The cookie market - Germany

1.2 Global market

The global market for cookies is an important part of the food industry and has experienced steady growth in recent years. Cookies are a popular snack and confectionery product and are sold worldwide. In ****, the global market for cookies reached USD ***.** billion. It is expected to grow at a CAGR of *.*% to reach USD ***.** billion by ****.

Global Biscuits Market Worldwide, **** - ****, in USD billion Source: ****

Despite increasing consumer distrust of sugary products, which is cited as a major cause of metabolic diseases such as obesity, the market for cookies is projected to witness increasing growth. This growth can increasingly be attributed to current trends in the global market. Health consciousness as well as sustainability are important trends here, as are personalized and exotic flavors. However, trends and preferences may differ from country to country depending on cultural and culinary preferences. For example, matcha cookies are particularly popular in Japan, while cookies with chocolate or peanut butter are very popular in the USA.

In terms of sales, the large established groups such as Mondelēz International, Nestlé, PepsiCo, Kraft Foods, Kellogg's and Ferrero are still the world market leaders and share the majority of market shares among themselves.

1.3 Declining sales in Germany

The market for cookies and crackers in Germany amounted to USD *.** billion in ****. According to forecasts, the market is expected to decline *.** billion USD by **** and decrease at an average annual growth rate of -*.**% in the period **** - ****, but this can be seen as an increase compared to the decline of about -*.**% per year recorded in ****-****.

Market size for cookies in Germany Germany, **** - ****, in USD billion Source: ****

Overall, the market for cookies is expected to continue this positive upward trend. Customers are increasingly looking for new products to live healthier. Following this trend, consumers are expected to reduce the amount of sugar in their cookie and bakery products, which will lead to an increase in demand for savory cookies over the next two years.[***]

To capitalize on the trend away from sugary products, companies are expected to increase production of less sugary categories such as crackers and savory snacks. Experts in the field predict that sales of savory cookies will increase dramatically over the next few years, while sales of sweet cookies are expected to stagnate. At the same time, however, sweet cookies are a category that offers opportunities for innovation.[***]

1.4 Foreign trade

Cookies are classified under tariff item number **** as "bakery wares, whether or not containing cocoa; communion wafers; empty wafer capsules of a kind used for medicines; sealing wafers; dried dough sheets of flour or starch; and similar articles."[***]

Looking at German foreign trade, it can be seen that both exports and imports of cookies have increased slightly over the last few years. Diezbezüglich exported Germany in **** cookies worth *.* million euros. In turn, cookies with a commodity value of *.** million euros were imported into Germany in ****.

Foreign trade with goods number **** Germany, **** - ****, in EUR million Source: ****

German cookie exports go mainly to European countries. In this context, France, Austria, the Netherlands, the United Kingdom as well as Italy are the most important nations for Germany. However, the remaining countries make up a considerable part of the exports of cookies with **%, which means that Germany is not only dependent on these markets and cookies from Germany are in demand worldwide.

Export countries cookies of commodity code **** Germany, ****, in % Source: ****

Import countries, on the other hand, are more concentrated, with the top five suppliers accounting for **% of total imports. Like exports, imports are mainly from European countries, led by Poland, the Netherlands, ...

2.1 Consumer profiles and consumer behavior

Cookies are a popular snack and confectionery product in Germany and are consumed by many people as a snack between meals or as a sweet treat during leisure time. The German market for cookies has a broad consumer profile, encompassing different age groups, genders and social classes. On average, Germans consumed *.** kg of cookies per capita in ****, which corresponds to an annual budget of circa €**.**.[***]

At the same time, over **.** million Germans consume cookies or crackers at least once a week.

Number of consumers of sweet cookies. Germany, ****, in million units Source: ****

In ****, according to a survey by Allensbach Market and Advertising Media Analysis, there were around **.** million people in the German-speaking population aged ** and over who had bought cookies or other sweet snacks in the previous ** days. However, it can be seen that these figures are declining slightly, which is probably due to the growing interest in healthy eating. Number of people in Germany who bought cookies within the last ** days Germany, **** - ****, in millions of persons Source: ****

Based on YouGov's survey, it was found that **% of Germans buy cookies for themselves or others, with the proportion of women (***). At the same time, **% of respondents who buy cookies also said ...

2.2 Current trends - demand for sugar-reduced cookies on the rise

The market for cookies is influenced by various trends, which have a major impact on consumer behavior.

On the one hand, customers are attaching more and more importance to a healthy diet and healthier products. As a result of this trend, people are expected to want to reduce their sugar consumption in sweets, which will lead to an increase in demand for savory products in the coming years. Due to the high sugar content and other preservatives found in sweets, some people have already cut them out of their diets completely. Consumers are therefore expected to increasingly look for cookies that contain less sugar, fat and calories. Cookies with high-fiber ingredients such as whole-grain flour or oats, as well as gluten-free or reduced-sugar options, are popular. In a survey conducted by DLG, **% of respondents indicated that they have deliberately purchased sugar-free product varieties.

Purchase of reduced-sugar, reduced-fat or reduced-salt product variants Germany, ****, in % Source: ****

In addition, more and more consumers prefer cookies that are made from natural and high-quality ingredients. Products that are produced without artificial colors, flavors, preservatives or genetic engineering are becoming increasingly popular with customers.

Sustainability and eco-friendliness are also important trends in the cookie market, with consumers ...

2.3 favorite types of cookies of the Germans

In Germany, there are countless types of cookies. Whether filled, unfilled, coated with chocolate or sugar icing, or refined with nuts - the German supermarket shelves offer a wide selection of different cookie varieties and brands. According to YouGov surveys, **% of all Germans like to eat cookies and have an average of two favorite varieties.[***]

The butter cookie takes first place among the most popular cookie varieties with a share of **% of all respondents, while the double cookie ranks second with a share of **%. surprisingly, the seasonal speculoos cookie is just behind with a share of **%. The oat cookie gets the fourth place, followed by the black and white cookie, the heather sand and the Scottish shortbread.

If we analyze exactly what type of cookie each German likes best, the classic butter cookie is equally popular among all Germans, with **- to **-year-olds making up the strongest group at **%. more than **% of **- to **-year-olds love the double cookie with a cream layer, while only **% of those over ** dislike it. In particular, it is noticeable that the prevalence of double cookies is significantly higher in the west of the country than in the east (***). In addition, from the following graph, it ...

2.4 Most popular cookie brands of Germans

In ****, the market research institute SPLENDID RESEARCH from Hamburg conducted a representative survey on cookies among Germans aged ** to **. Respondents were asked about brand awareness, image and purchase/re-purchase probability.

Leibniz came out on top in the ranking. This ranking is primarily determined by the high brand awareness and the positive image of the brand.

Bahlsen and Milka take second place in the overall ranking of the study, each with an overall score of **.* points. However, in terms of image, Bahlsen (***), but they rate the brand slightly below average for the price/performance characteristics.

Oreo comes a close fourth with a score of **.*. The cookie stands out primarily due to its high awareness score, but is far behind the other cookie brands in terms of image.

Brand strength of selected cookie brands in Germany Germany, ****, Brand strength Source: ****

3.1 Biscuits production

The main production steps of cookies in Germany are described by the Federal Association of the German Confectionery Industry as follows:[***]

The first step is the recipe. This determines precisely which ingredients are required to produce the desired product. In order to ensure a high quality of the end products, a careful selection of high-quality raw materials is therefore essential and, depending on the volume, liquid may be added. Everything is placed in a bowl or container and stirred or whipped into a dough or mass. In this regard, a distinction is made between doughs that require a longer resting period, while others can be processed directly.

This is followed by the process of shaping the mass and dough. Depending on whether doughs or masses are involved, different processing methods are required. The doughs are usually smoothed to the desired thickness with a rolling pin and then cut into various shapes. So-called spritz cookies get their distinctive shape from the fact that some doughs are also pressed directly through molds or templates. The shaped cookies are placed on a baking tray, which must be greased or lined with parchment paper so that the baked cookies can be removed from the ...

3.2 Operations and employees

In ****, there were ** establishments for the production of long-life bakery products. This is a slight decrease from the number of establishments, as in **** there were still ** establishments producing long-life bakery products in Germany. It is possible that this slight decrease can be explained by the corona crisis, as there was a decrease from the year **** to **** from ** to ** establishments.[***]

It can also be seen from the chart shown that there has been no business with more than *,*** employees in Germany since the year ****.

Number of establishments in the manufacture of long-life bakery products by employee size class Germany, **** - ****, in number of establishments Source: ****

The number of employees in the manufacture for long-life bakery products shows a similar picture. In ****, **,*** people were employed in the manufacture for baked goods in Germany. Compared to ****, this is a decrease of *** employees. Number of employees in the manufacture of long-life bakery products Germany, **** - ****, in number of employees Source: ****

3.3 Distribution channels

Cookies are sold through various distribution channels. It is important to note that the specific distribution channels may vary depending on the type of cookies, brand preferences, and geographic location. The most common distribution channels for cookies are:

Supermarkets and grocery stores: this is one of the main distribution channels for cookies. Cookies are sold in supermarkets and grocery stores in different sections such as the candy shelf or the bakery shelf.

Specialty Confectionery Stores: specialty confectionery stores, delis, and pastry stores often offer a wide selection of high-quality and specialized cookies. These stores may specialize in handmade or exclusive cookie products.

Bakeries and pastry shops: many bakeries and pastry stores make their own cookies and sell them in their stores. These can be freshly baked cookies or packaged cookies.

Cafes, coffee houses and tea rooms: cookies are often served as an accompaniment to coffee or tea in cafes and coffee houses. These places can either make cookies themselves or purchase them from cookie suppliers.

Wholesale and food service: cookies are also sold to wholesalers and the food service industry. These cookies can be used in hotels, restaurants, cafeterias or catering companies.

Online marketplaces and e-commerce: with the growth of online ...

4.1 Product types

When people talk about baked goods, they are describing an almost unmanageable number of products. Baked goods include bread, rolls and cookies as well as fine baked goods such as cookies, cakes, Danish pastries, tarts and stollen. The German Food Book contains guiding principles that define the terms in detail. As described in chapter *.*, fine bakery products are characterized by their production from baking, roasting and drying. There is a large variety of fine bakery products on the market. This concerns not only the form, but composition, taste and composition. Cookies belong to the category of long-life bakery products and differ fundamentally from their product shelf life.[***]

In ****, the German confectionery industry produced around ***,*** tons of fine baked goods.[***] Of these, chocolate cookies and similar small baked goods accounted for the largest share of fine baked goods. These are followed by filled cookies, wafers with less than ** percent water content, gingerbread and honey cake, and crispbread.

Production of fine baked goods by product group Germany, **** - ****, in *,*** tons Source: ****

4.2 Seasonal product types

In the market for cookies, there are various seasonal product types that are adapted according to the time of year or holiday. In Germany, Christmas and fall cookies are particularly popular. These often have festive shapes and are prepared with Christmas spices such as cinnamon, ginger and cloves. The most popular of these fall pastries, according to a survey by BDSI, are gingerbread cookies, at **%. These are a traditional pastry often associated with the Christmas season. However, they are already made and sold in the fall. Gingerbread has a spicy taste and can have different shapes and sizes, such as gingerbread hearts, gingerbread men or gingerbread houses. However, speculaas cookies also enjoy great popularity during the Christmas season. These cookies have a characteristic shape, often embossed with Christmas motifs such as windmills or Sinterklaas (***). Furthermore, Stollen are also a popular traditional Christmas cookie, especially popular during Advent and Christmas. It is a heavy, fruit-rich yeast cake prepared with dried fruits, nuts and spices such as lemon zest, vanilla and cinnamon. The characteristic shape of the stollen is long and oval, with a slightly thicker center and slightly flattened sides.

Consumption of fall pastries in Germany Germany, ****, share of sales in % Source: ...

4.3 Prices and price development

The price development for cookies is dynamic and depends on various factors. The exact pricing can vary from company to company and from product to product. Market conditions, consumer demand, and cost factors all play a role in determining the price of cookies.

The consumer price index for cookies shows an upward slope in prices over the past * years. While the consumer price index was **.* in ****, it increased to **.* in ****. This represented a price increase of *.*%. For ****, the verb price index increased more significantly to ***.*, representing a **.*% increase from **** to ****.

Consumer price index for individual consumption of cookies Germany, **** - ****, consumer price index for cookies Source: ****

The price increase of cookies can be attributed to several factors. On the one hand, the price increase can be attributed to rising production costs. Due to the Covid pandemic as well as the current Ukraine-Russia conflict, current energy prices have risen sharply, which has probably also been passed on to the cost of cookies. On the other hand, the cost of ingredients used to make cookies can also affect the price. If the prices of raw materials such as flour, sugar, butter, chocolate, or nuts increase, this can affect the final price of the ...

4.4 Best seller cookies

The bestsellers on Amazon show an overview of the best-selling cookies in Germany. It can be seen that the prices depend strongly on the type of cookie, but also on the brand.

Source: ****

4.4 Current trends - range of innovative and healthy products

From the producers' point of view, there are several trends in the market for cookies:

On the one hand, packaging is considered an important selling point in this sector, as it represents the brand's image and must meet consumer requirements, especially in terms of practicality and product shelf life. Manufacturers are therefore playing with different formats and increasingly offering individual packaging due to the rise in mobile consumption. Manufacturers are striving to develop new and innovative products to stand out from the competition. This includes the introduction of new flavors, textures and product variants to meet different consumer preferences (***).

In addition, there is currently a general increase in product assortment, and consumers are turning to higher value-added products, such as organic cookies, low-fat cookies, artisan cookies, gluten-free cookies, vegan cookies, etc. As the trend away from sugary categories continues, companies are expected to increase production of less sugary categories such as crackers and savory snacks to ease concerns about sugar. However, the market for cookies offers potential for innovation. Manufacturers are likely to use more natural sources of sugar or sweeteners such as stevia, chicory root fiber, and cornstarch fiber in their products in the future, and will look to transparent ...

5.1 Government regulations

The German market for cookies is subject to legal requirements that can present significant barriers to entry. There are strict rules on labeling and allergens that must be followed. The mandatory information on the packaging must be clear so that the customer can compare the product to another product based on the ingredients it contains or the percentage of ingredients. For example, on the packaging of a cookie containing fruit, it is important to indicate a phrase such as: "*% concentrated raspberry puree". Also in the case of labeling, it is essential to indicate the list of ingredients and the calculation. Then, the names of the cereals, the percentage of the different forms of whole grains, etc. must be mentioned.

These rules promote the right decisions regarding eating habits and eating behavior, as they represent the nutritional information. The key factors for the success of cookies lie in the food quality of the product, and this cannot be good if the regulations are not respected.

5.2 Legislation for more child protection in advertising

In order to protect children's health, Federal Minister Cem Özdemir presented plans for more child protection in advertising on February **, ****. This proposal from the Federal Ministry of Food and Agriculture states that advertising for foods with a high sugar, salt or fat content will be banned in the future.

Background to the legislative proposal

On average, children who use media see ** commercials for foods high in sugar, fat or salt every day. Since the start of the Corona pandemic, **% of *- to **-year-olds use more media. Fast food, snacks, and candy account for **% of the food ads kids see on the Internet and TV.

Children eat about twice as many sweets and snacks, but only half as many fruits and vegetables as recommended. About ** percent of three- to seventeen-year-olds in Germany are overweight, including nearly six percent who are obese. Current data indicate that the situation has worsened since the Corona pandemic. For many, this is a considerable psychological and physical burden even at a young age.

Key contents of the BMEL's legislative proposal

Advertising of foods with high sugar, fat or salt content addressed to children in terms of type, content or design should no longer be permitted: in all ...

6.1 players

• Nestlé Groupe
• Mondelez Groupe
• Kellogg’s
• Ferrero
• Lotus Bakeries
• Bahlsen Group
• Manner
• Griesson - de Beukelaer
• Lambertz