Latest Trends in the Organic Packaged Food Market in Germany by Technavio

Technavio’s latest market research report on the organic packaged food market in Germany provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

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The organic packaged food market in Germany is segmented by product type (organic baked goods, organic dairy products, organic baby food, organic confectionery, organic ready meals, organic spreads, and organic chilled processed meat and seafood) and by distribution channel (supermarkets and hypermarkets and health food stores).

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The top three emerging market trends driving the organic packaged food market in Germany according to Technavio research analysts are:

• Increasing demand for private label products
• Rising popularity of organic packaged foods with additional claims
• Rise in new product launches

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Increasing demand for private label products

In 2016, more than two-fifths of the total organic packaged food products comprised of private label products. The key reason behind the increase in demand for private label products is because consumers strongly believe that private label brands offer high value for money. Considering this, retailers are developing their own private label products. Private label products are mainly products that are manufactured and sold by the retailers.

According to Akash Pandey, an industry expert at Technavio for food research, “Unlike branded products, private label products are priced lower, which attracts more consumers. Manufacturers from outside Germany like Finnish manufacturers consider the demand for private label products as an opportunity for them to enter the market in Germany. The market share for private label organic packaged food products is expected to increase in the coming years.”

Rising popularity of organic packaged foods with additional claims

Consumers in Germany are looking for organic packaged food products with additional claims such as fair-trade, non-GMO, and others. The demand for fair-trade products is on the rise in Germany, and consumers spend considerably more on fair-trade products. There is a high growth in sales for certified products in Germany. Many events are happening in Germany featuring organic fair-trade products. For instance, MAL Organic, a fair-trade certified organic producer with operations in Germany, featured its product Fair Trade Organic Desiccated Coconut at BIOCAH 2017, which is a business event for the organic sector. MAL Organic provides other products, including Fairtrade Bio Native coconut oil, Fairtrade organic coconut chips, and Fairtrade organic coconut chips.

Rise in new product launches

The high demand for organic food products in Germany is encouraging manufacturers to come up with new product launches to attract consumers and increase the market share. Due to the rising demand for healthy breakfast cereals, brands are launching organic products with reduced sugar.

“A Berlin-based manufacturer, eat Performance, launched Schoko Müsli, which is 100% organic and free from gluten, added sugar, lactose, preservatives, artificial additives, and colorings. The launch was an effort from the company to tap the emerging Paleo diet trend in the country,” says Akash.

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