Consumers in Austria increased their purchases of fresh organic food in 2024 by 5.5%, reaching a record high of 260,600 tonnes, according to new figures from Agrarmarkt Austria Marketing (AMA).

The total value of these purchases also rose by 3.7%, amounting to €1.1 billion.

Austria continues to be a global leader in organic farming, with 23% of farmers using organic methods and 27.3% of agricultural land dedicated to organic production in 2024. This places the country second worldwide, behind Liechtenstein. By 2027, Austria aims to increase its share of organic land to 30%, with the target rising to 35% by 2030.

However, the number of organic farms has fallen by 1,000 since 2022, leaving 24,000 still in operation, according to Bio Austria.

Barbara Riegler, chairwoman of Bio Austria, attributed this decline to a variety of factors, including less favourable conditions under the new EU agricultural funding framework since 2023, farm transfers, retirements, and stricter regulations on pastureland management. “The decline has many causes,” she explained. Despite this, Riegler remains optimistic for 2025. “A stabilising trend can be seen in farm development,” she added.

Organic Growth Continues Amid Market Pressures

Despite the challenges, organic food is experiencing a resurgence in Austria’s retail sector. After a decline in 2023, the AMA survey found that the market share of fresh organic products increased by 0.5 percentage points to 13% in 2024. “We are convinced that this trend will continue in the coming years,” said Barbara Köcher-Schulz, Bio Marketing Manager at AMA Marketing.

Organic sales are particularly strong in dairy products, with milk commanding a 29.1% market share, plant-based alternatives at 28.2%, flour at 26.1% and yoghurt at 23.8%. Organic meat also saw a slight increase in sales, rising by 0.7 percentage points to 7.6%. “Organic meat is becoming increasingly important for consumers,” said an AMA Marketing representative.

Supermarkets Dominate Organic Sales

Austrian supermarkets remain the dominant force in the organic market through their private labels. Spar’s “Natur*pur” saw an 8.3% increase in sales in 2024, offering over 6,000 organic products, 2,000 of which are under private labels. “The demand is very good across the entire range, traditionally especially for original products such as fruits and vegetables, flours and dairy products,” said Spar.

The organic segment of Rewe (Adeg, Billa, Penny) also grew in 2024, with bakery items, cooking oil, tropical fruits, poultry and meat alternatives seeing particularly strong growth. By the end of the year, Rewe had more than 4,000 organic products in its range, with around 1,400 falling under the organic labels “Ja! Natürlich” and “Billa Bio.”

Discount chain Hofer reported stable sales and an upward trend in organic products, offering 700 items under its “Zurück zum Ursprung” and “BIO” brands.

Sonnentor and Zotter Stand Out in Organic Niche

While large supermarket chains dominate the organic sector, some smaller producers have successfully carved out their own niche. Sonnentor, a spice and tea specialist, is expanding its presence through franchise stores and organic retailers, including pharmacies. Sonnentor’s owner, Johannes Gutmann, expects a 5% revenue increase in the 2024/25 financial year, bringing their turnover to around €80 million. Zotter, a chocolate producer, continues to focus on organic and natural food stores, selling primarily through specialised retailers.

Public Procurement Remains a Key Growth Area for Organic Sector

The organic sector sees significant potential for growth in the public procurement market, including in schools, hospitals and government-run institutions. The Austrian government has set targets for organic quotas in public procurement, aiming for a 25% share in 2023, 30% by 2025 and 55% by 2030. However, these quotas have yet to be met.

“The public procurement sector is the ‘biggest lever’ for the organic sector,” said Bio Austria chairwoman Barbara Riegler. “Austrian lawmakers must create the framework conditions for organic purchasing.”