Conventional retail trade dominates organic market in Austria

On average, the Austrians spend 120 euros a year on organic food, which puts them in third place in Europe. The market share of organic food in Austria is about 7 %. Our neighbouring state is one of the leaders in terms of agricultural production: in 2011, around 21,800 farms (16.2 %) managed almost 20 % of agricultural land organically. Regarding the sale of organic products, the conventional retail trade is by far the biggest player, accounting for over two-thirds of total turnover in 2010 (1.12 billion euros).

 “There is a continuous upward trend in all the organic market data,” says Barbara Köcher-Schulz, who has been the organic coordinator since 2010 at Agrarmarkt Austria Marketing GmbH. Both in terms of volume and of value, the conventional trade is in the lead: between 2007 and 2011 the volume rose by 13 % and turnover by 29 % (Chart). Billa (Rewe), Spar, Zielpunkt (Tengelmann) and the discounters Hofer (Aldi) and Lidl increased turnover in 2010 by 15.4 % to 758.2 million euros and secured a market share of 67.5 %. (Chart: Market development RollAMA organic products, Conventional retail trade with Hofer/Lidl. Volume of purchases in tonnes/value of purchases in 1,000 euros. Source: RollAMA/AMA Marketing)
 
The other organic marketing channels share the rest of the cake. The approximately 350 specialist organic and health food retailers were delighted with 9 % growth in 2010 but, with a total turnover of 152.6 million euros, the fixed location specialist trade achieved a market share of only 13.6 %. Direct marketing and exporting, each with an increase of 8 %, achieved a market share of 6.8 % and were practically equal. That applies also to the absolute figures for turnover of 76.3 million euros for the direct marketers and 75.9 million euros for exporters. Catering achieved the highest growth rate of 18 %, with turnover rising to 59.7 million euros (5.3 %).
 

The detailed analysis of organic marketing channels is carried out by the Organic Retailer Association (ORA) in cooperation with the organic association Bio Austria and the farmers’ association Die Biobäuerinnen und Biobauern. In 2010, all market participants profited from the growing demand for organics, and the total market amounted to 1.12 billion euros (2009: 984.2 million euros). (Picture: Billa offers organic products in many product groups)
 

“Over the years, the market participants have been pushing each other in the marketing of organics, with the result that now they are part of the standard product range in all formats in the retail food trade,” says Köcher-Schulz. She points out that all the chains have expanded their organic offer and the availability of organic food has improved. In a survey by the AMA in May 2010, 46 % stated that they bought more organics than five years before because of the bigger and better offer. People said their second motive for buying organics was that they had become more health conscious. (Chart: Reason for increase in organics. The question was: Why do you buy more organic products now than 5 years ago? The most important reasons named were a bigger, better offer, choice; health, awareness of health and paying more attention to healthy eating. Source: RollAMA Motive Analysis, May 2010)
 

The most important organic brands in the conventional retail trade are ja! Natürlich (Billa/Rewe), Natur pur (Spar), Zurück zum Ursprung and Natur aktiv (Hofer), Biotrend (Lidl) and BioBio (Zielpunkt/Tengelmann) and natürlich für uns (C+C Pfeiffer, available at, for example, Zielpunkt, Unimarkt, Mpreis). The AMA organic logo, that 55 % of consumers are familiar with (counterpart of the German organic logo), currently has about 300 licensees and covers 430 product groups. Köcher-Schulz says that the trade is trying to enhance its profile with other themes like sustainability and regionality and that organic has lost some of its novelty value. (Picture: The discounter Hofer is positioning itself with its brands Zurück zum Ursprung and Natur aktiv)
 

Approximately a million euros from the funds of Agrarmarkt Austria Marketing GmbH flow each year into measures to support the marketing of organics. AMA Marketing carries out primarily advertising aimed at consumers, such as the annual organic campaign days that take place over two weeks in September. Organic information points are set up in all the regional capitals and at organic festivals, so that consumers can get in-depth information about all things organic from organic farmers themselves. And you can win attractive prizes on the wheel of fortune (picture). Brochures, posters and organic messengers tell people about the benefits of organic products. Numerous partners, like organic farms, specialist organic retailers and organic bakeries, support the organic campaign days by carrying out their own campaigns at the same time. AMA Marketing helps with their advertising by supplying advertising materials (posters, stickers, etc.).
 

In addition, in collaboration with the Organic Retailer Association, AMA has developed training materials for specialist stores, and it helps producers and manufacturers with, for example, presenting themselves at trade fairs and organic presentations by exporters. Austria would like to position itself more predominantly as an organic partner and supplier in the German market: milk and dairy products, potatoes, pork plus Austrian specialities are suitable products. (Pictures: In recent years, the organic info and enjoy campaigns by AMA Marketing have reached hundreds of thousands of people all over the country. As part of the campaign days, the 100 organic messengers’ handouts at busy squares across the whole of Austria have included 300,000 cartons of organic milk (free of charge) and tickets for the big organic lottery.