85% of Germans are feeling the day-to-day impact of inflated prices. Even though inflation has decreased to more conventional levels, Germans are still feeling the aftermath of inflation-ridden years.
The persistent high cost of living and economic uncertainty continue to dampen consumers’ financial confidence. Consequently, in the current year, most Germans plan to spend less or maintain the same level as in 2024. Discretionary spending is driven by better-off consumers and shaped by expectations of the government’s impact on economic growth.
Germans’ awareness of the importance of localism has seen another boost, and willingness to pay more for local products drives plans to spend more across categories. German and multinational brands operating in Germany can capitalise on this by emphasising local production and celebrating their connection to the country.
Beyond that, brands can foster a sense of pride and unity in the country, for example with campaigns that celebrate German achievements and use unifying messaging.
This report looks at the following areas:
- 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 (eg healthcare, foodservice)
- Consumers’ preference for local products, and the production locations of what they typically buy
- Consumers and their communities, ie 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
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, Principal Analyst – Consumer Lifestyles, Germany
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EXECUTIVE SUMMARY
- What you need to know
- Opportunities
- Market size and forecast
- Outlook
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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
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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
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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
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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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