A Tough Road for Germany's Food Exporters
Barriers to Growing Export Rise for German Food Sector by 2025
The German food industry is currently grappling with a series of administrative obstacles in the global market. According to the 2025 Export Indicator, jointly presented by the Federal Association of the German Food Industry (BVE) and AFC Management Consulting GmbH, red tape and burdensome regulations are making it tough for businesses to access foreign markets (BVE & AFC, 2025).
The study, supported by the Federal Ministry of Food, Agriculture, and Consumer Protection (BMLEH), has revealed that nearly half (54%) of the surveyed companies had struggled to surmount export barriers over the past 12 months. The primary culprits were bureaucratic requirements (22%) and unprofitable export conditions (17%). The sectors hardest hit are dairy, meat, and non-alcoholic beverages.
The spring 2025 export climate for the German food industry echoes an optimistic tune, albeit with a 8-point dip compared to the previous year - the current business situation remains relatively stable at plus 25 percentage points. Despite this, businesses anticipate a downturn in the next six months, with expectations dropping to plus 9 percentage points, indicating a 16-point slide from 2024.
Anselm Elles, managing partner of the AFC Consulting Group, explains, "The global trade landscape is shifting rapidly, with growing political uncertainties, rising costs, and increased regulatory complexities causing uncertainty" (BVE & AFC, 2025). With export continuing to serve as a crucial economic cornerstone for many companies, they are confronted with structural challenges. The study reveals that exploring new foreign markets is becoming more costly and time-consuming for a significant portion of the companies surveyed, with 56% and 63% reporting higher costs within the EU and for third countries, respectively (BVE & AFC, 2025). At the same time, 37% state they've spent more time outside the EU.
The potential impact of U.S. tariffs further clouds the outlook for foreign trade. A fourth of companies surveyed expect substantial to significant revenue losses if tariffs are applied. Though expectations towards potential EU countermeasures are more conservative: 76% believe there will be no effect on their revenue, with 16% expecting slight to significant losses (BVE & AFC, 2025).
Olivier Köhlsch, CEO of the BVE, emphasizes the urgency of establishing reliable framework conditions and fair collaboration between business and politics to help the food industry maintain its competitive edge on the global stage (BVE & AFC, 2025). The global landscape is rapidly evolving, and political uncertainties, along with growing requirements in foreign markets, are exacerbating market access issues.
Yet, amid the challenges, a sizable segment of the industry is investing in new opportunities spurred by technological advancements. Digital foreign trade is gradually gaining traction as a central driver of international growth. While only 22% of companies are actively utilizing B2B e-commerce platforms, 55% acknowledge the value of digital distribution channels, particularly for accessing partners in third countries (BVE & AFC, 2025). Another priority is the diversification of sales markets, with 33% of companies intending to break into novel export markets. Key targets include EU countries outside the DACH region, as well as Brazil, China, Australia, and the Southeast Asia region (BVE & AFC, 2025). These areas present appealing market dynamics and long-term growth potential.
[1] Federal Ministry of Economics and Technology (2019). Reducing bureaucracy - Initiatives for a digitally facilitated economy. Retrieved from https://www.bmwi.de/Reduction-Administra[2] Deutscher Industrie und Handelstag e.V. (2019). Challenges of the German economy. Retrieved from https://www.di-web.de/de/Files/DIHK/DIHK-Forschung/Finanzwirtschaft/germany-economy-challenges/file_724393.pdf[4] Statista (2020). Market value of German exports to China. Retrieved from https://www.statista.com/statistics/264181/market-value-of-german-exports-to-china/
By Numrich, O. (2025). Facing Challenges, German Food Producers Pursue Digital Opportunities. Retrieved from https://www.bve-online.de/
- In order to overcome the obstacles faced by German food exporters, there is a growing need for the government to address the bureaucratic issues and streamline the regulatory landscape, especially in the realm of finance and business, as part of the initiative to reduce bureaucracy in the digital economy.
- For many exporters in the German food industry, diversifying business operations beyond conventional markets is becoming increasingly essential, and this involves exploring new financial avenues for venturing into emerging markets such as Brazil, China, Australia, and Southeast Asia where technological advancements, digital distribution, and long-term growth potential present unique opportunities.
