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

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

The discounters in Germany are in intense competition for market leadership. The current market situation shows that discount chains' sales rose to over 77 billion euros in 2024, which means an increase of almost a third compared to 2019. According to market research institute YouGov, the discounters, which include Aldi, Lidl, Penny, Netto and Norma, have also increased their market share to 38%. This means they trump the full-range retailers Edeka and Rewe, which hold almost 29% of the market. In recent years, supermarkets initially gained market share due to limited dining out and vacations during the pandemic, but discount brands followed suit in 2022 and 2023 due to inflation and rising grocery prices. Today the price war between Aldi and Lidl is particularly heated.

Lidl is leading the way in the fight for discounter customers with a historic price reduction. The chain announced that it would permanently offer over 500 items at up to 35% cheaper. This measure is a response to the high cost of living and is intended to provide relief for customers. Friedrich Fuchs, head of Lidl in Germany, emphasizes that this strategic decision is not just short-term, but should also have a long-term impact. Lidl has already reduced the price of over 1,500 items this year. The price reductions affect almost all product groups and represent a significant step in Lidl's market strategy of passing on the cost reductions directly to customers without risking any loss of quality. Among other things, the price of butter was reduced to below two euros.

Competition is intensifying

Aldi has also taken significant action in response to Lidl's price cuts. The discounter has already reduced the price of around 1,000 items and plans to add hundreds more. These pricing measures affect products from various categories, including dairy products, meat, sausages, frozen foods, sweets and cleaning products. The discounter Norma and other chains are also following suit and announcing price reductions for many products. An example of this are the Bavarian organic cheese pieces from Bio Sonne, which are now available for 2.79 euros instead of the previous 2.99 euros.

Food prices reached worrying levels in May 2025, 36.5% higher than the 2020 annual average. Experts expect that the price reductions must remain permanent in order not to lose the trust of price-sensitive consumers. In this strategic competition, the goal is clear: customers should be lured into the branches and it should be possible to sell products with higher profit margins.

Lidl supports its pricing strategy with an advertising campaign under the motto “Unity in price and purchasing power”. Singer Sarah Connor, who recently made it public that she no longer wanted to sing the anthem, appears in a new commercial. This campaign is intended to put even greater focus on the significant price discounts and relief for consumers.

The development of discounters and the intensive pricing strategy form an interesting part of the dynamic food industry in Germany. Whether competition between these giants will continue to increase remains to be seen. One thing is certain, however: consumers are currently benefiting from a wide range of cheaper offers.