Germany: Europe’s Unrivalled Powerhouse in Food Retail, Sustaining More Than €200 Billion in Annual Consumer Spend
Despite cyclical headwinds and recurring commentary portraying Germany as “the sick man of Europe,” the structural fundamentals of its food-retail market remain exceptionally strong. Even under pressure from subdued economic growth, energy-market volatility, elevated interest rates, and stagnation across construction, chemicals and automotive manufacturing, German consumers continue to demonstrate record-level spending resilience in strategically essential categories.
According to the EHI Retail Institute, German households spent €204.5 billion on food retail in the most recent full year.
Online food retail accounted for only €3.7 billion of this figure — €0.3 billion less year-on-year, marking the first negative annual result in the history of the German online food sector. With major last-mile operators such as Getir and Gorillas exiting the market in 2024, the industry continues to normalise and consolidate around well-established brick-and-mortar formats.
Today, Germany remains the undisputed European leader in food retail, commanding more than 10% of the entire EU market, valued at €1.936 trillion. This figure is projected to grow to €2.4 trillion by 2028, underpinned by robust household consumption, strong asset-level liquidity, and the country’s dense, highly competitive discount and supermarket landscape.
Key Strategic Questions for Investors
Germany’s dominant position prompts several structural questions relevant for institutional investors, family offices and global capital:
Who captures and allocates these exceptional cash flows?
How is the German food-retail property market organised and capitalised?
Why do discounters, supermarkets and retail parks in prime micro-locations continue to outperform?
Which investor groups are most active in food-retail real estate — and why?
How do investors structure transactions, manage assets nationwide, and mitigate legal and operational complexity?
Market Perspective by Gordon Real Estate Group
This analysis leverages transaction-side and advisory insights from Gordon Real Estate Group, a German full-cycle commercial real-estate firm specialising in food-retail assets.
The company’s expertise spans:
• acquisition and sale of discounters, supermarkets and Core Retail Estate retail parks
• bank financing arrangements
• insurance solutions
• legal, technical, financial and tax due diligence
• full administrative asset management across Germany
The firm’s client base includes international Ultra-High-Net-Worth individuals and families.
In March 2005, the company marked its 20th anniversary following decades of continuous involvement in the sector.