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The current reluctance of consumers to shop also affects organic food. And that in turn could have consequences for the expansion of organic farming. This is a concern for people who know how important organic food is for the environment, biodiversity, water quality, climate targets and regional agriculture. People like Alnatura founder Götz Rehn and Meike Gebhard, managing director of the online platform Utopia, for example. According to the Federal Association of Natural Foods and Natural Products, significantly fewer organic products were sold in the first three months of this year than in the same period last year due to high inflation. In March, daily sales fell by more than 18 percent.
The data from the market research company GfK is even worse for the organic market Süddeutsche Zeitung present. At the beginning of the year, according to GfK, organic food was still trendy despite the decline. But in May, consumers reversed the trend. Sales of organic products fell four percentage points more than the market as a whole. According to GfK, this shows how much people save, especially those on low incomes. The price is more important to some than sustainability.
If you also take into account that according to Statista, the share of organic food in the overall market is only 6.8 percent anyway, the worries become vivid. Because if organic consumption falls, it will be more difficult for the federal government to push ahead with the expansion of the area for organic farming from the current ten to 30 percent. The federal government is sticking to this goal, emphasized Ophelia Nick, State Secretary for Food and Agriculture. This is anchored in the coalition agreement. However, experts such as the Göttingen agricultural economist Achim Spiller doubt that the agricultural turnaround can be achieved as planned. Armin Valet, an expert at the Hamburg Consumer Center, was also skeptical. He described the plans as “very ambitious”. In order to reach the 30 percent target, 400,000 hectares would have to be converted each year, but last year it was only 80,000 hectares.
“We’re taking two steps forward, one step back.”
Rehn therefore underlined at the sustainability summit Süddeutsche Zeitunghow important organic food is: “I only hope that the customers who have now stayed away will come back soon, because otherwise we will have a major structural change in Germany.” In England and the USA there are no organic specialist markets comparable to those in Germany. Here they covered at least a third of the organic market. If the customers stay away permanently, some could get into existential difficulties. They are not in a position to calculate the prices like corporations, namely Aldi or Lidl, which are among the largest organic retailers.
“I’m confident that when we get through this crisis, organic consumption will pick up again,” says Meike Gebhard, Managing Director of the sustainability platform Utopia.
(Photo: Alessandra Schellnegger)
Utopia Managing Director Gebhard believes that turning away from organic food is only a short-term phenomenon: “I’m confident that when we get through this crisis, organic consumption will pick up again. We’re taking two steps forward and one step back.” According to Petra Süptitz, sustainability expert at GfK, protecting the environment is one of the most important consumer values. “The importance of sustainability is not ended by inflation.” This is especially true for people who have few financial worries.
From Gebhard’s point of view, an indication that consumers are “not going to roll backwards” is that they are currently buying more organic private label products from retailers. GfK figures confirm that consumers are currently avoiding more expensive organic products from brand manufacturers. As a result, the gap between organic products and conventional goods is currently narrowing. In this way, organic is becoming relatively cheaper. Studies prove that, and Rehn also points out: “At the moment the development is rather favorable. The customers just have to know that.” Especially since the costs for animals and the environment are not included in conventional products. In fact, buying organic food is a win-win situation for everyone: farmers, retailers, consumers and the environment.