Market Trends of germany adhesives Industry
With the advancement in plastic recyclability and demand for food and beverage industry, plastic packaging to lead the packaging industry
- With the rise in busier lifestyles, greater spending power, and related factors in the country, the demand for quick and on-the-go packaged products is increasing.Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including supply chain disruptions and imports and exports trade. As a result, the country's packaging production declined by 5% in 2020 compared to the previous year, significantly affecting the market.
- Germany is one of the biggest e-commerce markets in Europe and has the second largest population in Europe, which will drive the packaging production market. Compared to Europe’s average, Germany has a high number of online shoppers, the percentage of people using the internet, and the average annual spending. Total sales of goods sold online reached around EUR 99.1 billion in 2021, an increase compared to EUR 83.3 billion in 2020.
- Packaging production is majorly driven by plastics in the country, which nearly accounts for around 79% of the packaging produced in 2021. The plastic packaging industry is majorly driven by the rapid growth of the food and beverages industry in the country. In addition, with the advancement of plastic recyclability, the plastic production segment is likely to register the fastest growth rate of around 3.32% CAGR during the projected period. Therefore, all the above-mentioned factors will further thrive the packaging demand in the coming years in the country.
Understand The Key Trends Shaping This Market
Download Sample
Despite the government regulations on carmakers, electrical vehicles demand is likely to propel the automotive industry
- The automotive manufacturing industry is the most important industry in Germany, and 24% of the domestic industry revenue is generated from this industry. Automotive production in Germany declined by 9.4% in the third quarter of 2018, as the country experienced an economic slowdown in the second half of 2018, coupled with the problems in the implementation of the new Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP).
- Over 75% of the automotive units manufactured in Germany are destined for international markets, which are mainly the United States, China, and other EU countries. The trade conflicts between the United States and China sapped away the global demand in 2019. This, coupled with the new EU-28 standard of CO2 emissions, which mandates carmakers to achieve average CO2 emissions of 95 grams per kilometer across newly-sold vehicles, has briefly restricted automotive production in the country.
- In 2020, the COVID-19 pandemic hit hard on the already declining automotive production. In 2020, automotive production fell by 24.5% Y-o-Y, and the supply chain constraints that quickly followed, coupled with the semiconductor chip shortage in 2021, have further declined automotive production by 10.8% compared to 2020 levels. The long-lasting effects of chip shortages and supply chain restrictions are expected to restrict automotive production in Germany in the forecast period. The German government's e-mobility plan aims to achieve 15 million EVs on the road by 2030. This is expected to drive up automotive production in the country. Due to all these factors, Germany's automotive production is expected to increase during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- New innovations in aircraft models by companies such as Boeing and Airbus, as well as the ramping up of commercial aircraft manufacturing to boost the aerospace industry
- In addition to the United States-China trade wars, being one of the largest footwear exporters, German footwear demand is likely to increase
- The government initiatives towards infrastructure including digital parks and hospitals to boost the construction industry
- Owing to the clear visualization and promotion of furniture through e-commerce websites, furniture demand is increasing
