The food industry in Germany saw sales volumes decline for the second year in a row in 2022, due to unprecedented inflation in production costs, according to the Federation of German Food and Drink Industries (BVE).
Food sales for the year declined by 1.8%, with sales abroad – typically a growth engine – falling by 5.5%.
Food prices increased by more than 45%, while the energy commodities index hit record highs in 2022 – up by 158%, year on year.
Significant cost increases in logistics, transport and packaging materials – as well as additional bureaucratic requirements that tie up resources – added to the cost pressures facing businesses, the BVE noted.
Selling prices rose by 18% in Germany and by 20.9% abroad, data showed.
According to a BVE estimate, sales in the food industry amounted to €216.3 billion, of which exports accounted for €75.8 billion.
Existence At Stake
BVE chairman Dr Christian von Boetticher commented, “For many medium-sized food manufacturers, their existence was at stake in 2022. They urgently need signals of normalisation and calming down.”
Boetticher also noted that politicians must create competitive investment- and innovation-friendly framework conditions.
“Otherwise, the transformation towards a climate-neutral food industry threatens to become an intolerable cost trap for companies. As a result, there is an increased risk of business closures or relocations abroad,” von Boetticher explained.
According to the chairman, the accusation that the food industry would take advantage of the situation to push through excessive price expectations is “unfounded” in view of rising costs and declining earnings.
© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
