Given the large size of the German market, the existing opportunities in the food and beverage sector are very attractive to exporters worldwide. Especially the increasing demand for health & wellness and convenience foods as well as organic products in the past years, represents a large potential for foreign companies active in these market segments. Yet barriers to entry are low due to the industry’s fragmentation and the presence of various companies at all stages of the food chain. Depending on the market segment, new entrants should have no difficulties in finding suppliers, distributors or other relevant partners.
German consumers expect high quality and low prices for their food and beverage products. The domestic food and beverage sector has profited from the fast economic recovery in Germany and the growing demand for food products made in Germany brought the export quota to an all-time high. Moderate growth was recorded in the meat and sausage products, confectionery, baked goods, and non-alcoholic beverage segments. In 2013, the German food and beverage market grew by 3.6%, with a very positive outlook for 2014 and beyond.