Inflation has made a difference to trade in organic products

By: Trademagazin editor Date: 2023. 07. 21. 09:28

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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%.

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