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Food & Beverage Industry

Supplying the Full Spectrum of Consumer Needs

Few industries are as broad as the food & beverage industry, but Germany does well on all fronts: confectionery as well as organic, frozen, and chilled foods.

Our market – Europe’s largest – brings almost every international food player here. This strength is only expected to improve as consumption trends and the good reputation of our products promise higher future sales. For investors, too, the time is ripe. A fragmented, pre-consolidation industry allows overseas investors access to the market, its distribution channels, and its technological capabilities.

Our Industry in Numbers

Europe’s second largest food producer with turnover of EUR 147 billion in 2007 (+6.7% over 2006)
13.1% increase in 2007 exports reaching EUR 36.3 billion in value
More than EUR 4 billion in domestic investments
Major national and international players, including Dr. Oetker Group, Südzucker AG, Vion Food Group, Kraft Foods Deutschland GmbH, Nestlé, etc.
Largest sector sub-segments in 2007: meat (22.6%), dairy (16.1 %), alcoholic beverages (10.9%), and confectionery food (8.9%)

Our Advantages

MARKET – Thanks to its 82 million affluent consumers, its excellent geographical position with access to all European markets, and its technological leadership, Germany is the best point of entrance to the European food & beverage market. Germany’s position as a frontrunner in the production and consumption of organic food products is underscored by persistent two-digit growth rates in sales of organic products. Moreover, due to the unbeatable popularity of German products abroad, the industry is expected to continue its steep growth over the coming years.

INDUSTRIAL INFRASTRUCTURE – Owing to fragmentation in the existing food & beverage industry landscape, the barrier to entry into the German market is low. In addition, numerous companies along the entire food-processing value chain make it easy for newcomers to find suppliers, distributors, and other valuable partners.

PERSONNEL – Germany has a large pool of highly qualified and motivated employees and offers competitive labor costs compared to both Western and Eastern Europe.

R&D – German R&D expenditures exceed the European average by 50 percent. Our numerous well-known universities and public and private research institutes help companies in the food & beverage industry research, develop, and swiftly bring new and innovative products to market.

INCENTIVES – Germany offers investment incentives covering up to 50 percent of capital expenditure in addition to extensive support for employment and R&D.

PHYSICAL INFRASTRUCTURE – We offer an extensive and comprehensive logistics infrastructure that integrates state-of-the-art transportation networks with the most modern telematics, IT, and telecommunications systems.

STABLE INVESTMENT ENVIRONMENT – Social, economic, and political stability provide a solid base for your corporate projects. Our judiciary and civil services are highly professional. Contractual agreements are secure, and intellectual property is strictly protected in Germany.

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