Sales of organic products in Germany have been dented by the economic recession, dropping by 4% in the first half of the year, new research has suggested.
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The study, released by GfK Panel Services Germany, found that the decline in the total value of organic sales was partially due to a drop in price.
“Prices were down about 2% year-on-year, accounting for some of the value decline,” a spokesperson told just-food.
Despite reduced prices, organic products remained more expensive than conventionally-produced products, GfK said.
As consumers were increasingly pressured by the economic situation, they looked to cut household expenditure by turning to conventional goods, causing volumes to drop 2%.
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By GlobalDataHowever, 85% of all German households purchased at least one organic product, the study added.
“Organic producers must work hard to convey why their products are worth paying more for as consumer confidence waivers,” the spokesperson added.
