Search
Home

Exporters
Helping Australians do business
around the world

You are here:
Germany

Food and beverage to Germany

utility-emailutility-printutility-pdfContact usChange to standard fontChange to large font

(Last updated: 5 Sep 2011)

Trends and opportunities

The market

Market size

With over 82 million inhabitants Germany is Europe’s largest market for food and beverage having generated a total revenue of €230 billion in 2010. The sector ranks fourth among the local industries and has a workforce of over 543,700 in the 5,890 predominantly small and medium sized enterprises. In 2010, the largest industry segments by production value were:

  • Meat and sausage products – 22.7 per cent
  • Dairy products – 15.4 per cent 
  • Confectionery – 9.4 per cent
  • Alcoholic beverages – 8.7 per cent  

Although Europe’s second biggest producer of food, Germany is a net importer in major groups of food and drink products. Part of the local demand is satisfied with domestically produced goods, however, in 2010, products to the value of €60.7 billion were imported, mostly processed foods and agricultural commodities. In the past 10 years, food imports have steadily increased, thus underlying the rising demand for foreign as well as exotic foods thus making Germany the most important European market for foreign producers.

Retail landscape
The German food and beverage retail landscape is consolidated and mature but remains relatively diversified compared to many other European countries. This provides manufacturers with numerous ways of marketing products. In total, the top five German retailers (including Edeka, Rewe Group, Schwarz Group, Aldi Group and Metro Group) have a market share of 74 per cent of the entire German retail market.  Edeka, Rewe Group and Schwarz Group operate chains in more than one distribution channel (eg. supermarkets and discounters).

In 2010, the overall market share of discounters offering a limited selection of mainly private label goods at low prices remained stable at 41.6 per cent. Hypermarkets and large-scale superstores (>2.500 sqm) have a total sales volume of 28 per cent of the market. Conventional supermarkets (<2.500 sqm) have a market share of 26.3 per cent. Convenience stores and small supermarkets are losing ground.

(Source: Germany Trade and Invest, The Food and Beverage Industry in Germany, issue 2011/2012, page 10)

Top 10 food retailers in Germany  

Opportunities

Given the large size of the German market and the various market trends provide excellent opportunities to exporters worldwide.

Wellness and health foods are projected to grow by 2.5 per cent in 2011. Greater health consciousness is strongly influencing food and drink sales. An ageing population is fuelling demand for health and wellness as well as functional and organic food products to overcome conditions including diabetes, high blood pressure and cholesterol. Two-thirds of Germans see a direct link between nutrition and health.

Organic and Fair Trade product ranges have enjoyed considerable success in Germany. With €5.8 billion in organic food sales in 2009, Germany is by far the largest market in Europe and will continue to grow further. New developments in this sector are the increasing number of organic food shops and sales in supermarkets and discounters. Most supermarkets and discounter chains have successfully introduced their own organic label brands, while an increasing number of consumers are seeking to improve their sense of wellbeing, health and even their performance levels through the consumption of organic and functional foods.

Many Germans consider ‘functional foods’ as a way to overcome general health concerns and to improve their wellbeing. Components such as probiotics, fibre and vitamins are added to make the eating experience more beneficial in terms of positive health effects and taste. It is expected that functional foods will become one of the most dynamic and important segments of the food and beverage industry and a 23 per cent market increase is forecast by 2014.

‘Free of’ foods (such as lactose and gluten-free products) are further trends currently finding favour with Germany’s increasingly discerning consumer base.

More soft drinks and non-alcoholic drinks are being consumed, while those drinking alcohol are showing a preference for wine over beer.

German consumers remain extremely price conscious, and show a marked preference for shopping at discount outlets. However, there is room for growth in private-label products, and an opportunity for supermarkets and convenience stores to offer their own range of discount brands.

Convenience stores located at petrol stations are very popular, and present an interesting opportunity for retailers interested in entering the local market.

An increasing number of single-person households and the growing number of working women has increased average net household incomes, and subsequently influenced food consumption. Demand for convenience food such as deep-frozen ready-to-eat meals including pizza, desserts and baked goods have been steadily increasing in recent years. Germany already has the largest frozen food market in Europe with total sales of €11.4 billion in 2010.

back to top of site

Tariffs, regulations and customs

Food safety
The legal framework on food safety was established by the European Union. The European Food Safety Authority plays a key role in the risk assessment of food. Many developments of the previous years were aimed to increase transparency and consumer confidence, by providing better information on food ingredients. Traceability of food products is also of utmost importance. For example, the country of origin must always be listed on food labels and all intermediaries (suppliers, distributors, etc.) that joined the food chain must be included as well. Companies trading food of animal origin from one country of the EU to another need a special permit that is issued by the Federal Agency for Agriculture and Food (BLE).

Novel foods
Novel food imports in Germany must undergo a safety assessment before being brought into circulation. Importers of novel foods must apply for a license to sell these products at the Federal Office for Consumer Protection and Food Safety (BVL). As the responsible federal authority, the BVL will perform the necessary testing and send the results to the European Commission and the Member States for final approval. Detailed guidelines for the import of novel foods can be found at the Federal Institute for Risk Assessment (BfR).

Label requirements for Germany

A. General requirements
All imported food products must comply with the German Food Law. If any indication required under the German Labelling Regulation is missing, goods can be prevented from being sold. All foods must be labelled in German. Multi-language labels are allowed. Labelling can also include illustrations. It is forbidden to show ingredients on the label that are not contained in the product, eg. illustrations of fruits if only artificial flavours are used or a multi-fruit juice may only show pictures of those fruits contained in the product. There are numerous other special labelling requirements pertaining to specific foods or food groups. Since many other requirements are applicable, such as the actual size of letters and placing of the various elements on the label and picture shown, Australian manufacturers and exporters are urged to contact their potential German importer before making changes in labels on products labelled for distribution in Germany.

Some importers may agree to adhering computer generated, adhesive labels in Germany for smaller quantities during a test-marketing phase.

All food and beverage products imported into Germany for retail sale must be labelled in German and provide the following information as laid down in the Lebensmittel-Kennzeichnungs-Verordnung (LMKV - Food Labelling Ordinance of Dec. 1999):

  • Name of the product as commonly used in the trade
    This may be the name prescribed by law or a name customary in the area where the food is sold or a precise name to be distinguished from products with which it could be confused. The name may be a name or a description. Trade, brand or fantasy names are permitted but may not be substituted for the name of the food. The product name, the statement of quantity and the indication of minimum shelf life (or a reference to it) must all appear in the same field of vision.
  • List of ingredients and food additives
    The list of ingredients should start with the word ‘Zutaten’. Ingredients should be listed in descending order of weight as used at the time of preparation. Ingredients used in concentrated or dehydrated form and which reconstitute during preparation of the food may be listed as if reconstituted. Certain ingredients may be designated by the name of their category group rather than the specific name. These include refined vegetable oils excluding olive oil, refined fats, flour blends, starch, fish, cheese, spices, herbs, gum bases, crumbs, sugar, dextrose, glucose syrup, milk protein, cocoa butter, crystallized fruit, vegetables and wine. The sequence listing for colouring agents is free.
  • Quantitative ingredient declaration (QUID)
    If in a label, special emphasis is placed on the presence of an ingredient, the minimum amount as a  per cent must be declared either next to the name of the food or near the name of the ingredient in the ingredient list
  • Alcohol content
    Alcoholic beverages containing more than 1.2 per cent alcohol measured at 20 degree Celsius, need to be shown as ‘Alkohol (or alc.) ... per cent vol’
  • Uncoded minimum shelf-life date (interpreted as the date until which the product maintains its maximum level of quality under proper storage conditions). The words to be used are ‘Mindestens haltbar bis ...’ Determination of the minimum shelf-life lies entirely in the hands of the manufacturer or importer.
    Declaration of minimum shelf-life is not necessary for fresh fruits and vegetables, alcoholic beverages of more than alc. 10 per cent, portioned ice cream, table salt, crystal sugar, flavoured and/or coloured sugar candies, chewing gum, wine-like beverages.
    If the product for microbiological reasons may cause a health threat after a certain storage period, it has to carry an uncoded latest consumption date using the words ‘verbrauchen bis ...’
  • Storage conditions
    Any special storage conditions or conditions of use should be stated. Instructions for use should be given as necessary.
  • Metric units for all measurements
    Net quantity of pre-packaged foodstuffs expressed in metric units (litre, centilitre, millilitre, kilogram or gram)
  • Name and address of manufacturer, packer or importer in Germany/EU
  • Coded lot identification
    A coded lot identification is needed for all products which do not show a minimum shelf-life containing day and month identification. The marking shall be preceded by the letter ‘L’ except in cases where it is clearly distinguishable from other indications on the label.
  • Bar codes
    Germany uses the European Article Number (EAN) also referred to as International Article Number (IAN) system with 13 digits.

B. Health/medical claims

Health claims
Medical claims or images attributing to a foodstuff the property of preventing, treating or curing human diseases are explicitly prohibited in the German/EU labelling directive. This rule does not apply to dietetic foods.

Dietetic foods ordinance
The German Dietetic Food Law defines the properties foods must have in order for the manufacturer to label them as dietetic. It requires that foods and beverages labelled as dietetic must differ substantially from other regular foods. A simple listing of the nutrient content, bread units, and/or caloric value on the label is not sufficient to allow the use of the term ‘dietetic’. Health-related statements are strictly limited. Examples for such statements are:

  • Diaetetisches Lebensmittel geeignet zur Behandlung von ...
    (Dietetic food suited to cure ...)
  • Diaetetisches Lebensmittel geeignet zur Behandlung von ... nur unter staendiger aerztlicher Kontrolle verwenden.
    (Dietetic food suited to cure ... only use if under continuous medical supervision)
  • zur besonderen Ernaehrung bei ... im Rahmen eines Diaetplanes
    (special diet for ... if part of a diet plan)

It is strongly recommended that exporters consult with a German food laboratory before making any dietary claims for products to be marketed in Germany.

Nutritional value labelling ordinance

Nutritional value labelling is not mandatory in Germany and other EU countries unless a nutrition claim is made on the label or in advertising messages. The EU Nutritional Value Labelling Directive 90/496/EEC establishes rules for the separate labelling of the caloric and nutritional values of foods. Though not mandatory for all foods, it establishes certain conditions, which must be fulfilled if the industry wishes to provide information that either emphasise a particularly low caloric content or a particularly high nutritional value of a certain food. Where nutritional labelling is provided, the information to be given should consist of either of the following orders:

  • the energy value, plus the amount of protein, carbohydrates and fat or
  • the energy value, plus the amount of protein, carbohydrates, sugar, fat, saturates,fibre and sodium

The energy value and the proportion of nutrients must be declared in specific units per 100 grams or 100 millilitres. Information on vitamins and minerals must be expressed as a percentage of the recommended daily allowance.

The information on the label must be presented in tabular form with the numbers aligned or if space does not permit, in linear form in a language easily understood by the purchaser.

Green Dot
An important issue is the inclusion of the ‘Green Dot’ (Gruener Punkt) symbol on all packaged products traded in the EU.  The symbol stands for a producer’s participation in the waste recycling scheme.

The importer/agent usually applies for certification and license fees are charged according to composition and mass of packaging. Proceeds from the fees go towards waste recycling management.

Once granted, the symbol needs to be affixed on the label/packaging of the product.

back to top of site

Marketing your products and services

Market access

The German food and beverage industry is highly fragmented and competitive. Food imports from other countries within the European Union fall under the ‘free movement of goods’ principle. This means that products that are imported by other EU-countries may be brought into Germany even if they violate German food laws. If this is the case, importers must obtain a permit from the Federal Office for Consumer Protection and Food Safety (BVL) in order to sell the product in Germany. The duties to be paid for food brought from outside the European Union are subject to European legislation as well. The tariffs for different food products are published in TARIC, the Online Customs Tariff Database.

Distribution channels

Few German retailers import products directly from other countries. Most food retailers rather buy from central buyers/distributors specialised in the import of food and beverages. In general, these wholesalers have specialised in products or product groups; some are even experts in food products from a specific country of origin. These specialised importers have in-depth knowledge of all importing requirements such as the necessary product certificates, labelling and packaging and also take care of the shipping, customs clearance, warehousing and distribution of the products within the country. It is advisable that foreign exporters find a local representation in order to place and promote their products successfully within Germany.

Foreign companies looking for German food importers, wholesalers or distributors can find reliable information at the Federation of German Food and Drink Industries (BVE), the Federal Association of the German Retail Grocery Trade (BVL) as well as at the different food market segments industry associations.

The BVE represents the interests of 22 branch associations and 42 food and beverage companies in Germany. It is the first stop for foreign companies looking for information and contacts in the German food and drink industry. The BVL serves as the federal organisation for the food retail trade in Germany and represents all sales channels and companies in the field. The association's role is to safeguard the sector's interests with regard to legislation, the public authorities and the general public in Germany and Europe.

(Source: German Business Portal: The Food & Beverage Industry in Germany, 2009)

Trade fairs
Anuga – is held annually in Cologne in autumn. It is the world’s leading food fair for the retail trade and the food service and catering market.

BioFach – is held annually in Nurember and is the world’s largest trade show for organic food, natural products, organic agriculture and marketing.

ISM is the world’s leading trade fair for the confectionery industry.

back to top of site

Links and industry contacts

Food and beverage–related resources

Association of the German Food and Beverages Industry – www.bve-online.de/englisch_content/?referred=1
Confederation of the Food and Drink Industries of the European Union – www.ciaa.be/asp/index.asp   
Food – Made In Germany e. V. (in German) – www.fmig-online.de/startseite.html
German Agricultural Society – www.dlg.org/en/index.html 
German Federal Ministry of Food, Agriculture and Consumer Protection – www.bmelv.de/cln_093/EN/Homepage/homepage_node.html
German Food Industry Trade Association (in German only) – www.lebensmittelhandel-bvl.de/index.php
German Fruit Trade Association – www.dfhv.de/
German Institute of Human Nutrition – www.dife.de/en/index.php  
German Nutrition Society – www.dge.de/modules.php?name=Content&pa=showpage&pid=12
German Retail Federation (in German) – www.einzelhandel.de/servlet/PB/menu/-1/home.html
German Research Foundation – www.dfg.de/en/index.html

Media

Lebensmittel Zeitung - German Food Retailing Publication – www.lz-net.de/freieressorts/mediadaten/pages/show.prl?id=18
Organic Producers and Traders Association – www.n-bnn.de/cms/website.php?id=/en/index.html&sid=7e750e3aa077fbc3f48208d9ae95055e
Organic-Market.Info - Online Magazine for Organic Trade – www.organic-market.info/
Soft Drinks Industry Trade Association (in German only) – www.wafg-online.de/

back to top of site

Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.

back to top of site

Bookmark

Share

Bookmark and Share

Rate

Average page rating
starOff.gifstarOff.gifstarOff.gifstarOff.gifstarOff.gif(0)
How useful was this page?
1 stars2 stars3 stars4 stars5 stars

Subscribe to Export Update

The latest in export news and events, success stories, plus information to help Australian exporters do business around the world.

Case studies

Austrade has profiled over  100 companies from a range of industries and markets, all over Australia. Read these case studies.

Site Information

Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.