As Germany navigates another year of economic turbulence, the latest BCG European Consumer Sentiment Survey reveals a sobering yet revealing view into how Germans are spending, saving, and adjusting in 2025. Conducted between April 2 and April 21, 2025, the study surveyed 1,832 German respondents as part of a broader sample of 16,412 participants across nine European countries. The research was carried out by the Boston Consulting Group (BCG).
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From heightened concerns about inflation to a sharp increase in online shopping, the findings highlight the adaptability and anxieties of German consumers.
In this article, we dive deep into the survey’s findings, covering key themes like inflation fears, shifting digital behaviors, discount-driven purchasing, and the declining appeal of sustainable consumption in the face of financial pressures. The goal: to understand how German consumer sentiment in 2025 is reshaping the economic and retail landscape.
Rising economic anxiety: Germany’s financial mood darkens
One of the survey’s most alarming takeaways is the sharp rise in economic pessimism among German consumers. Compared to 2024, the share of consumers feeling bad about the local economic situation jumped from 52% to 62%. Sentiment around the political atmosphere and personal financial stability also worsened, painting a picture of widespread unease.
This growing anxiety is driven primarily by concerns over inflation, tariffs, and energy costs. According to the survey:
- 70% of German consumers are concerned about inflation, compared to a European average of 66%.
- Over 50% expect energy prices and tariffs to rise, directly impacting their future spending decisions.
- Consumers are also increasingly worried about the possibility of needing to draw on savings or face rising mortgage rates.
This backdrop of economic uncertainty is leading to cautious, value-oriented consumer behavior.
Spending cuts across the board – Except for groceries
One of the most striking findings is how Germans are reducing their spending in almost every product category. The only category showing increased spend is groceries – but even this is not a sign of growth. Instead, the rise is entirely driven by inflation, not by increased consumption.
Key declines in spending:
- Luxury fashion, furniture, and beauty care show significant net decreases.
- Discretionary spending is down for 65% of consumers over the past 6 months.
- Savings have declined for 43% of Germans, and only 18% expect their financial position to improve soon.
Even when imagining a modest 10%-15% income boost, German consumers overwhelmingly say they would increase savings rather than increase spending. This signals a population prioritizing financial security over consumption.
Discounts rule: Price sensitivity drives behavior
A defining feature of German consumer sentiment in 2025 is the population’s heightened sensitivity to price. According to the survey:
- Up to 70% of purchase decisions are driven by discounts.
- Between 60% and 75% of consumers are willing to switch brands to get a better deal.
- Germans consistently rank above the European average in their reliance on promotions, especially in groceries, apparel, and home appliances.
Even high-consideration categories like home care, OTC products, and furniture are affected by discount-driven behavior. This pattern forces brands to compete not only on quality but increasingly on price and promotional strategy.
Private labels gaining ground
Retailers’ own brands are gaining traction in Germany more than in most of Europe. The survey shows:
- Germans are more willing to purchase private-label products across nearly every category.
- Only 20% to 40% believe branded products are better, a relatively low level of brand loyalty.
- In categories like groceries and home care, store brands are now often perceived as providing similar or even superior value.
This shift represents a major opportunity for retailers to grow their in-house offerings, especially as consumers seek value without sacrificing perceived quality.
E-commerce and digital channels on the rise
Digital behaviors are evolving fast. Germans are increasingly turning to online platforms, especially in traditionally offline categories:
- 31% of Germans buy apparel mainly online, the highest in Europe aside from the UK.
- Over 25% prefer online channels for toys, personal care, and home appliances.
- Consumers expect faster delivery – with many demanding next-day service at standard shipping rates.
In addition, Germans are more likely than the European average to use parcel lockers and home delivery, even in categories where in-store shopping still dominates.
For customer service, a hybrid model persists: While online channels are gaining ground, in-store service remains important, particularly in sectors like luxury fashion and electronics.
Sustainability considerations decline amid budget pressures
Although environmental awareness has increased, economic constraints are reshaping how consumers act on their values:
- Up to 55% regularly consider sustainability in their purchase decisions.
- However, willingness to pay more for sustainable products has declined in every category compared to 2024.
- Only 16%-22% are ready to pay a green premium, and that number is dropping.
This suggests that while sustainability remains top-of-mind, it’s no longer a purchase driver unless it aligns with value and affordability.
What would Germans do with more money?
One revealing part of the study asked respondents what they would do with 10% to 15% more disposable income:
- 39% said they would save it – by far the top answer.
- Other priorities included travel (30%), dining out (27%), and entertainment (25%).
Notably, spending on physical goods like apparel (19%) or luxury fashion (10%) ranked much lower. This shows a clear trend toward experiences and security over material goods, a shift that could reshape retail strategies in the coming years.
Top purchasing criteria: Value, convenience and savings
Germans are more pragmatic than ever in how they make purchasing decisions. Across categories, the most influential factors are:
- Good value for money
- Ability to save
- Low price and convenience
Secondary considerations like service quality, sustainability, or brand loyalty rank significantly lower. Even functionality is often eclipsed by value metrics, especially in day-to-day categories like home care, OTCs, and snacks.
Implications for brands and retailers
In the face of such profound changes, brands operating in the German market must make strategic adjustments. Here are a few recommendations:
1. Lead with value: Product offerings must communicate savings, either through direct pricing, bundled deals, or loyalty programs. Value is the dominant currency of trust.
2. Digitally optimize the buyer journey: Given the surge in online-first behaviors, brands should ensure fast, seamless, and mobile-friendly experiences with easy access to product details, reviews, and shipping expectations.
3. Grow private-label offerings: Consumers are increasingly open to store brands, making this a growth area. Quality assurance and transparency are key to gaining trust.
4. Offer smart discounts: Rather than blanket sales, smart and strategic discounting that rewards loyalty or encourages higher basket sizes can protect margins.
5. Align sustainability with affordability: Green initiatives must be paired with competitive pricing. Eco-conscious products need to meet or beat mainstream alternatives on cost.
6. Focus on core needs: Consumers are prioritizing necessities and essential services. Brands that position themselves as “must-haves” rather than “nice-to-haves” will perform better.
Final thoughts
The German consumer sentiment in 2025 is shaped by rising inflation, economic concern, and a laser focus on affordability. Yet, it also reveals a digitally adept and brand-curious population, open to change and new purchasing experiences.
Understanding these behaviors is not just important for companies doing business in Germany – it’s essential. As German consumers continue to adapt, brands must evolve even faster to meet them where they are: online, value-conscious, and future-focused.
By reading between the data, it’s clear: In 2025, to win over the German consumer, you must respect their budget, earn their trust, and deliver convenience at every step.
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