The BDSI German confectionery trade body has reported major ongoing challenges that impacted businesses in the country over the past year, with ‘drastic increases in ingredients’ proving a key test, writes Neill Barston.
Notably, as the influential organisation asserted, some 200 member companies experienced financial strain from input costs being considerably higher, as well as staff, energy and administration requirements becoming an increasing burden within the country.
As the BDSI revealed, the situation is leading to a significant decline in production volume in Germany, with exports The export business, which are crucial for the industry, also declining in 2025.
Moreover, as the organisation asserts, the German government must improve the country’s attractiveness as a business location, though despite conditions remaining finely balanced in terms of elevated operating costs, the nation remains a key player for the industry.
This weekend, the latest edition of ISM and ProSweets are set to play their part in enhancing domestic and global sweets markets, as we discussed with the event organisers in our exclusive video preview of the shows, which run between 1-4 February.
The organisation stated” “German manufacturers of confectionery and snack products are under constant and enormous economic pressure. High energy prices and rampant bureaucratic requirements are impairing the industry’s international competitiveness – they have become a decisive factor in its attractiveness as a business location.
Moreover, Bastian Fassin, Chairman of the BDSI expressed his personal concern that the level of administration required by companies operating in the company had become excessive.
He added: “It is high time the German government ensured internationally competitive energy costs and, together with the EU institutions, cut through the bureaucratic red tape. The ever-increasing bureaucratic requirements are crushing companies and suffocating them. Bureaucracy must not be an end in itself – it must remain understandable, streamlined, and practical for businesses,”
Sustainability progress
While companies have continued to face higher levels of administrative burdens, the BDSI noted that companies continues to demonstrates a strong commitment to sustainability.
This spanned everything from innovative recipes and the prevention of food waste to the use of certified raw materials and the testing of sustainable packaging solutions. Practical nutrition education is also a key concern for the industry, as reported by the Federal Association of the German Confectionery Industry (BDSI).
Support for the next generation
In cooperation with the Christian children’s and youth organisation “Die Arche” and the renowned Swiss chef Meta Hiltebrand, 20 cooking videos with simple, child-friendly instructions have been produced to date.
As the BDSI noted, these clips motivate young people to engage with food and nutrition and to try out the recipes.
“Die Arche” has been supporting disadvantaged children and families in Germany for 30 years, among other things through educational programs promoting a healthy lifestyle. The cooking videos made possible by the BDSI represent one component of this initiative.
The use of raw materials certified according to recognised sustainability standards is a core concern of the industry. Significant progress has been made, particularly in the area of cocoa,
In 2024, 86% of the cocoa used came from certified sources. This development, accompanied by numerous programs, makes a major contribution to promoting a more sustainable cocoa sector and improving the living conditions of cocoa farmers and their families.
The German confectionery industry is also playing a pioneering role with regard to palm oil and palm kernel oil: 94% of the palm oil used in production is already certified. This demonstrates the industry’s pioneering role in the responsible use of resources.
In addition, the organisation has been actively involved in leading sustainability initiatives for many years. For example, the association is a founding member of the “Forum Sustainable Cocoa,” a joint initiative launched in 2012 that includes representatives from industry, the German Federal Government, and civil society. The same applies to the “Forum Sustainable Palm Oil”, another multi-stakeholder initiative in which the BDSI makes an important contribution.