Overview

In 2021, Germany was the third largest importer and exporter of consumer oriented agricultural products worldwide, after China and the United States and by far the most important European market for foreign producers. The retail market’s key characteristics are consolidation, market saturation, strong competition and low prices. Germany is an attractive and cost-efficient location in the center of the EU. While many consumers are very price sensitive, the market also provides many wealthy consumers who follow value-for-money concepts. These consumers are looking for premium quality products and are willing to pay higher prices. Germany still has some of the lowest food prices in Europe, and German citizens spend only about 14 percent of their income on food and beverages. Low food prices are a result of high competition between discounters and the grocery retail sale segment.

Key Market Drivers and Consumption Trends

Fair trade and organic products have become more important on the German grocery market. Germany is the second largest organic market in the world (behind the United States) and presents good prospects for exporters of organic products.

Berlin is spearheading the trend of sustainable food consumption, and other German cities are following its lead. An aging population and increased health consciousness of consumers are fueling the demand for health and wellness products, as well as functional food products. Increasingly high-paced society and the rising number of single households are driving the demand for convenient ready-to-eat meals, desserts, and baking mixes. Ethnic foods, beauty and super foods, clean label foods, “free from” products (e.g., gluten or lactose free) and locally grown products are further trends that attract more and more German consumers. An increasing share of consumers view their purchasing decisions as a political or life-style statement (no GMO, only free-range eggs, vegetarian, or vegan diet). Consumers increasingly require traceability and information about production methods. Germany remains a price-focused market, but the share of consumers who is willing to pay for quality is increasing in most cities.

COVID-19 related lockdown measures resulted in a new home cooking trend. A recently published Ministry of Agriculture report indicates that 30 percent of Germans are cooking more than before the crisis. The importance of e-commerce continues to grow. Online supermarkets are flooding the market in Germany’s major cities, offering food at prices that strongly compete with those of traditional supermarkets.

Leading Sub-Sectors

Tree Nuts

The category of tree nuts includes almonds, pistachios, pecans, hazelnuts, and walnuts. Germany does not produce significant quantities of these products, and supply therefore comes primarily from imports. The United States is the largest supplier of tree nuts to Germany. The leading competitor for the United States in the German tree nut market is Turkey. Many U.S. agricultural associations actively promote their products in Germany, including the Almond Board of California, California Pistachio Commission, and the California Walnut Commission. Most tree nuts are used as ingredients by the food processing sector. Almonds are the top export within this category. Further products with good sales potential include walnuts, pistachios, and pecans.

Note: Exports primarily represent tree nuts that have been imported into Germany, processed, and re-exported to neighboring countries. Source: Trade Data Monitor LLC query dated August 11, 2023

Fishery Products

Fish and fishery products enjoy growing popularity in Germany. The German market offers lucrative opportunities for fish and seafood products. Fish consumption is growing as consumers associate fishery products with a healthy diet. The best prospects for U.S. seafood exports are Alaska pollock, salmon, caviar substitutes, hake, cod, dogfish, shrimps, crabs, cuttlefish and squid, sea urchin, catfish, lobster, and scallops. By value, the two most important U.S. fishery export products to Germany are Alaska pollock and salmon.

Source: Trade Data Monitor query dated August 11, 2023, Fish Trade Association

Wine

Germany is the world’s largest importer of wine by volume and third largest by value. In 2022, German wine imports were valued at more than USD 3.04 billion. Italy, France, and Spain are the leading suppliers of wine to Germany with a combined import market share of 81 percent. U.S. wines, together with other “new-world” wines, have developed an increasingly good reputation for quality in the German market. In 2022, the value of Germany’s imports of U.S. wines totaled USD 73 million.

German production data is only available on a volume basis; therefore, this table is in liters.
Sources: German Office of Statistics (German production), Trade Data Monitor LLC query dated August 11, 2023  

Pet Food

Germany is one of the leading countries for pet ownership in the world. Germans are willing to pay a premium to properly feed their pets, and interest in specialty health pet food products is growing rapidly. Most pet food is produced domestically, and the EU requires pet food to be derived from meat that can be used for human consumption. Despite the bureaucratic obstacles, opportunities for exporting pet food products to Germany are available given the considerable size of the market.

Source: Trade Data Monitor LLC query dated August 11, 2023, German Pet Supplies Industry Association

Agricultural Attaché Reports

Attaché reports provide information on market opportunities, crop conditions, new policy developments and information about Germany’s food industry. Some standard reports include: Retail Market Report, Exporter Guide, Food Service Report, and market briefs on wine, seafood, and other select products. Attaché reports can be found at the Global Agricultural Information Network. In recent years, many of the German reports have been consolidated and are submitted as EU reports. We recommend that companies interested in the German market also review the EU reports.

U.S. Agricultural Commodity Associations Active in Germany

Several U.S. agricultural commodity and other trade associations conduct market development programs in Germany. In some cases, these associations maintain field offices in Germany, while others may have a trade representative or public relations company representing their interests. Others may cover Germany from elsewhere in Europe or from offices in the United States. The USDA-operated Market Access Program (MAP) and Foreign Market Development Program (FMD) provide a portion of the funding for these associations’ market development programs. For further information about the MAP and FMD programs or to know more about which associations are active in Germany, please contact the Office of Agricultural Affairs at the U.S. Embassy in Berlin.

Trade Shows

In Germany, trade fairs play a key role in presenting new products to the trade or in finding additional buyers and importers. The major international trade fairs are:

• FRUIT LOGISTICA – The leading show for fruit and vegetables, dried fruits, and nuts. It is held on an annual basis in Berlin. Next show: February 8-10, 2023
• Biofach – The leading European trade show for organic food and non-food products. It is held on an annual basis in Nuremberg. Next show: February 14-17, 2023
• Interzoo – The world leading pet industry exhibition. It is held every two years in Nuremberg. Next show: May 15-17. 2023
• Prowein – The leading wine show in Germany. It is held on an annual basis in Dusseldorf. Next show: March 19-21, 2023
• ANUGA – The world´s leading food fair for the retail trade and the food service and catering market. It is held every two years in Cologne. Next show: October 7-11, 2023