THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 2/5/2019 GAIN Report Number: GM19001 Germany Post: Berlin Product Brief Fresh Fruits Report Categories: Product Brief Fresh Fruit Fresh Deciduous Fruit Stone Fruit Strawberries Citrus SP1 - Expand International Marketing Opportunities Approved By: Kelly Stange Prepared By: Sabine Lieberz Report Highlights: Germany is one of the largest markets for fruit in Europe. The relative affluence of its population of 83 million people makes it an attractive outlet for exporters from many countries. This product brief highlights certain aspects of the German fruit market and provides marketing, trade, and regulatory information for U.S. exporters. GAIN Report – GM19001 – Product Brief Fresh Fruits Germany Page 2 of 16 General Information: Table of Contents Abbreviations and definitions ......................................................................................... 2 Section I. Market Overview ........................................................................................... 3 Section II. Market Sector Opportunities and Threats ....................................................... 4 Market entry strategy ................................................................................................................... 4 Chart 1: Seasonal Distribution of Strawberry Purchases of German Households in 2017, by month and percent ............................................................................................................................... 5 Chart 2: Percent of Fresh Fruit Purchases by Retail Outlet Type and Year ............................... 6 Imports ......................................................................................................................................... 6 Table 1: German Imports of Fresh Fruits by Value, Volume and Year ...................................... 7 Table 2: German Imports of Fresh Fruits from the United States by Value, Volume and Year . 8 Food safety ................................................................................................................................. 10 Packaging and Waste Avoidance Law ........................................................................................ 10 Section III. Market Access ........................................................................................... 12 Tariffs: ........................................................................................................................................ 12 Labeling requirements ............................................................................................................... 12 Phytosanitary requirements ........................................................................................................ 13 Section IV. Post Contact and Further Information ......................................................... 14 Trade fairs .................................................................................................................................. 14 Related GAIN reports: ................................................................................................ 15 Abbreviations and definitions < 1 Less than one Et seq. And following pages EU-28 Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Finland, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom. MT Metric ton = 1000 kg NESOI Not elsewhere specified or indicated NGO Non-Governmental Organization USD U.S. Dollars US United States (noun) U.S. United States (adjective) GAIN Report – GM19001 – Product Brief Fresh Fruits Germany Page 3 of 16 Section I. Market Overview Germany, with a population of 82.8 million (16 percent of the EU-28 total population), has the largest economy in Europe and is a leading European market for foods and beverages. In 2017, food retail sales in Germany totaled 243 billion Euro (approx. USD274 billion)1. In 2013, German households spend 23 Euro (approx. USD 25) per month on fruits.2 Germany is the 6th largest fruit producer in the EU-28 and the largest fruit consumer. In MY 2016/174, Germans consumed approximately 8.1 million MT of fruit, including frozen and canned fruits on a fresh weight basis. Germans show a preference for fresh fruits, but in MY2016/17 consumed 73,515 MT of frozen fruits and 122,000 MT of dried fruits. In addition, Germans consume more fruit juices and nectars per capita than any other European country and the United States3. The top five fruits consumed in Germany are apples, bananas, oranges, grapes, and clementines4. However, Germans are also quite familiar with exotic fruits such as mangos, passion fruit, avocados, and lychees. Germany’s position as the largest EU-28 consumer of fruits results from the size of its population rather than high per capita consumption. Per capita consumption of fruits has been declining since 2005, aggravated by stiff competition from sweets and other snacks. Other factors within the German socio-economic makeup, in particular its aging and increasingly foreign-born population, could favor an increase in per capita fruit consumption. At the end of 2016, 21 percent of the population was 65 years and older while only 13.5 percent were younger than 15 years5. Moreover, Germany has a high number of immigrants from Turkey and other Mediterranean countries whose diets include a higher percentage of fruits than the traditional German diet. Immigrants in Germany also tend to spend a higher percentage of their income on food. At the end of 2017, more than 10.6 million citizens of other countries lived in Germany, and 8.7 million German residents had a migrant background (i.e. either they or their parents were born with a citizenship other than German)6. 1 BVE annual report 2017-18, p. 32 2 Consumer Panel, German Federal Office of Statistics (issued every five years) https://www.destatis.de/DE/Publikationen/Thematisch/EinkommenKonsumLebensbedingungen/Konsumausgaben/EVS_Nahru ngsmittelTabakwaren2152603139004.pdf?__blob=publicationFile p15 3 Source: German Fruit Juice Industry Association, Annual Report 2017, table 21 4 Source: AMI Marktbilanz Obst 2018 tables 7.1, 7.3, 7.4, 7.5, and 7.6 5 Source: German Federal Office of Statistics, Statistical Yearbook 2018 p 31 https://www.destatis.de/DE/Publikationen/StatistischesJahrbuch/Bevoelkerung.pdf?__blob=publicationFile https://www.destatis.de/DE/ZahlenFakten/GesellschaftStaat/Bevoelkerung/Bevoelkerungsstand/Tabellen/AltersgruppenFamilie nstandZensus.html 6 Source: German Federal Office of Statistics (Destatis) https://www.destatis.de/DE/ZahlenFakten/GesellschaftStaat/Bevoelkerung/Bevoelkerungsstand/Bevoelkerungsstand.html GAIN Report – GM19001 – Product Brief Fresh Fruits Germany Page 4 of 16 Advantages Challenges Germany’s 83 million inhabitants make up the Germany is a very price sensitive market, and both, biggest market in Europe. consumers and retailers are looking for top quality at a discount price. Germany’s ageing population is increasingly German (EU) import tariffs on certain products are health conscious. high. EU member states benefit from preferential market access with no tariffs. Consumers in Germany have one of the Retailers rarely import products into Germany on highest income levels in the world. their own. Germany has many well-established importers. Retailers often charge high listing fees for products. The distribution system is well developed. The United States has a good reputation for It can be a challenge for U.S. companies to promote quality. a particular brand, since private label products are popular. Large non-German population and German’s Margins on food at retail level are very thin. inclination to travel abroad help fuel demand for foreign products. Section II. Market Sector Opportunities and Threats Market entry strategy German wholesale companies import most of the fruit and then distribute it to wholesale markets and retail chains. Small greengrocers, including the popular Turkish greengrocers, buy their produce from wholesale markets. With the exception of EDEKA, retails chains very rarely participate in the importation process. We highly recommend working with an importer, as these companies have valuable experience in fulfilling certification, labeling, and other import requirements. Germany is a very price-sensitive market. Exports to Germany will thus be difficult during the peak of the local season when prices are low, and in some cases, tariffs are high. Nevertheless, significant off- peak export opportunities exist. German consumers typically prefer to buy produce that is in season. In addition, the trend to buy locally grown produce gained some traction in recent year, aided by several “regional” seals. On the other hand, many consumers enjoy the variety of fruits and want their favorite fruit at any time of the year. As a result, some retail markets proudly advertise seasonal produce stocked year-round, but prices are higher off-season. Consequently, out-of-season strawberries or cherries can fetch high premiums, but only for small volumes. For example, the local German strawberry season lasts from mid-May until the beginning of August, while small volumes are being sold year round (see graph below). GAIN Report – GM19001 – Product Brief Fresh Fruits Germany Page 5 of