New procurement markets for the German economy – 2025 update

At a time of growing uncertainty, companies face the challenge of making their supply chains more resilient. Bavarian companies with an international focus, in particular, rely on functioning and open procurement markets to remain competitive. A large proportion of the intermediate goods they require are sourced from abroad.

On behalf of the vbw – Association of the Bavarian Economy, we have analysed potential new procurement markets for key German and Bavarian sectors.

Diversification as a solution

The diversification of supply sources is becoming increasingly important. Our analysis shows that almost all categories of intermediate goods offer alternatives. Markets offering stable external economic conditions are particularly promising. Three regions are particularly noteworthy:

• East Asia: Japan and South Korea offer reliable political conditions and extensive product ranges. Both countries have free trade agreements with the EU, which ensures straightforward market access.
• Mexico and Canada: Both countries are geopolitically stable and offer a wide range of intermediate goods. Their geopolitical positioning is advantageous for European companies. Here too, free trade agreements ensure good market access.
• Southeast Asia: Countries such as Vietnam and Indonesia are investing heavily in their industrial production capacities, thereby expanding their portfolio of intermediate goods. The EU is currently negotiating several free trade agreements in the region, which could favour future trade relations.

Factsheets on the key procurement markets

The study analyses the current procurement markets of German and Bavarian companies at the level of individual product groups and identifies the most important potential procurement markets. Factsheets for nine product groups provide an overview of which new procurement markets might be available in the individual product categories. With the help of this information, companies can identify and evaluate potential procurement markets on the basis of reliable data.

Our approach

As with previous studies, we have analysed a total of nine product groups that form the industrial core of the Free State of Bavaria and account for the vast majority of Bavaria’s intermediate imports. These include:

• chemical products
• pharmaceutical products
• metals
• metal products
• IT equipment, electronic and optical products
• electrical equipment
• machinery
• motor vehicles and motor vehicle parts
• rubber and plastic products

For each product group, an analysis of foreign trade data is used to quantify which current procurement markets are well-established within the individual product categories and which remain underdeveloped. In addition, using a traffic light system, we have assessed the extent to which these procurement markets pose a geopolitical risk and how good market access is for German companies.

Links and downloads

View the study (PDF, in German)

Further information on the vbw website (in German)

View the previous study

Project team: Philipp Kreuzer, Johann Weiss

Last updated: 06.11.2025