Health and Wellness Series – Organic packaged food trends in the Netherlands

Market overview

The Dutch economy is advanced and highly developed, with the Netherlands boasting a gross domestic product (GDP) per capita of US$58,261.8 in 2021. The Dutch economy suffered a contraction in 2020, however it has since fully rebounded. The economy has benefitted from recovering global demand, with exports accounting for 67.0% of the GDP of the Netherlands in 2021, far above the regional average. (Euromonitor, 2022)

The economy continues to face uncertainty about the ongoing coronavirus pandemic. The Netherlands is also currently contending with unexpectedly strong inflation and is expected to see a slightly lower GDP growth rate than the regional average. (Euromonitor, 2022)

The Netherlands is crucial to European maritime trade, and the Dutch port of Rotterdam is the largest in Europe. In 2018, Rotterdam alone handled 441 million tonnes of freight, more than twice as much as the next largest European port and more than a tenth of all freight handled by ports in the European Union for that year. (Eurostat, April 2020). In 2020, the port saw 7.7 million tonnes of inbound agribulk goods. (Port of Rotterdam, accessed July 2022).

In 2021, the Netherlands had a population density of 519.0 persons per square kilometer. (Euromonitor, 2022) Despite this making the Netherlands one of the most densely populated countries in the world, the Netherlands has a strong agricultural sector and is the second largest food exporter in the world (The Netherlands and You, February 2021). In 2021, 4% of total arable land was used for the production of organic goods, lower than the EU average of 9%. Dutch organic production is primarily for exports rather than for domestic consumption. (USDA, 2021)

In 2021, the Netherlands was the eighth largest market for organic packaged food in the world and the fifth largest market in Europe. Retail sales of organic packaged food in the Netherlands totalled US$1.1 billion, accounting for 2.2% of global sales in 2021. Retail value sales of the organic packaged food grew at a CAGR of 7.7% from 2016 to 2021, which is slightly behind the global growth rate of 7.8%. The total retail sales are expected to reach US$1.5 billion by 2026, after growing at a CAGR of 6.4% from 2021 to 2026. In 2026, the Netherlands is expected to remain as the eighth largest market in the world.

The overall organic and non-organic packaged food market in the Netherlands has been affected by the pandemic, with consumers increasing their consumption of staple food and cooking ingredients. According to Euromonitor (2022), categories that benefitted strongly in this context included rice and pasta, processed meat, seafood, fruit, and vegetables, breakfast cereals, soup, edible oils and sauces, edible oils and sauces, dressings and condiments, butter and spreads, cheese and drinking milk products. The pandemic has also seen Dutch consumers shift more towards food perceived as healthy, with organic products gaining more traction, alongside vegetarian, vegan, reduced sugar or fat options.

Consumer characteristics

In 2021, total retail sales of health and wellness packaged sales in the Netherlands were US$6.5 billion. US$2.6 billion in sales were naturally healthy packaged food, or 39.9% of the total health and wellness packaged food market, and organic packaged food saw US$1.1 billion in sales, accounting for 16.9% of the health and wellness packaged food market. 'Free from' packaged food was the smallest category, however, saw by far the fastest growth from 2016 to 2021, and is forecast to see the fastest growth from 2021 to 2026. Organic packaged food saw the second fastest growth from 2016 to 2021 and are forecast to see the second fastest growth from 2021 to 2026.

In the Netherlands, consumption of organic food is largely motivated by concerns regarding health and the environment, concerns which are amplified among younger age brackets. Organic food is also relatively popular among those with higher incomes, as in the Netherlands organic food is on average 50% more expensive than non-organic food (USDA, 2021).

The pandemic has also increased consumer interest in products perceived as healthier, such as organic food. Supported by the increasing consumer interest on healthier food options, organic packaged food sales in the Netherlands saw higher growth at 9.6% from 2019 to 2020 and organic food has gained traction among younger consumers.

The Dutch consumers more reliant on organic food tend to be motivated mostly by the environment and health concerns, and although not very price sensitive, also tend to buy locally produced food. These consumers also seek out specialty organic shops rather than conventional retail outlets. More casual consumers of organic food, including people from affluent income brackets and younger age brackets, tend to be more motivated by taste and health claims, and are often more price sensitive. These consumers tend to purchase food through more conventional outlets. Although these consumers place less of a priority on locally produced food, the substantial overlap between those who buy organic and those who buy local is a significant obstacle to those seeking to export organic food to the Netherlands. (USDA, 2021).

Market size

In 2021, the total retail sales of organic packaged food were US$1.1 billion, expanded by a CARG of 7.7% between 2016 and 2021. The largest subsector in 2021 was organic dairy, with US$420.8 million in retail sales and accounting for 38.2% of the total organic packaged food sales. Other large categories included organic bread (US$151.2 million, 13.7% of the total retail value sales), organic chilled processed meat and seafood (US$61.4 million, 5.6% of the total retail sales) and organic edible oil (US$53.5 million, 4.9% of the total retail sales).

Organic dairy saw the largest growth in absolute value terms and second fastest growth at a CAGR of 9.7% from 2016 to 2021, whereas organic baby food experienced the fastest growth at a CAGR of 13.3%. From 2016 to 2021, retail sales of organic dairy saw their value rise by US$155.9 million, accounting for 45.9% of the total retail value sales increase of the organic packaged food over the historic review period (2016-2021).

From 2021 to 2026, the retail sales of the organic packaged food are expected to grow at a CAGR of 6.4%, reaching US$1.5 billion by 2026. Organic dairy is forecast to have the fastest growth, at a CAGR of 8.0%, reaching the total retail sales of US$619.2 million by 2026. By 2026, organic dairy is expected to make up 41.2% of the organic packaged food market, and is expected to rise in value by US$198.4 million between 2021 and 2026. The expansion of the organic packaged food market in the Netherlands during the forecast period (2021-2026) will be mainly supported by an increase in the retail value sales of organic dairy. The sub-category expected to see the second fastest growth from 2021 to 2026 is edible oils, which is expected to grow at a CAGR of 7.0% and to be valued at US$75.1 million by 2026.

Competition

The competitive landscape for organic packaged food in the Netherlands was relatively fragmented, with most sub-categories having a diverse array of players. For the total organic packaged food market, the company with the largest market share was Arla Foods Amba (Brand name: Arla) with a 6.7% market share in 2021. This status was achieved by being the largest player in the Netherlands' lucrative dairy market, in which they had a 16.8% market share, although they did also have a presence in the much smaller organic ice cream market. The second largest player, Stichting Merkarikel Bio+ (Brand name: Bio+), had a 5.0% market share in 2021, and a significant presence in a number of organic packaged food sub-categories, including dairy, chilled processed meat and seafood, and edible oils, among others. Udea BV (Brand name: Molenaartje) also had involvement in a diverse array of sub-sectors, while Weeribben Zuivel BV (Brand name: Zuiver Zuivel) was only a minor player in the organic dairy market, in which they were the second largest player and held an 8.8% market share. Royal FrieslandCampina NV (Brand name: Campina) also saw most of its sales in the organic dairy sector, although they also have a small presence in the market for organic savoury snacks.

Categories that were relatively consolidated included organic savoury snacks with the largest player, Udea BV (Brand name: Molenaartje) with a 30.3% market share, followed by FZ Organic Food BV (Brand name: Trafo) with a 28.5% market share. Organic baby food's largest player, Hain Celestial Group Inc (Brand Name: Ella's Kitchen) represented 29.9% of the organic baby food retail sales in 2021, followed by Joannusmolen BV (Brand Name: Biobim) with a 13.6% market share. The relatively small markets for organic soup and organic ice cream were also in the hands of relatively fewer players. Organic soup's largest player, Unilever Group (Brand Name: Unox), held a market share of 30.8%, while organic ice cream's largest player, Arla Foods Amba (Brand Name: Arla), held a market share of 33.1%.

Distribution

In 2021, distribution of the organic packaged food in the Netherlands was dominated by store-based retailers, which accounted for 88.9% of the retail value sales. Supermarkets were the largest channel, with a 49.5% share of the organic packaged food market. Discounters were the next largest channel, accounting for 14.4% of the retail value sales and independent small grocers held 10.5% of the retail market.

E-commerce accounted for 10.7% of the retail sales of the organic packaged food in 2021. However, in contrast to peer countries in the European Union (EU), the share of sales held by e-commerce has not seen substantial growth over the last five years, with sales of the organic packaged food through e-commerce merely keeping pace with other distribution channels. This stagnation in the e-commerce channel occurred despite solid growth in e-commerce sales of food and drink during the 2016-2021 period.

Subsector growth

Organic baby food

The organic baby food market in the Netherlands had a value of US$49.2 million in 2021. From 2016 to 2021, growth was led by milk formula, which is also expected to see the fastest growth from 2021 to 2026, as well as in the 2021-2022 year. Prepared baby food is the largest subcategory and is expected to remain so in 2026. The largest player in the organic baby food market held a 29.9% market share.

Organic bread and breakfast cereals

Organic bread and organic breakfast cereals are expected to grow at a CAGR of 5.2% and 5.0% respectively, from 2021 to 2026, although both will experience slower growth in the 2021-2022 year. The bread category was dominated by private labels, while organic breakfast cereals were held by a number of players, with the largest holding a 13.7% market share.

Organic cooking ingredients and meals

In the organic cooking ingredients and meals category, growth was led by organic edible oils from 2016 to 2021 and is expected to be lead by organic edible oils once again from 2021 to 2026. Growth in the 2021-2022 period is expected to be fastest for organic edible oils, with particularly strong growth for organic olive oil.

Organic dairy

The organic dairy market was the largest category of organic packaged food in the Netherlands in 2021, with US$ 420.8 million in total retail sales in 2021. The largest sub-category was cheese at US$130.1 million, followed closely by milk at US$126.5 million. Fromage Frais and Quark is expected to see the fastest growth from 2021 to 2026, as well as the fastest growth in 2021-2022. Cheese is expected to see the second fastest growth over both periods, reaching US$ 212.5 million in 2026.

Organic processed meat, seafood, fruits and vegetable

In 2021, organic chilled and processed seafood was the largest category of processed meat, seafood, fruits and vegetables, at US$61.4 million. In 2022, all sub categories were expected to see similar growth at 3.3% for organic chilled processed meat and seafood, with the others growing 3.2% for that year. From 2021 to 2026, Organic frozen meat, seafood, fruit and vegetables is expected to see the fastest growth at a CAGR of 6.2%.

Organic rice and pasta

Both rice and pasta saw negative annual growth in the 2020-21 year, with organic pasta being hit particularly hard. Both categories are expected to partially recover in 2021-2022, with organic pasta growing fastest at 5.2%, while organic rice grows slightly. From 2021 to 2026, growth of rice is expected to be more robust, occurring at a CAGR of 3.2%, while growth or organic pasta is expected to slow slightly to a CAGR of 4.9%.

Organic snacks

In 2021, organic savoury snacks was the largest category of organic snacks, with sales of US$51.7 million, followed very closely by organic sweet biscuits, snack bars, and fruit snacks at US$50.5 million, and organic confectionary with US$49.7 million. In the 2021-22 year, growth is expected to be fastest for organic sweet biscuits, snack bars and fruit snacks, with the sub-category expected to expand 7.1% for the year. Growth is expected to be particularly strong for cereal bars, which are set to grow 9.5%. From 2021 to 2026, organic sweet biscuits, snack bars and fruit snacks are expected to once again be the fastest growing category.

Organic chocolate is also popular in the Netherlands, due to concerns about the environmental and humanitarian impact of chocolate production.

New product launch analysis

From 2017 to 2021, there were a total of 4,301 product launches of organic packaged food in the Netherlands. Top claims included low or no allergen, environmentally friendly packaging, vegan, gluten free, and sustainable. Top packaging types included flexible, jar, bottle, carton, and tray, while top flavours included plain, coconut, apple, herbal, and spice. Top categories of products included baking ingredients and mixes, vegetables, oils, and sweet biscuits. The average price or organic products launched from 2017 to 2021 was US$4.91.

Examples of new products

Organic Labelling

In the Netherlands, organic food that meets standards set by the EU can be sold and marketed as an organic product. The EU - Canada Organic Equivalency Arrangement (EUCOEA) allows for Canadian products to be exported as organic products to the Netherlands, provided that these products are certified under the Canadian Food Inspection Agency (CFIA) Canada Organic Regime or EU organic system. A list of certification bodies accredited by the Canadian Food Inspection Agency can be found on the List of certification bodies under the Canada Organic Regime page.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

More agri-food market intelligence:

International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.

Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

Resources

• Canada Food Inspection Agency, European Union – Canada Organic Equivalency Arrangement (EUCOEA) Overview (March 18, 2021)
• Euromonitor International
  • Food and Drink E-Commerce in the Netherlands (March 1, 2022)
  • Economy Finance and Trade: The Netherlands (February 17, 2022)
  • Organic Packaged Food Database (accessed on June 28, 2022)
  • Organic Packaged Food in the Netherlands (February 2022)
• Eurostat. Rotterdam: the largest freight port in the EU, April 2, 2020
• Mintel, New Product Database (accessed on June 28, 2022)
• Port of Rotterdam. Facts and Figures, accessed on July 6, 2022
• Research Institute of Organic Agriculture, Organic Export Info: Netherlands (Accessed on June 28, 2022)
• The Netherlands and You, Record-High Dutch Export of Agricultural Goods in 2020 (February 16, 2021)
• United States Department of Agriculture, The Organic Market in the Netherlands (December 7, 2021)

Health and Wellness Series – Organic packaged food trends in the Netherlands
Global Analysis Report

Prepared by: Brendan Dwyer, Student

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2022).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright His Majesty the King in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Rd, Tower 5, 3rd floor
Ottawa ON  K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.