The German almond market is projected to grow at a CAGR of 7.21% to reach US$ 731.426 million by 2027, from US$ 449.345 million in 2020.
Germany is the largest economy in the European Union (EU) and the fourth largest economy globally. Moreover, it is the leading European market catering to the food and beverage industry. China, other EU countries, Switzerland, the United States, and Turkey are its main trading partner. In recent years there has been a marked shift in consumer preference which is contrary to the preference for domestically produced goods and is characterized by an increased inclination for exotic and foreign foods that is inclusive of but not limited to dried fruits and nuts. Even though Germany does not produce significant amounts of dried fruits or nuts, the country registered the third-largest overall global consumption. This is partly due to the diet of a significant number of immigrants and ethnic groups from the Mediterranean region, which traditionally includes a higher percentage of dried fruits and nuts. Concomitantly, private brands, as well as discount retailers, are quite popular within the dried fruit and nut industry. On the other hand, there is a marked preference for organic agricultural products.
The German dried fruits and nuts are also characterized by bulk imports destined for further processing and packaging. The year 2018 registered an import volume in the order of 579,170 MT of nuts and peanuts worth $ 3.4 billion. The top five suppliers of nuts and peanuts to Germany on a value basis were the United States, Turkey, the Netherlands, Vietnam, and Italy, with market shares of 22 %, 16%, 14%, 7%, and 5 %, respectively. At a value of $ 752 million, imports from the United States amounted to 116,597 MT. Among the top 3 types of nuts products imported by Germany from the USA are shelled almonds.
The total volume of almonds imported from the United States in 2018 was in the order of 116,701 MT, which was a slight decrease from the 2017 figures, which were 117,410 MT but an increase from the 2016 figures of 104,682 MT [Source: USDA]. Besides, flexitarian, vegan, and plant-based alternative preferences are increasingly being experienced by the German food and beverage industry, which is expected to drive the Germany Almond market during the forecast period.
By application, the snacks segment is anticipated to account for the greatest revenue market share during the forecast period. The popularity of almond-based snacks has increased, resulting in this increase. Cracker demand rises steadily during the epidemic, owing to growing snack consumption and people's desire for healthier snacking. As a result, producers are incorporating almonds into crackers, which provide a delicious flavour as well as health advantages, resulting in increased cracker sales. Consumer preferences for healthier savory snacks are forcing snack manufacturers to get creative with novel snack mixes, which is fueling the snack mix industry's growth. As a result, there is a huge need for healthy snacks.
Recent Development
In 2019, a grower-owned cooperative based out of California, USA, reportedly launched the Almond Breeze® range of drinks in Germany to respond to the demand for products that cater to the aforementioned preferences.
In June 2020, the world's first dairy-free mozzarella alternative made from almonds by an Italian-German start-up named Almond Dairy GmbH has been reportedly launched across the nation. The almonds used in this new product are reportedly derived from a kind of tree that is only known to grow in California, USA.
COVID-19 Impact
In Germany, the COVID-19 epidemic had a direct and unfavourable effect on the almond market. Due to a lack of purchasing power in the region as a result of the lockdowns, demand for almonds has been impacted. Furthermore, according to the import-export data by USDA, Germany's almond imports plummeted from US$167 million in 2019 to US$123 million in 2020, indicating a significant drop in almond consumption.
Segmentation