Rise in Business Insolvencies Hits German Natural Food Industry Amid Broader Economic Challenges

Germany is facing a significant increase in business insolvencies in 2025, with Naturkost Übelhör GmbH & Co. KG, a renowned natural food company, being the latest victim. The Ravensburg District Court initiated insolvency proceedings for the Friesenhofen-based firm on October 15, 2025. Founded in 1987, Naturkost Übelhör grew from a small operation into an international leader in processing organic superfoods like chia seeds, legumes, and cocoa products, employing 38 people. The company previously operated Europe's sole chia seed cleaning facility but now struggles to sustain operations amid financial difficulties.

This insolvency case epitomizes the nationwide trend, where business insolvencies are projected to increase by 11% to approximately 24,320 cases this year, a figure already surpassing global averages. Allianz Trade Germany's CEO, Milo Bogaerts, warns that 2026 could see an even higher number of insolvencies, potentially hitting 24,500—the highest level in twelve years.

Naturkost Übelhör is currently managing efforts to fulfill existing contracts, sell perishable inventory, and secure employees' wages through insolvency funds, but its long-term survival and potential restructuring plans remain uncertain. The broader economic backdrop includes restrictive credit conditions and elevated interest rates, placing considerable pressure particularly on small and medium-sized enterprises like Übelhör.

"While there might be light at the end of the tunnel, forecasts suggest tougher times ahead," Bogaerts said, reflecting widespread industry concerns about Germany's economic landscape. This challenging environment underscores the urgency for businesses to seek financial resilience and adaptability.

The rise in insolvencies signals systemic economic strains, signaling that firms across sectors, including prominent natural food manufacturers, must navigate rising costs and credit limitations carefully to avoid similar fates.