A study conducted by the Humboldt Professorship for Sustainable Food Economics at the University of Freiburg indicates that the food processing sector in Germany is undergoing a profound structural change, making the entire food system increasingly vulnerable to crises. According to the university’s announcement on Friday, the number of companies in food processing nationwide has fallen by 44 percent between 2002 and 2022, reaching approximately 25,000. This decline is even sharper in the baking and butchery crafts, where the number of businesses dropped by as much as 60 percent.
Concurrently, large industrial corporations and commercial conglomerates are consolidating market shares and power. By 2022, 83 percent of the sector’s revenue-totaling €238.5 billion-was generated by just 795 major companies, which accounted for only three percent of all firms. Researchers, led by Arnim Wiek, warn that this trend threatens food supply security, biodiversity, and public health. Specifically, the availability of nutritious, artisan-made products is decreasing, while the proportion of industrially processed foods high in sugar, salt, and fat is rising.
The academics evaluate current government policies as insufficient. They are calling for greater support for small and medium-sized enterprises, as well as traditional craft businesses. The study pinpoints four key areas for action: targeting the root causes of problems rather than implementing only short-term projects; better aligning funding programs and regulations to benefit smaller enterprises; and ensuring a systematic monitoring of the effectiveness of implemented measures.
