Naturally Healthy Packaged Food in the Netherlands

2020 IMPACT

Consumers increase consumption of NH staples and snacking options to cope with the new demands of the Coronavirus (COVID-19) lockdown

Dutch consumers are attracted to naturally healthy food in line with the growing healthy eating trend in the country. “Naturally healthy” appears to inculcate higher confidence in consumers, who are more aware of and concerned about the added ingredients in the products they consume.

Kefir gains traction as a naturally healthy product beneficial for digestive health as COVID-19 increases stress and anxiety levels among consumers

The overall consumption of dairy has been trending downwards in the Netherlands. However, there has remained a constancy and increase in the demand for premium products or products that are naturally healthy, such as kefir, a popular product perceived as beneficial for one’s digestive health.

Retailers widen offer of plant-based milks as the perception of cow’s milk as unhealthy grows

Dutch consumers drank less and less milk during the review period. In contrast, the demand for dairy substitutes continued to grow strongly in the Netherlands.

RECOVERY AND OPPORTUNITIES

The robust healthy eating trend and positive perception of “naturally healthy” is expected to lead to further sales development

NH packaged food is projected to see a marginal drop in retail volume growth and a significant slowdown in retail value sales (at constant 2020 prices) in 2021. While slower than in 2020, which saw an upturn with the COVID-19 crisis, retail volume sales are set to recover to register positive growth through the remainder of the forecast period.

Fast development of kefir and milk alternatives set to add dynamism to NH dairy

New product development is predicted to underpin the expansion and dynamism of NH dairy in the forecast period. Kefir is expected to continue to add dynamism to NH sour milk products, with major dairy manufacturers set to introduce new products in the short to medium term.

Plant-based yoghurts expected to emerge as new launches respond to health, food intolerance and animal welfare and environmental concerns

Another area of growth, in line with the move away from cow’s milk and towards milk alternatives, is plant-based substitutes for yoghurt, made with soy milk, almond milk, oat milk or coconut milk. This trend continued to add dynamism to NH dairy in 2020, with branded manufacturers and private label retailers introducing new products.