German confectionery exports deteriorated dramatically in the first half of 2020 due to the coronavirus crisis, the Federal Association of the German Confectionery Industry (BDSI) has reported.
Worst hit were medium-sized businesses, 67% of which reported a significant drop compared with last year and said prospects for a rapid recovery in transatlantic trade and exports to South East Asia are particularly pessimistic.
The German domestic confectionery business also posed considerable challenges for many manufacturers, said the BDSI.
Decline in sales
A total of 56% of the companies reported a decline in sales in the first half of 2020. In addition, manufacturers do not expect any rapid recovery in crucial sales channels such as department stores, train stations, airports, confectionary shops, leisure facilities, cinemas and public festivals in the second half of 2020.
The BDSI survey also revealed that companies have to cope with cost increases caused by the coronavirus pandemic, especially due to high employee absenteeism, the implementation of distance regulations and additional hygiene regulations in production, along with more difficult procurement of raw materials and late payments from customers.
To combat the tough trading circumstances, the BDSI, has called for consistent strengthening of the domestic economy and the safeguarding of liquidity in companies as a top priority by politicians in order to secure jobs and investments in Germany.