Interest in products of regional origin in Germany has peaked
According to surveys, more than half of consumers in Germany regularly buy products of regional origin, and do so consciously. As Deutsche Welle notes, the bulk of trendy regional products are simple, so-called mono-products: vegetables, fruits, meat, and eggs. They are followed by sausage products and dairy products.
Regionality as a consumer trend has recently even overtaken eco-friendliness in popularity: organic products make up 10 percent of the average German's shopping basket, while products from the regions account for at least 20 percent.
Reports from the German Federal Ministry of Food and Agriculture show that the regional origin of products is important for 75 percent of Germans. As a criterion for choice when purchasing, it is only surpassed by personal preferences. At the same time, buyers are willing to pay a higher price for such a product.
Most often, buyers choose a product of regional origin because they believe it is fresher and tastier. But there are other factors as well. According to Professor Ulrich Hamm of the University of Kassel, an expert on agricultural issues, when a consumer chooses, for example, a vegetable grown in their region, they are thereby demonstrating a challenge to globalization and a desire for authentic consumption as opposed to fast food.
Furthermore, the expert believes, the buyer thus shows a desire to be involved in the production process, because one does not have to travel far to see the conditions in which animals are kept or vegetables are grown. "The consumer is also not averse to helping the local producer and supporting the region's economy," Hamm believes.
But, in the expert's opinion, regional origin in itself only indirectly influences the buyer's willingness to open their wallet, as it does not automatically mean higher quality. Therefore, it is necessary to create new use value, for example, by offering a product with features of a traditional dish or cultural product, notes Ulrich Hamm.
More and more producers and suppliers are using regionality for marketing purposes. In 2014, a voluntary licensing system was introduced in Germany – the "regional window" – and a blue label appeared with information about the origin and processing method of the product.
Although regional products can now be bought in almost all supermarkets and discounters in Germany, licensing is turning from voluntary to mandatory if a retail chain wants to promote the word "regional" as part of a brand. This is what, for example, the German supermarket chain REWE did several years ago.
"For REWE Regional, we have a long-term partnership with small suppliers, which reduces their price and sales risks," says Thomas Bonrath, press secretary of the REWE supermarket chain. Vegetables, fruits, or meat are sold as a private label or under the producer's name – it doesn't matter: everything is supplied directly from nearby farms and small enterprises. And sales at reduced prices support the sale of particularly large batches of harvest.
Overall, the regional factor plays an important role for better product sales, says Bonrath. Firstly, short delivery routes reduce transport costs. And secondly, the ability to accept seasonal produce already ripe, rather than only half-ripe, leads to quick sales bypassing warehouses.
But the retail chains' perspective is to move away from seasonal dependence and supplement the range of regional products with primary processed industrial goods. According to Thomas Bonrath, this will increase demand for regional products and give them additional consumer value.