Industrial food sector reveals employment data for 2024: job growth - financial climate strain
The German food industry experienced moderate growth in 2024, with a nominal turnover increase of 0.6% to €232.7 billion, according to recent data. This growth was driven by a robust pet food market, which saw a 1.3% sales increase, reaching total sales of €4.3 billion.
Despite this growth, the industry faces several challenges. The lingering effects of the COVID-19 pandemic, ongoing inflation, and energy costs have strained both production and retail operations. Global issues such as wheat export shortages have also influenced food prices and availability, affecting consumer purchasing behavior.
In terms of employment, while specific figures for the entire food industry in 2024 are not detailed, the broader German economy witnessed significant layoffs in major corporations. This reflects a challenging overall economic environment that has also affected food retail and production sectors. The food retail sector continues to rely heavily on a functioning workforce, which has been strained due to past pandemic impacts and ongoing economic pressures such as inflation and the energy crisis.
The food industry remains the fourth-largest industrial employer in Germany, employing approximately 658,000 people. However, the number of training places remained unfilled, with 12.1% of positions going unoccupied.
The German food industry's export quota stands at 35%, indicating that customers around the world appreciate the quality of German food. The industry is the fourth-largest in Germany in terms of both employment and turnover.
The food industry is dominated by retail giants such as Edeka, Rewe, and Schwarz Group (operating Lidl and Kaufland), with Edeka holding a 25.3% market share in 2023. Despite inflation and energy challenges, these retailers maintain a strong consumer presence. Consumer spending on food continued to grow, reaching almost €190 billion in 2022, which likely continued into 2024 given the sector's resilience.
The BVE, or Bundesvereinigung der Deutschen Ernaehrungsindustrie e.V., serves as the press contact for the food industry. Oliver Numrich is the Head of Press and Public Relations for the BVE. The Annual Report 2024/2025, published by BVE and ANG, is available for download on the BVE's website at [www.ernaehrungsindustrie.de](http://www.ernaehrungsindustrie.de).
The food industry in Germany is comprised of around 6,000 companies, with 90% belonging to the SME sector. High energy and raw material costs, increased bureaucratic burdens, and geopolitical conflicts pose major challenges for these companies.
However, the industry is also adapting to changing consumer preferences. There is a significant shift towards sustainable, locally sourced, organic, and plant-based food products driven by increasing consumer awareness about health, environmental impact, and ethical consumption. This trend supports growth in segments such as organic foods, convenience foods tailored to health-conscious consumers, and eco-friendly brands. The industry is also adjusting to the demand for transparency, ethical sourcing, and products with reduced environmental footprints.
In summary, the German food industry shows continued moderate growth with revenues around €248 billion, led by strong retail players and a growing pet food market. However, it faces challenges from economic contraction, inflation, energy costs, supply chain strains, and labor shortages. At the same time, it embraces a significant shift toward sustainability and health-conscious consumption, influencing product offerings and market dynamics.
In the face of economic challenges such as lingering COVID-19 effects, ongoing inflation, and energy costs, the finance sector plays a crucial role in supporting the food industry, as businesses grapple with production and retail operations strain. The food industry's growth, though moderate, has still relied on financial resources, as consumer spending continues to be a significant factor, reaching almost €190 billion in 2022, and likely persisting in 2024, given the sector's resilience.
The industry, composed of around 6,000 businesses, predominantly SMEs, faces high costs for energy and raw materials, increased bureaucratic burdens, and geopolitical conflicts, issues that directly impact their financial stability. Consequently, the finance sector has a pivotal role to play in navigating these challenges and ensuring the industry's longevity.
