The grocery market in Germany’s is forecast to be worth €259bn by 2021, figures released today by research organisation IGD have revealed.
The study suggests that all of Germany’s main grocery channels will grow over the next four years at a total rate of 10.5%. This is primarily said to be due to inflation, population growth and retailers investing in certain channels.
The online category is set to grow the most, by 244.4%, albeit from a very small base. Meanwhile, convenience will see the next biggest growth, at 36.4%.
Discount will remain the largest channel in Germany, predicted to expand by 11.2% by 2021.
The IGD has identified several key trends that are helping to boost sales across the German grocery market, including new retail concepts and refurbished shopping environments.
IGD EMEA region manager Jon Wright said: “While the country’s retailers have been slower than others across Europe to focus on their multi-channel strategies, many are now starting to invest in and innovate more with their online offer, including click and collect services, and a number of online-only operators. For example Mytime.de have launched in the market.
“Meanwhile, Amazon Pantry and AmazonFresh have been introduced in Germany. All of this is helping to drive growth.”
With one of the highest shares of private label sales in Europe, this part of Germany’s grocery market is expected to grow over the next four years, according to IGD.
Wright continued: “As the home of the discounters, which typically have up to 90% share of private label products, Germany’s shopper is used to private label goods and looks for them in a wide variety of categories.
“Share of private label is rising and we expect that to continue, as retailers drive innovation and extend their ranges, particularly in the growing areas of organic, free-from, vegetarian, vegan and ready meals.”
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