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Cafes in Germany - Market Research Report (2014-2029)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: October 2024 WZ SP56.01DE Spotlight Report

Revenue

€3.4bn

2024

€3.4bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

88,649

Businesses

11,312

Wages

€X.Xbn

Cafes in Germany industry analysis

The sales performance of cafés is primarily dependent on consumers' willingness to spend and current consumer trends. Over the past five years, café sales have fluctuated somewhat as the coronavirus pandemic and inflation have changed consumer behaviour. In the period from 2019 to 2024, industry sales therefore fell by an average of 2.4% per year. After the pandemic-related temporary closures and the trend towards working from home contributed to a significant decline in the number of guests and turnover in the café sector in 2020 and 2021, sector turnover has grown again since 2022. In the current year, sales growth will be somewhat weakened by high inflation and the VAT increase, which is why growth of only 0.2% to €3.4 billion is expected. < />Household income is an important factor in determining how much money consumers have available for non-essential expenses such as a visit to a café. Net household income has grown steadily in recent years, but the coronavirus pandemic led to a significant slump in sales in 2020. Since the previous year, the sharp rise in consumer prices has also dampened consumers' willingness to spend. Increasing health and environmental awareness among consumers has also had a major impact on the café sector in recent years. Health-conscious consumers are avoiding particularly sugary foods, which has had a negative impact on demand for cakes and other baked goods and confectionery offered in cafés. In response, more and more industry players are offering healthier alternatives. The range of vegan products and plant-based alternatives to milk has also increased.Between 2024 and 2029, turnover in the café sector is expected to increase by an average of 2.7% per year to 3.9 billion. This positive development is primarily due to the industry's continued recovery from the consequences of the pandemic and the growth of coffee house chains. As a result, the number of establishments is also likely to develop positively over the next few years.

Trends and Insights

  • The café operators are expanding their range to include healthy and sustainable alternatives. Healthy foods such as vegan and gluten-free dishes as well as sustainably produced coffees and teas complement the classic range of sweet baked goods and caffeinated drinks.
  • Coffee is the most popular drink in cafés. Cafés generate a large part of their turnover with the sale of caffeinated drinks. Demand for tea and fruit juices has also grown recently.
  • The café sector is highly fragmented. Most companies in the sector only operate one café with a small number of employees. At the same time, the few café chains generate the majority of the industry's turnover.

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  • Competitive analysis, industry segmentation, financial benchmarks
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  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.4 % over the past five years, to reach an estimated €3.4bn in 2024.

Trends and Insights

The VAT increase exacerbates the situation for café owners

  • Since 1 January 2024, VAT on food in cafés has been 19% again. Previously, the VAT rate had been 7% since 2020.
  • Additional trends and insights available with purchase
Cafes in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Urban centres and infrastructure hubs offer growth potential

  • The expected sales growth of cafés over the next five years is likely to be concentrated primarily in urban centres and infrastructure hubs.

Biggest companies in the Cafes in Germany

There are no companies that hold a large enough market share in the Cafes in Germany industry for IBISWorld to include in this product.

Products & Services Segmentation

Cafes in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Coffee, Cakes and pastries and Other drinks. Coffee is the largest segment of the Cafes in Germany.

Trends and Insights

Coffee is the Germans' favourite drink

  • The industry players offer a variety of common coffee specialities such as espresso and latte macchiato, but also unusual coffee products such as rare bean varieties or cold coffee specialities. Consumers' favourite varieties include cappuccino and latte macchiato.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This sector includes catering establishments that sell food such as pastries and similar dishes as well as hot and cold drinks for consumption on site. Cafés usually also offer their customers the option of buying food and drinks to take away. This sector does not include vending machines or catering services on a licence basis.

What's included in this industry?

Sale of hot and cold drinksSale of cakes and pastriesSale of small savoury dishes

Companies

Purchase this report to view all major companies in this industry.

Related Terms

COFFEE ROASTERSCOFFEE HOUSE CHAIN

Industry Code

WZ 2008

WZ 56.10.4 - Cafes in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The café operators are expanding their range to include healthy and sustainable alternatives. Healthy foods such as vegan and gluten-free dishes as well as sustainably produc...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Coffee is the most popular drink in cafés. Cafés generate a large part of their turnover with the sale of caffeinated drinks. Demand for tea and fruit juices has also grown r...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Purchase this report to unlock analyst insights.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The café sector is highly fragmented. Most companies in the sector only operate one café with a small number of employees. At the same time, the few café chains generate the ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Cafés must comply with the Reusable Packaging Act. Since 1 January 2023, all players in the hospitality industry have been obliged to offer reusable alternatives in addition ...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The café sector generates a relatively stable profit margin. This is due to the low material costs for cold food and drinks as well as the comparatively low wage level. Howev...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Cafes industry in Germany in 2024?

The market size of the Cafes industry in Germany is €3.4bn in 2024.

How many businesses are there in the Cafes in Germany industry in 2024?

There are 11,312 businesses in the Cafes industry in Germany, which has declined at a CAGR of 0.5 % between 2019 and 2024.

Has the Cafes industry in Germany grown or declined over the past 5 years?

The market size of the Cafes industry in Germany has been declining at a CAGR of 2.4 % between 2019 and 2024.

What is the forecast growth of the Cafes industry in Germany over the next 5 years?

Over the next five years, the Cafes industry in Germany is expected to grow.

What does the Cafes in Germany include?

Sale of hot and cold drinks and Sale of cakes and pastries are part of the Cafes industry.

How competitive is the Cafes industry in Germany?

The level of competition is low and steady in the Cafes industry in Germany.

Related Industries

Widen your competitive advantage with related industries

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.