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"Germans' ongoing cost-of-living concerns and a weak labour market dampen consumer confidence. Brands that break new ground to strengthen loyalty will secure future spending."
Dr. Jennifer Hendricks, Principal Analyst - Consumer Lifestyles, Germany
Germany enters 2026 with its economy in a holding pattern; labour market weakness is severe, and about half of industry associations are bracing for layoffs. Looking forward, government investment is expected to drive some recovery in GDP growth, albeit small, keeping the macro outlook cautious, rather than optimistic.
This is also reflected in consumer behaviour; 63% of Germans have cut back on their overall spending in the past year, and 44% are adding more money to their savings compared to a year ago as a result of Germany’s current economic situation. This is proof of financial stability taking precedence over non-essential purchases.
Consequently, the most significant threat here is sustained cost-of-living anxiety normalising persistent caution, which can lock in a defensive spending mentality and stall recovery in private-sector demand even if broader economic prospects begin to improve.
As brands grapple with these challenges, the greatest opportunity lies in securing brand loyalty, for example by redefining value with loyalty ecosystems and non-monetary incentives that reinforce brand connections and lay the foundation to boost future spending.
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
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Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
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