German boat market limps through 2024 but some positive signs signal hope for 2025
GMBA representative for Germany, Falk Morgenstern, takes a frank look at the state of the German boat market and leisure marine business and asks, ‘what will 2025 have in store for the industry?‘
This article was originally published in Marine Industry News magazine, issue 13.
“In the first half of the year, almost 30 per cent more companies in Germany filed for bankruptcy than in the same period last year – the highest level since 2016. The service industry, in particular, is causing concern in all areas. One small ray of hope: the consumer mood of German households finally seems to be slowly recovering after a long low, although this effect does not seem to have reached the marine industry yet.
Covid catches up: marine business is slow
All sectors in the German boat market – both sail and power – were depleted in 2023. The latest BVWW figures show that 1,455 boats (excluding superyachts) were imported into Germany last year – down 32.1 per cent on 2022’s figures (2,144 units sold). The sail boat market plunged by 67.7 per cent to just 352 units, while motor boats rose by 4.5 per cent to 1,103 units.
Regardless of whether we are assessing sailing or motor boats, demand has fallen drastically in all segments and business is slow. In some cases, boats are being sold below cost prices, which the companies say is simply a way of securing their liquidity. This situation is a result of catching up following the covid pandemic. During the pandemic, many newcomers and novice boaters discovered watersports for themselves. Among other things, this drove up prices at a time when production lines were partially at a standstill. Scarcity of resources led to hefty price increases for new boats during the pandemic, driven by hampered transportation and logistics issues in the container shipping industry leading to a lack of engines and accessories.
Boot Düsseldorf pictured. Boat shows remain integral to the industry. Image courtesy of Messe Düsseldorf / C Tillmann
In some cases this scarcity saw the price of yachts rise by more than 50 percent. But the market is now catching up and acceptance among German customers is only limited. If, according to the price list, a 37ft sailing yacht from 2020 had a base price ex-shipyard of around €130,000 and now the base price for the same boat is €185,000 (+42 per cent), this is not entirely understandable from the customer’s point of view. The fact that the number of registered boats in Germany increased in the first half of 2024 is due to the fact that new owners have now received their yachts, some of which they ordered almost two years ago.
Many pandemic newcomers are currently selling their used boats again at comparatively high prices, and often even make several tens of thousands of euros in profit after three years of use. The current high supply of modern used yachts in Germany is therefore another driver for the tight new boat market, and here, too, demand is very low.
The overall situation is currently putting a lot of pressure on companies’ profit standings. The main driver here is the tough competitive conditions and the interest rate level – though hopes of further reductions in interest rates could aid a turn of fortune.
High-end insulated, smaller vessels still suffering
As seen in several other European markets, the higher end of the marine industry is more insulated from the market depressions. With yachts priced around €500,000 or more, the market segment is little or not at all affected by the negative trend. At the higher end of the market, demand has remained almost the same and there are no significant differences between sailing or motor yachts. Catamarans, which are also generally in the higher price band, are still in high demand.
One current winner is the fishing industry, which can expect double-digit growth rates in some cases. However, it is not fishing boats that are in demand here, but rather fishing equipment and the corresponding fishing tourism.
Those most impacted by the slow market remain the boat producers with products priced between €50,000 and €300,000. The charter industry is also struggling, with businesses in some cases trying to compensate for the lack of demand with very high discounts.
Lack of skilled marine workforce
Service companies and marinas seem to be getting through the current situation best, as they are still fairly busy. The biggest problem in these market sectors, however, is the availability of skilled workers. The lack of skilled workers has led to numerous company closures in recent months, despite full order books.
The diving sector seems to have stabilised since the middle of the year, while the charter companies unfortunately have nothing positive to report yet.
Boat show trends
Trade fairs are still very important for the German boat market and customers. There is a clear trend here whereby manufacturers and customers are relying more on in-water boat shows. Although the costs of attending and exhibition at boat shows are enormous for shipyards and manufacturers, the events still play a very important role in the marketing process.
Fall boat shows have seen a good attendance, which is the proof that boating is still an attractive proposition.
Nevertheless, many marine manufacturers rely, sometimes very successfully, on their own events such as ‘open days’ or ‘in-house trade fairs’.
Marine industry in 2025
Since August 2024, a stabilisation and improvement in the recreational marine industry in Germany has been observed. This has led to a slight increase in demand for smaller motor or sailing yachts. Suppliers (engines, masts, equipment, etc.) have also noted a slight increase in demand for their products.
The decisive factor for this is the improved general mood in Germany and the improved interest rate level. With the prospect of further interest rates a possibility, it is hoped this brighter consumer mood could continue.
Falk Morgenstern is the Global Marine Business Advisors’ (GMBA) representative for Germany.
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