If you want to introduce consumer goods to a new market within the European continent, there is no better place to start than the largest consumer market in Europe: Germany. The on-going stability of consumer spending, the highest GDP in Europe and a comparably wealthy population make Germany the perfect location if you are looking to offer your goods to a new audience. The prospects for this market are also positive – current trends indicate that the country will continue to prosper and thrive. Despite of all discussions about crisis and recession, for 2025, the added value of the German consumer goods industry is estimated to reach 151.2 billion euros with a projected average annual growth rate of 0.5% between 2025 and 2028.

Today, individualistic value-for-money notions are becoming increasingly popular among German customers. Discount merchants and well-known brand names are equally appealing to the average German customer across multiple product groups. While Germans are open to new domestic as well as international products that support the ESG metrics, the younger generations in particular are keen to change their spending and consumption behavior as climate awareness rises.

Nevertheless, BDG stands with the notion that the generation of customers aged 50 and above to be a highly attractive target demographic due to being the largest consumer group with the most purchasing power – more than 60% of Germany’s total purchasing power. This age group today is healthier, more demanding, and more quality conscious than their parents were at the same age. Not only are they open to new products, but they are also willing to pay more for high quality, making them extremely important to the consumer goods industry. Therefore, any new entrant in the German consumer goods market should certainly strive to reach this customer group with their products.

The door to europe

Germany’s central location in continental Europe provides several practical advantages for companies looking to expand into and supply to the rest of Europe. Setting up a warehouse or logistics center in Germany is valuable in today’s e-commerce market, where shipment timing is critical for customers – a consideration that is particularly important in the food and beverages segment.

In our experience, most merchants are specialists in their field but require assistance with specific local issues, such as tax and regulatory frameworks, employee visa rules, and finding the optimal strategies to enter and thrive in the local market. Therefore, we at BDG serve as the local contact for international investors. We understand the market and market circumstances, speak the local language, and have the local contacts, such as trade associations that make the difference and aid a potential investor in entering the market.

Even though it might sound generic, we are still believers in the old claim “if you make it in Germany, you can make it in all of Europe”.

Navigating a market dictated by quality labels

One particular factor that would be fatal to neglect when entering the German consumer goods market is the German consumers’ focus on certain quality labels. We do not want to omit the fact that in the past, many have tried and failed to enter this market – not least because the importance of these quality labels was underestimated. Arguably the most popular one of these labels is Stiftung Warentest, an organization known for testing products and services using scientific methods and grading them accordingly. The organization is very popular among the German population, with 96% of Germans being familiar with it and 74% expressing high confidence in its work. Thus, most German consumers rarely purchase products whose Stiftung Warentest seal shows a rating lower than “good”, and would not consider buying products that received an “inadequate” rating.

In addition to Stiftung Warentest, there are a number of other institutions that Germans have great trust in when it comes to testing the quality of consumer goods. These include Öko-Test, the Verbraucherzentralen, and ZDF Wiso. The challenge of navigating these quality labels, which are often unfamiliar abroad, is just one of the reasons why it is advantageous to rely on BDG as experts when entering the German consumer goods market.

Keeping up with customer needs in a rapidly changing industry

Throughout the years, Germany has built a stable and innovative infrastructure for consumer goods within the retail landscape, e-commerce and other mediums. These strong starting conditions allow entrants to integrate their products almost seamlessly into this system.

However, the key to success is a deep understanding of the market structures and consumer behavior. Especially in sales, factors like target definition, potential client database and the process of reaching out to companies are crucial to recognize. The documentation of German decision makers’ input along the way is equally important in determining the next step or changes in your product message or sales technique.

Through numerous projects over the years, we have been able to create proven standards and methodologies that make day-to-day operations more focused and efficient – for all parties involved. Still, not all of our services can be standardized and are therefore not subject to fixed processes. E-commerce in particular disrupted established brands in all consumer goods segments. Today accounting for a large portion of business in the consumer goods industry, e-commerce not only makes it easier than ever before for customers to discover new products. Consumers increasingly desire personalized products, and the new digital way of shopping enables them to switch shops and compare products from different brands with the touch of a finger. This is evidenced by the large number of people who switch retailers when they are dissatisfied, posing a risk not only to a successful market entry, but also to the long-term potential of a new entrant in the German consumer goods market.

At the same time, this dramatic change we are seeing in the consumer goods industry may be a great opportunity for unconventional practices. We at BDG always take a holistic and pragmatic approach and do not only work with established proof-of-concepts. It may help to use case studies, but it’s never the single most useful resource. Our strategy is always tailored just as much to the current state of the market as it is to our client’s needs.