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The Food & Beverage Industry in Germany

The German food and beverage market offers business opportunities on all fronts, because it's highly receptive to new cultural influences and culinary trends.

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Our Industry in Numbers

• Germany is Europe's second largest food producer with sales of 149.5 billion Euro in 2010 (1.2% increase on 2009)
• Although exports of processed foods and agricultural commodities generated Euro 51.8 billion in sales, Germany is a net importer of food & beverage products
• Largest sector sub-segments in 2009: meat (22.7%), dairy (15.4%), confectionery food (9.4%), and baked goods (8.7%)
• Major national and international players, including Dr. Oetker Group, Südzucker AG, Vion Food Group, Kraft Foods Deutschland GmbH, Nestlé, etc

Testimonial - Gerhard Berssenbrügge, Chief Executive Officer | Nestlé Germany AG

"We are proud to have a plant like Biessenhofen in Germany. It is a location for the future with sophisticated products for the entire world. Today we export infant formula to 80 countries worldwide."

Market | Industrial Infrastructure

Thanks to its 82 million affluent consumers, its excellent geographical position with access to all European markets, and its technological leadership, Germany is the best point of entrance to the European food & beverage market. Demand for functional foods alone has established Germany as a European leader, with the organic food segment experiencing a threefold increase in sales within a decade. Moreover, due to the unbeatable popularity of German products abroad, the industry is expected to continue its steep growth over the coming years.

Owing to fragmentation in the existing food & beverage industry landscape, the barrier to entry into the German market is low. In addition, numerous companies along the entire food-processing value chain make it easy for newcomers to find suppliers, distributors, and other valuable partners.

Source: Bundesvereinigung der Deutschen Ernährungsindustrie (BVE), 2011.

Market | Trends

Recent consumer trends have, above all, been influenced by a number of far-reaching changes in society: an aging population is fueling the demand for health and wellness as well as functional food products to prevent or overcome conditions including diabetes, high blood pressure and cholesterol. Two-thirds of all Germans see a direct link between nutrition and health.

The movement for organic food products has long since achieved mainstream status in Germany. More and more consumers are seeking to improve their sense of well-being, health, and even their performance levels, through the consumption of functional food products. An increasingly fast-paced society and the rising number of single households is driving demand for highly convenient foodstuffs including ready-to-eat meals, frozen foods, desserts, and baked goods.

Other trends include sales of fair trade products, such as coffee and fruit juices, which grew by 27 percent - reaching EUR 340 million in 2010. Ethnic foods, beauty foods, and “free of” foods e.g. lactose and gluten-free products are further trends currently finding favor with Germany’s increasingly discerning consumer base.

Source: Metro Handelslexikon 2010/2011, 2011

Personnel | R&D

Germany has a large pool of highly qualified and motivated employees and offers competitive labor costs compared to both Western and Eastern Europe.

German R&D expenditures exceed the European average by 50 percent. Our numerous well-known universities and public and private research institutes help companies in the food & beverage industry research, develop, and swiftly bring new and innovative products to market.

"Germany is Europe’s largest food & beverage market and a superb location for exports."

Richard Offermann | Director Service Industries

Incentives | Physical Infrastructure | Stable Investment Environment

Germany offers numerous incentives for all investors - regardless of whether they are from Germany or otherwise. There is a large selection of programs designed to support a wide variety of business activities at different stages of the investment process available. Support ranges from cash incentives for the reimbursement of direct investment costs to incentives for labor and research and development (R&D).

We offer an extensive and comprehensive logistics infrastructure that integrates state-of-the-art transportation networks with the most modern telematics, IT, and telecommunications systems.

Social, economic, and political stability provide a solid base for your corporate projects. Our judiciary and civil services are highly professional. Contractual agreements are secure, and intellectual property is strictly protected in Germany.