Germany's agrifood: In search of new recipes to remain a master chef

10/5/2015 - Report
ic_blogtagGermanyAgrifoodBusiness ClimateIndustryManufacturingSector Risk
Agrifood is the 5th biggest manufacturing sector in Germany, relying on a large domestic market and strong openness to foreign markets. Exports (1/3 of turnover) are expected to rise by EUR9.4bn by 2016.

However strong growth momentum is gone. Total output is set to increase by only +2.7% in 2015 and +0.6% in 2016, compared with +4% between 2000 and 2008.

Higher price pressure from discounters, lower consumer spending on food (EUR2bn lost in a decade) and exporters specializing in products facing sharp price decline (meat, dairy) put the model at risk.

Investing in higher value-added products such as organic food for both the domestic and export markets will be key. Organic retail sales in Germany are forecasted to gain EUR4bn (+50%) by 2018.

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Germany's agrifood: In search of new recipes to remain a master chef - Report