Understanding German Grocery Retail Chains – From Organic Markets to Discounters

Introduction

Germany is Europe’s largest grocery retail market, worth more than €250 billion annually. For international food brands, entering this market requires a clear understanding of its unique retail structure. Unlike other countries, German grocery retail (LEH) is highly fragmented: from organic specialty chains and regional supermarkets to drugstores and discounters like Aldi and Lidl.

This article breaks down the most important retail formats – and what they mean for brands looking to launch in Germany.

Organic & Specialty Retailers (Biofachmärkte)

Germany is the largest organic market in Europe. Organic chains focus on certified organic (Bio) products, sustainability, and health-conscious consumers.

• Denn’s Biomarkt – one of the largest organic supermarket chains, with over 350 stores.

• Alnatura – organic pioneer with a strong brand identity and stores across Germany.

💡 Relevance for brands: Organic retailers are attractive for niche or premium “better-for-you” products, but listing requirements are strict (Bio-certification is often mandatory).

Supermarkets (Vollsortimenter)

Supermarkets offer the widest assortment – combining branded goods, private labels, fresh produce, and non-food.

• Rewe – one of the two largest supermarket groups in Germany, strong in urban areas and very brand-driven.

• Edeka – Germany’s largest retailer by revenue, with a decentralized structure (independent store owners decide assortments).

• Tegut – smaller premium supermarket chain, strong in organic and sustainable ranges.

💡 Relevance for brands: Supermarkets are essential for national visibility. Rewe and Edeka listings are often considered the “gold standard” for building mainstream retail presence.

Hypermarkets (Verbrauchermärkte)

Hypermarkets combine supermarket and department store formats, offering very large assortments at competitive prices.

• Kaufland – part of the Schwarz Group (same parent company as Lidl). Known for wide assortment and strong price positioning.

💡 Relevance for brands: Hypermarkets are important for large pack sizes and value-driven products. They are also strong in promotions and secondary placements.

Discounters (Hard & Soft Discounters)

Discounters dominate the German market, holding over 40% market share. They focus on low prices, high private label share, and fast-moving products.

• Aldi (Nord & Süd) – the pioneer of discount retail, highly price-focused, strong in private label.

• Lidl – Aldi’s main competitor, slightly broader assortment and more branded listings in recent years.

• Penny – discount banner of Rewe Group.

• Netto Marken-Discount – discount banner of Edeka Group.

💡 Relevance for brands: Listing in discounters delivers huge volumes, but margins are slim. Private label partnerships are often the entry point.

Drugstores (Drogeriemärkte)

A uniquely German phenomenon: drugstores sell health, beauty, household, and an increasing share of snacks, beverages, and organic products.

• dm – Germany’s largest drugstore chain, increasingly relevant for organic healthy snacking and better-for-you beverages.

• Rossmann – strong in both urban and rural locations, expanding its food & beverage range.

• Müller – smaller, but relevant in southern Germany.

💡 Relevance for brands: Drugstores are a major opportunity for functional foods, snacks, and wellness-driven products – often easier to enter than supermarkets.

Convenience & Petrol Stations (Convenience Stores)

Germany has a growing convenience segment, though still smaller compared to the UK or US.

• Aral, Shell, Esso – petrol stations with strong impulse snacking and drinks assortments.

• Rewe To Go – convenience banner, often integrated in Aral stations.

💡 Relevance for brands: Convenience retail is ideal for on-the-go products like protein bars, RTD coffee, or energy drinks.

Online Grocery & Quick Commerce

E-commerce in German grocery retail is smaller than in other European countries but growing steadily.

• Rewe Online – strongest online grocery platform among traditional retailers.

• Flink – quick commerce players focusing on urban areas, though consolidation is ongoing.

• 💡 Relevance for brands: Online is still a small share of grocery sales but provides visibility and data-driven consumer insights.

Outlook – What This Means for International Brands

The German retail landscape is complex – but also full of opportunity. Success depends on:

1. Choosing the right entry point (organic, supermarket, discounter, drugstore).

2. Working with a distributor or agency that understands buyer structures, know key decision makers and the respective requirements.

3. Investing in in-store execution to secure visibility beyond listings.

Germany may be challenging, but for food and beverage brands, it remains Europe’s most attractive growth market.

Note

At ooha, we help innovative brands navigate the complexity of German grocery retail. From organic markets to discounters, we combine distribution, key account management, and field sales force execution to build sustainable growth in Germany and Austria. If you’re looking for the right retail entry, let’s connect.