Price war between discounters: Aldi and Lidl are massively reducing prices!

Price war between discounters: Aldi and Lidl are massively reducing prices!

An intense price war is raging in German retail, especially between the leading discounters Aldi and Lidl. According to Merkur, these companies achieved sales of over 77 billion euros in 2024, which is almost a third more than in 2019. YouGov market research shows that discounters such as Penny, Netto and Norma have also grown strongly and have a market share of over 38 percent in the overall market. In comparison, full-range retailers such as Edeka and Rewe only have almost 29 percent. This development illustrates the growing influence of discounters in the German food retail sector.

However, the market shares of classic self-service department stores, including Kaufland and Marktkauf, as well as specialist retailers, have fallen. At the beginning of the pandemic, supermarkets temporarily gained market share, but since 2022 a clear trend towards discounters has been observed. This change is particularly encouraged by inflation and rising food prices, which are further fueling competition between discounters and full-range retailers.

Massive price cuts and supply strategies

Aldi and Lidl are actively fighting for the favor of price-sensitive consumers. Lidl recently announced the biggest price cut in its history, with discounts of up to 35 percent on over 500 items. Aldi has already reduced the prices of around 1,000 items in 2025 and is planning further reductions. This is happening against the background that food prices in May 2025 were 36.5 percent more expensive than the annual average for 2020. The experts agree that these price reductions must be permanent in order to maintain the credibility of the discounters, as reported Focus.

The price development cannot be viewed in isolation because it also depends on numerous external factors. Consumer prices for food did not remain constant in 2024 and rose by a total of 1.37%. Certain product categories were particularly hard hit: cooking fats and oils rose in price by 10.29%, while sugar, jam and similar products rose by 6.38%. This shows that food prices in Germany are influenced not only by supply and demand, but also by production and processing costs. According to Statista, political decisions and environmental standards are also important for price setting.

Long-term effects and market development

The strategic competition for market share is becoming more intense. Discounters are under pressure to lower their prices in order to attract new customers and retain existing consumers in a market characterized by inflation. Experts estimate that this trend will continue as both consumers and businesses need to adapt to the new pricing dynamics.

At a time when food spending is still under pressure relative to overall household spending, it is crucial that discounters not only maintain but also expand their position and trustworthiness in the industry. Future success will depend on how well they manage to create attractive offerings while mastering the challenges in the market.