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Organic Market in Germany


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Organic Market in Germany

  1. 1. Organic products and cosmetics Market in Germany EkoConnect International Centre for Organic Agriculture of Central and Eastern Europe Dipl. Ing. Inka Sachse
  2. 2. Contents <ul><li>Organic Agriculture in Germany </li></ul><ul><li>Organic retail market </li></ul><ul><li>Consumers </li></ul><ul><li>Situation and Trends </li></ul><ul><li>Organic cosmetics in Germany </li></ul><ul><li>EkoConnect – activities and stakeholders </li></ul>
  3. 3. Organic Agriculture in Germany Number of organic farms in Germany 2010 22.174 farms on 1 Mio. ha (2010)
  4. 4. Organic Market in Germany <ul><li>1997: 1,7 Mrd € </li></ul><ul><li>2005: 3,9 Mrd € </li></ul><ul><li>2006: 4,5 Mrd € </li></ul><ul><li>2007: 5,3 Mrd € </li></ul><ul><li>2008: 5,8 Mrd € </li></ul><ul><li>2009: 5,7 Mrd € </li></ul><ul><li>2010: 5,9 Mrd € </li></ul>In 2010: 3,4% market share Expenses/capita/year: 72 € Behr, 2010
  5. 5. Growing demand for import of organic food Oil seeds Fresh vegetables Root crops Legumes Grain Study by AMI in 2010 -response of 30% of contacted importing companies Imports doubled from 2007-2010
  6. 6.
  7. 7. Organic Consumer in the past , today and future? Technophile with ecological awareness Refuse modernity Lifestyle 40% population 4% population %- of Organic as “common good” with a touch of luxury. Consume with social/ ecological added value Organic as statement against the mainstream Benefit Complex structure of demands Ideology of self reduction Ideals Lifestyle (LOHAS), career is important, ambitious Denier of consumption, environmentalist, social concern Mentality today past
  8. 8. Future consumers Organic Monitor, 2010
  9. 9. Organic sales points 2010 in Germany: 1644 organic shops 302 farm shops 400 organic supermarkets Market leader: Alnatura, followed by Dennree and basic
  10. 10. A-Brands do organic
  11. 11. Organic in Germany- Situation and tendencies <ul><li>Strongly increasing demand exceeds German production </li></ul><ul><li>Reasons: GMO, Animal welfare, residues of pesticides, Scandals, Fairness, Taste, Fashion (LOHAS) and increasing availability (supermarkets) </li></ul><ul><li>Market very sensitive to public opinion/scandals </li></ul><ul><li>Conventional companies enter organic market and trade / private label (same for cosmetics) </li></ul><ul><li>Conventional retail takes up with sustainability, regionality and carbon footprint matters </li></ul><ul><li>Consumers want more regional produce </li></ul><ul><li>Insufficient political support to increase local production </li></ul>
  12. 12. Organic cosmetics market in Germany
  13. 13. History of organic cosmetics <ul><li>Pioneers: Weleda (1921), Dr. Hauschka (1964), Lavera (1975) </li></ul><ul><li>2011: 100 brands in Germany; </li></ul><ul><li>27 producers </li></ul><ul><li>15 trade brands; </li></ul><ul><li>15 wholesalers; </li></ul><ul><li>12 distributors </li></ul>TOP 5 natural cosmetic companies have 14 brands and cover around 50% of natural cosmetics turnover (Naturkosmetik Jahrbuch, 2011)
  14. 14. Turnover of organic cosmetics in Germany <ul><li>Strongest growth in Beauty market </li></ul><ul><li>Market volume 2010 : 795 Mio. € = > 6% market share </li></ul><ul><li>10% growth every year </li></ul><ul><li>Same for „ Natural cosmetics“! </li></ul><ul><li>Biggest market after USA </li></ul><ul><li>„ Made in Germany“ export master in EU (5,6% market share) </li></ul><ul><li>Expenditure per head on bodycare: 150 € in 2008 </li></ul><ul><li>Consumers ready to pay 20% more and claim to buy 36% organic cosmetics (2010) </li></ul>Naturkosmetik Jahrbuch 2011
  15. 15. Sales channels <ul><li>Increasing availability </li></ul><ul><li>Drugstores leading (35%) (dm with alverde+ Schlecker with 2 brands) </li></ul><ul><li>Organic and health shops have been loosing market share (30%) </li></ul>Jahrbuch Naturkosmetik, 2011
  16. 16. Consumers of organic cosmetics in Germany <ul><li>Allergies, Authencity, Transparency, Trust, Value-oriented consumption (social & ecological), Luxury, Lifestyle & Healthstyle (Hollywood) </li></ul><ul><li>Daily new customers- consumers enter market via trade marks and change to more expensive products </li></ul><ul><li>Marketing communication: Emotional, Combining Science+Romantics, Simplicity, Naturality, Joy and Style in bodycare </li></ul><ul><li>Customers are confused about labels and keep changing brands </li></ul>
  17. 17. Products and trends <ul><li>Facial care (Trend: Anti-Aging) </li></ul><ul><li>Bodycleansing and - care </li></ul><ul><li>Hair care and decorative cosmetics: more potential </li></ul><ul><li>Perfumes and room sprays </li></ul>
  18. 18. Organic cosmetics labels in Germany <ul><li>Label n. EG-VO 1223/2009 : BDIH, NaTrue, Ecocert, Demeter + many more! </li></ul><ul><li>Introduction of harmonisation standard „Cosmos“- at Vivaness 2011 </li></ul>
  19. 19. Market challenges <ul><li>Conventional market enters fiercely </li></ul><ul><li>„ greenwashing“ of „Natural cosmetics“ (not certified) </li></ul><ul><li>Growth of offered products and brands </li></ul><ul><li>Growth of trade brands (like alverde) </li></ul><ul><li>Since 2007 trade brands reach more consumers than organic cosmetics brands </li></ul><ul><li>Products and prices are levelling </li></ul><ul><li>Specialized retail has to offer clearly differenciated products, good communication and suitable concepts </li></ul>
  20. 20. Tendencies in German and European organic cosmetics market <ul><li>From 2015 approx.: only organic and conventional cosmetics – nor more uncertified „natural“ stuff due to new EU law </li></ul><ul><li>All conv. cosmetic companies will have organic product range; </li></ul><ul><li>There will be less new players on the market (due to necessary investments and proffessionality) </li></ul><ul><li>Critical and well-informed consumers demand credibility and transparence </li></ul>
  21. 21. Who are EkoConnect?
  22. 22. <ul><li>Education </li></ul><ul><li>Excursions </li></ul><ul><li>Consultancy </li></ul><ul><li>Project Management </li></ul><ul><li>Publications </li></ul><ul><li>Networking </li></ul><ul><li>Providing business platforms </li></ul>EkoConnect – International Centre for Organic Agriculture in Central and Eastern Europe
  23. 23. Information letter in 10 languages to 10.000 subscribers in 65 countries Organiser of 2 Organic conferences in Romania with participants from 13 countries Organiser of the OMF in Warsaw, paticipants from 30 countries Organiser of the Summer Academy on Organic Animal Husbandry in Dresden for students from 9 countries EkoConnect – International Centre for Organic Agriculture in Central and Eastern Europe
  24. 24. „ Organic Agriculture in CEE“ Reports of 14 countries
  25. 26. Merci beaucoup ! International Centre for Organic Agriculture in Central and Eastern Europe 01099 Dresden / Germany [email_address]