Germany: Demand depends on the price

Fruit and vegetables are, aside form the season, subjected to the very high price sensitivity of consumers. Basically: when the price goes up, the demand goes down. This means there is rarely a guarantee for prices. Fluctuations in the harvest can lead to huge price volatility. This has to be compensated and in most cases passed on to the price sensitive consumers.

The sales of fruit and vegetables is characterized, unlike other product groups in the food sector, by a large number of marketing methods and participants. The distribution of fruit and vegetables is mainly through supermarkets. The direct sales from the grower to markets through organic suppliers is, thanks to the continuing health and organics boom, still a small part of the distribution structure. The trend towards regional products however, is becoming notable.

Supermarkets could extend their market share, but discounters seem to have begun to approach their extension limit due to their close shop network. Discounters are competing with each other more and more - and not with the supermarkets - for the customers. This has increased the profiling pressure a lot. Just a good price is no longer enough and the discounters are being challenged more and more to sharpen their profile.

The importance of fresh fruit and vegetables has increased from a trading point of view. This comes down to being able to withstand the increasingly strong convenience trend in the food sector.