Key trends are:
- convenience
- indulgence and gourmet products
- home cooking
- healthy food
- organics
- food safety.
Meat consumption in Germany has fluctuated substantially in the past 10 years. Reasons include animal diseases and scandals where retail outlets re-labelled and sold rotten meat.
Food safety and traceability are very much on top of consumers’ minds. Consumers have switched to pre-packaged meat instead of buying it at the fresh counters, perceiving pre-packaged and branded meat as safer.
Dairy products are seen as staple products and are usually bought in discount stores. The only categories still growing were milk drinks and yoghurts, added-value products combining fruit with milk, whey or yoghurt as well as probiotic and low-calorie products. A huge variety of different products and brands is competing in this segment and consolidation is expected.
The German retail market is very concentrated with five retail chains and discounter Aldi controlling around 85 percent of the grocery retail market. Individually owned shops have become very rare and are continuing to decline in numbers.
Getting your product into market
To be successful, a New Zealand exporter will almost certainly require local representation, coupled with a commitment to promotional activities.
Supermarkets will not deal direct, opting instead to nominate a preferred supplier, so it is important to select a company, probably a specialist food broker, with the necessary skills and requisite market access.
Often retailers require manufacturers to present a programme of promotional activity around the product launch.
Regulations
Market access is the major constraint on New Zealand F&B exports. In certain instances product is excluded by European Union (EU) policy, while other products attract high levels of tariffs and other additional charges.
Opportunities
- New Zealand is a recognised safe source of supply of fruit and meat and has a very positive image.
- There are opportunities for counter-season and exotic fruit, seafood, processed foods, ingredients and organic wine from New Zealand. Of all non-EU import countries for organic products, New Zealand has the best reputation.
- Sales of functional foods are increasing. This offers opportunities for New Zealand companies to sell functional ingredients or the intellectual property involved in manufacturing it. Another option would be to partner with European companies to co-develop customised ingredients.
Challenges
- The food miles discussion is well advanced in Germany and regional foods are being actively promoted by retailers to demonstrate environmental responsibility. New Zealand companies need to have answers about their carbon footprint and to be able to demonstrate that they manufacture in a sustainable manner and export in the most energy efficient way.
