The sushi market - Germany

1.2 A dynamic global market

Sushi is strongly rooted in Japanese culture and this is strongly reflected in the revenues generated by fish exports in Japan. Revenues were slightly impacted by the health crisis in ****. In general, the trend has been upward since **** and will reach *** billion yen in **** with an increase of **% in * years.

Evolution of the value of exports of fishery products Japan, **** to ****, in billion yen Source: ****

In ****, there were approximately ***,*** Japanese restaurants outside of Japan, a growth of about +**% compared to ****. Since ****, the number of Japanese restaurants abroad has increased *.* times. Asia has seen the strongest growth (***), driven by a sharp rise in average incomes making Japanese food more accessible. The number of Japanese restaurants grew by +**% in Oceania, +**% in Latin America and +**% in North America. [***]

Number of Japanese restaurants by geographic area World, **** Source: ****

1.3 German market shows resilience

The number of restaurants subject to tax in Germany has been in sharp decline for the past decade having lost more than *,*** restaurants between **** and ****. The year **** marked by Covid only reinforced this finding, decreasing the number by *,*** restaurants and reaching **,*** restaurants.

Number of restaurants subject to tax Germany, **** to ****, in thousands Source: ****

Surprisingly, the restaurant market in terms of turnover has been a steadily growing market for many years and reaching ** billion euros in ****. In ****, with the consequences of the crisis, this figure has dropped to **.* billion euros.

Revenues of taxable catering companies Germany, **** - ****, billion euros Source: ****

According to Food Service, which uses data from Bold Data, the number of sushi restaurants will only surpass the symbolic **** mark in ****, reaching **** restaurants. Out of these *,*** brands, two types of restaurants can be distinguished:

Traditional Japanese restaurants: about *** in Germany serving authentic Japanese cuisine; Non-traditional Japanese restaurants: which claim to serve Japanese cuisine but are less careful in terms of traditions and methods;

Number of sushi restaurants Germany, **** to ****, in units Source: ****

To determine the size of the sushi market in Germany, we will make an estimation using the available data: first we estimate the number of Japanese restaurants in Germany ...

1.4 A market in transition that is adapting

A market that has managed to avoid the saturation of its French neighbor:

The German sushi market is a market that, like its European counterparts, has evolved enormously in recent years. On many points, it can be said that it has followed the developments of its French neighbor with a little delay. In the latter, sushi has experienced an explosion over ** years until **** with a multiplication of sales outlets, "you opened a restaurant, and it worked every time" reports a professional of the sector for Le Monde.

The difference, however, was the saturation encountered by the French market in the following years. It does not seem that the German market was saturated. This can be explained by the fact that it was less developed at the time. We can also assume a lesser investment of investment funds, which in France were betting on the fact that sushi would become a mass product like pizza.

And in this respect, they have reinvented themselves:

The Frankfurter Rundschau reports in **** the evolution that the market has experienced: The sector has experienced an increase in the price of raw materials (***), the price increase has prevented the realization of a large-scale coverage of the territory, and ...

2.1 A rapidly growing demand

The demand for sushi is indeed more significant among a young population. In a context of more and more individual households and a very mobile society, consumption habits have changed in favor of the "ready-to-eat" food industry. Sushi has an ideal format to meet the demand of a young population, which values fresh and good quality food, but also efficiency.

Ready-to-eat recipes Germany, ****-****, US$ million Source: ****

As we can see from the following graph, the penetration of sushi in the snack market is growing strongly in **** compared to ****, from *.*% to **.*%. This is also the strongest growth (***) among the different snacks proposed here.

Development of the market penetration of snacks Germany, **** to ****, in percent Source: ****

2.2 Salmon and tuna, kings of demand

In Germany, salmon is the most popular fish (***) and consumed in sushi. Closely followed by tuna, these two fish alone account for **% of German preferences. Although this data dates back to ****, this preference does not seem to have particularly changed in recent years.

Preferred fish of Germans in sushi Germany, ****, % Source: ****

Seafood Studie also reports that salmon in sushi is consumed less in Germany than in its European neighbors. This can be explained by the somewhat less developed market as mentioned earlier. Thus, in Germany, in **** on average a person consumes *.** kilograms of salmon in sushi per year, a figure that rises to *.** in England.

A significant proportion of tuna production is destined for sushi production, and the demand associates it with this production, as shown in the graph below. Sushi is one of the first foods that come to mind when Germans think of tuna. This demand is therefore real and these two fish have seen their fishing and their prices increase significantly in recent years.

First Thing That Comes to Mind When Thinking About Tuna Germany, ****, by % Source: ****

2.3 The profile of the sushi consumer

The following graph shows the different age categories according to their consumption of sushi. It is not surprising to see that young people are the biggest consumers and represent almost **% of the total consumers. Surprisingly, middle-aged adults are the ones who consume the least sushi among the * categories proposed.

Age category of sushi consumers Germany, ****, in percent Source: ****

When analyzing this data in more detail, it can be seen that young singles represent more than one in five consumers.

Precise profile of sushi consumers (***) Germany, ****, in percent Source: ****

2.4 A demand which turns to the GMS

In **** the penetration rate of sushi in German supermarkets was only *.*%. [***]

But for the past * years in Germany, sushi has become a staple in supermarket shelves. The target group is young people who love sushi and are looking for freshness, long shelf life and, above all, a sushi box that is more affordable than the one in restaurants.

The introduction of sushi boxes at German discounters has led to a significant price reduction of **.*% for sushi.

In this respect, the brands that distribute in supermarkets, such as the giants, Sushi daily, Eat happy and Natsu food, focus their communication on the concerns of young consumers : respect for the environment, product quality, freshness and finally price. Thus the word "quality" is found * times in the story section of the natsu website, while the notion of "freshness" is found * times in the about us of the site of Eat happy.

3.1 The salmon supplier segment

The production of salmon: the Norwegian quasi monopoly

The sushi market is highly dependent on fish, the main raw material for sushi. According to the Seafood Study, So essen die Deutschen **% of the salmon in sushi comes from the Atlantic Ocean.

Origin of salmon in sushi Germany, **** % Source: ****

The study adds that of these, **% of the salmon consumed for sushi in Germany comes from Norway, specifically from salmon farming. In ****, the site notre-planete-info reports that, while the number of salmon farming facilities has decreased by **% in ** years (***)

The price of salmon has nevertheless increased significantly: according to indexmundi, in June **** a kilo of salmon was worth an average of €*.*, in June **** this price was €*.*. In November ****, this price goes down to *.*€ per kilo.

Salmon suppliers, in direct link with the market:

The leader in supermarkets, Sushi Daily buys all processed fish in Germany from Deutsche See- a supplier that guarantees fish from sustainable and socially responsible sources, which exclusively sources Norwegian fish. Intermediary players, such as Deutsche See, represent an important segment of the market in that they act as a link between the salmon producers and the food processing industry that processes them. Deutsche See is the market leader in ...

3.2 Distribution channels

There are * main distribution channels.

Japanese restaurants, independent (***); Restaurant chains offering sushi (***); Supermarket departments.

In ****, **.*% of Germans prefer traditional independent Japanese restaurants to enjoy their sushi on site or to take away. Next come sushi found in Asian all-you-can-eat restaurants, and sushi found in the shelves of hypermarkets and supermarkets. [***]

To meet the demand for more affordable sushi, the number of outlets in supermarkets has increased. If in the first years, these sushi are denigrated because their image of freshly prepared products does not remain in the shelves. The strategy finally paid off. Indeed, to give back this image of freshness, more and more large supermarkets in the country have set up bars and stands, shop in shop, where employees prepare fresh sushi in front of customers and pack them in boxes "to go". The forerunner of this trend, Suhi daily, has nearly *** sushi bars in supermarkets throughout Europe.

The success of theshop-in-shopconcept, such as the Rewe to go concept in the Rewe to go supermarkets, goes hand in hand with the ready-to-eat trend, which sushi is perfectly suited to.

3.3 Delivery is key to the development of the market

Still insignificant in ****, the share of food ordered online in Germany has only increased since. The rise of delivery platforms bodes very well for the sushi market, as sushi stands out as one of the most suitable and popular dishes for delivery (***). In addition, the share of the population that sees sushi as a convenient and healthy dish to eat at home is perfectly reflected in this offer

Development of the share of home-delivered food in consumption patterns (***) Germany, **** to ****, in percent Source: ****

On-site consumption retains a large share of the market, **%, but this decreases year on year to give way to home delivery, while takeaway and drive-through have not changed since ****. [***] The state of play in **** is detailed in the graph below.

Distribution of ways of consuming in foodservice Germany, ****, % Source: ****

Finally, this trend is set to continue as indicated by the Dehoga Bundesverband's report on gastronomy in Germany in ****. According to the report, the delivery sector has the best growth prospects, followed closely by the ready-to-eat sector mentioned earlier.

Most Promising Sectors Germany, ****, base *, max *, min -* Source: ****

Regarding the place of sushi among the delivered products, we find it in *th place with almost **.*%, or more than one ...

4.1 Average price per type of sushi

The price of sushi varies depending on the distribution channel, the type of sushi but also the additional ingredient (***). In addition, restaurants usually offer platters or packages with an assortment of sushi which again increases the price range at which sushi is sold.

The table below gives the order of magnitude of prices of sushi when sold by a chain or a kiosk in a supermarket (***). The prices of sushi sold in supermarkets are relatively similar.

The prices in non-chain restaurants are more difficult to describe. Indeed, restaurants propose different offers (***) But we must also keep in mind that the consumer is often ready to pay more in a restaurant than in a supermarket.

4.2 The different types of sushi

The German market includes all the traditional sushi known on the European market, the demand for it is roughly similar in each country and therefore the offer is not more or less varied than in one of its neighbors.

Makis - roll-shaped sushi wrapped in seaweed Temaki - similar to maki, in the form of a cone Nigiri - a slice of raw fish on an oval-shaped rice ball California Roll - maki that contains avocado, crab and cucumber (***) Spring Roll : a spring roll Tataki: a slice of fish lightly cooked and marinated in vinegar Chirashi : a bowl of rice with an assortment of toppings Tempura: fried seafood or vegetables

There are also different types of fillings:

Avocado sake : salmon cut in pieces ebi : shrimp and mayonnaise ninjin : finely chopped carrot kappa : cucumber (***) kampyō : dried pumpkin strips, e.g. Hokkaido pumpkin nattō : fermented soybeans okra Oshinko : Takuan (***) pickled radish tamago : omelette tekka : tuna Tofu ume : Umeboshi paste (***)

Nevertheless, the offers are diversifying and we are beginning to identify an opening towards other Japanese or Asian recipes : bento, ramen or bo bun... New trends are emerging on the horizon.

5.1 Supervision of the restoration and sale of shushis

The sale of sushi must follow the regulations for the sale of foodstuffs: in particular, Regulation (***) No. ***/****, which sets out the rules to be followed in terms of hygiene for foodstuffs of animal origin. [***] The most important point because structuring the market is that the fish must be frozen before being consumed raw.

The sale of sushi must also follow the EDI regulation on hygiene in food handling (***). This regulation defines the prerequisites for the preparation of raw fish in Germany, but also the measures to be taken.

Section ** defines the temperature requirements for processed fish products containing cold rice acidified with rice vinegar < pH *.* (***). This temperature is *°C.

6.1 Segmentation

• Planet Sushi Groupe
• Natsu Shop
• Eat happy
• Sushi Daily - KellyDeli