German organic food market to cross 15 billion Euro by 2021

Sales of organic food in Germany are being driven by rising disposable incomes, combined with an increasing awareness of the health benefits of organic food, reports Fresh Plaza. This is according to a research report by TechSci, "Germany Organic Food Market By Type, Competition Forecast and Opportunities, 2011 - 2021".

Germany's average annual household net-adjusted disposable income per capita was $ 31,925 in 2015, which was more than the OECD average of $29,016 in the same year. Changing lifestyles and consumer preferences, increasing number of women joining the workforce and government initiatives to promote organic farming and organic food consumption in the country are further projected to drive demand for organic food in the country in the coming years. Being a major developed economy in Europe, Germany is one of the largest markets for organic food in the region.

Organic food market in Germany is majorly dominated by organic fruits & vegetables products as well as organic meat, poultry & dairy products and these two segments cumulatively garnered a revenue share of around 52% in Germany in 2015, according to Market Watch. Germany organic food market is quite fragmented with presence of various small players. Hipp GmbH & Co Vertrieb KG, Alnatura Produktions- und Handels GmbH, Rewe Markt GmbH, Aldi Einkauf GmbH & Co oHG are according to the report a few of the major organic food companies operating in Germany and are anticipated to continue dominating the market through 2021.

Southwest region dominated Germany organic food market due to large population size, and proximity to major European countries such as Belgium, France and the Netherlands. Southeast region, with a population of over 19 million people in different states such as Bavaria,Thuringia and Saxony, is the second largest regional market for organic food in Germany.