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