Participation in DIY and home improvement projects in Germany is particularly high among younger generations (Gen Z and Young Millennials), with big players, such as Bauhaus and OBI owning the majority of the DIY retail Germany market share.
DIY Retailing Market Germany – Current Landscape
High inflation led German consumers to prioritise price and value, putting larger home improvement initiatives on stand-by to focus on smaller and more urgent tasks. As confidence improves, however, the DIY retail market will see consumers gradually engaging in more frequent and complex projects again.
At the beginning of the pandemic specialist retailers’ share of DIY sales spiked due to their essential status next to supermarkets and drugstores. But in 2021, non-specialists made a strong return, regaining DIY retail Germany market share and challenging specialists for their position ever since.
DIY retailers can engage older demographics, especially women, by empowering consumers with skills and user-friendly tools to tackle projects on their own. They can encourage them to resume home improvement ideas they had to put on stand-by and to upsell with attractive payment alternatives.
DIY Retailing in Germany – Market Statistics
- Participation in DIY Projects: 68% of Germans engage in home improvement projects, dropping to just over 50% among those aged 65+.
- Consumer Attitudes: Shoppers have clear retailer preferences, with 61% of Germans shopping at specialists, peaking among Gen Z and Younger Millennials.
- DIY Retail Germany Market Share: The market is fairly concentrated, with leading players Bauhaus and OBI each representing about 15% of the market.
Germany DIY Retailing Market Report – What’s Inside?
Key Topics Analysed in this Report
- The impact of inflation and the cost of living crisis on the ability of consumers to purchase DIY products and engage in home improvement projects.
- Which DIY retailing products are being purchased and who is buying them.
- Channels and retailers used to buy DIY products.
- Understanding and establishing purchase drivers for DIY retailing.
- Analysing consumer attitudes and behaviours towards the purchase of DIY products.
- Innovations in DIY retailing and products, including the use of new technology, sustainable products and how retailers can provide an omni-channel experience.
Report Scope
This report examines the DIY goods retailing market in Germany, including an in-depth market analysis, market size and forecast for consumer spending on DIY and home improvement goods, as well as a market size and forecast for the specialist DIY goods retail sector.
In addition, it provides detailed consumer data that analyses the behaviour of shoppers in Germany.
Meet the Expert Behind the Analysis
This report was written by Armando Falcao, Associate Director for Retail Reports at Mintel. Armando has over 15 years’ experience in market research. Associate Director he focusses on the German market. Armando studied Business and Economics at the University of São Paulo and managed his own research business for 11 years prior to joining Mintel.
High inflation led German consumers to prioritise smaller DIY tasks, but pent-up demand enables upselling with tailored guidance, improved AR and VR technology, and solutions to make homes smarter and more efficient.
Armando Falcao
Associate Director – Retail Reports
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EXECUTIVE SUMMARY
- Overview
- Key issues covered in this Report
- The five-year outlook for DIY retailing
- Market context
- Inflation’s grip on consumer confidence in Germany is finally easing
- Graph 1: harmonised consumer price index, by category, 2022-24
- Despite the higher cost of living, Germans continue to invest in home improvement projects
- Graph 2: consumer spending* on DIY-related products (incl VAT), 2014-24
- Specialists are fighting to recover a share of the market
- Graph 3: specialist retailers’ estimated share of consumer spending on DIY categories, 2016-23
- Consumers are increasingly interested in making their homes more sustainable and energy-efficient
- Mintel predicts
- Market size & forecast
- Consumer spending on DIY will see healthy growth moving forward and drive retail sales in the category
- Pent-up demand for home improvement during the cost-of-living crisis will drive the market forward
- Opportunities
- Engage older women in DIY projects with inspiring ideas and easy-to-follow guidance
- Encourage homeowners to upsell with flexible payment options for larger DIY projects
- Attract families with exciting in-store areas and workshops tailored for children
- Leverage high-earning enthusiasts’ confidence to carry out larger projects themselves
- The competitive landscape
- Bauhaus and OBI continue compete for market leadership
- Graph 4: leading retailers’ share of total DIY retail sales, 2023
- There is fierce competition between the leaders, which together represent 30% of DIY retail sales
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MARKET DRIVERS
- The German economy
- 2024 is expected to remain challenging
- Graph 5: key economic data, in real terms, 2019-25
- The inflation rate is bouncing back to more conventional levels
- Inflation is still the key factor affecting consumers’ finances…
- …confidence and expenditure
- Graph 6: financial confidence index, 2022-24
- Improved consumer confidence will challenge retailers to offer more than price
- Graph 7: retail sales excluding fuel (excl VAT), 2016-24
- Omnichannel retailing
- After two consecutive drops, online retail sales should grow again in 2024
- Graph 8: online retail sales (excl VAT), 2016-24
- There is considerable room to grow the online share of DIY sales
- Graph 9: online sales as percentage share of retail sales, 2016-24
- Offering an omnichannel experience will be crucial to DIY retailers moving forward
- AI and technological integration
- Retailers are leveraging AI to elevate the customer journey and enhance the shopping experience
- Sustainability and ethical consumption
- German consumers are increasingly embracing ethical and conscious shopping
- Appeal to Germans’ sustainability concerns by helping them make their homes more environmentally friendly and energy-efficient
- Demographic changes
- An ageing population will create both challenges and opportunities
- Shrinking households create opportunities for multifunctional furniture and space-saving solutions
- Tenant market and temporary DIY solutions
- Despite a slight drop in 2023, tenants remain the majority in Germany
- Graph 10: tenure types, owners vs tenants, 2014-23
- Appeal to tenants and Germans’ ‘improve not move’ mindset
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MARKET ACTIVITY
- Sector size and forecast
- DIY retail sales dropped in 2023 as fewer Germans improved their homes due to the higher cost of living
- Graph 11: specialist DIY retailers’ sales (excl VAT), 2016-24
- As consumer spending recovers, specialists will see rising sales
- Consumer spending
- Consumer spending in the DIY sector
- Spending on DIY-related products continues to grow
- Graph 12: consumer spending* on DIY-related products (incl VAT), 2014-24
- Specialists are fighting for their share of the market
- Graph 13: specialist retailers’ estimated share of consumer spending on DIY products, 2015-24
- Spending on DIY to sustain healthy growth in coming years
- Spending will return to steady growth
- Market segmentation
- Tools and equipment represent the largest share of spending on DIY
- Graph 14: estimated breakdown of consumer spending on DIY products, 2015-24
- Spending on DIY has shown a shift towards smaller and more-budget-friendly projects
- Channels of distribution
- Specialists and garden centres account for the bulk of consumer spending
- Graph 15: estimated breakdown of consumer spending on DIY products by channel, 2021-23
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WHAT CONSUMERS WANT AND WHY
- Retailers used to purchase DIY products
- OBI remains the most widely used DIY retailer
- Graph 16: retailers used to purchase DIY/home improvement products, 2024
- Engage older women with inspiration and user-friendly guidance highlighting the ease of DIY
- Most DIY retailers are strongly skewed towards younger shoppers
- Graph 17: retailers used to purchase DIY/home improvement products, by generation, 2024
- DIY specialists have considerably higher popularity across generations
- Graph 18: retailers used to purchase DIY/home improvement products, by generation, 2024
- Amazon for senior buyers, Hellweg and Globus for Millennials
- Graph 19: leading DIY retailers’ positioning by shoppers’ average age and net household income, 2024
- Homeowners favour shopping at specialists
- Encourage homeowners to upsell with flexible payment options for larger DIY projects
- Target tenants with temporary ways to personalise their homes
- Graph 20: consumers who bought DIY/home improvement products, by housing situation, 2024
- Attract families with exciting project kits and workshops tailored for households with children
- Graph 21: consumers who bought DIY/home improvement products, by household type, 2024
- Channels used to purchase DIY products
- Shopping in-store is preferred, but Germans also buy DIY online
- Graph 22: retailers used to purchase DIY/home improvement products, by channel, 2024
- Offering an omnichannel shopping experience is crucial in DIY
- Graph 23: channels used to purchase DIY/home improvement, 2024
- There is room for stronger engagement with older consumers online
- Graph 24: channels used to purchase DIY/home improvement products, by generation, 2024
- Millennials are the most engaged in DIY online
- Bridge the gap to engage with older shoppers online
- Highlight the ease and convenience of shopping online to increase engagement among households without children
- Graph 25: channels used to buy DIY/home improvement, by household type, 2024
- DIY projects carried out
- Nearly four in 10 shoppers have carried out minor DIY alterations, painting or decoration projects
- Graph 26: DIY/home improvement projects that consumers have carried out, 2024
- Encourage trading up after the crisis with loyalty rewards and flexible payments
- Clear gender divide in activities undertaken
- Graph 27: DIY/home improvement projects consumers carry out, by gender, 2024
- Boost engagement among older women with targeted collaborations with female influencers
- Financially struggling shoppers still carry out small alterations
- Graph 28: DIY/home improvement projects carried out, by financial situation, 2024
- Target those struggling financially with budget-friendly home improvement ideas and BNPL
- Offer guidance to empower men, and community-based support for women
- Graph 29: person engaged in DIY/home improvement, by gender, 2024
- Offer guidance to empower men, and community-based support for women
- Important factors when choosing DIY retailers
- The quickest way to DIY shoppers’ hearts would be to combine product variety with fast delivery
- Graph 30: important factors when choosing DIY retailers, 2024
- Important factors vary across generations
- Graph 31: important factors when choosing DIY retailers, by generation, 2024
- Appeal across generations with exciting loyalty rewards and staff expertise
- Target Gen Zs with sustainable DIY products
- Product variety, in-store displays and staff expertise are crucial to engage with older DIY shoppers
- Graph 32: important factors for choosing DIY retailers, by consumers’ average age and income, 2024
- Attract Millennials with exciting loyalty rewards
- Consumer behaviours towards DIY retailing
- Target DIY shoppers with both temporary and functional home improvement solutions
- Graph 33: consumer behaviours towards DIY/home improvement projects, 2024
- Germany’s DIY market thrives on practical solutions, but consumers need more confidence and support for larger projects
- Entice families with home improvement solutions that make their lives easier
- Entice families with functionality over style in practical and reliable home solutions
- Leverage higher-earning younger men’s stronger confidence to carry out larger projects themselves
- Leverage high-earning younger men’s confidence to carry out larger projects themselves
- Tap into younger German consumers’ mentality to rent instead of own
- Graph 34: consumers who prefer to rent DIY tools and equipment instead of buying them, by gender and age group, 2024
- Attitudes towards DIY and home improvement projects
- Leverage consumers’ willingness to pay for professionals to support with large home improvement projects
- Graph 35: attitudes towards DIY/home improvement projects, 2024
- Foster trust and loyalty with professional services to support larger and more complex projects
- Target the young with second-hand tools and AR/VR to visualise their projects
- Graph 36: attitudes to DIY/home improvement projects, by age, 2024
- Entice home workers with solutions to make their homes more energy-efficient
- Graph 37: consumers agreeing that making the home as energy-efficient as possible should be a priority, by work location, 2024
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RETAILER ACTIVITY
- Leading retailers
- Globus was the only exception among the leading DIY retailers, who have all seen sales drop in 2023
- Leading DIY retailers in sales
- Cooperatives Eurobaustoff and Bauvista represent only 6% of sales, but have by far the most outlets
- Leading DIY retailers’ number of stores
- Market share
- The 10 leading DIY retailers represent 84% of the market in sales
- Graph 38: leading retailers’ estimated share of total DIY retail sales, 2023
- Leading DIY retailers’ market shares
- Bauhaus overtakes OBI to become the DIY market leader in 2023
- DIY retail innovation
- OBI allows buyers to visualise home improvement projects in-store and online
- Making workshops and tutorials engaging events
- Tap into electronic shelf labels to help guide shoppers and increase efficiency
- OBI partners with Bringoo for speedy delivery
- Jumbo launches first AI advisor for DIY and home improvement
- Advertising and marketing activity
- Spring weather inspiration for home improvement initiatives
- Hornbach’s ads and promotions are usually infused with humour
- toom Baumarkt encourages against procrastination
- Hagebau focused on celebrating 60 years of existence
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APPENDIX
- Appendix – products covered, abbreviations, consumer research methodology and language usage
- Products covered in this Report
- Abbreviations
- Consumer research methodology
- Generations
- A note on language
- Appendix – market size and central forecast methodology
- Forecast methodology
- Forecast methodology – fan chart
- Market size – value – consumer spending on DIY products
- Market size – value – specialist DIY retailers’ sales
- Market forecast and prediction intervals – value – consumer spending on DIY
- Market forecast and prediction intervals – value – specialist DIY retailers’ sales
- Mintel’s consumer spending market size
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