Purchasing power 2025

Find the potential customers who are interested in your products.

Consumer barometer for market analysis

Once a year, we calculate the forecast purchasing power for the whole of Germany. Nexiga has calculated an increase in the current purchasing power per capitapurchasing power to EUR 29,967 : EUR 2,041 more than in the previous year, an increase of 7%.

In real terms, purchasing power looks different due to the current crises and significantly higher prices in people's wallets. Ongoing inflation directly influences the development of purchasing power and plays a decisive role in determining the real value of money in the hands of consumers.

 

When inflation rises, purchasing power decreases, as the same amount of money can buy fewer products or services. Germans have had to accept real wage losses since 2021.In 2024, the average inflation rate in Germany was 2.2% and therefore significantly lower than in previous years: in 2023 it was 5.9% and in 2022 even 6.9%. This decline signals a normalization after the exceptionally high inflation rates of previous years.

The current growth is only 0.9% below the record value of 2024 (+7.9%), the strongest growth year since the turn of the millennium. After years of stable inflation and moderate wage increases, purchasing power growth accelerated from 2022 (+4.6%) and peaked in 2024. Growth will also remain high in 2025, but will be slightly below the previous year's figure.

Commitment to successful marketing

Dashboard on current purchasing power in Germany in 2025

Manage customer management more efficiently and plan locations, advertising and sales effectively. As an important indicator, knowledge of the forecast purchasing power for the whole of Germany in 2025 can be incorporated directly into the planning of marketing and sales activities and used for micro-geographical (more detailed) area levels.

Regional distribution of purchasing power

The current evaluation, which shows purchasing power 2025 for the whole of Germany at Municipality shows the regional distribution of purchasing power.

Purchasing power is particularly high in and around the major cities. The municipalities with the highest purchasing power extend in a crescent shape through the west of Germany, from Hamburg to Hanover and the Rhine region with Düsseldorf, the Rhine-Main area around Frankfurt, the Stuttgart region and the Munich area.

 

The municipalities with the highest purchasing power in 2025 will once again be Grünwald near Munich (comparative index 246.8) and Wohltorf near Hamburg (206.4). Königstein im Taunus (190.7) has to cede third place to Pullach i. Isartal (191.1). The inhabitants there have around twice as much purchasing power as the national average. 

The east-west difference remains stable 

As in the previous year, the "poorest" municipalities include Zittau in Saxony (83.6), Wolgast in Mecklenburg-Western Pomerania (84.5) and Prenzlau in Brandenburg (85.7), all of which are located in the new federal states. However, municipalities in western Germany are also included in this group with low purchasing power. These include cities such as Giessen in Hesse (81.2) and Germersheim in Rhineland-Palatinate (84.1). Trier (84.9) and Bremerhaven (85.9) are also among the cities with low purchasing power. 

 

There is still a difference between the West, which has greater purchasing power, and the East. After the municipalities in eastern Germany have caught up year on year, the difference in purchasing power will remain stable in 2025.

Nexiga's purchasing power map provides companies with a valuable basis for finding out the distribution of purchasing power within Germany and deriving strategic decisions from this. By identifying the regions with the highest (and lowest) purchasing power, companies can develop more targeted marketing and sales strategies and estimate resources more efficiently. This is particularly important when planning new locations, branches or sales networks, as choosing the right location can make a significant contribution to a company's success. Taking purchasing power into account is a decisive factor in effectively reaching potential customers and maximizing sales.

 

Purchasing power is defined here as the portion of disposable income that is freely available to households after deduction of taxes and social security contributions. This includes not only earned income, but also pensions, unemployment benefits, state transfer payments such as citizens' allowance or child benefit, as well as capital income. It is important to note that purchasing power is measured at the population's place of residence, which implies that the purchasing power map does not show where the money is ultimately spent. This can be particularly important for local marketing and local sales strategies, as areas with high purchasing power can be specifically selected for business activities.

 

In summary, Nexiga's purchasing power map is an indispensable tool for companies that want to be successful on the German market. It enables precise targeting, well-founded location decisions and the optimization of marketing and sales activities based on purchasing power distribution. Companies that use this information can base their strategies on solid data and thus minimize the risk of bad investments.

 
Sources: Nexiga's own calculations based on data from the DIW (German Institute for Economic Research), the Federal Statistical Office and the Federal Employment Agency. The data basis for the purchasing power map is a combination and enables Nexiga to create a detailed and reliable map of the distribution of purchasing power in Germany. 

Purchasing power indices are important indicators that show the disposable income of the population in different geographical units.

 

Overview of the various purchasing power indices:

 

  1. Purchasing power index (FRG = 100): This index sets the purchasing power in Germany as a base value of 100. It serves as a reference for calculating purchasing power in other countries.
  2. Purchasing power index1 (East and West Germany = 100): This index compares purchasing power between eastern and western Germany. It shows how purchasing power in the two regions has developed in relation to each other
  3. Purchasing Power Index2 (KGS2 / Federal state = 100): This index sets the purchasing power of a federal state as a base value of 100. It makes it possible to compare purchasing power between different federal states
  4. Purchasing Power Index3 (KGS3 / Administrative district = 100): This index compares the purchasing power within an administrative district and sets this as a base value of 100
  5. Purchasing Power Index5 (KGS5 / County = 100): This index sets the purchasing power of a county as a base value of 100 and makes it possible to compare purchasing power between different counties
  6. Purchasing Power Index8 (KGS8 / Municipality = 100): This index compares the purchasing power within a Municipality and sets this as a base value of 100
  7. Purchasing power indexP2 (postcode2 = 100): This index sets the purchasing power of a zip code area as a base value of 100 and enables a comparison of purchasing power between different zip code areas

 

These indices are useful for market analysis, location planning and targeted marketing strategies, as they help to understand and compare the consumption potential in different regions.