German Consumers Increasingly Price-Conscious Amidst Rising Food Costs

Growing Emphasis on Affordability in German Supermarkets

A new report on German eating habits highlights a notable increase in price-consciousness among consumers when shopping for groceries. The survey, presented by Agriculture Minister Alois Rainer, reveals that while taste remains paramount for 98 percent of Germans, the pursuit of affordability has become a dominant factor. Currently, 74 percent of consumers actively seek deals, and 59 percent prioritize low prices, a significant rise from just 46 percent during the 2020 pandemic peak.

Persistent Food Price Inflation Drives Behavioral Changes

This heightened price sensitivity is directly linked to persistent food price inflation. According to the Federal Statistical Office (Statistisches Bundesamt), food prices rose by an annual average of 1.4 percent in 2024 compared to 2023. More recently, in December 2024, food prices saw a year-on-year increase of 2.0 percent, and in September 2025, they were up 2.1 percent compared to the same month in the previous year. Specific product categories have experienced substantial price hikes:

• Edible fats and oils: +10.3 percent in 2024, with some varieties like butter seeing increases of +39.7 percent and olive oil +28.1 percent in October 2024.
• Sugar, jam, honey, and other confectionery: +6.4 percent in 2024, and +6.5 percent in September 2025.
• Fruit: +5.1 percent in September 2025.

Conversely, some items like dairy products (-2.1 percent) and vegetables (-1.5 percent) were less expensive in 2024. The peak of food inflation in Germany reached 21.2 percent in March 2023.

Broader Impact on Consumer Spending and Sentiment

The inflationary environment has led to broader shifts in German consumer behavior. Many are cutting back on luxury goods and non-essential purchases, opting instead to buy fewer items, trade down to lower-cost brands, and actively search for promotions and discounts. A survey from October 2022 indicated that 76 percent of consumers had changed their shopping behavior in the preceding three months. More than a third, 35 percent, reported spending more on groceries in the first half of 2024.

Beyond price, consumers are also showing increased interest in:

• Transparency around ingredients and food production, with 35 percent guided by the Nutri-Score label.
• Organic and animal welfare certifications.
• Regional products, particularly fresh poultry, eggs, fruit, and bakery items.
• Health trends, leading to increased demand for low-sugar, low-fat options, and a decline in meat consumption (37 percent identify as flexitarians, 7 percent as vegetarians).

Despite a slight improvement in the GfK Consumer Climate Indicator to -23.2 in December 2025 from -24.1 in November, consumer uncertainty remains high, largely due to ongoing concerns about food and energy prices. As of March 2024, 29 percent of German consumers reported being severely impacted by the cost-of-living crisis, with an additional 30 percent moderately affected.

Outlook for the German Retail Sector

The evolving consumer landscape presents ongoing challenges and opportunities for the German retail sector. While overall inflation rates have seen fluctuations, with a provisional rate of +2.3 percent expected for November 2025, the specific pressure from food prices continues to shape purchasing decisions. Businesses are adapting to a market where price-consciousness is not merely a trend but a fundamental aspect of consumer behavior, necessitating strategies focused on value and transparency.