As previously announced, Isabell visited the BioOst trade fair in Leipzig last Sunday. The fair was smaller in scale than BioWest but was by no means inferior in terms of content. Here too, there were exciting conversations and current industry figures that confirmed many of our impressions – while simultaneously providing new food for thought.
BioOst in comparison: smaller, but no less significant
The fair in Leipzig presented itself as significantly more compact: fewer exhibitors, a noticeably smaller offering in the non-food sector – particularly in natural cosmetics as well as washing and cleaning products, which were much more strongly represented in Düsseldorf. This was quite disappointing for us – not only because of our role as standard setter for NCS and NCP, but also because we see many opportunities for profiling and differentiation in specialized retail precisely in these segments.
Nevertheless: The conversations at BioOst were personal, intensive, and very valuable in terms of content. It was clearly noticeable that the organic industry is currently grappling with many questions and challenges – and that’s exactly where the opportunity lies. Because where certainties begin to waver, space is created for new ideas and perhaps also for new paths.
Presentation by Simon Döring: Finally numbers – and straight talk
To our delight, Simon Döring’s (BioBerater SDServices) presentation at BioOst was finally able to take place. After his contribution at BioWest had been canceled due to illness, we finally had the opportunity to hear his current market figures and assessments – and much of it confirmed what we had already discussed in Düsseldorf.
Above all, one thing: The discussion about “more consumer awareness” is outdated.
Döring made it clear: The natural food specialty trade will always remain a niche business. The customer base is stable – about 5% of the population – but it’s not suddenly growing through more billboards or better education. Organic in specialty retail is not a mass phenomenon, and it doesn’t have to be.
Conventional retail as a springboard – not as an enemy
Particularly interesting was Döring’s view on the role of conventional food retail. Unlike often feared, he sees no direct competitive situation, but rather a kind of boost function:
“Conventional retail organic” brings people into contact with the topic in the first place – and awakens interest in some to engage more intensively with quality and selection. Those who then want more eventually end up in the organic store.
The numbers also support this: Only in 2017,when organic in conventional retail really gained momentum, was there a brief decline in sales and customer frequency in specialty retail. After that, the numbers normalized quickly again. According to Döring, no long-term connection between conventional retail organic and sales slumps in specialty retail can be identified.
Success is individual – but marketing is a key for everyone
In his consulting practice, Döring sees the causes for economic challenges in specialty retail less in structural market changes, but more in very concrete, often individual factors:
- weak controlling,
- an assortment that doesn’t match the target group,
- unfavorable store size,
- and above all: inadequate marketing.
Many organic stores rest – understandably, but dangerously – on the thought that their values and quality are “somehow visible anyway.” Döring’s clear message:
“We think we’re the best – and believe everyone already knows that. But that’s not how communication works.”
Economically on course – but tightly scheduled
Despite all challenges, there are bright spots:
- The average profit margin of owner-operated organic stores is currently 5.4%,
- after deducting the owner’s salary, about 1% surplus remains – significantly better than in 2023.
- Trade margins could be increased by 1-2% – an indication that price adjustments are working.
- Stores with gastronomy achieve up to 40% more revenue growth – a potential that should be used more strategically in the future.
Panel discussion on price development: More than a question of money
When we saw the announcement for the panel discussion “Why is everything getting more expensive?”, we honestly asked ourselves at first: What do you want to discuss for an hour? The causes for rising prices seem obvious at first glance: crises, wars, inflation, energy prices – all of these are immediate price drivers that have accompanied us for years – not only in the organic industry. And with normal inflation, everything becomes more expensive in the long term anyway.
So it was hardly surprising that the discussion round initially named exactly these points:
- Climate-related crop failures (e.g., as it was the case for Ostmost),
- rising logistics costs,
- higher raw material prices,
- volatile stock market trading, particularly for products like coffee (Ökotopia spoke of 28 price factors there alone),
- and of course the generally increased energy costs.
This wasn’t new to us – but the discussion then took a more interesting turn: It was less about lamenting price development, but about how specialty retail can deal with it.. And in doing so, a point moved to the center that is often neglected: the personal responsibility of store owners.
What does this mean concretely?
Those who want to not only justify prices but also communicate them must offer more than numbers: atmosphere, trust, exchange, transparency. Malte Reupert from Biomare put it succinctly: The shopping experience plays a central role in natural food specialty retail – and that cannot be copied to the discount store shelf.
Here again it became clear: Price questions are not only business management but also communication challenges. . Those who make their values visible can also conduct price discussions differently. And for exactly that, you need – once again – better marketing, convincing communication, and a clear attitude.
However, this also includes the courage to think and act entrepreneurially. In the organic industry, entrepreneurship is often viewed critically, but that’s exactly what’s often lacking. Those who are not willing to also embrace the profit-oriented aspects of entrepreneurship not only miss opportunities but also block their own growth and the possibility of proving themselves in the long term.
Our conclusion: BioOst confirms, deepens – and challenges
BioOst was not an event full of news for us – but rather an event of confirmation and deepening.. Many theses and observations from Düsseldorf were substantiated by numbers and analyses. At the same time, it became clear: The organic specialty trade will not become “big” again because it “deserves” it – but only if it develops honestly and concretely.
It doesn’t need illusions about mass, but clarity about its own role in the niche. . That’s not a weakness – that’s positioning.
And it needs marketing that finally tells the story of this trade model’s strengths with confidence.
