Germany faces record low birth rates amid shifting consumer spending

Germany is experiencing a significant demographic shift as birth rates hit their lowest level since 1946. In 2025, approximately 654,241 children were born, resulting in a fertility rate of 1.32 children per woman. Data from the Federal Institute for Population Research (BiB) highlights a “fertility gap,” noting that while the actual birth rate is low, the desire for children remains higher, with women aged 18 to 39 expressing a wish for an average of 1.7 children.

Factors contributing to this decline include housing shortages, a lack of childcare facilities, and general future uncertainties. Additionally, a demographic structural effect is at play, as smaller birth cohorts from the 1990s are now entering their child-bearing years.

Despite the declining number of births, consumer spending on children has not decreased at the same rate. While total spending on baby and child equipment fell by approximately 2.2 percent to 2.36 billion euros, the expenditure per child actually rose by nearly 2 percent to roughly 1,166 euros. This suggests that while there are fewer children, parents are spending more per child, often through more conscious purchasing decisions.