Brands Often Featured in Promotional Sales
In the first half of 2025, a significant decrease of 14% was observed in promotional offers for various products compared to the same period in the previous year. This decline was particularly noticeable for staple items such as beef, milk, coffee, chocolate, and butter.
The decline in promotional offers is primarily influenced by a combination of economic, market, and cost-related factors.
Rising costs and inflationary pressures on food prices have reduced retailers' flexibility to offer promotions without hurting margins. Although overall inflation in Germany has eased to 2.0% in June 2025, food prices specifically have increased by about 2.0% in the same period.
Germany has experienced a decline in exports and imports, which impacts the availability and cost of various consumer goods, including food products. This, coupled with a cautious economic outlook due to declines in construction and manufacturing sectors, has led retailers to reduce promotional expenditure.
Larger established players in retail and e-commerce tend to dominate promotional activities, while smaller shops and niche sellers have seen declining revenues and reduced marketing budgets. This uneven competitive landscape can contribute to an overall reduction in promotional offers in certain food categories.
Retailers and wholesalers are slightly increasing their expected selling prices amid stable core inflation, likely reducing the frequency and depth of discounts to maintain profitability in the face of cost pressures.
Water followed beer as the second most frequently advertised product group, with 9,013 offers. Beer, both alcoholic and non-alcoholic varieties, was the most frequently advertised product in the first half of 2025, with 12,353 special offers. Brands like Coca-Cola, Krombacher, Veltins, and Gerolsteiner were among the most frequently advertised.
The German Brewers' Association criticized the "ruinous price war" of the four major retail conglomerates, suggesting they should question whether they are giving beer the respect it deserves. Krombacher did not comment on this matter.
The analysis by Marktguru considered promotional offers across various industries and all major retail chains, including supermarkets, discount stores, hardware stores, beverage stores, and wholesale markets. The gap between the standard and promotional price in retail is likely to increase further with new price increases for Krombacher and Veltins.
Coca-Cola beverages, considered a sales magnet, have been driving turnover and margin for retailers, especially during promotional actions. Florian von Salzen, managing director of Coca-Cola Europacific Partners Germany (CCEP), stated that Coca-Cola beverages bring people into the market and increase sales for the retailer. However, Coca-Cola has already increased prices several times in recent years.
In conclusion, the decline in promotional offers for staple products in Germany is a complex issue influenced by a variety of factors. Understanding these factors can help retailers and consumers navigate the current economic landscape and make informed decisions.
In the retail industry, larger businesses are increasingly dominating promotional activities due to tighter budgets among smaller shops and niche sellers. This trend may lead to a decrease in promotional offers in certain food categories.
Economic factors, such as increased costs and inflationary pressures, have reduced retailers' flexibility to offer promotions without impacting margins. As a result, retailers and wholesalers are slightly increasing their expected selling prices to maintain profitability.
The analysis of promotional offers across various industries suggests that the gap between the standard and promotional price in retail is likely to increase further with new price increases for products like Krombacher and Veltins.
Coca-Cola beverages, often considered a sales magnet, are driving turnover and margin for retailers during promotional actions. However, the repeated price increases by Coca-Cola could potentially impact the overall prominence of promotional offers for their products.
