded labels. Thus, the increasing demand for private label products is identified to be one of the key trends contributing towards the growth of the organic packaged food market in Germany. When it comes to the competitiveness, the organic packaging food market in Germany is fragmented due to the presence of several established international, regional, and small players catering to the increased demand for organic packaged food and growing health awareness. Moreover, organic packaged food vendors compete intensely based on the high price of the product as the high-quality ingredients and unique way of preparation hikes the price. On the other hand, the products of organic packaged food market in Germany is segmented into many types as organic baked goods, dairy products, baby food, confectionery, ready meals, spreads, and chilled processed meat and seafood. The growing consumer awareness about the nutritional benefits of consuming organic dairy products is influencing the demand and consumption of organic dairy products such as organic cheese, cream and yoghurt in Germany. Organic dairy providers are expanding their product portfolio to overcome the conventional milk shortage.

    Segmentation by distribution channel and analysis
    The distribution of organic packaged food market in Germany is segmented into two channels –Supermarkets and hypermarkets; and health food stores. The growth of the organized retail sector and the demand for organic packaged food market in Germany is encouraging the supermarkets and hypermarkets segment to distribute wide range of organic packaged food. Additionally, increased shelf presence of organic products at supermarkets and hypermarkets will increase product visibility, result in increased purchases and attract more consumers. Positioning as a premium product may influence the demand for organic packaged food market in Germany in the coming years as predicted by our market specialists. According to Technovia, many industry research reports were published concerning organic packaged food market in Germany which also categorize the key drivers, major trends, as well as the constraints that the food sector currently experiences. They also present insights into the rapidly changing competitive scenario to give clients a realistic picture of the upcoming events within the food and beverage industry.
    Technavio