Food industry feels the pressure but keeps innovating

The Dutch food industry continues to hold its ground. Despite rising costs and geopolitical pressure, the sector manages to keep production steady. It doesn’t happen by itself, but the industry remains a solid pillar of the economy — and the numbers show it.

Modest growth in a challenging market

In 2024, production value reached €114.2 billion. A small increase, yet notable given the circumstances. Added value rose to €17.7 billion, and direct employment remained stable at 162,000. Once again, it confirms that the sector is still the largest industrial subsector in the Netherlands.

It’s also striking that companies continue to invest. R&D spending climbed to €408 million, an increase of 10.3 percent. The highest level since 2019. Even as costs surge, the sector still chooses innovation — partly because it has to, but also because there simply isn’t another route if you want to stay future-proof.

Costs rise, room to manoeuvre shrinks

Inflation may be easing, but costs keep climbing. Raw materials, energy, labour — everything remains expensive. That puts pressure on margins. As a result, it becomes harder to keep investing in topics that are becoming more important to society, such as health and sustainability.

Even so, that responsibility weighs heavily on the sector. Food plays an important role in public health, the energy transition and the circular economy. Innovation isn’t a luxury; it’s a requirement to keep the food supply safe and affordable.

Price pressure remains a major point of discussion

Consumers have been feeling it for a while: groceries have become more expensive. In June 2025, prices for processed foods were 6 percent higher than at the start of 2024. That adds up. At the same time, the Netherlands is still relatively affordable compared to most other eurozone countries when it comes to food and non-alcoholic beverages.

And so the debate around affordability hasn’t disappeared — far from it. Taxes, levies and rising costs throughout the chain keep the conversation going.

Fnli.nl