Despite the upcoming removal of Denmark’s sugar tax on sweets, chocolate, and coffee, Danes continue to cross the border into Germany to chase lower prices and variety, fueled by habit, social tradition, and broader savings on non-sugary goods.
Border Shopping Remains Popular Despite Domestic Tax Cuts
Starting next year, the Danish government plans to eliminate the special tax on sugary goods like chocolate, candy, and coffee. While this is expected to reduce retail prices within Denmark, it likely won’t stop the deeply rooted tradition of Danes traveling to German border shops for bulk purchases.
A key reason is simple: even with the coming price cuts, sweets remain cheaper in Germany. For example, a “pick and mix” candy assortment still costs less per 100 grams in German retailers like Fakta Tyskland than in Danish stores. A Marabou chocolate bar, which might fall by six Danish kroner in price after the tax repeal, can still be bought in Germany for almost half that amount.
Savings Go Beyond Sweets
For many Danish consumers, especially those living near the southern border like in Aabenraa, crossing into Germany is not just about chocolate. Many customers stock up on a wider range of essentials such as meat, coffee, detergent, and beverages, including soda, beer, and wine, that remain significantly cheaper compared to Danish prices.
Two shoppers from central and southern Denmark drove more than 180 miles round-trip to visit border stores. Their shopping lists included family-size packs of soda, beer cases, and cleaning supplies, items that continue to offer savings regardless of sugar taxation.
Government Expects Huge Drop in Cross-Border Sales
According to Denmark’s Ministry of Taxation, eliminating the sugar tax is expected to reduce the country’s cross-border trade by approximately 400 million Danish kroner (about $58 million USD) annually. This projection is based on the assumption that fewer Danes will find it worthwhile to travel for goods now more competitively priced at home.
While this may dent the earnings of German-based discount retailers near the border, many remain unfazed. Chains like Fakta Tyskland and Fleggaard say they are confident in their ability to compete on other products and continue attracting Danish consumers.
Why Germans Will Keep Luring Danish Shoppers
Variety and Volume Purchasing
German border stores benefit from scale and buyer power. They can purchase goods in much larger quantities than Danish supermarkets, allowing them to consistently offer lower unit prices, even for items unaffected by Denmark’s tax changes.
Shoppers also enjoy a much wider product range, particularly of international brands that may be limited or expensive in Denmark. The sheer size and selection of stores south of the border make them attractive retail destinations.
Shopping as a Social Ritual
Experts suggest that border shopping has become more than just a practical choice, it’s a cultural experience. For some families, especially those living in South Jutland, the act of driving across the border is almost ceremonial. Packing up the car and venturing to Germany has become a cost-saving outing and occasional family trip.
Research from the University of Southern Denmark identifies three main reasons cross-border shopping will likely continue: competitive pricing capabilities of German suppliers, emotional and cultural motivations, and the desire among consumers to feel savvy about stretching their budget.
Tax Cuts Alone Won’t Change Habits
Although the elimination of Denmark’s sugar tax may help consumers save on candy and other sweets, it doesn’t affect the higher VAT rate or general product pricing in Denmark. Everyday essentials such as meat and household goods continue to be significantly cheaper in Germany due to different tax structures and retailer pricing strategies.
Given those broader savings, consumers like Berit Hansen from Aabenraa say they don’t see much incentive to stop shopping in Germany. For her, and for many others, it will take more than one tax cut to shift purchasing habits back toward domestic stores.
Ultimately, the enduring appeal of German border stores seems to rest not just on cheaper chocolate, but on the total savings shoppers can make, and the tradition it has become.
