Inflation has made a difference to trade in organic products
High inflation has significantly changed the purchasing behaviour of customers for organic products. „People are still buying organic products, but at a lower price” Robert Kecskes, trade expert at market researcher GfK says.
“There has been a noticeable reduction in the willingness of shoppers to pay higher prices for organic products due to the general price increase”. The winners of this development are above all discounters, the losers are organic supermarkets and natural food stores. While GfK forecasts that organic supermarkets and organic grocery stores will see a significant drop in sales of more than 18% in 2022, discounters are targeting an increase of more than 11% in organic food and drinks.
The success of retailers’ organic private labels that tend to be priced noticeably below branded products reflects this development. “Retailers’ private labels are playing a much bigger role in the organic segment than in traditional trade,” Hanna Kehl, sustainability expert at GfK says.
According to GfK, the market share of organic private labels in the food and beverage market is now more than 60% and is further growing. In contrast, private labels’ market share for conventional products is only 46%.
Related news
Norma Launches New Digital Discount App
German discount retailer Norma is expanding its digital offering with…
Read more >Discount to Heap More Pressure on Large Format Grocers
In IGD’s latest five-year forecasts to 2029, discount will be…
Read more >Only two EU countries have higher inflation than Hungary
The European Inflation Outlook of the Private Banker compared the…
Read more >Related news
Sour cherries will be an expensive treat this year – the harvest is at a historic low
This year’s sour cherry season is facing unprecedented tension: the…
Read more >Szallas.hu: Lake Balaton is the most popular destination at Pentecost
A regional summary of bookings for the Pentecost long weekend…
Read more >The 2024 FMCG Retailer Ranking is out now
Everything remains the same: Lidl, SPAR and Tesco are the…
Read more >