"Anyone starting a bakery today needs courage, passion, and entrepreneurial spirit. The high number of new businesses shows the confidence young entrepreneurs have in our craft," says Roland Ermer. (Photo: © Central Association of the German Bakery Trade)
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June 17, 2026
Sales in the baking industry rose by 1,3 percent in 2025 compared to the previous year. At the same time, the decline in the number of businesses slowed, and the number of new businesses reached a new high of 448, the highest since 2018.
In economically challenging times, the baking industry has proven resilient. Despite difficult conditions, industry revenue increased by 1,3 percent to €18,14 billion last year. At the same time, the number of new bakeries reached a new high since 2018: 448 businesses started operating in 2025, which also helped to mitigate the decline in the overall number of bakeries.
The number of traditional bakeries fell by 2,8 percent to 8.659 businesses. According to the Central Association of the German Bakery Trade, the structural transformation of the industry is thus continuing somewhat more slowly than in previous years. "Behind every business closure is an entrepreneur who has often been responsible for decades. The fact that the decline has slowed is positive," says association president Roland Ermer.
Nevertheless, the baking industry warns against interpreting the current figures as a sign of relief. Ermer: "Many businesses are operating at their limits and struggling daily with increased costs and ever-growing bureaucracy." High energy and fuel prices, rising wages and ancillary wage costs, as well as ever-increasing bureaucratic burdens are pushing businesses to their breaking point.
The number of employees fell slightly by 1,4 percent to 232.000. "The figures show that our skilled trades remain efficient and resilient. However, they also show that many businesses can only survive economically with enormous effort. Reserves have been exhausted in many places. If policymakers don't act now, the situation could quickly turn ugly," explains Ermer.
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The development in new business start-ups is particularly positive. "Anyone starting a bakery today needs courage, passion, and entrepreneurial spirit. The high number of new businesses demonstrates the confidence young entrepreneurs have in our trade. Politicians must not betray this confidence. Those who want more entrepreneurship must finally improve the framework conditions instead of creating new burdens," said Ermer.
Despite positive figures, the Central Association is calling for political action. Artisan bakeries compete with industrial bakeries and often have to meet the same requirements as industrial companies. This places a greater burden on many artisan bakeries because, unlike industrial companies, they don't have a legal or administrative department to handle the implementation of these requirements.
"We finally need fair competitive conditions for the baking trade: Fair competition requires significantly less regulation for small and medium-sized craft businesses." A key concern of the Central Association remains the reform of the Working Time Act. The restriction of Sunday work is no longer appropriate.
"Those who are to offer fresh baked goods on Sunday and Monday mornings must also be allowed to produce them. The three-hour limit for Sunday baking should be abolished. It exclusively disadvantages artisan bakers and gives industrial manufacturers a competitive advantage," Ermer continued.
Furthermore, the baking industry is demanding a consistent reduction in bureaucracy and a limit on non-wage labor costs. In particular, the planned animal husbandry labeling law by the federal government, the EU deforestation regulation, and the introduction of municipal packaging taxes threaten businesses with additional bureaucratic burdens and new financial strain.
"Our figures show that the baking trade is still stable. But stability is not a given. If Germany wants a strong skilled trades sector, it finally needs an economic policy that rewards performance instead of stifling it with bureaucracy, costs, and prohibitions. If policymakers continue to neglect the competitiveness of small and medium-sized enterprises (SMEs), we will see significantly more business closures in the coming years," Ermer emphasizes.
Source: Central Association of the German Bakery Trade
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