In its Economic Report 01|2024, the Federation of German Food and Drink Industries (BVE) presents current data and information on the economic situation and development of the industry for the fourth quarter of 2023 and the first quarter of 2024.
In 2023, the German food industry was burdened by high costs (energy, personnel), declining foreign demand, and weak domestic consumption. The growing fear of another recession in 2024 reflects the generally pessimistic mood within the industry. Food production also remains an important market for manufacturers of industrial valves and seals.
In the fourth quarter of 2023, the industry generated a total of €58.1 billion, representing a real decrease of 2.2% compared to the previous year. The foreign business was particularly affected, with a decline of 3.1%, while domestic business shrank by 1.7%. Nominally, domestic revenue stagnated at 0.0% and €37.7 billion, while exports fell by 2.2% to €20.4 billion. Domestic prices rose by 1.8% during this period, while foreign prices saw a slight increase of 0.9%.
Industry Pessimistic About the Future
In the first quarter of 2024, the food industry generated a total of €56.7 billion, representing a real decline of 1.8% compared to the previous year. While foreign business remained unchanged (0.0%), domestic business saw an inflation-adjusted decrease of 2.8%. Domestic revenue amounted to €36.4 billion, a nominal decline of 3.6%, while foreign revenue fell by 0.6% to €20.2 billion. Domestic selling prices fell by 0.8%, and foreign prices decreased by 0.6%.
According to the ifo Business Climate Index, the sentiment in the food industry remained at 94.8 points in the fourth quarter of 2023, reflecting a predominantly pessimistic assessment of the business climate. In the first quarter of 2024, the sentiment improved slightly, rising to 99.1 points, but it still fell short of the neutral mark. Overall, the mood remains fragile for both companies and consumers, and a significant improvement is not expected in the course of 2024.
The report provides a detailed overview of revenue developments and sentiment within the food industry. It also explains price trends and the global economic situation. Furthermore, it analyzes developments in the food industry labor market and offers a comprehensive overview of the individual sectors through several situational reports.
