Coffee in Germany

As the largest EU coffee trading centre, largest EU coffee consumer, largest importer of green coffee from developing countries (DCs) and second largest organic and certified food market, Germany offers many opportunities for DC exporters.
Germany: the largest EU market for coffee
Germany is the largest EU market for coffee, accounting for 23% of the total EU market (ICO, 2010). Coffee consumption in Germany amounted to 558 thousand tonnes in 2010, which means an average annual increase of 0.4% over the period 2006-2010. Per capita coffee consumption in Germany amounted to 6.5 kg in the year 2009. Due to climatic reasons, coffee is not cultivated in Germany. There are various coffee roasters present in the country, processing imported green coffee. Germany is the largest EU importer of green coffee, with imports amounting to 1.1 million tonnes / 2.4 billion in 2010, accounting for 35% of total EU coffee imports. DCs account for 98% of German imports, which is far higher than the EU average share of 88%. German imports from DCs increased by 1.9% in volume and by 9.3% in value annually on average during the period 2006 2010. Brazil is the largest DC supplier of green coffee to Germany, accounting for 34% of total imports in 2010. Other major DC suppliers are Vietnam (18%), Peru (7.3%) Honduras (6.1%) and Indonesia (5.9%). Imports from Colombia decreased over the period 2006-2010, by 33% annually on average. At the same time, Uganda emerged as a supplier of coffee to Germany, showing an average increase of 23%, and accounting for 3.2% of total German green coffee imports. About 31% of the green coffee imported by Germany is directly re-exported, mainly destined to Poland, accounting for 26% in 2010, and the USA (22%), but also to its neighbouring countries. German is the largest EU re-exporter of green coffee, accounting for 53% of total exports. Roasted coffee is not imported from DCs. As Germany has a large domestic roasting industry, imports are limited to 5.3% of total German coffee imports, and are mainly supplied by Poland, accounting for 28% in 2010, Italy (25%) and the Netherlands (13%), Polish exports to Germany exploded by more than 115% annually over the period 2006-2010, while imports from Italy decreased by 3.7%. Germany is the largest EU exporter of roasted coffee, accounting for 29% of total EU exports, which amounted to 173 thousand tonnes / 674 million in 2010. It was mainly destined to neighbouring countries, and increasingly to East European countries. As calculated from trade statistics, the average import price of green coffee destined to Germany increased by 8.0% annually on average in the period 2006 2010 Buyer requirements for coffee are provided in the module on compliance with EU buyer requirements.

Understanding the market

Germany has the largest coffee trading centre in the EU. The large domestic market can provide opportunities for DC exporters, but competition is fierce within the international trade structures. Germany has also a large organic food market, which is expected to expand during the coming years. This offers opportunities for more specialised coffee trade.

Coffee in Germany

At home, at ease Coffee is the most popular drink in Germany, with an average per capita consumption of about 150 litres per year (Deutsche Kaffeeverband, 2010). German consumers, similar to other West European countries, traditionally prefer the taste of Arabica coffee. However, the demand for Robusta coffee is steadily growing. Decaffeinated coffee is also popular in Germany, but its processing is done in the EU. The introduction of coffee pads and pods on the German market made consumption of coffee at home more accessible. The advantages of the easy and mess-free preparation method of single-serve packages increases the moments of coffee consumption at home, which would otherwise be lost. At-home consumption is also stimulated by the smoking ban in cafs. Furthermore, trends in the German coffee consumption are the increasing popularity of espresso, instant coffee, and coffee with spices or added flavours. The economic crisis forces people to cut down on their personal spending, and has decreased out-of-home consumption. On the other hand, consumers would like to have a high quality coffee experience at home and are therefore more willing to pay more for high-quality and ethical products. Consequently, despite the recession and mature German coffee market, the continuous development of higher-value products results in volume, and more significant value growth of the German coffee market. Regional coffee trading centre Germany is an important regional trading centre for coffee in the EU. Almost all German green coffee imports are directly sourced in DCs, and they not only satisfy domestic needs, but also supply the USA and neighbouring countries like Poland and Austria. The small roasted coffee imports, and high exports of roasted coffee, reflect the presence of a large roasting industry in Germany. Exports of roasted coffee are also destined to Germanys neighbours, France, the Netherlands, and Poland. The share of roasted coffee that is imported is mainly supplied by Italy, which, in general, concerns more expensive espresso coffee, meant for the higher price segment. A German pleasure: organic coffee German consumers are increasingly aware of healthy and sustainably produced products. This is visible in the large organic food market. Organic coffee now accounts for over 2% of German coffee consumption. Fairtrade-certified coffee sales are relatively low (compared to the UK or France) amounting to 5.6 thousand tonnes in 2009, of which 66% was also certified as Organic (Fair Trade Germany, 2010). Because of the large organic market in Germany, there is already a large number of critical consumers, which stimulates companies to keep their reputation high, by participating in certified production. Therefore, the market share of certified coffees is expected to grow even further. The German market leaders Kraft and Tchibo increasingly use certifications on their several coffee brands, mainly Rainforest Alliance, and Organic (Bio Genuss) certification. Although it is a German initiative, purchases of 4C compliant coffees by German roasters are relatively low (TCC, 2009). Increase in demand for sustainable coffees is also stimulated by the opening of American coffee companies, like Starbucks and McCafes in Germany; these companies have their own production codes.

Coffee in Germany

Market entry
Germany is the main entry point for coffee to the EU, where trade is especially concentrated in the port of Hamburg. All levels of the trade structure are present, but traders, and also roasters which import coffee themselves, are the most interesting trading partners for DC producers. Furthermore, agents representing importing companies in developing countries can play an important role, especially for DC producers not yet known by the large importers. The main players active in the German coffee market are: Neumann Kaffee Gruppe - http://www.nkg.net - the world's largest coffee trading company. Kraft Foods - http://www.kraftfoods.de large market player. Melitta - http://www.melitta.de - one of the largest German roasters. Tchibo - http://www.tchibo.de importer and roaster. Eugen Att - http://www.coffeeagents.com broker. Euroca - http://www.euroca.de - broker and trader of green coffee. Rehm Coffee - http://www.rehmcoffee.de - coffee importer. Benecke http://www.benecke-coffee.de coffee importer InterAmerican Coffee - http://www.iaccoffee.co.uk - coffee importer Due to the continuing consolidation of coffee trade, large international players like Kraft, Neumann and Tchibo are increasingly dominating coffee trade. Since these large companies work with many suppliers, they offer ample opportunities, especially to larger DC producers, but competition is fierce. Therefore, specialty products (high quality, specific origin or certification) offer most opportunities to developing country producers. Most importers of specialty coffees are not exclusively specialised in these products, but in organic products, or Fairtrade products, in general, or conventional products as well. Certified coffees are mainly sold through the traditional retail channels, like supermarkets, but also through organic retailers. Next to this, several chains exist which specialise in high-quality or single origin coffees. Interesting players for DC exporters are: Bioma - http://www.bioma.de organic coffee processor. Specialitten Compagnie - http://www.spezialitaeten-compagnie.de specialty coffee and tea importer. Voodoo Food - http://www.voodoofood.de - company selling organic coffee powder. Hochland Kaffee - http://www.hochland-kaffee.de producer of specialty and single origin coffees. Fair Trade Deutschland - http://www.transfair.org Fairtrade labelling organisation. Other useful sources for finding trading partners in Germany are trade associations and international trade fairs, like: Deutscher Kaffeeverband - http://www.kaffeeverband.de - German Coffee Association. Biofach - http://www.biofach.de international organic trade fair. COTECA - http://www.hamburg-messe.de/coteca/ctc_en/start.php - Trade fair for coffee, tea and cocoa. Anuga - http://www.anuga.com - food and beverage trade fair.

Coffee in Germany

EU-level sources are provided in the coffee, tea and cocoa sector module on finding buyers. More information about the trade structure of coffee can be found in the module on trade structure and channels for coffee.

This survey was compiled for CBI by ProFound Advisers In Development in cooperation with Joost Pierrot Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer