The German food industry continues to face pressure brought upon by high costs, declining foreign demand and weak domestic consumption, according to the Federation of the German Food and Drink Industry (BVE).
In the first quarter of 2024, the food industry generated a total of €56.7 billion, corresponding to a loss of 1.8% in real terms compared to the same period the previous year, data showed.
Domestic sales amounted to €36.4 million, representing a decline of 3.6%, while foreign business declined by 0.6% in nominal terms to €20.2 billion.
Sales prices in the domestic market fell by 0.8% during this period and sales prices abroad fell by 0.6%.
The food industry generated €58.1 billion in the fourth quarter, registering a 2.2% year-on-year loss in real terms.
Foreign business recorded a loss of 3.1%, while the decline in domestic business was 1.7%, data showed.
Business Sentiment
Sentiment in the food industry remained below the one hundred mark at 94.8 points in the fourth quarter of 2023, according to the ifo Business Climate Index.
It improved slightly in the first quarter of 2024 to 99.1 points.
However, overall sentiment remained fragile on the part of both companies and consumers.
A significant improvement in sentiment is also not foreseeable in the further course of 2024, the BVE noted.
No Boost From Euro 2024
Elsewhere, the ifo Business Climate Index found that there was no boost in confidence among German businesses as a result of Euro 2024, with sentiment deteriorating in June, compared to the previous month.
This drop was due to more pessimistic expectations on the part of business owners, though assessment of their current situation remained unchanged.
