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Price shock for Austrians: Food cheaper in Germany!
Food prices in Germany are often cheaper than in Austria. AK Tirol calls for more transparency and price monitoring.
Price shock for Austrians: Food cheaper in Germany!
A recent study by the Tyrol Chamber of Labor (AK Tirol) found that many foods in Germany, especially in Bavaria, are significantly cheaper than in Austria. These price differences not only affect domestic products, but also well-known branded items. According to AK Tirol, retailers' arguments to justify higher food prices through higher wage and transport costs as well as a denser branch structure in Austria are untenable. For example, a Vöslauer lemon costs 0.89 euros in Bavaria, while the same bottle costs 1.25 euros in Innsbruck.
A detailed price investigation shows that even products from the REWE Group, which includes Billa and Billa Plus in Austria, are cheaper in Germany. AK Tirol's price check showed that out of eleven identical products offered, ten were offered at lower prices in Germany. Own brands from discounters such as Hofer (Aldi Süd) and Lidl are also cheaper in Germany.
Significant price differences
The price differences are striking. Lidl wheat toast costs 0.69 euros in Germany, while in Austria you have to pay 0.99 euros for it. Similar price differences are also noticeable for other products:
- Delikatess-Geflügelbrust (200 g): 2,79 € in Deutschland, 3,79 € in Österreich
- Pfanner Eistee (2 l): 1,39 € in Deutschland, 2,49 € in Österreich
- Gösser Naturradler 0,5 l: 0,99 € in Deutschland, 1,59 € in Österreich
- Almdudler 1 l: 1,59 € in Deutschland, 1,99 € in Österreich
- Manner Neapolitaner 400 g: 3,79 € in Deutschland, 3,99 € in Österreich
AK President Erwin Zangerl calls for more transparency in pricing. “These price differences are incomprehensible and must be disclosed,” says Zangerl. He calls for detailed price monitoring and the reactivation of the Joint Commission for Price and Wage Issues, which has been inactive since 1998. Zangerl emphasizes that this commission is an important body for reviewing price and wage issues and that transparency in pricing is necessary to end the so-called “Austrian surcharge”.
Market concentration and pricing
Food prices in Austria are on average 15 to 20 percent higher compared to Germany. According to a study by the Association for Consumer Information (VKI), prices vary considerably depending on the product segment. The differences are sometimes extremely high, especially for branded items. Some products are up to 35 percent more expensive in Austria.
Market concentration in Austria is also an issue. The four large corporations Spar, REWE, Hofer and Lidl control over 90% of the food market. These monopoly-like structures lead to non-transparent prices that are difficult to understand.
In summary, the analysis by AK Tirol and additional findings from VKI show that Austrian consumers pay significantly less in Germany for many everyday foods, even for domestic products. It remains to be seen whether the required measures for price transparency and the revival of the price monitoring policy will be implemented soon.
Further details about the price investigation and the exact results will be published in the KONSUMENT test magazine and on the website in the future vki.at published.