Germans are feeling the aftermath of inflation-ridden years. Brands that embrace German localism and their connection to the country (eg with 'Made in Germany' campaigns) will resonate. Dr. Jennifer Hendricks,…
Germany
Consumer Insights
simple
German Lifestyles Consumer Report 2025
"Germans are feeling the aftermath of inflation-ridden years. Brands that embrace German localism and their connection to the country (e.g. with 'Made in Germany' campaigns) will resonate."
Dr. Jennifer Hendricks, Principal Analyst - Consumer Lifestyles, Germany
Inflation continues to shape everyday consumer sentiment in Germany. While inflation has fallen back to more conventional levels, 85% of Germans still feel the day-to-day impact of inflated prices, highlighting the lingering effects of inflation-ridden years.
High living costs and economic uncertainty are suppressing financial confidence. The persistent cost-of-living pressure continues to dampen consumers’ confidence, leading most Germans to plan to spend less or maintain the same spending levels as in 2024.
Discretionary spending is increasingly uneven and confidence-dependent. Any growth in discretionary spend is driven primarily by better-off consumers and influenced by expectations around the government’s ability to support economic growth.
Localism is gaining momentum and shaping spending intentions. Awareness of the importance of localism has strengthened further, with a greater willingness to pay more for local products.
Brands have an opportunity to build connection through national pride and local relevance by emphasising local production, celebrating their ties to Germany, and using unifying campaigns that foster pride and a sense of national unity.
Key Issues Covered in this Report
Estimated consumer expenditure in 2025 and the outlook for the next five years
Expected changes in consumer spending habits in 2025 compared to 2024 across different categories (e.g. healthcare, foodservice)
Consumers’ preference for local products, and the production locations of what they typically buy
Consumers and their communities, i.e. which groups of people make up Germans’ close social circles and how they influence and support consumers
Lifestyle behaviours, including feelings of pride regarding Germany’s achievements
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EXECUTIVE SUMMARY
What you need to know
Opportunities
Market size and forecast
Outlook
OPPORTUNITIES
Foster a sense of pride and unity in the country
Celebrate German achievements that resonate with consumers across income groups
Take a stand against societal division with unifying messaging
Bitburger: let’s celebrate what brings us together
Embrace German localism and your connection to Germany
Seize the moment to celebrate ‘Made in Germany’
Capitalise on Germans’ willingness to pay more for local products
Celebrate the power of consumer communities
Position your brand as a connecting element to strengthen family bonds
Telekom Deutschland positions itself as a reliable companion for the important connections in life
Build brand communities tailored to urban families with young children
CONSUMER
Expected changes in spending behaviour
Consumer spending expected to remain cautious in 2025
Graph 1: expected spending changes in 2025 compared to 2024, 2025
Germans are feeling the aftermath of inflation-ridden years
Spending plans are driven by expected impacts of government actions on economic growth
Graph 2: consumers who plan to spend more on selected categories in 2025 compared to 2024, by expected impact of the new German federal government on Germany’s economic growth, 2025
Appreciate Gen Alpha families as a key target group in travel
Graph 3: expected spending changes on holidays in 2025 compared to 2024, by any children, 2025
Gen Z is most keen to spend more on healthcare products
Graph 4: expected changes in spending on healthcare products in 2025 compared to 2024, by generation, 2025
Take inspiration from Uber Eats and target Gen Z with healthcare products
Mintel expert view: in-store takeaway outlets have potential to drive demand in foodservice
Leisure/entertainment: maximise efforts for an inclusive society
Graph 5: consumers who plan to spend less or do not plan to spend on leisure/entertainment in 2025 (compared to 2024), by financial situation, 2025
Younger women and men show the greatest willingness to increase their spending on BPC
Mintel expert view: younger men remain an underserved demographic in BPC
Consumers’ preference for local products, and the production locations of what they typically buy
Germans’ sense of localism has received another boost…
…fuelled by global trade conflicts
Purchase of products made in Germany varies between categories…
Graph 6: where products typically purchased are made, 2025
…but Germans show a certain lack of knowledge regarding the origin of products
Mintel expert view: Germans’ preference for local products continues to present opportunities in F&D
F&D product examples with local claims
Gen Z report to be heavy multinational product buyers
Graph 7: where products typically purchased are made (NET), by generation, 2025
Mintel expert view: ‘Made in Germany’ is a safe bet in household care
Willingness to pay more for local products drives plans to spend more
Graph 8: consumers who plan to spend more on selected categories in 2025 compared to 2024, by agreement it is worth paying more for local products than for non-local products, 2025
Consumers and their communities
Family is a key part of Germans’ close social circles…
Graph 9: people making up Germans’ close social circles, 2025
…but consumers’ core connections are more complex
Most Germans have three or fewer groups within their close social circles
Shared interests are an enabler for social connections
Baby Boomers value neighbourhood connections
Support and sense of belonging are the most important elements of consumers’ communities
Graph 10: “the people in my close social circle…”, 2025
Women gain stronger support and belonging from their social networks
Graph 11: consumers who say their close social circles provide them with support and a sense of belonging, by gender, 2025
Younger generations are heavily influenced by their social circles…
…opening up opportunities for brands to boost spending among them
How brands can leverage the influence of consumers’ social circles to boost spending
Lifestyle behaviours
Perceptions of a bad mood in German society are persistent
Graph 12: consumers who feel like most people in Germany are in a bad mood at the moment, 2024-25
Netto campaign: ‘Be kind to each other!’
Consumer sentiment towards Germany’s achievements is divided
Graph 13: behaviours towards Germany’s achievements, 2025
Germans have a complicated relationship with national pride
Younger Germans are more likely to be proud of Germany’s achievements
Mintel expert view: tap into the excitement of women’s sports as a way to celebrate German achievements
market
Market drivers
Germany remains confronted with economic challenges…
Graph 14: key economic data, in real terms, 2019-26
…amidst international trade turmoil
Inflation has eased, but cost-of-living pressures remain an issue
Financial wellbeing improved compared to last year, but remains unstable
Graph 15: financial situation, 2022-25
Financial confidence remains fragile
Graph 16: financial confidence index, 2022-25
Market size
Consumer expenditure saw a recovery from high inflation in 2024…
…but caution prevails
Market segmentation
Breakdown of consumer spending
Graph 17: estimated consumer expenditure in € bn, by sector, 2025
High housing costs put a significant strain on household budgets
High food prices will remain reality
Prices for services are rising to above-average levels
Discretionary sectors remain under pressure
Graph 18: percentage change in consumer spending in selected sectors, by sector, 2022-23, 2023-24 and 2024-25 (fore)
How cautious spending plays out in selected discretionary categories
Market forecast
Forecast – note on US trade disruption
Consumer expenditure is set for continued moderate growth
Graph 19: total consumer expenditure in € bn, 2019-30
Inflation has levelled off, but caution remains
Recovery will continue in the medium-term, driven by the spending power of more affluent consumers
Stable inflation rates will provide consumers with more confidence in the long term
APPENDIX
Abbreviations and generations
Abbreviations
Generations
Methodology – consumer research
Consumer research methodology
CHAID analysis – methodology
CHAID analysis
A note on language
Methodology – market size and forecast
Forecast methodology
Forecast methodology – fan chart
Market size – value
Market forecast and prediction intervals – value
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