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There are advantages and also potential challenges for Northern Ireland companies doing business in Germany.

Germany is an attractive market for investors as well as new business owners. It is the largest economy in Europe and ranks as the fourth-largest global economy.

Advantages of exporting to Germany

Germany can offers numerous benefits to companies looking to do business in the region including:

• dual market access allows businesses in Northern Ireland to trade goods freely with Germany as it is part of the European Union. Read more about how to take advantage of dual market access.
• one of the world’s largest and most stable trading economies
• is among the top ten most innovative countries worldwide
• largest consumer market in the European Union
• offers a variety of incentive programs and public funding options

Challenges of exporting to Germany

You should also be aware of some challenges you could face when exporting to Germany including:

• it can be challenging to form a business due to complex bureaucratic requirements
• tax laws can be complicated

The European Union (EU) is an economic and political union of 27 countries. 

Dual market access allows businesses in Northern Ireland to trade goods freely with Germany as it is part of the European Union.

What is dual market access?

Dual market access allows businesses in Northern Ireland to trade goods freely with both Great Britain and the European Union.

This means goods can move from Northern Ireland to Great Britain and the EU without customs checks or tariffs, offering businesses a competitive advantage in both markets.

What are the benefits of dual market access when exporting to Germany?

With dual market access, your manufacturing business based in Northern Ireland can: 

• Expand your customer base: Sell goods seamlessly to both GB and EU markets.
• Avoid trade barriers: no customs declarations or tariffs when trading with the EU.
• Enhance your competitiveness: access to two major markets provides a unique edge over businesses operating in only one.
• Reduce compliance costs: Northern Ireland maintains regulatory alignment on goods with EU regulations and there are no additional approvals required to place qualifying goods on the on the market in GB.
• Simplify your supply chains: businesses in Northern Ireland can act as a gateway between the UK and EU, leveraging their unique position to enhance logistics and distribution networks.  

Dual market access presents opportunities for businesses meaning that Northern Ireland-based companies can strengthen relationships with both UK and EU customers while maintaining supply chain efficiency. 

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Opportunities exist for UK companies across a wide range of sectors, including technology, automotive, health and life sciences, food and drink and renewable energy.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Renewable energy

Germany is the EU’s largest market contributing 21% to GDP. The new government will increase the target for renewables from 65% to 80% by 2030 with impressive growth trajectories for offshore wind, hydrogen, grid technologies and solar. This is fertile ground for UK exporters.

Growth potential for offshore wind

Offshore wind will increase from 20GW to 30GW by 2030, 50GW in 2035, and 70GW in 2045. Upcoming opportunities include marine geophysical, geotechnical and environmental survey services, design planning and engineering services, CTVs, SOVs, logistic and transport services. There will also be opportunities in remote and autonomous technological solutions enabling condition monitoring and maintenance and blade recycling.

Hydrogen

German H2 strategy envisages 5 Gigawatts (GW) of generating capacity by 2030, plus 5 GW by 2035 to 2040 latest. A new supply chain and innovative solutions are required to replace the fossil resource in ~217 Terrawatt power for industry alone. €9bn funding (€2billion dedicated to R&D) are allocated to build it. With 30 small scale pilot projects underway, the German Hydrogen market will be working closely with UK projects and companies.

Photovoltaic and solar thermal

New developments in photovoltaic and solar thermal opportunities are emerging due to targeted expansion of solar power to around 200GW by 2030, compared to 54GW installed capacity in Q4 2020. In future, solar power installation will become mandatory on commercial property, and encouraged on domestic building. Germany occupies one quarter of the EU market with around 80.7 GWp, more than double of Spain and Italy’s 30GWp.

Future mobility

The future mobility sector remains the strongest and most export-driven industry in Germany with a total turnover of €410.9 billion and 786,100 people employed in the industry as a whole in 2021. It’s transition towards connected and autonomous vehicles, and clean mobility creates excellent opportunities for UK companies providing solutions in vehicle connectivity, mobility management, sustainable mobility, and battery technology development.

Investment in future mobility

German automotive companies are investing heavily to meet the transport needs of the future and contribute to decarbonisation efforts. They transform their business from a manufacturer to a 'future mobility' service provider. With an increased focus in autonomous technologies, energy efficiency and battery technology new opportunities arise for UK companies.

Demand for UK skills

The biggest challenge German automotive companies are facing is the need for new software and engineering talent. The UK's reputation for high-end engineering and software skills is recognised in Germany. Automotive companies are also more open than ever to engaging in partnerships, rather than direct procurement.

Ties with the UK

The ties between the German and UK automotive industries run deep. Leading global players based in Germany have significant existing manufacturing ties to the UK, including VW, BMW, Ford, Daimler AG, Opel and Bosch. The UK automotive industry is close to home for German carmakers and respected for its business practice and innovation.

Health and life sciences

Germany is at the forefront of healthcare innovation while also being the number one in Europe’s healthcare market by market volume, number of patients and healthcare providers. In this sophisticated and demanding market, the opportunity for companies providing innovative products and services is substantial.

Market size

Germany offers one of Europe’s largest markets for healthcare and life sciences products. Healthcare expenditure reached €457 billion with an annual growth of 5.4% in 2021. High market demand and Germany’s strategic location make it a preferred choice for many international healthcare and life sciences companies preparing to expand.

Health technology

An increasing demand for healthcare services in Germany, combined with widespread digitisation and rapidly changing policy and legislation for healthcare system reforms, is paving the way for digital solutions in healthcare. With a 27% market share and sales of almost €43 billion Germany is by far the largest European market, Germany is also a world leader in medical technology and biotechnology, offering considerable opportunities for UK companies.

Pharmaceuticals

Germany presents significant opportunities with a sales increasing by 5.4% and industry revenue reaching €56.5 billion in 2022. The country can offer unique benefits to UK companies in the pharmaceuticals sector, including direct access to internationally renowned scientists, outstanding research units, and major international markets.

Food and drink

With around 84 million inhabitants, Germany represents a very receptive market for international food and drink products. There are significant growth opportunities in spirits, including low and non-alcoholic spirits, confectionery, sweet and savoury snacks, vegan, organic, free from and international products produced in the UK.

Growth in the online market

The German food and drink industry is highly competitive, but until now has also been relatively conservative in its operating models. The introduction of new technology and digitalisation has helped to change this and resulted in the number of imports from the UK increasing.

Increasing demand for goods from other countries

The German public is becoming more open to new tastes and flavours. Food and drink imports from the UK remain concentrated at the medium to high end of the market, but interest is growing steadily, enabling the range of products to increase.

Opportunities for specialist sectors

Specialist sectors such as vegan, organic and free from foods are becoming increasingly popular in Germany. This has been underlined with organic food product retail sales exceeding €15 billion in 2022 and a 42% growth in vegetarian or vegan meat and dairy alternatives. As in most European countries, the demand for private label products is increasing. This is visible throughout the supermarket chains and discounters. As the UK is one of the leading private label products manufacturers, there is considerable potential in this sector.

Consumer goods

Germany is the largest consumer market in Europe, having 82 million possible consumers, with a low unemployment rate and an affluent population. With an excellent logistics infrastructure both domestically and extending into neighbouring countries, Germany is well-located for distribution to Western, Central and Eastern Europe.

Growth due to innovative sales methods

E-commerce is growing fast in Germany, especially among consumers aged 50 plus, a major group with strong purchasing power. Germany is responsible for around one quarter of all European B2C e-commerce turnover. Demand is also increasing in mobile commerce, social media shopping and innovative omnichannel sales solutions.

World-leading trade fairs

Germany hosts some of the world’s largest trade fairs across all consumer sectors. Just some examples include IFA, the worlds largest consumer electronics shows, living, dining, and giving at Ambiente Frankfurt and child and baby at Kind und Jugend Cologne.

High-potential products

Major growth areas in the 2020s are homewares and interiors, personal care and cosmetics, and DIY and gardening.

There are a lot of things to consider before you start exporting to Germany. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

The standard rate of VAT in Germany is 19%. Convenience goods and day-to-day services are charged at 7%. Some services including banking, healthcare and non-profit work are VAT exempt.

Packaging and labelling

Packaging has a strong influence on German consumers and informs how they choose products. It is important to check that your packaging is to German tastes. Please also see the for guidance.

EU standards apply to packaging. .

Labelling should be translated into German. Certain products, such as food and textiles, have specific labelling requirements.

Payment terms

Standard payment terms for business-to-business transactions are 60 days and 30 days for public authorities. You can claim late payment interest when terms are not met.

Services regulations

If you’re a UK business offering services in Germany, you need to follow regulations about:

• getting an authorisation or a licence to provide a service
• complying with local business regulations
• EEA nationality requirements which could prevent you from providing services in some sectors

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Trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.

to trading with Germany.

that are affecting your business.

Routes to market

In a stable and secure market, there's a wide range of routes to market.

Options which may work well for you are:

• agents and distributors - using is an effective way to develop a presence in Germany due to the size of the market. German is the language of business and fluency is a major advantage for your company when using local partners.
• direct sales - due to the relative closeness of the market, are possible. However, the need for German language skills should be considered. Ensuring full coverage of the whole market could be a challenge.
• e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into Germany. The Department for Business and Trade (DBT) can suggest to help you get started. DBT’s can also help. The is a useful source of further information on routes to market in Germany. You can find more useful information on the and websites.

Business culture

German firms are often family-owned and take a longer-term view. They value personal relationships highly.

Often businesses will not necessarily go for best price, but for long-term shared vision or relationship.

Business people will be well prepared for meetings, and will have carefully researched your products and services.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you . Further 91Ï㽶»ÆÉ«ÊÓƵ for businesses in Northern Ireland can be found through a network of , based in key UK export markets.

Developing exports to Germany could be a part of growing your business. But breaking into the market can be challenging. The right 91Ï㽶»ÆÉ«ÊÓƵ and advice can significantly improve your prospects.

Invest NI offers a range of advice, plus additional 91Ï㽶»ÆÉ«ÊÓƵ services for businesses trading with Germany.

• – get 91Ï㽶»ÆÉ«ÊÓƵ with market research and market visits.
• - join trade missions and exhibitions to access new opportunities, strengthen relationships, and accelerate your business’s global growth.
• – access export and capability solutions to get the knowledge and skills to structure and build on your export activity.
• - assesses your business's readiness for exporting and get a tailored report sent to you, detailing your journey, next steps, practical tips, templates, and 91Ï㽶»ÆÉ«ÊÓƵ available.
• Invest NI offers advice and 91Ï㽶»ÆÉ«ÊÓƵ to help businesses .
• Invest NI can advise on how to use to 91Ï㽶»ÆÉ«ÊÓƵ your exports
• Invest NI can advise on and may be able to provide financial 91Ï㽶»ÆÉ«ÊÓƵ directly to businesses.

As well as Invest NI, there are other sources of 91Ï㽶»ÆÉ«ÊÓƵ to assist with trading with the Netherlands.

• The Northern Ireland Chamber of Commerce (NICC) provides members with a to learn, up-skill and connect as they grow locally and internationally.
• Department for Business and Trade (DBT) in-market 91Ï㽶»ÆÉ«ÊÓƵ - eligible UK businesses can on exporting to specific countries from the DBT global network of international market hubs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.