Despite the German economy growing, value conscious German consumers remain on the lookout for the best deals in bakery and cereals, according to a new report from Canadean.

Germanys bakery and cereals market – with a value of $25.9 billion in 2014 – is forecast to register a CAGR of 1.1% between 2014 and 2019 by volume, and a lower CAGR of -0.5% by value.

It is evident that German consumers are still very much vastly driven by the desire for best value, which seems to be motivating 19.7% of bakery and cereals consumption.

Veronika Zhupanova, analyst at Canadean, explains, "More consumers have turned to retailers such as ALDI and LIDL in the search for value, leaving more premium brands with a challenge to justify higher prices to consumers."

In an attempt to do so, they need to appeal to the motivator that is more important than price to Germans – the desire to treat themselves.

Almost a third of bakery and cereals consumption in Germany are motivated by superior taste sensations reflecting how consumers consider indulgence to be worth trading up for.

This is especially true for cookies, wher this desire motivates 40.6% of consumption, as well as 36.8% for cakes, pastries and sweet pies and 34.9% for savoury biscuits.

Zhupanova says, "As consumers prioritise taste above all, manufacturers can target them with decadent flavour combinations, such as breakfast cereals with dark chocolate, sweet pomegranate seeds and savoury nuts."

According to the Canadean report, manufacturers should explore cross-promotion meal deals to maximise taste sensations for consumers, such as offering breakfast cereals with flavoured milk for example.