Key Insights from Yoghurt in Germany 2024 Report

Robert Murphy, International Graduate

This article will provide a brief synopsis of the Yoghurt in Germany 2024 report. Germany is among the top consumers of yoghurt in the EU with a market worth over €2.5 billion, and Ireland has only scratched the surface. Despite growth of 123% in Irish yoghurt exports in 2023 to a value of €16.4 million, only €163,000 went to Germany (Bord Bia, 2024). The report provides a detailed analysis of the country, category, consumers, competition, and can be viewed in full on My Bord Bia.

Country Analysis

Germany's economy faces significant challenges amid slow growth and political friction. In 2024, growth is projected at just 0.1%, following a 0.3% contraction in 2023. Dependence on Russian gas, inflation, and labour shortages exacerbate the situation. Although declining inflation and energy costs provide some optimism, bureaucratic obstacles and political deadlock continue to impede progress. Domestic demand, which constitutes over 50% of GDP, remains weak. Real household consumption and real GDP both fell in 2023, with modest growth expected through 2025 (GlobalData, 2024). Increased price sensitivity and the popularity of private labels are notable trends, suggesting that forming strategic retailer partnerships and emphasizing unique product qualities will be key for suppliers.

Category Insights

In 2023, Germany's yoghurt market experienced a 1.4% increase in retail value, reaching €2.5 billion. Despite these gains, projections indicate that retail sales will decline slightly at a Compound Annual Growth Rate (CAGR) of -2.2% to 2028. Danone Deutschland GmbH emerged as the market leader with a 14.8% retail value share (Euromonitor, 2024). Consumer preferences shifted towards plain yoghurt due to its health benefits, minimal processing, and versatility in culinary applications. The popularity of probiotic-rich products also surged, driven by their perceived digestive and overall health benefits (Euromonitor, 2023).

Consumer Insights

Older adults, females, and higher income groups are the largest yoghurt consumers. The 55+ age group shows the highest consumption, with products tailored to their health and nutritional needs, such as probiotics, calcium-enriched, and low-sugar options. Middle-aged consumers (45-54 years) also represent a significant market, suggesting a demand for health-focused options like low-fat or high-protein yoghurts. Females consume a significantly higher volume of yoghurt (810.85 million kg) compared to males (597.63 million kg) (GlobalData, 2024). Key emerging trends among consumers include desire for convenience and willingness to pay for additional health benefits, with brand trust also being very influential.

Competition

The yoghurt market in Germany is highly competitive, with companies like Danone and Müller leading. In 2023, Unternehmensgruppe Theo Müller Secs held a 14.8% retail market share (€371.7 million), followed closely by Danone Groupe with a 14.7% market share (€367.8 million), with Ehrmann in third place with 6.5% market share (€164.2 million). Private Label has increased in value from €660.9 million to €831.8 million, and in percentage market share from 29.3% to 33.1%, between 2019 and 2023 (Euromonitor, 2024). Innovation in flavours, textures, and added health benefits is crucial for brand performance.

Customers

The retail market for yoghurt and sour milk products in Germany is dominated by discounters, which account for 44.6% of value sales. Supermarkets hold 27.4% of the market, while hypermarkets and small local grocers account for 16.2% and 5.4%, respectively (Euromonitor, 2024). Leading retailers like Edeka and Rewe are focusing on expanding their private label ranges and embracing digital transformation to enhance product availability and operational efficiencies (IGD, 2023). Online sales channels are also growing, offering new opportunities for direct-to-consumer engagement.

The Yoghurt in Germany 2024 report provides valuable and in-depth data, insights, and implications for Irish suppliers looking to enter or expand in the German yoghurt market. By understanding the key factors outlined above, and planning for future success, Irish suppliers can effectively navigate this competitive market. The report highlights the importance of forming strategic retailer partnerships and emphasizing unique product qualities to stand out in a market characterized by increased price sensitivity and the popularity of private labels. Additionally, the focus on health-focused and organic claims, as well as the development of convenient packaging and product sizes, will be crucial in capturing consumer attention and building trust. By leveraging the insights available in the Bord Bia library, Irish suppliers can position themselves for success in the dynamic and evolving German yoghurt market.

Read the full report on the Bord Bia's centralised client portal, My Bord Bia, now.

References

Bord Bia, Performance and Prospects, (2024).

Euromonitor, Hypermarkets in Germany, (2024).

Euromonitor, Yoghurt and Sour Milk Products in Germany, (2023).

Euromonitor, Yoghurt Germany Brands %, (2024).

Euromonitor, Yoghurt Germany Brands Actuals, (2024).

GlobalData, Macroeconomic Outlook Report: Germany, (2024).

GlobalData, Yoghurt by Gender, (2024).

IGD, Insights on Germany, (2023).