Required Report: Required - Public Distribution Date: December 17, 2024

Report Number: GM2024-0014

Report Name: Food Service - Hotel Restaurant Institutional Annual

Country: Germany

Post: Berlin

Report Category: Food Service - Hotel Restaurant Institutional

Prepared By: Hanna Khan

Approved By: Matthew Snyder

Report Highlights:

With more than 84 million of the world’s wealthiest consumers, Germany is the largest market for food
and agricultural products in the European Union. The German market offers good opportunities for U.S.
exporters of consumer-oriented food and agriculture products, particularly nuts, fish and seafood
products, dried fruits, bakery products, and pulses. The HRI sector is one of the sectors of Germany’s
economy that was hardest hit by the COVID-19 pandemic. Despite the end of COVID-19 restrictions,
the sector’s real turnover is still 10.8 percent below what it was in 2019, the last year before the
pandemic hit, largely due to higher energy prices as well as rising costs for raw materials and personnel.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Market Fact Sheet: Germany
Executive Summary
Germany is the largest market for food and beverages in the EU
Food Processing Industry
with more than 84 million consumers. In 2023, Germany’s
In 2023, the German food processing industry employed around
nominal GDP reached USD 4.5 trillion, making it the world’s 3rd
644,454 people in 5,961 companies. The sector is dominated by
largest economy. Germany is a major producer of food and
small and medium size companies; 90 percent of which have
agricultural products and a leading player in the global
less than 250 employees. In 2023, the sector generated a
marketplace. It is also the third largest importer of agricultural
turnover of roughly USD 251.5 billion, accounting for 5.6
and related products. In 2023, imports reached USD 140.9
percent of German GDP. The largest subsectors by value were
billion. While more than 78 percent of these imports originated
meat (22%), dairy (16%), bakery (10%), confectionary (8%),
from other EU member states, the United States was the largest
and prepared meals (7%).
exporter outside the bloc before Brazil and China. Imports of
agricultural & related products from the United States totaled
USD 2.8 billion in 2023. More information regarding the Food Retail Industry
German food retail sales reached USD 230 billion in 2017.
macroeconomic situation and key data about the German
The sector is saturated, highly consolidated, and competitive.
economy can be found in the 2023 Exporter Guide.
The top four retail groups together account for around 76
Imports
Market of Consumer-Oriented
Situation Products percent of total revenue. Small neighborhood retailers face
strong competition from modern retailers. Online food sales
In 2023, Germany imported USD 86.8 billion worth of grew during the pandemic and continue to increase. Germans are
consumer-oriented agricultural products. The majority (84 generally price sensitive, but wealthy consumers are willing to
percent) of these originated from other EU member states. pay a higher price for premium quality products.

Quick Facts CY 2023

Imports of Consumer-Oriented Products
USD 86,805 (USD million)

List of Top 10 Growth Products in Host Country

1) Almonds 2) Pistachios
3) Walnuts 4) Seafood Products
5) Distilled Spirits 6) Wine
7) Food preparations 8) Condiments/Sauces
9) Peanuts 10) Bakery Goods

Food Industry by Channels (USD billion)

Food Industry Output 251.5
Food Exports 88.2
Food Imports 78.7
Retail 331.8
Food Service 91.3
Strengths/Weaknesses/Opportunities/Challenges
Strengths Weaknesses Food Industry Gross Sales (USD Billion)
Food Industry Revenues (Domestic market) USD
U.S. exporters face 163.3
Germany is the biggest
competition from tariff-
market in Europe with one of Top 10 Host Country Retailers
free products from other
the highest income levels in 1) Edeka/Netto 6) Rossmann 11) Real
EU member states and
the world. 2) Rewe/Penny 7) BartelsLangness 12) Rossmann
FTA partners.
3) Schwarz 8) Globus 13) Metro
Opportunities Threats (Lidl/ Kaufland) 9) Metro 14) Globus
A large, well developed food Non-tariff barriers such 4) Aldi North/South 10) Transgourmet 15) Bartels
processing industry requiring as phytosanitary 5) dm Langnes
a wide range of ingredients, restrictions and
from low-value, unprocessed traceability requirements Source: Lebensmittel Praxis
foods to high-value, highly can make exporting to
processed ingredients. Germany complicated. GDP/Population
Population (millions): 84.6
Data and Information Sources: GDP (trillion USD): 4.5
Federal Statistical Office Germany (Destatis), Federation of German GDP per capita (USD): 52,727
Food and Drink Industries (BVE), Trade Date Monitor (TDM), World Sources: TDM, BVE, Destatis
Bank
Exchange rate: USD 1.00 = EUR 0.9248 (Dec 2024)
Contact: FAS Berlin, Germany, AgBerlin@usda.
List of Top 10 U.S. Growth Products in Host Country

1) Almonds 2) Pistachios

3) Walnuts 4) Alaska Pollock 2

5) Whiskies 6) Wine
SECTION I. MARKET SUMMARY

The German food service sector is large and highly fragmented but can be divided into the commercial
and institutional food service markets. The German commercial food service market includes hotels,
restaurants, fast food and take-away outlets, bars, cafeterias, coffee shops, and similar channels. The
institutional food service market consists of hospitals, universities, nursing homes, and cafeterias.

German food service sales1 increased by 12.2 percent to USD 91.3 billion in 2023 (compared to USD
81.4 billion in 2022).

The HRI sector is one of the sectors of Germany’s economy that was hardest hit by the COVID-19
pandemic. Germany loosened its pandemic control restrictions in February 2022 and lifted all
restrictions in May 2022. This led to the recovery of the sector and an overall increase in sales and
revenue. However, in 2023, the sector’s real turnover is still 10.8 percent below what it was in 2019, the
last year before the pandemic hit2.

Consumer spending in the HRI sector has also been impacted by the war in Ukraine. Following Russia’s
invasion of Ukraine in February 2022, the entire sector suffered from a surge in energy prices as well as
rising costs for raw materials and personnel.

As a result, the German government extended the reduced VAT rate of 7 percent for food consumed in
restaurants that was originally introduced as a COVID-19 relief measure. This VAT reduction remained
in place until December 31, 2023. On January 1st, 2024, the VAT on food consumed in restaurants was
restored to 19 percent.

Table 1: Advantages and Challenges of the German Food Service Market

Sector Strengths & Market Opportunities Sector Weaknesses & Competitive Threats
Germany is the biggest market in Europe Strong price sensitivity. German consumers
with one of the highest income levels in the demand quality but expect low prices.
world.
Many German consumers are uninformed Misconceptions about U.S. agriculture.
about U.S. sustainability, and there is still
room to define a U.S. sustainability
message.
Germany is among the largest food- EU import regulations and tariffs; EU gives
importing nations in the world. preferential access to products from EU
countries.
U.S. style is popular, especially among HRI companies rarely import products into
younger generations; good reputation for Germany on their own, but rather utilize
U.S. foods like dried fruits, seafood, and specialized wholesalers.
wine.
Germany is the largest EU market for U.S. The quota only applies to beef from animals not

1
Consumption of food prepared away from home
2
Source: German Hotel and Restaurant Association (DEHOGA)

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beef under the EU import quota for high treated with growth-promoting hormones.
quality beef, which was expanded in January
2020.
Large non-German population and Germans’ The ‘regional’ trend can work against U.S.
inclination to travel abroad help fuel demand products, but also in favor of.
for foreign products. Plus, increased
preference for authentic regional cuisines in
bigger cities.

SECTION II. ROAD MAP FOR MARKET ENTRY

a) Market Structure

Purchasing by hotels, restaurants, and institutions is fragmented and competitive. Few of these
businesses import products directly from other countries, except for items that they purchase in large
quantities. Most HRI companies would rather purchase from central buyers/distributors importing food
and beverages. In general, these wholesalers specialize in products or product groups. Some are experts
in food products from a specific country of origin. Specialized importers have an in-depth knowledge of
import requirements, such as product certification, labeling, and packaging. They also typically handle
shipping, customs clearance, warehousing, and distribution of products within the country. The two
major distribution channels for the German food service trade are “cash and carry” wholesalers and
specialized distributors /wholesalers.

“Cash and carry” wholesalers operate large stores with food and non-food products. They sell to
retailers, restaurants, and other food service operators. Cash and carry stores offer a variety of products
at competitive prices and are not open to the average consumer.
Specialized distributors to the food service sector have dry and cold storage facilities with
refrigerated/frozen trucks for deliveries. They buy from processing companies, importers, and
occasionally, foreign exporters. To cover the entire German food service market, regional distributors
have organized in groups, such as Intergast and Service-Bund. Some of those distributors organize in-
house food shows once or twice a year, during which their suppliers can showcase their products to
potential customers. These shows are excellent opportunities for U.S. suppliers to enter the German food
service market.

b) Entry Strategy

The German market offers good opportunities for U.S. exporters of consumer-oriented agricultural
products. However, there are several challenges U.S. exporters face before exporting to the German
market. Success in introducing food products depends largely on market knowledge and personal
contact with key decision-makers. The U.S. supplier should analyze German and EU food law,
packaging, and labeling requirements, business practices, trade-related laws and tariffs, potential
importers, and the distribution system. The FAS Office of Agricultural Affairs (OAA) in Berlin offers
guidelines on business practices and import regulations. Information can be found in the latest Food and
Agricultural Import Regulations and Standards report for Germany. The FAS Foreign Buyers List gives
important information on German buyers of food and beverage products.

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Participating in German food trade shows is a proven and cost-effective way to find the right distributor
and facilitate direct contact with German food brokers, importers, and wholesalers. Germany offers a
wide variety of trade show venues for food and beverage products. Trade shows like Anuga or
Internorga enjoy an exceptional reputation and have a wide reach within the global food industry. U.S.
exporters who are looking to sell to Germany should consider participating in or visiting the following
trade shows.

Table 2: Upcoming International Trade Shows in the HRI Sector in Germany

Trade Show Date Description
Intergastra February 7-11, 2025 International trade fair
Stuttgart for the gastronomy and
hotel sector.
Nord Gastro & Hotel February 10-11, 2025 Trade fair for hotels and
Husum catering.
Internorga March 14-18, 2025 International trade show
Hamburg for hotel, restaurant,
catering, baking, and
confectionery trades.
Chefs Culinar March 23-24, 2025 Trade fair for wholesale
Berlin food trade for
restaurant, hotel, and
community catering.
Anuga October 4-8, 2025 Worlds’ largest trade
Cologne show for food and
beverages.
Bar Convent Berlin October 6-8, 2025 International trade show
Berlin for bars and beverages.

Iss Gut! 2025 November 2-4, 2025 Trade fair for

Leipzig hospitality industry,
butchers, and bakers.

c) Distribution and Sub-Sector Profiles

The German food service sector is highly fragmented and dominated by full-service restaurants. Full-
service restaurants continue to lead in consumer food service sales, and they make up the largest type
within the gastronomy branch of the sector. International chains like McDonald’s, Burger King, and
Yum! Restaurants (KFC, Pizza Hut) have a very strong position in the market. In comparison to 2019,
real restaurant sales remain 12.2 percent lower in 2023.

Hotel sales were 4.7 percent below 2019 levels in 2023. The COVID-19 pandemic has increased the
trend for regional tourism.

Institutions are the smallest sector in food service. Most of the institutional food service market is
covered by caterers, of which Compass, Aramark, Sodexo, Klüh, and apetito are among the largest in

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Germany. They usually cater to in-house company restaurants, hospitals, retirement homes, schools, and
universities. The catering sector’s real turnover was 11.7 percent below what it was in 2019.

SECTION III. COMPETITION

Trade within the EU27 bloc is significantly easier for Germany than trading outside the bloc. As such,
the top exporters of most products to Germany are typically other European countries. The United States
ranked sixteenth of all countries from which Germany imported consumer-oriented agricultural products
in 2023 (four ranks down compared to 2022), but among non-EU countries the United States is a much
larger source for imported customer-oriented products. Key U.S. competitors for the German market
include Switzerland, Turkey, and China which exported slightly more to Germany last year, and the
United Kingdom, Vietnam, Argentina, and Brazil, who exported less than the United States.

Table 3: Overall Competitive Situation for Consumer-Oriented Products (2023)

Product category Main suppliers in Strengths of Key supply Advantages and
Total German percentage countries Disadvantages of
Import Local Suppliers

Tree Nuts 1. USA – 20.8% 1) USA is the leading Domestic production

(HS 0801 +0802 2. Turkey – 19.9% supplier of almonds, is minimal. Germany
+200819) 3. Netherlands – 10.1% pistachios, and walnuts. 2) is a leading producer
MT 478,066 Turkey has the lead in of marzipan.
USD 2.9 billion hazelnuts. 3) Netherlands is
a large re-exporter of
cashew nuts.
Fish & Seafood 1. Poland – 22.7% 1-3) Proximity and Tradition in seafood
(HS 03 + HS 16) 2. Netherlands – 16.3% availability. trading and
MT 1.035 million 3. Denmark – 9.8% 13) USA is Germany’s third processing. Fish is
USD 6.4 billion 13. USA – 1.8% largest supplier of Alaska popular.
Pollock fillets.
Wine & Beer 1. Italy – 32.3% 1-3) Proximity, reputation, Wine only grows in
(HS 2203, 2204, 2. France – 27.0% climatic conditions for wine southern part of
2205, 2206) 3. Spain – 11.9% growing. country. Insufficient
Liters: 1.986 billion 7. USA – 1.7% domestic supply.
USD 3.5 billion
Food Preparations 1. Netherlands – 17.3% 1-3) Proximity and Strong domestic food
(HS 210690) 2. Poland – 12.3% availability. industry.
MT 466,004 3. Spain – 10.8.1%
USD 2.9 billion 19. USA – 0.9%
Peanuts 1. Netherlands – 57.1% 1) Volumes consist of re- No local availability,
(HS 1202) 2. Belgium – 9.8% exported peanuts from high demand from
MT 124,511 3. USA – 8.9% Argentina, USA, Brazil well-established snack
USD 225.9 million food industry.
Dried Prunes 1. Chile – 47.2% 1) Product pricing, zero duty No local availability
(HS 0813 20) 2. Netherlands – 18.9% access through EU-Chile

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MT 9,086 3. USA – 12.9% FTA
USD 46.8 million 3) Good reputation for
quality, California origin
adds value
Raisins 1. Turkey – 42.3% 1) Pricing No local availability
(HS 0806 20) 2. South Africa – 28.4%
MT 67,060 3. Netherlands – 7.9%
USD 140.2 million 6. USA – 3.2%
Meat 1. Netherlands – 26.7% 1-3) Proximity and Focus on pork rather
(HS 02) 2. Poland – 14.8% availability. than beef production.
MT 2.044 million 3. Belgium – 11.4% 21) U.S. imports consist of
USD 8.4 billion 21. USA - 0.13% hormone-free beef under
Hilton beef quota.
Sauces and 1. Italy – 31.8% 1-3) Proximity and Strong domestic food
Preparations 2. Netherlands – 21.7% availability. industry.
(HS 2103) 3. Poland – 7.6% 10) USA is well known as a
MT 404,458 10. USA – 2.1% supplier of BBQ sauces.
USD 1.06 billion
Snack Foods excl. 1. Poland – 17.8% 1-3) Proximity and Tradition in snack
nuts 2. Netherlands – 17,6% availability. food production.
(HS 1905 + 1704) 3. Italy – 11.5% 2) Volumes also consist of Germany is one of the
MT 1.3 million 30. USA – 0.11% re-exports from China, global market leaders
USD 4.9 billion Thailand, & USA. in snack foods.
Source: Trade Date Monitor, Products ranked according to value of U.S. products (retrieved November 19, 2024)

SECTION IV. BEST PRODUCT PROSPECTS CATEGORIES

The following tables present products with good sales potential, good current sales, and products not
available in the German market.

a) Products present in the market that have good sales potential

Product Total German Total German % % Market
Category Imports 2023 Imports from the Change Change Attractiveness for
[USD] USA 2023 [USD] from from USA
2022 2019
The USA is
consistently the leading
exporter of almonds,
$607,991,423 pistachios, and walnuts
Tree Nuts $2,919,865,652 -25.9% -19% to Germany. Demand is
strong for tree nuts,
particularly for
snacking and
confectionery uses.

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 German demand for
imported hops has
doubled between 2015
Hops $80,235,987 $32,545,018 -2.0% -5.5% and 2020 and reached
its peak in 2020 with
the USA being the
leading exporter.
German demand for
imported sweet
potatoes has more than
doubled in the past ten
Sweet
$64,137,887 $1,395,028 +36.7% -52.8% years and peaked in
Potatoes
2020. Sweet potatoes
are becoming more
popular in processed
snacks and in cooking.
Increased interest in
Pulses $194,059,742 $7,208,547 +15.2% +49.5% pulses as an alternative
protein source.

Fish and Good prospects for

$6,368,887,550 $116,821,966 -28.9% -49.7%
Seafood high-value products.

The USA is the third-

largest exporter of
Whiskey $562,592,110 $81,784,008 -26.3% +8.7% whiskies to Germany,
after the UK and the
Netherlands.
Source: Trade Date Monitor (retrieved November 22, 2024)

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b) Germany top 5 consumer-oriented products imported from the world
Product Total German Imports Total German Imports from U.S. Import
2023 the USA (USD) Growth
(2022-2023)
Dairy $11,368,671,010 $5,462,721 -27.3%
Fresh Fruit $8,644,465,085 $41,190 -91.2%
Fresh Vegetables $7,125,183,326 $411,601 +25.1%

Bakery Goods, Cereals,

$6,285,910,664 $5,552,662 +13.9%
& Pasta

Processed Vegetables $4,679,711,719 $7,440,047 +18.9%

Source: Trade Date Monitor (retrieved November 22, 2024)

c) Products not present in significant quantities but which have good sales potential
 High-quality beef
 Cranberries and cranberry products
 Innovative sauces, condiments, and confectionery products
 Products featuring “sustainable” or other social issue-based marketing labels

d) Products not present because they face significant barriers

 Food additives not approved by the European Commission
 Red meat and meat products with hormones
 Most poultry and eggs (non-tariff barrier)
 GMO-derived products that are not approved in the EU

SECTION V: KEY CONTACTS AND FURTHER INFORMATION

Major Regulatory Agencies

Name Contact Info

Bundesministerium fuer Ernaehrung Tel: +49-228 – 99 -529-0

und Landwirtschaft (BMEL) (Federal Fax: +49-228 - 99-529-4262
Ministry of Food & Agriculture) Website:
Rochusstr. 1 https://www.bmel.de/EN/Ho
53123 Bonn, Germany me

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 The biotech division
Tel: +49 30 18444-99999 and the novel
Bundesamt für Verbraucherschutz
Fax: +49 30 18444-99099 foods/feeds division
und Lebensmittelsicherheit (BVL)
Mail: of BVL are
(Federal Office of Consumer Protection
[email protected] responsible for
and Food Safety)
Website: registration and
Bundesallee 51
https://www.bvl.bund.de/EN approval of biotech
38116 Braunschweig
/Home products and novel
foods.
Bundesanstalt für Landwirtschaft und
Tel.: +49 228 6845 – 0 BLE is the
Ernaehrung (BLE)
Fax: +49 228 6845-3444 responsible German
(Federal Office for Agriculture & Food)
Website: authority for organic
Referat 521
www.ble.de/EN/Home/hom import rules.
Deichmanns Aue 29
e_node.html
53179 Bonn, Germany

Other Import Specialist Technical Contacts can be found in the latest Food and Agricultural Import
Regulations and Standards report for Germany.

Homepages of potential interest to U.S. food and beverage exporters are listed below:
 USDA/FAS Washington: https://www.fas.usda.gov/
 USDA/FAS U.S. Mission to the European Union: http://www.usda-eu.org

For U.S. exporters it might be helpful to access the German business portal, which is provided by
Germany Trade & Invest. Provided in English, it serves as a central contact platform that can steer
inquiries into the right channel.

If you have questions or comments regarding this report, or need assistance exporting to Germany,
please contact the U.S. Foreign Agricultural Service Office in Berlin at the following address:

Foreign Agricultural Service

U.S. Department of Agriculture
Embassy of United States of America
Clayallee 170
14195 Berlin
Tel: (49) (30) 8305 – 1150
E-Mail: [email protected]

Please view our GAIN Country Reports for more information on exporting U.S. food and beverage
products to Germany, including market and product “briefs” available on specific topics of interest to
U.S. exporters. Importer listings are available from the Foreign Agricultural Service for use by U.S.
exporters of U.S. food and beverage products.

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