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Organic Farming in Germany - Market Research Report (2014-2029)

Kai Buschbom-Helmke Kai Buschbom-Helmke Frankfurt, Germany Last Updated: June 2024 WZ SP01.01DE Spotlight Report

Revenue

€5.5bn

2024

€5.5bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

17,539

Businesses

7,143

Wages

€X.Xbn

Organic Farming in Germany industry analysis

In contrast to conventional farming, organic farming in Germany is undergoing positive structural change. The number of companies, the size of the utilised agricultural area and livestock numbers have increased over the past five years. Organic crop farming strives for closed nutrient cycles and environmentally friendly methods, but only achieves half the yields of conventional farms. In dairy farming, organic farming is more expensive, but also more profitable. Organic dairy farmers benefit from higher and more stable producer prices. In poultry farming, organic laying hens contribute the most to turnover, while the market share of organic poultry meat is still low. The agricultural products in this area are significantly more cost-intensive to produce due to the high requirements. Organic farms can benefit from the higher producer and consumer prices compared to conventional agriculture if consumers are willing to spend more on organic products due to increased environmental awareness and higher net household incomes. The sector's turnover has grown by an average of 2.4% per year since 2019. In the current year, turnover is expected to increase by 2.8% compared to the previous year and amount to 5.5 billion euros.Driven by the German government's environmental and climate protection targets and the Organic Strategy 2030, organic farming in Germany is expected to continue to grow until 2030. State subsidies, new technologies and direct marketing will play a greater role. However, infrastructure and construction measures threaten the growth of organic farming, as 54 hectares of agricultural land are lost every day. Nature conservation requirements are exacerbating the situation. Since reunification, more than 2 million hectares of potential agricultural land have been lost. Climate change brings further challenges that make artificial irrigation necessary. This increases the additional costs for water and energy and jeopardises the economic viability of open field cultivation in some regions. Crop failures and yield fluctuations are additional risks. Over the next five years, industry turnover is expected to grow by an average of 3.5% per year, reaching a value of 6.5 billion euros in 2029.

Trends and Insights

  • Organic farming is growing strongly. The utilised area has doubled since 2010 and the number of farms has increased by 70%. Conventional agriculture, on the other hand, is shrinking.
  • Organic farming promotes soil health and biodiversity. Through the use of natural pest control methods and crop rotation, organic farms contribute to sustainable agriculture and the protection of the environment.
  • Both in plant cultivation and in animal husbandry, the organic farming sector is predominantly characterised by small and medium-sized enterprises. As the companies in the sector often specialise in different product groups, no single player in the sector can assume a dominant market position.

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  • Competitive analysis, industry segmentation, financial benchmarks
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  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.4 % over the past five years, to reach an estimated €5.5bn in 2024.

Trends and Insights

In contrast to conventional agriculture, organic farming is experiencing positive structural change

  • The utilised area of organic farming has almost doubled, increasing from just under 991,000 hectares in 2010 to around 1.9 million hectares in 2022. The number of organic farming businesses has also increased over the past five years along with the utilised agricultural area. However, these are not exclusively new start-ups of agricultural businesses, but often the conversion from conventional to organic farming methods.
  • Additional trends and insights available with purchase
Organic Farming in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Organic farming in Germany is expected to continue its current growth until 2030

  • The German government's environmental and climate protection targets are expected to be a driving force in increasing the proportion of organic farming to around 30% of agricultural land by 2030. The basis for this is the so-called Organic Strategy 2030, which was presented by the Federal Ministry of Food and Agriculture in 2023.

Biggest companies in the Organic Farming in Germany

There are no companies that hold a large enough market share in the Organic Farming in Germany industry for IBISWorld to include in this product.

Products & Services Segmentation

Organic Farming in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Fruit, vegetables and potatoes, Milk and Meat. Fruit, vegetables and potatoes is the largest segment of the Organic Farming in Germany.

Trends and Insights

The organic cultivation of fruit, vegetables and potatoes promotes the health of the soil and people

  • In organic farming, the cultivation of fruit, vegetables and potatoes is the product segment with the highest turnover. The players in the sector do not use synthetic chemical pesticides and mineral fertilisers. Instead, growers rely on crop rotation and green manuring to promote soil health and biodiversity.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Organic farming is a form of agriculture that focuses on the sustainable production of products of plant and animal origin according to ecological principles. Organic farming companies refrain from using synthetic pesticides and fertilisers, promote biodiversity, protect natural habitats and pay attention to high animal welfare standards. This ensures more environmentally friendly food production that preserves nature and improves soil fertility in the long term.

What's included in this industry?

Fruit, vegetables, potatoesMilkMeatCerealsEggsAgricultural services for plant cultivation and animal husbandry

Companies

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Related Terms

NUTRIENT CYCLESYNTHETIC PESTICIDE

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Organic farming is growing strongly. The utilised area has doubled since 2010 and the number of farms has increased by 70%. Conventional agriculture, on the other hand, is sh...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Organic farming promotes soil health and biodiversity. Through the use of natural pest control methods and crop rotation, organic farms contribute to sustainable agriculture ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

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In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Both in plant cultivation and in animal husbandry, the organic farming sector is predominantly characterised by small and medium-sized enterprises. As the companies in the se...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

German organic farmers must adhere to strict regulations. They are primarily guided by the EU Organic Farming Regulation, which prohibits the use of synthetic chemical pestic...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profits in organic farming are volatile. Due to variable factors such as weather conditions and the development of input costs, profits in organic farming are subject to cons...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Organic Farming industry in Germany in 2024?

The market size of the Organic Farming industry in Germany is €5.5bn in 2024.

How many businesses are there in the Organic Farming in Germany industry in 2024?

There are 7,143 businesses in the Organic Farming industry in Germany, which has grown at a CAGR of 0.2 % between 2019 and 2024.

Has the Organic Farming industry in Germany grown or declined over the past 5 years?

The market size of the Organic Farming industry in Germany has been growing at a CAGR of 2.4 % between 2019 and 2024.

What is the forecast growth of the Organic Farming industry in Germany over the next 5 years?

Over the next five years, the Organic Farming industry in Germany is expected to grow.

What does the Organic Farming in Germany include?

Fruit, vegetables, potatoes and Milk are part of the Organic Farming industry.

How competitive is the Organic Farming industry in Germany?

The level of competition is moderate and increasing in the Organic Farming industry in Germany.

Related Industries

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.