A spring survey by the Federal Association of the German Confectionery Industry (BDSI) looked a the economic development of medium-sized members in the first quarter of 2021 and said ‘the industry remains tense due to the coronavirus crisis’.
43% of companies reported a decline in sales in the beginning of the year, because important sales channels such as department stores or leisure facilities (cinemas, amusement parks, zoos, swimming pools) have been closed due to lockdown restrictions.
Three out of four (76%) of the companies are recording very high increases in personnel costs due to the corona pandemic - in particular due to increased occupational safety measures, tests of employees for the coronavirus and increased absenteeism due to illnesses, quarantine and childcare.
On top of dealing with these issues, confectionery manufactures are also affected by the rising costs of agricultural raw materials and packaging materials. In addition, 63% of companies experience not only higher costs but also serious supply problems with packaging material, the BDSI reports.
"Both the current and the new federal government from autumn must give top priority to consistently strengthening the domestic economy, because only then can jobs and investments in Germany be secured in the long term," said Bastian Fassin, Chairman of the BDSI.
"In the current situation, however, the small and medium-sized companies in the German confectionery industry in particular can no longer cope with ever new regulatory requirements."
Responding to the BDSI survey, 65% of confectionery and snack manufacturers do not expect the coronavirus crisis to end until 2022, and another 20% of companies are not expecting an upturn in business before 2023.