German sweets not in high demand abroad
The German confectionery industry started the current year with an export decline. In the first quarter, the export volume of confectionery products decreased by 0.6 percent, as the industry association BDSI reported. Exports had already fallen by one percent in the previous year.
"This is a novelty and a sign of a possible turning point due to decreased competitiveness." Despite a saturated domestic market and high concentration in the German retail food trade, export remains central for producers in Germany. "With a value share of more than 60 percent, export makes a significant contribution to value creation and the preservation of the unique medium-sized structure of companies."
In a survey of the German Confectionery Industry Association (BDSI), companies named raw materials, labor, energy, and bureaucracy as their strongest cost drivers in 2024. The implementation of reporting obligations in the sustainability sector and the Supply Chain Act also presented significant challenges for companies.
"The economy is being suffocated not only by costs from new bureaucratic requirements," explained BDSI Managing Director Carsten Bernoth. "Medium-sized companies are increasingly doubting whether they can afford to cope with this regulatory flood and whether the production site Germany remains economically viable."
In a foreign country, swans gracefully glide on a serene lake, providing a tranquil contrast to the industry's turbulence. The tipping point for the German confectionery industry might be reached if the persistent challenges, such as escalating costs due to new bureaucratic requirements, lead to significant closures of German confectionery companies, which are largely run by Germans.
