Germany Packaging Machinery Market Research Report - PMMI

2.5 FOOD & BEVERAGES
A strict division into separate subsectors such as food, beverages, pharmaceuticals, and personal care is
difficult because the German word “Lebensmittel” means “Grocery,” i.e. both food and non-food. Most
statistics or comparisons cover the “Lebensmittel” sector as a whole.
The food and beverage industry—with a turnover of about 120 billion € in 2000 and more than 6000
companies—is one of the most important sectors of industry in Germany. In 2001, the export share of
the food and beverage industry in Germany was 18.9% (2000: 18.3%).
The increasing globalization of markets and spectacular mergers of companies both in retailing and
manufacturing have put German food companies under serious pressure. Global players in the food
retailing industry, such as Wal-Mart, have entered the German (and European) markets, making
competition between retail groups even more intense.
Some major trends in the food and beverage industry are:
� smaller packaging sizes or multipacks due to more single households and more elderly people;
� modified cooking and consumption habits reflecting a trend toward more convenience food and
functional food;
� shorter product lifetimes; and, consequently,
� an increasing number of product as well as packaging innovations.
2.6 BEVERAGES
The German beverages industry can be divided into a range of different beverage categories, each of
which is organized with its own trade association. The most important categories are nonalcoholic
beverages (NAB), beer, spirits, coffee and tea, and dairy products, even though the last two categories
in this list are often treated as “food.”
The NAB sector had a turnover of 9.2 billion € in 2000. The per capita consumption of NAB drinks in
Germany was about 253 liters in 2000. Mineral water is the preferred soft drink.
Innovative beverages for health, wellness, and convenience play an important role. Functional drinks,
wellness drinks, energy drinks, and fruit-yogurt drinks are entering the market with the emergence of
new taste directions.
The trend toward PET and PEN bottles has already been mentioned. In the cola segment, the market
share of PET is already 71.8% (January to August 2001). For fruit drinks, cartons have a market share
of 45%, while juices in returnable bottles command 41% and other nonreturnable packaging 14%.
In 2000, the coffee and tea industry comprised 44 companies and 6,300 employees with a turnover of
4.09 billion €. The per capita consumption of coffee is about 4 cups a day.
In 2000, the German brewing industry had a turnover of 8.25 billion €. About 37,600 employees in
1,270 breweries work in the industry, producing some 110 million hectoliters of beer and beer-based
drinks. Per capita consumption in 1999 was 127 liters. The export proportion was 10%.
Younger consumers in particular in Germany are becoming more interested in international beers and
in beer-based mixed drinks. The run on beer-based mixed drinks in Germany started in 1993. Since
then, the market has boomed with ready-mixed “Radler” and “Alsterwasser,” cola-mixes, and other
variants. Beer-based mixed drinks remain a niche segment, but they represent a new development in
the available drinks range with over 1.9 million hectoliters per year.