BDSI raises core concerns over drop-off in confectionery exports
This year's ISM appeared to show strong prospects for confectionery in the sector, but Germany's exports have slowed this year. Pic: ISM
The BDSI German confectionery trade association has expressed concerns about a notable downturn in export markets, with the sector becoming more reliant on domestic trade, writes Neill Barston.
As the organisation noted, business confidence, as with other areas of Europe, including the UK, has been dampened amid ongoing supply chains challenges, and wider increased operating costs.
According to the BDSI, in 2025, German exports were down by approximately 140,000 tons compared to the previous year, causing notable concern within market observers.
Within the study, conducted later month, thr BDSI noted a higher level of international competition, high costs, and trade policy uncertainties continue to pose challenges for companies.
Furthermore, as the BDSI found, pressures are also reflected in the companies’ economic assessments: Around 45% report a decline in profitability, and 42% report a decrease in sales.
The biggest cost drivers, cited by 90% of respondents, are increased personnel costs, and by 80%, higher raw material prices. Added to this are the ongoing burdens of energy prices and logistics costs.
In addition, the study found that the picture in foreign markets is mixed and generally subdued. While 26% of companies were able to increase their exports, 33% recorded declines.
Some 52% of respondents perceive themselves to be facing significantly increasing international competition. In addition, the US tariffs are putting a strain on business. Nearly half of all companies expect their US business with confectionery and snack products to deteriorate further in 2026.
In response BDSI is therefore calling on policymakers in Berlin and Brussels to take targeted steps to strengthen the international competitiveness of companies. High costs, increasing bureaucracy, and trade policy uncertainties are hindering planning security and investment.
As the organisation observed, government and industry needed to explore means of driving wider economic growth and stability to ensure positive momentum for industries such as the confectionery and snacking sector, which has traditionally been a key market segment for the nation.
