FDBusiness.com

German Grocery Market to Grow 10.5% to 2021

 Breaking News
  • Continued Growth by Marston’s Marston’s, a leading British pub operator and independent brewer, has reported a 4.7% rise in underlying revenue to £553.1 million for the 26 weeks ended 30 March 2019, reflecting strong growth in its brewing business, the contribution from new openings and pub acquisitions and positive like-for-like sales in its pub businesses. Underlying operating profit at [...]...
  • UK Ethical Food and Drinks Sales Hit £8.2 Billion British consumers are increasingly eating with a conscience as latest research from Mintel reveals that last year the nation spent £8.2 billion on ethical food and drink, including organic, Fairtrade, Rainforest Alliance and Marine Stewardship Council (MSC) certified products. Over the past five years, sales of ethical food and drink have shot up by 43% [...]...
  • UK Restaurant Closures Accelerating as High Street Pressures Mount The number of restaurants in Britain fell by 2.8% in the year to March 2019, the latest edition of the Market Growth Monitor from CGA and AlixPartners reveals — with high streets in the south of England, excluding London, hit especially hard by closures. The figure equates to net closures of 768 restaurants over 12 [...]...
  • European Commission Clears Acquisition of European and Thai Businesses of BRF by Tyson Foods The European Commission has approved, under the EU Merger Regulation, the $340 million acquisition of the European and Thai Businesses of BRF of Brazil by Tyson Foods of the US. BRF’s European and Thai businesses are active throughout the poultry supply chain in Thailand, and import into and further process poultry meat in the European [...]...
  • Samworth Brothers Launches New Food-To-Go Business Samworth Brothers, the family-owned British food group, has launched a new food-to-go business and delivery service – Fresh Food For Now Company. The new venture marks the evolution of the existing Ginsters van operation into a fresh new business, offering vendors a complete food-to-go solution with an extended range of brands and products to cater [...]...

German Grocery Market to Grow 10.5% to 2021

German Grocery Market to Grow 10.5% to 2021
June 21
09:52 2017

Germany’s grocery market is forecast to be worth €259 billion by 2021, a growth rate of 10.5%, according to new figures released by IGD, the international grocery research organisation.

Key findings include:

  • All of Germany’s major grocery channels are expected to grow over the next four years, primarily driven by inflation combined with population growth, plus retailers investing in certain channels
  • The online channel is set to grow the most, by 244.4%, albeit from a small base
  • Convenience will be the next fastest-growing channel, at 36.4%
  • Discount will remain the largest channel in Germany, with relatively strong growth levels to 2021.
2016 value (€bn) 2021 value (€bn) Change in value
%
2016-21
Discounters 80.3 89.3 +11.2
Supermarkets 62.2 66.0 +5.9
Hypermarkets 36.2 38.1 +5.2
Convenience 12.1 16.6 +36.4
Online* 0.9 3.1 +244.4
Other** 42.4 45.8 +8
Total 234.1 258.9 +10.5

Source: IGD Datacentre. Data from 2017 onwards are forecasts. Earlier years contain actuals or estimates where figures are not publicly available. Excludes cash and carry sales. Figures correct at time of going to press.
*Online comprises total online sales through grocery retailers
**‘Other’ includes traditional retailers, specialist food and drink retailers, CTNs, food sales from mainly non-food retailers and street markets

Jon Wright, IGD’s EMEA Region Manager, has identified several key trends that are helping to drive growth across Germany’s grocery market. He says: “Online is gaining traction across Germany. While the country’s retailers have been slower than others across Europe to focus on their multichannel strategies, many are now starting to invest in and innovate more with their online offer, including click and collect services, and a number of online-only operators, for example Mytime.de, have launched in the market. Meanwhile, Amazon Pantry and AmazonFresh have been introduced in Germany. All of this is helping to drive growth.

“The convenience channel is also growing,” he continues. “New convenience and forecourt stores are opening across Germany and convenience food is now being offered in other store types such as supermarkets and discounters, as all retailers look to compete to meet shoppers’ needs for food-to-go as well as food-for-later.

“There are also lots of new retail concepts emerging across Germany’s grocery market, which until recently has been traditionally dominated by discounters and supermarkets. For example, we have recently seen the entry of new players targeting specific customers and providing alternatives to the usual stores. Veganz is a great example, with a number of stores across the country, while Eataly has also recently entered the German market.

Jon Wright continues: “Many of Germany’s retailers are also investing in new and refreshed shopping environments. For example, Aldi has launched its ‘Future store’ concept, which has a look and feel more similar to that of a supermarket. Edeka and Rewe continue to create innovative and exciting shopping destinations for customers and Real has recently launched its new Markthalle concept.”

Finally, with one of the highest shares of private label sales in Europe, this part of Germany’s grocery market is only expected to grow over the next few years, according to IGD. He adds: “As the home of the discounters, which typically have up to 90% share of private label products, Germany’s shopper is used to private label goods and looks for them in a wide variety of categories. Share of private label is rising and we expect that to continue, as retailers drive innovation and extend their ranges, particularly in the growing areas of organic (BIO), free from, vegetarian, vegan and ready meals.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements