German confectionery exports suffer amid coronavirus, according to BDSI

Pressure on the German confectionery sector has mounted amid the coronavirus crisis, as a total of 67% of medium-sized businesses in the industry have reported reduced export volumes year-on-year compared to the first half of 2019, reports Neill Barston.

The findings of the survey from the Federal Association of Germany Confectionery Industry (BDSI) also showed that exports for the period were expected to be weaker, which was attributed to uncertainties over trade with US and Asian markets.

As Confectionery Production previously reported, manufacturers in the sector had noted a steep decline in first quarter figures, as many stores and traditional sales outlets closed their doors during the initial phases of the pandemic.

According to the BDSI, a total of 56% of the companies reported declines in sales in the first half of 2020, with companies also expecting the second half of 2020 to be impacted in important sales channels such as department stores, train stations, airports (as pictured with the Haribo store at Cologne airport), in confectionery shops as well as facilities such as  cinemas.

In addition, business prospects were said to be more difficult than in 2019, with 62% of those surveyed recording a decline in orders so far this year,  with 51% still expecting a worse order situation for the full year than the previous year.

Furthermore, the study also showed that companies have to cope with the cost increases caused by the corona pandemic, which have been notable high in terms of the absence of employees, the implementation of distance regulations and additional hygiene regulations in production. The BDSI said it had also proved more difficult for businesses to source raw materials,  as well contending with consumers altered shopping habits.

This in turn had affected company’s ability to plan ahead with their overall strategies, and in light of this, the BDSI said the domestic economy must be consistently strengthened in order to secure secure liquidity for businesses in the sector, as part of a wider investment in the German economy.


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