The Hidden Cost of German Food

Affordability of Food in Germany in 2025

At first glance, the cost of food in Germany seems remarkably low compared to other EU countries. Discount grocery chains like Aldi, Lidl, and Penny dominate the market, offering prices that are hard to beat. Germany is famous for its value-oriented retail sector, and discounters make up nearly 40% of the grocery market, the highest share in Europe (UK Gov Trade Report, 2024).

But a deeper look into the cost of German food reveals a changing landscape. Food price inflation across Europe, including Germany, has surged in the last two years. According to Germany’s official statistics agency, the cost of German food in May 2025 was up 2.8% compared to the previous year, outpacing general inflation which was at 2.0% (Destatis, 2025). Even budget-friendly retailers have been affected with many raising prices quietly, using tactics like reducing package sizes or limiting discounts.

Cost of German Food: The Price of Quality

Germany’s food culture places strong emphasis on fresh, regional, and high-quality ingredients. While this results in some of Europe’s cleanest, safest, and most regulated food products, it also brings hidden costs that many expats and newcomers don’t expect when it comes to the cost of German food.

Organic food is a prime example. Germany is Europe’s largest market for organic products, with consumer demand continuing to rise. In 2025, the organic market grew to over €17 billion, supported by Germany’s strong focus on sustainability and traceability (Schaack et al., Organic Market Report, 2025).

Additionally, stringent regulations on animal welfare and environmental standards mean that German meat, dairy, and produce often come at a premium. According to a 2023 market study, German consumers rank quality and sustainability over price — a trend that is reflected in supply chains and pricing (Marktstudie Proteintrends, BLE, 2023).

The Cost of Convenience

Modern German supermarkets are well-equipped with convenience items: from pre-cut vegetables, pre-marinated meats, to an increasing selection of ready-to-eat meals. These offerings cater to busy lifestyles but come with a higher price tag due to labor, packaging, and logistics costs.

According to Pricefx, a pricing intelligence company, German retailers are responding to consumer demand for convenience and international variety, even though this trend adds to the overall cost of German food in 2025. Inflation in energy and wages has further increased the cost of food production and transport (Pricefx Industry Analysis, 2025).

Many supermarkets now carry niche products, from lactose-free yogurt to Korean gochujang, but these premium items are costly to import and maintain, especially with fluctuating trade and shipping rates, which impacts the cost of food in Germany.

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Beyond the Groceries

It’s not just about the supermarket aisle. Dining out is a major cultural and social activity in Germany. From bustling beer gardens to Michelin-starred restaurants, food culture here is deeply ingrained — and increasingly expensive.

Post-pandemic lifestyle shifts and rising labor costs have led to a notable increase in restaurant prices. In May 2025, ingredients like fruit (+4.3%), fish (+3.7%), and dairy (+3.1%) rose significantly — affecting restaurants and bakeries alike (Destatis, 2025).

Yet, many Germans and expats continue to dine out frequently, citing convenience, quality, and lifestyle. This comes at a cost: the average dinner out in a mid-range restaurant now costs between €20–35 per person, not including drinks.

Budgeting for German Food

So, how can you manage the cost of food in Germany in 2025?

• Plan your meals: Meal prepping and cooking at home are still the best ways to reduce costs. Avoid impulse buying by shopping with a list.
• Use seasonal produce to keep the cost of German food in 2025 in check: Seasonal fruits and vegetables are cheaper and fresher. Strawberries in June? Great deal. Strawberries in January? Imported and costly.
• Shop smart: Explore farmers markets (Wochenmärkte) for fresh produce at lower prices and discount stores like Netto or Aldi for pantry staples.
• Limit food waste: Germans throw away an estimated 11 million tons of food annually. By freezing leftovers or reusing ingredients, you’ll save money and reduce waste (BMEL, 2024).

Choosing Quality of Life Without Breaking the Bank

At Nexus-Europe GmbH, we understand that relocation isn’t just about business — it’s also about understanding the daily costs of living, including cost of German food. That’s why, in addition to helping you set up and operate your company, we also help you choose the city that best suits your lifestyle and industry needs.

Explore our Business Operations & Compliance Roadmap to see how we build a personalized, end-to-end plan: from establishing your company to helping you move to Germany through business.