Demand for Organic Food in Germany Reaches Record High, Projected Sales Surge in 2025

The market for organic food in Germany is experiencing unprecedented growth, with sales forecasts indicating a significant increase for 2025. According to recent analysis from the Baden-Württemberg Cooperative State University in Heilbronn, revenue from organic products is expected to rise by approximately 10 percent, reaching nearly EUR18.7 billion this year. This growth would surpass last year's record figures and reflect a broader shift in consumer purchasing behavior.

One of the driving factors behind the surge in organic food consumption is a reduced focus on price sensitivity among shoppers. As inflation eases, German consumers are increasingly opting for organic items, choosing quality and perceived safety over lower costs. However, the study notes that while purchasing patterns have shifted, there is no clear evidence of a widespread increase in sustainability awareness among buyers.

Currently, organic products account for about seven percent of the total grocery market in Germany. Despite representing a minority share, the organic sector is outpacing the growth of the overall food market. The majority of organic sales occur in grocery retail, with discount chains holding a slight advantage over traditional supermarkets in terms of market share. Retailers have expanded their organic product ranges in response to rising demand, making these items more accessible to a broader customer base.

Drugstores have also emerged as a strong player in the organic market, posting the highest proportional growth in organic sales since 2021. In contrast, specialty organic shops capture only around ten percent of organic food expenditure, highlighting the dominance of mainstream retail channels.

Private label products have gained considerable traction, now making up almost 47 percent of organic food sales in the first half of the year. Popular product categories such as flour, oils, and dairy from organic sources have shown the most marked increases in sales volume, reflecting evolving consumer preferences toward staple foods with organic certification.

The supply side, however, presents challenges. Growth in organic agricultural land has been gradual, with around 11 percent of Germany's farmland cultivated according to organic standards. This expansion rate is lagging behind the rising demand for organic produce, creating a supply gap that may pose challenges for the industry. The German government's current target aims for 30 percent of agricultural land to be organic by 2030, a goal that will require substantial acceleration in conversion efforts.

Industry representatives attribute the popularity of organic products to consumer trust in their safety and environmental friendliness. Retailers are responding by further expanding their organic selections, catering to the sustained interest and confidence from the public in these products.

After a brief downturn in 2022, the German organic market has returned to its upward trajectory, continuing a trend that has seen organic food become an increasingly important component of the national grocery market. With consumer demand at an all-time high and sales expected to set new records, the sector is poised for continued growth, though further development in domestic production will be essential to meet future needs.