Netherlands Food and Drink Report Q2 2016
BMI View: The Dutch food and drink industry will expand at a modest pace throughout our forecast periodto 2020 on the back of existing sector maturity, providing only limited opportunities for investors. Demandfor convenience and rising health awareness will affect consumption patterns.
Latest Trends & Industry Developments
Food sales will experience only modest growth over the next five years, due to existing sector maturityand limited inflationary pressures. Growing health awareness and demand for convenience will continueto impact consumption patterns, while returning consumer confidence will have a positive effect on morepremium categories.
In the drinks category, we expect consumption of alcohol to continue its decline, as drinkers increasinglyfavour quality over quantity. In the soft drinks segment, fruit juices will outperform carbonated softdrinks as consumers opt for healthier alternatives.
While the food retail sector is somehow less formalised than in other Western European markets, webelieve that Ahold's dominant position will limit room for new entrants.
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