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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • The organic segment in the Netherlands is led by Koninklijke Wessanen NV with a value share of 6.2% in 2019, followed by Arla Foods Amba with a value share of 5.5% and Stichting Merkartikel Bio+ with a share of 4.8%

  • Organic products in the Netherlands registered a market size of US$1080.9 in 2019, representing 2.2% of global demand, with a per capita expenditure of US$62.54.
  • With a few categories such as hot drinks and juices set to mature, the rate of growth is expected to be slow over the forecast period, with an expected forecast value CAGR of 4.0% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in the Netherlands recorded a current value increase of 7.8% in 2019, reaching a market size of US$1.0 bn.
  • Growth in organic packaged food was led by organic fromage frais and quark, with the category recording a current value increase of 20.0% in 2019.
  • Organic liquid concentrates recorded the highest growth in 2019, increasing by 7.0%.
Market Trends
  • Organic packaged food products in the Netherlands have gained importance in recent years, particularly among young consumers. The majority of organic packaged food sales come from residents in metropolitan areas, as grocery stores in urban locations usually offer a wider variety of products. There is a consistently increasing level of demand from millennials for organic products that are sustainably produced. This demand is expected to increase over the coming years as millennials gain more influence with an increase in purchasing power.
  • Some categories of organic beverages are witnessing significantly positive growth, such as organic fruit/vegetable juices, organic liquid concentrates and organic non-cola carbonates. Consumers shifting from non-organic to organic variants in response to the rising dangers of sugar and additives in conventional beverages drive this growth.
Competitive Landscape
  • Koninklijke Wessanen was the leader in organic beverages in 2019 with a value share of 11.9%, despite share dipping down from its 2018 level of 12.8%. In general, major players in beverages are witnessing low levels of success in organic beverages, mainly due to consumers preferring small-scale, artisanal products. To gain share in organic products, Koninklijke Wessanen has developed specific brands such as Piramide, Clipper and Rabehorst, with an organic and natural positioning. However, it is feeling pressure from the intense competition in this category from players such as Yogi Tea and Unilever Nederland.
  • Yogi Tea was the second-placed player in organic beverages in 2019. Its success was mainly due to its distribution network, which includes major health-orientated retailers such as Holland & Barrett. Yogi Tea does have a presence in supermarkets, although distribution in this channel remains limited. In 2019 Yogi Tea managed to record growth in actual terms, but its value share witnessed a minor decline from 6.7% in 2018 to 6.6% in 2019.
  • Most Dutch supermarkets are offering freshly made chilled ready meals and prepared salads. However, Marqt stood out in organic meal solutions through their line of Buddha detox bowls in 2018, placing it among the few retailers to offer consumers ready meal options for detoxifying the body. The brand is comprised of salad bowls, which are beneficial to the metabolism, including sprouting beans, seeds, fresh vegetables, chickpeas, wholesome spelt, quinoa and sweet potatoes.
Prospects And Growth Opportunity
  • Organic packaged food sales are rising, mainly due to efforts from private label players, such as Albert Heijn, offering a wide range of organic products across various product categories to appeal to health-conscious consumers. Additionally, the number of certified farmers and bio hectares in the Netherlands is growing, leading to an increase in production, which is expected to support further growth of organic packaged food sales by 2024, allowing it to register a forecast value CAGR of 4.2% for the period 2019-2024.
  • Currently, organic packaged food is largely purchased by residents of metropolitan areas who are not too price sensitive. However, demand for organic products is increasing in non-urban areas as millennials are quickly emerging as the most critical consumer segment. With their purchasing power expected to continue over the forecast period 2019-2024, there is a major opportunity for organic players to attract consumer attention as consumers purchasing organic products in one category are gradually purchasing organic products in other categories, with the typical “entry” category being dairy. Post the purchase of organic dairy products; consumers move towards purchasing organic vegetables, fruits, eggs and bakery products. This pattern is expected to help boost demand for organic products over the forecast period, with an anticipated value CAGR of about 4.0% between 2019-2024.
  • Organic tea is one of the most significant categories within organic beverages with a large number of activities. Organic tea brands with a modern trendy look are gaining share; thus, major players with traditional tea brands such as Pickwick and Lipton are struggling. Overall, organic hot drinks and in particular organic tea account for a large share of total organic beverages sales value. Although hot drinks is a relatively mature category in general, organic tea witnessed substantial growth over the historical period 2014-2019 and is anticipated to see further growth, recording a forecast value CAGR of 2.5% for the period 2019-2024.
General Health And Wellness Trends
  • The increasing health consciousness is the primary growth driver for health and wellness products in the Netherlands. Consumers today are highly focused on the origin of products and the ingredients and preparation processes involved and their impact on health. This rise in health consciousness is particularly seen among high-income consumers that have more money to spend on groceries. The increasing focus on health and wellness has also led to a decline in demand for meat products and sugary soft drinks, due to their reputation for being unhealthy. More consumers are moving away from meat and towards a plant-based diet in 2019, with a rise in consumers following a vegan lifestyle, while more non-vegan consumers also tried to eat meat less often.
  • While the image of sugar has become increasingly negative, products with a high-fat percentage have witnessed an improvement in images within specific categories, including organic dairy products such as butter, whole yoghurt and hard cheeses. The main driver of this change in consumer opinion is that these are natural and traditional products that have not been tampered with. Additionally, these products are known to provide a full and satiated feeling. As a result of which, more consumers believe that there is room within a healthy diet for specific products with high-fat content.
General Economics And Demographic Landscape

Economy:

  • The economy of the Netherlands is expected to slow down in 2020 due to declining global demand for European goods. Real GDP was recorded at 1.5%, falling from 1.7% in 2018.
  • The domestic economy is expected to remain resilient through a tight labour market. The real value of private final consumption recorded an increase of 1.3% in 2019, with a growth of 1.8% expected in 2020, as consumption benefits from robust disposable income growth.
  • Growth is expected to decline over the coming years, with private consumption and business investment expected to weaken, as a result of deteriorating consumer confidence and a slower trade environment, respectively. Growth of real GDP is expected to dip to 1.4% in 2021, declining further to 1.3% per year by 2027.
     

 Population demographics:

  • The population of the Netherlands reached 17.9 million in 2019, increasing from its 2000 total of 15.9 million.
  • The median age in 2019 was 42.7 years, increasing by 5.4 years since 2000. Furthermore, the increase is higher than the regional average.
  • The fertility rate has been below the replacement level since 1980. Currently, the fertility rate is about 1.6 births per female, which is close to the average rate for Europe. This is expected to change very little over the forecast period 2019-2024.
     

Income & expenditure:

  • The savings ratio in the Netherlands was 10.4% of disposable income in 2019. This indicator is expected to fall to 10.1% in 2020.
  • Consumer expenditure per capita in 2019 was recorded at US$22,651. For the period 2020-2030, consumer expenditure is expected to witness a cumulative increase of 14.1%, averaging 1.3% annually.
  • Disposable income per capita was recorded at US$25,204 in 2019, with an increase of 1.0% expected in 2020. For the period 2020-2030, the indicator is expected to witness a cumulative increase of 12.8%, growing at an annual average rate of 1.2%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

6,849.6

7,121.7

7,516.8

7,881.3

8,107.6

8,330.4

8,527.4

4.8%

2.6%

Organic packaged food and beverages consumption

USD million

847.8

924.0

1,002.0

1,080.9

1,130.5

1,183.1

1,231.3

8.4%

4.4%

Organic packaged food consumption

USD million

697.0

760.9

829.3

899.2

942.9

989.7

1,032.3

8.9%

4.6%

Organic beverages consumption

USD million

150.8

163.1

172.8

181.8

187.7

193.4

199.0

6.4%

3.0%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

12.4%

13.0%

13.3%

13.7%

13.9%

14.2%

14.4%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

17.0

17.1

17.2

17.3

17.4

17.5

17.5

% Middle and upper class of total population

%

30.9

31.2

31.2

31.3

31.3

31.4

31.4

% Population aged 65+

%

18.2%

18.5%

18.9%

19.3%

19.7%

20.1%

20.5%

% Population aged 0-14

%

16.5%

16.3%

16.1%

15.8%

15.7%

15.5%

15.4%

% Population with higher education degrees

%

29.8

30.3

30.7

31.0

31.3

31.6

31.8

Average number of children per household

children

0.4

0.4

0.4

0.4

0.4

0.4

0.4

GDP per capita

USD per capita

46,701.8

48,375.4

50,433.7

52,511.9

52,354.7

52,961.6

53,486.5

Consumer expenditure per capita (US$)

USD per capita

20,420.4

21,070.0

21,896.2

22,636.9

22,916.2

23,161.4

23,406.4

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

2,344.6

2,403.1

2,486.2

2,565.9

2,560.2

2,580.5

2,601.0

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Amsterdam

2.8

Top cities by population (2019)

2

Rotterdam

1.7

Top cities by population (2019)

3

The Hague

1.1

Top cities by population (2019)

4

Utrecht

0.8

Top cities by population (2019)

5

Eindhoven

0.8

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Koninklijke Ahold Delhaize NV

Top grocery retailers by sales (2019)

2

Jumbo Supermarkten BV

Top grocery retailers by sales (2019)

3

Schwarz Beteiligungs GmbH

Top grocery retailers by sales (2019)

4

Aldi Group

Top grocery retailers by sales (2019)

5

Sperwer Holding BV

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Netherlands

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Netherlands

1

Organic Asparagus Fr/Ch

745,758

2019

Netherlands

2

Organic Carrots Fr/Ch

675,072

2019

Netherlands

3

Organic Coffee Roast Not Decaf

556,017

2019

Netherlands

4

Organic Strawberries Fresh

345,851

2019

Netherlands

5

Organic Broccoli Fr/Ch

36,511

2019

Netherlands

Total

Total Organics*

2,432,978

2018

Netherlands

1

Organic Carrots Fr/Ch

887,040

2018

Netherlands

2

Organic Coffee Roast Not Decaf

366,478

2018

Netherlands

3

Organic Cherry Tomato Fr/Ch

123,528

2018

Netherlands

4

Organic Limes Fr/Dr

67,267

2018

Netherlands

5

Organic Asparagus Fr/Ch

52,311

2018

Netherlands

Total

Total Organics*

1,584,312

2017

Netherlands

1

Organic Carrots Fr/Ch

969,160

2017

Netherlands

2

Organic Lettuce Not Head Fr/Ch

354,297

2017

Netherlands

3

Organic Broccoli Fr/Ch

57,240

2017

Netherlands

4

Organic Peppers Fr/Ch

48,723

2017

Netherlands

5

Organic Cauliflower Fr/Ch

26,640

2017

Netherlands

Total

Total Organics*

1,534,927

2016

Netherlands

1

Organic Carrots Fr/Ch

645,120

2016

Netherlands

2

Organic Cult Blueberries Fresh

431,190

2016

Netherlands

3

Organic Head Lettuce Fr/Ch

47,000

2016

Netherlands

4

Organic Strawberries Fresh

19,440

2016

Netherlands

5

Organic Lettuce Not Head Fr/Ch

9,730

2016

Netherlands

Total

Total Organics*

1,164,066


Note : Total organics is the sum of all exports to a country within a year
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

European Union (EU) Member States retain the authority to determine additional requirements for production within their country. They can also determine exceptions due to catastrophic circumstances, but cannot restrict access to products in compliance with EU regulations. In addition, the EC delegates most authority for the administration of organic programs to the Member States.

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

The European Union has an Equivalency Agreement with the United States.

General requirements; repeal of previous organic regulations: EC 834/2007 (.pdf in English)

Detailed rules on production, labeling and control including its first amendment on production rules for organic yeast: EC 889/2008 (.pdf in English)amended by (EU) No 1358/2014 (see below).
Regulation (EU) 2019/2164, which amends Regulation (CE) 889/2008, changed some of the lists of inputs allowed in organic agriculture and processing.

Rules concerning imported products: EC1235/2008 (.pdf in English)
Feburary 2013 amendment concerning imported products: (EU) No 125/2013 (.pdf in English)

Rules on organic aquaculture and seaweed production - Amendment in 2009 - implemented in 2010: EC 710/2009 (.pdf in English) 
Organic aquaculture and seaweed production updates (EU) No 1358/2014 effective January 1, 2015.

Detailed rules on organic wine: Regulation No 203/2012 (web; in English)

Date of Implementation: 1992

Regulation and/or Standard Scope:

EU standards cover crop, livestock and processing. Farm and handling plans are required, as well as detailed record keeping and detailed livestock feed standards.  Specific standards are included for aquaculture, seaweed, yeast, bees, and mushrooms. Criteria for determining allowed materials include consistency with the objectives and principles of organic farming, and materials must be of plant, animal, microbial or mineral origin. Synthetic substances, however, may be used when they replicate the natural sources and when they are approved for organic production in the EU.

Imported Products

EU requires that imported organic products meet EU standards. Non-EU organic products must include country of origin labeling if they wish to use the EU organic logo. Use of the EU organic logo is not required for products from outside the EU.

Beginning February 3, 2020, port of entry health authorities will only endorse a certificate of inspection if the certifier issued it prior to export. Certain sections of the certificates (boxes 13, 16, and 17) may be filled in with provisional information, since certifiers can not verify all of the data before the product is exported. The provisional information must be confirmed/updated within 10 days, and before the certificate can be endorsed at the port of entry.

Certification and Accreditation

Certification:

The EC requires organic certification for all those involved in production and handling, including importers. EC requires ALL processing operations to be certified, even if those products are below the 95% threshold for the "Organic" label.

EC delegates the authority for investigations, non compliance, mediation, and testing, as well as reporting, exclusion from organic sale, emergency treatments and appeals to the Member States in accordance with their respective control system plans.

The EC allows private sector standards for the product categories, such as cosmetics and textiles, which are not fully regulated by the EC.  In the EU certifiers (control bodies) can require additional organic crop, livestock and processing standards in association with the use of their certification seal.

List of control authorities and control bodies for equivalence 

Control bodies in the European Union

Accreditation:

Each EU Member State accredits certification bodies.

Additionally, the EU vests the authority for exchanging information on "infringements and irregularities" (enforcement) to certifiers through the Member State control systems as the vehicle to remove non-compliant product from the marketplace.  However, it is not clear how, or when, an organic certificate can or will be revoked.

In addition to the EC organic regulations for certification and accreditation procedures, the requirements of EN 45011 and ISO Guide 65 for accreditation must be met.

Additional Information

http://www.organic-europe.net/country-info.html

USDA’s GAIN Report Retail Foods The Dutch Food Retail Report (2019)
USDA’s GAIN Report The Organic Market in the Netherlands (2018)
USDA’s GAIN Report Netherlands Food Service Hotel Restaurant Institutional (2019)
USDA’s GAIN Report Netherlands Exporter Guide (2019)
USDA's GAIN Report Netherlands Food Processing Ingredients (2020)
USDA's GAIN Report Netherlands Retail Foods (2017)
USDA’s GAIN Report Netherlands Food and Agricultural Import Regulations and Standards - Narrative (2020)
USDA’s GAIN Report Netherlands Food and Agricultural Import Regulations and Standards Country Report (2020)

USDA’S GAIN Report New EU Organic Regulations for Early 2018 (2017)
USDA’S GAIN Report Electronic Certificate of Inspection Required for EU Organics Trade (2017)
USDA’S GAIN Report U.S. Organic Food Exporters Set to Double Sales to EU (2019)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’s GAIN Report Plenty of opportunities for U.S. organics in the EU market (2015)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’S GAIN Report EU-28 Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report EU-28 EU-U.S. Organic Trade Update - January 2014