The pressure of high food prices is mounting on German consumers, who are increasingly feeling the pinch as costs continue to rise. Consumer advocacy organizations, particularly Foodwatch, are calling for greater transparency and accountability from major supermarket chains like Aldi, Rewe, and Edeka, alleging they are profiting at the expense of the public.
According to Foodwatch, supermarkets have raised the prices of their private label products significantly since the COVID-19 pandemic, often failing to decrease them even when energy and raw material costs have declined. This accusation is part of broader claims about the lack of competitive pressure, leading to oligopolistic behavior among these retailers.
Foodwatch reported on November 2024, food prices were averaged at 34 percent higher compared to November 2020, significantly outpacing the overall 19 percent rise seen across general consumer prices. This has forced nearly 30 percent of consumers to cut back on other expenses just to afford food, with the number rising to 58 percent among households earning under 1,500 euros per month.
Lisa Völkel from the Verbraucherzentrale Bundesverband (vzbv) argued, "Lebensmitteleinzelhändler müssen verpflichtet werden, ihre aktuellen Preise für Grundnahrungsmittel an eine einheitliche Online-Plattform zu melden." This statement emphasizes the need for standardized reporting of food prices to facilitate consumer comparisons.
The correlation between price hikes across competing stores is startling. For example, the price of yogurt from private labels by Edeka, Rewe, and Aldi has seen synchronized increases, raising concerns of potential price-fixing strategies. Foodwatch's newly launched tool, the Price Radar, tracks these developments closely.
Data suggest nearly identical price increases during the past year, with yogurt prices rising approximately 30 percent since early 2023 for these brands, as evidenced by various retail checks throughout this timeframe.
Laura Knauf of Foodwatch criticized the current market dynamics: “Der Wettbewerb zwischen Aldi, Rewe & Co. funktioniert hinten und vorne nicht: Die Unternehmen betreiben Preistreiberei trotz sinkender Energie- und Rohstoffpreise.” Knauf’s comments reflect widespread frustration as consumers grapple with continuously high food bills.
Despite this turmoil, supermarket representatives contend they are under no obligation to reduce prices simply because their raw material costs have dipped. Edeka has even stated the uniformity of pricing showcases effective competition. “Die Ähnlichkeit der Preisentwicklung ist ein Zeichen funktionierenden Wettbewerbs,” they maintained.
Nonetheless, consumer advocates implore the next German government to intervene. They propose the establishment of a price monitoring body, capable of gathering and publicly disclosing data on food pricing practices to instate fairness as well as accountability within the sector. Foodwatch describes this as integral to dismantling the opaque pricing mechanics currently prevailing.
To navigate the pressures of high living costs, many are already scaling back on their general spending and fundamentally reshaping their budgeting priorities, indicating just how serious the issue has become. The national dialogue continues to swirl around food pricing, highlighting the urgent need for regulatory changes to safeguard consumers.
Without action or intervention, the likelihood of enduring high prices paired with non-responsive market behavior remains elevated, risking intensifying public discontent with the food retail industry's practices as consumers struggle to make ends meet.