2024
9
German Consumers and the Economic Outlook 2024
2024-01-26T14:01:29+00:00
REPAC073E92_53AC_4A93_A9F8_1DC4EDD9354B
2195
169898
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Report
en_GB
Germans are expecting another year of squeezed budgets. Brands that support them in improving their financial and emotional resilience, for example with insurance cover for everyday essentials or social initiatives…

German Consumers and the Economic Outlook 2024

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s German Economic Outlook in 2024. Our full report is packed with consumer-led market intelligence, market trends, and consumer behaviours affecting your industry. Get a 360° view of German consumers and the economic outlook to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • An analysis of changes in consumer spending in Germany and what areas of spending consumers are most keen to prioritise.
  • Consumers’ biggest financial concerns.
  • Expected economic and social changes over the next year.
  • Consumer behaviours and expectations for 2024, including confidence to maintain one’s own standard of living and expectations to have more extra money to spend on non-essentials.
  • Consumer attitudes towards the economic situation.

An Overview of the German Economic Outlook

Ongoing price hikes in essential categories led to reduced discretionary spending, contributing to Germany’s economic slowdown in 2023. As wages are rising, 70% of German consumers expect high inflation rates to slowly level off over the next year. Yet, consumer sentiment and financial confidence remain fragile.

Consequently, 64% of Germans think that the high cost of living will continue to affect their budget in 2024. Mintel’s analysis of the German economic outlook shows that concerns about being able to cover day-to-day expenses remain high, especially among financially worse-off consumers, and affordability remains a key priority for many.

An Analysis of the German Economic Outlook: What Consumers Want and Why

  • Brands are encouraged to use the knowledge they gained about consumer spending in Germany during the 2022/23 income squeeze and embrace strategies that have proven to be effective. For example, longevity claims for higher-quality products continue to provide great potential to emphasise how investing in higher quality benefits consumers through long-term cost savings and durability.
  • Since consumers have to deal with constant uncertainty, brands can support them in building resilience to withstand potential adversities to come. For example, with value-added services like purchasing power insurance to cover food expenses and social initiatives that promote emotional resilience through a greater sense of togetherness.

German Economic Outlook

  • Consumer Spending in Germany: Given high inflation and economic uncertainty, private consumption remained unstable in 2023. But with rising wages and inflation continuing to fall, it is projected to rebound in 2024. 67% of diners eat out to treat themselves, brands in the foodservice sector are encouraged to keep innovating and offering consumers premium experiences, such as immersive dining.
  • Analysis of the German Economic Outlook: Corporate investment in Germany remains weak and this is also expected to be the case in 2024, since many companies with international business are planning higher investments outside Germany. 36% of companies operating in Germany expect lower investment in 2024.

To learn how to connect with your audience, purchase our German Economic Outlook 2024 in full. Reveal lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Products and Brands Discussed in this Report

Brands: Lidl, Tafel, Edeka, eye55, Warsteiner, Telekom Deutschland, SaveStrike, Zara, Tchibo, hessnatur, LONGTIME, Freeyou, Praxis, Bosch, Carrefour, Saga, Aldi, Rewe, This Place, L’Oréal, edding, Tesla, Bath & Body Works, Adidas, and many more.

Products: Meals out, holiday spending, socialising with friends, fashion, TV subscriptions, premium food for eating at home, beauty/grooming services, live entertainment, charity donations, gym/health club subscriptions, premium beauty/grooming subscriptions, and many more.

Additional Features Included with Your Purchase:

  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentations.
  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights on German Consumers and the Economic Outlook

This report, written by Dr. Jennifer Hendricks, Senior Analyst, delivers in-depth commentary and analysis to highlight market trends in Germany and add expert context to the numbers.

Germans are expecting another year of squeezed budgets. Brands that support them in improving their financial and emotional resilience, for example with insurance cover for everyday essentials or social initiatives to strengthen the sense of togetherness, will stand out.

Dr. Jennifer Hendricks, Senior Analyst
Dr. Jennifer Hendricks
Senior Analyst – Consumer Lifestyles, Germany

Table of Contents

    • Key issues covered in this Report
  1. EXECUTIVE SUMMARY

    • Market context
    • Mintel predicts
    • Opportunities
  2. MARKET DRIVERS

    • Key economic figures
    • Graph 1: key economic data, in real terms, 2019-25
    • Graph 2: household final consumption expenditure, seasonally and calendar adjusted, % change on the previous quarter, 2022-23
    • Graph 3: exports and imports, values calendar and seasonally adjusted*, € bn, 2022-23
    • Inflation and interest rates
    • Graph 4: consumer price index, 1974-2023
    • Graph 5: selected household and lifestyle issues faced in the last two months, 2022-23
    • Wage development and labour market
    • Graph 6: development of real and nominal earnings and consumer prices, 2020-23
    • Graph 7: unemployment rate, original value, 2021-23
    • Household finances
    • Graph 8: financial situation compared to a year ago, by financial situation, 2023
    • Graph 9: financial confidence index, 2022-23
  3. WHAT CONSUMERS WANT AND WHY

    • Changes in consumer spending
    • Graph 10: expected changes in behaviour due to rising prices (top four), 2022-23
    • Graph 11: discretionary spending categories that consumers spend money on over the course of the year vs those they would prioritise if they had to make cutbacks, 2023
    • Graph 12: discretionary spending categories that consumers spend money on over the course of the year (top six), by financial situation, 2023
    • Graph 13: discretionary spending categories that consumers spend money on over the course of the year (top six), 2023 vs 2022
    • Financial concerns
    • Graph 14: biggest financial concerns, 2023
    • Expected economic and social changes over the next year
    • Graph 15: expected economic and social changes over the next year or so, 2023
    • Graph 16: expectations regarding own standard of living and extra money to spend on non-essentials in 2024 (% yes), by level of agreement that Germany will remain one of the top five largest economies in the world in 2024, 2023
    • Graph 17: consumer expectations for changes in own household income over the next year or so (NET), by financial situation, 2023
    • Graph 18: consumer expectations for changes in own career prospects over the next year or so (NET), by generation, 2023
    • Behaviours and expectations for 2024
    • Graph 19: behaviours and expectations for 2024, 2023
    • Graph 20: consumers who expect to have more money to spend on non-essentials in 2024 compared to 2023, by generation, 2023
    • Attitudes towards the economic situation
    • Graph 21: attitudes towards the economic situation, 2023
  4. APPENDIX

    • Appendix – abbreviations, consumer research methodology and language usage

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

The consumer

What They Want. Why They Want It.

The Competitors

Who’s Winning. How To Stay Ahead.

The Market

Size, Segments, Shares And Forecasts: How It All Adds Up.

The Innovations

New Ideas. New Products. New Potential.

The Opportunities

Where The White Space Is. How To Make It Yours.

The Trends

What’s Shaping Demand – Today And Tomorrow.

Below is a sample report, understand what you are buying.

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Germany Sample Report Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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