German Food Industry Sees Sales Growth Of 9.8% In Q1 2020: BVE
The food industry in Germany reported year-on-year sales growth of 9.8% in the first quarter of the year, amounting to €48.1 billion, according to the latest report from BVE - the Federation of German Food and Drink Industries.
Growth was driven by an above-average March, which witnessed panic buying among customers in light of the coronavirus pandemic, the report said.
In the fourth quarter of 2019, the food industry generated total sales of €48.1 billion, up 4.1% on the previous year.
In the first quarter of 2020, sales volume increased by 6.7% year-on-year, while an increase of 1.3% was registered in the fourth quarter of 2019, the study found.
Exports And Production
Food exports in the fourth quarter of 2019 generated a turnover of €16.0 billion, up 6.2% compared to the same period in 2018.
Turnover from exports saw 3.4% growth in the first quarter of 2020, driven by increased sales prices abroad, the report revealed.
The food production index (adjusted for seasonal and calendar effects) witnessed 1.3% year-on-year growth in the fourth quarter of 2019.
However, the index fell by 1.9% year-on-year in the first quarter of this year.
Impact Of The Pandemic
Business in the food industry witnessed a slowdown in the fourth quarter of 2020 despite growth in sales.
It was offset by an increase at the beginning of 2020, but the first effects of the coronavirus pandemic on the business climate became apparent in March 2020, with the index falling by around 10 points, the report added.
This sharp decline was triggered in particular by the collapse of the business expectations indicator, reflecting the general uncertainty in the run-up to the coronavirus pandemic.