Export Portal
DENMARK’S KEY MARKET FOR ORGANIC PRODUCTS MOVING IN THE RIGHT DIRECTION
The German government has given organic produce a boost. More Danish food producers want to get on the bandwagon.
Several European markets are currently reporting growth in organic retail sales, and there are also positive signals from Germany, which buys 53 per cent of Denmark’s organic exports.
“We can see that the German market is moving in the right direction again. This is good news for those who already export to Germany, and for new food producers who want to enter the market,” says Dennis Hvam, International Market Manager at Organic Denmark, which has just prepared a market report offering an overview of the key players in the German retail market.
Germany is the world’s fourth largest economy, but if you look solely at organic food, Germany is the world's second largest market after USA with sales of DKK 114 billion in 2022.
Germany’s 83 million inhabitants spend DKK 1,350 on organic food each year. This ranks them in sixth place in the EU, and many export advisers with in-depth knowledge of the German grocery trade believe it is a clear advantage for Danish producers to have their most important export market in their backyard.
German volume market
Export advisor Tanja Asmussen, team leader for food and agriculture at the Danish Embassy in Berlin, understands the main reasons why the German market has become the most important export destination by far for Danish organic food producers, and is likely to remain so for many years:
“Size and proximity.”
For many producers, Germany may seem like a large and overwhelming market, but Tanja Asmussen believes you do not have to be a huge player to secure a contract south of the border.
“Germany IS a volume market, but it’s possible to target many different types of customers. You need to find your target group and know your competitors,” says Tanja Asmussen, when asked how Danish producers can succeed in a German market where citizens are still recovering from corona and a long period of high inflation.
Favourable political winds
Organic produce has enjoyed favourable political winds since Cem Özdemir from the Greens was appointed Minister of Agriculture and Food in 2021, in the current coalition government led by Social Democrat Olaf Scholz from the SPD. The government has set a goal that 30 per cent of German agriculture should be organic by 2030 and introduced organic food labels mirroring the Danish model.
“Organic produce has been given a political boost, but the German economy is still impacted by geopolitical challenges. There will be an election in 2025, and it’s impossible to how the election will impact organic produce and citizens’ wallets,” says Tanja Asmussen.
Following a period of stagnation in organic sales there is currently a shift occurring in the organic market. Purely organic chains such as Alnatura and Denn’s BioMarkt, together with the country’s specialty and health stores, account for around 25 per cent of organic sales, while Germany’s large grocery groups, with a share of 67 per cent of organic sales, are playing a strong and growing role as organic sales channels.
An interesting gateway
According to Tanja Asmussen, very few Danish producers are large enough to be able to target the largest nationwide chains, but fortunately there are many interesting regional players.
Malene Aaris, founder of the Bio Aus Dänemark export network, agrees with this assessment. She points to several smaller supermarket chains that only deliver to a few of Germany’s 16 states and might have 600-800 stores as interesting gateways to Germany.
At the same time, she notes that Germany is the discount store homeland, and chains such as Lidl, Aldi and Penny have a relatively strong organic range and a strong focus on price.
Thise has learned its lesson
“Germany and Denmark are neighbouring countries and our tradition of trade goes back many centuries. Germans like persistence, and we are known for quality and for keeping our agreements. But if you want to export to Germany, it’s important to be visible at all times in order to build and maintain relationships with customers,” says Malene Aaris, noting that it took Bio Aus Dänemark 15 years to become visible on the German market.
“The southern Germany chains are predominantly looking to Italy, Austria and the Netherlands. If you want them to look north instead of south, it’s important to be able to point to success on the domestic market,” she adds.
Thise Mejeri has learned that lesson. The Salling-based dairy is one of the Danish organic companies that has been active in the German market for the longest, and CEO Svend Schou Borch makes no secret that Germany is by far the most important export market. South of the border the dairy is especially known for Vesterhavs Ost, which is marketed as Nordsee Käse in Germany.
“We are very optimistic about the German market. We already have a strong position, but we need to ensure that our production can keep up.”
Even though Thise has managed to recoup most of the sales lost following the closure of the Irma chain through increased sales to Coop’s remaining chain concepts, the CEO notes that exports now play a slightly more important role than previously.
“Around 30-35 per cent of our revenue comes from abroad, and Germany is by far our largest export market,” says Svend Schou Borch.
Great potential for growth
This is also where he sees the greatest potential for further growth.
Thise is the second largest dairy in Denmark, but is a small player by German standards, and this affects the way the dairy acts.
“Cheese is by far our largest export, but our skyr and butter are also well known in the specialty trade and among German consumers. We must therefore seek to take advantage of the fact that the German chains and consumers know our products,” says the Thise CEO, who is looking forward to attending the BioFach trade fair in Nuremberg for the first time in February, where Thise will be present at the Danish joint stand.
It is being organised, as usual, by Bio Aus Dänemark and Organic Denmark, who expect to bring 30 Danish companies to Germany.
Breakthrough for Rømer Vegan
One of the Danish exhibitors at BioFach is family-owned vegan producer Rømer Vegan, which signed a contract with German distributor Followfood at BioFach 2024. Co-owner and CEO Niels Rømer reports that the agreement has led to a breakthrough in the German market.
“It’s been huge for us. The agreement has meant we had to invest in new machines and hire more staff to keep up with demand,” says the CEO. Each month they send a new shipment of plant-based alternatives to tuna in oil and tuna in tomato.
A key ingredient in the products is ‘textured legumes’ from Danish Organic Plant Protein. These help to achieve the right consistency and a smaller climate footprint.
In Germany, Followfood’s team of salespeople distributes the products to chains such as Rossmann, Denn’s and dm-Drogeriemarkt. Niels Rømer is also working on another product which he believes will have a strong future on German shelves.
