Green issues have long been important for German shoppers. Now, after lessons learned during the pandemic and with inflation pressure easing, they want more. Report by Ana Tique, Research Consultant, Euromonitor International.
After three years of markedly high inflation rates, Germany finally saw a slowdown in 2024 and consumer prices rose by slightly over 2%. Despite the light at the end of the tunnel, German consumers continued to be cautious over their spending throughout the year – but opportunities arose for different market segments.
The inflation rate in Germany was markedly lower in 2024 than in the three years preceding, getting closer to the more moderate levels before the pandemic. After 2022 closed the year with a record-breaking average annual inflation rate close to 7%, 2023 was still close to 6% on an annual average basis. The last three years have also reshaped consumer behaviour, reflecting the effects of post-pandemic times and a shift towards value-for-money and sustainability-driven innovation, which remained key for brand differentiation.
Although the year ended on a relatively more positive note, the high inflation rates throughout 2023 continued impacting German consumers’ purchasing decisions in 2024 and consumer confidence fluctuated month-by-month. The price increases observed in 2022/23 in tissue products, driven by rising raw material costs, the effect of the war in Ukraine (specifically due to its impact on the supply of raw materials) and supply chain disruptions, continued into 2024, further challenging consumers as they tried to manage their budgets.
For many consumers, there was a generalised cautiousness about discretionary spending, which opened opportunities for lower-cost alternatives, private label lines, seeking out discounts buying in bulk, for instance, or, on the other hand, shifting to more durable or multi-purpose products, even if the price was higher. Although premium segments of the tissue market continued to show positive performance, there was a noticeable demand for products that offered value for money. Consumers continued looking for products that delivered innovative features such as skin care benefits like added softness and comfort, or more eco-friendly attributes such as biodegradable materials and packaging, but that didn’t sacrifice on affordability.
Retail giants Aldi, dm, Edeka, Rewe and Rossman, for instance, continued expanding their lines of private label tissue across several categories and strengthening their position among the competition. The launch of new product lines that meet consumer preferences for quality, sustainability and value puts these players in an advantageous position, reinforced by their wide availability across the country.
Seeking a balance between sustainability and cost-effectiveness
In 2024, German consumers grew increasingly mindful of the need to opt for sustainable options and the impact their purchase and consumption choices have on the planet. The economic value of sustainability is becoming more apparent for consumers, as choosing eco-friendly products can help reduce long-term costs – financial and ecological. Brands that focused on sustainability-driven innovation and communicated these efforts through certifications and claims gained traction as more education on ecology grew.
According to Euromonitor’s Voice of the Consumer Lifestyle Survey fielded in 2024, over 45% of consumers considered recyclable, biodegradable, or refillable/reusable packaging more sustainable or better for the environment. Consumers sought tissue products made from recycled materials and recyclable or biodegradable packaging, even if the price point was higher.
Nevertheless, consumers generally prefer not to pay a premium for products, as consumers expect brands to make sustainability standardised – particularly in economically struggling times. The need for businesses to provide greener alternatives such as washable and reusable items or alternative compostable and biodegradable materials, is becoming essential and differentiating. Solutions such as washable and reusable napkins and tablecloths instead of paper-based ones, hand driers instead of paper towels, and other mechanisms can help create a smaller environmental footprint and continue to emerge in the market.
The dilemma of how to dispose of reusable products at the end of their lifecycle remains a significant concern, as well as how much energy and resources are saved through their reusing process. As sustainability has long been a shared value among German consumers, it is unsurprising that the urgency to find innovative solutions will grow in the coming years.
German tissue consumers rapidly adapted to online shopping
After a somewhat slow adaptation to online shopping, German consumers – notoriously resistant to digital change – rapidly adapted to become one of the top European countries engaged in e-commerce. According to Euromonitor’s 2024 Voice of the Consumer Lifestyle Survey, some of the advantages of e-commerce that are gaining German tissue consumers’ preference include access to the best price, the ability to order at any time from anywhere and have products quickly delivered, and the ability to browse from a variety of brands or to set up a subscription for auto-replenishment.
At a time of more economic restraint, e-commerce continues to provide shoppers with promotions and deals that are very welcomed, inclusively allowing retailers to expand their customer loyalty by engaging them in loyalty programmes. Additionally, younger generations are more adept at using digital tools, which benefit their daily lives. Keeping this in mind, transparency and reliability are essential for industry players to remain competitive.
Euromonitor International’s Senior Research Analyst, Natalia Bezrebra, will be speaking on Retail Tissue: Global Trends and Future Prospects at Tissue World Düsseldorf 2025 Conference. Check out the full agenda here.
