Food industry slowly getting back on track

The Dutch food industry is gradually recovering in 2025. After a year of stable production volumes, modest growth is expected. However, businesses must continue to navigate challenges such as rising labor costs and ongoing staff shortages. Differentiation, high quality, and strong service remain essential.

Economic growth and changing consumer behavior

The Dutch economy is expected to grow by 1.5 percent in 2025, while inflation in the Netherlands remains at 3.3 percent—above the EU average. Wage increases have led to higher disposable income, but consumers remain cautious with their spending.

Demand for food products is picking up, though still fragile. Out-of-home consumption is under pressure due to rising prices, prompting consumers to opt for ready-made meals from supermarkets more often. Within supermarkets, private-label brands continue to gain ground. Their market share reached nearly 33 percent in 2024.

Labor market and raw materials remain challenges

Almost a quarter of food companies report staff shortages as a barrier to growth. At the same time, rising labor costs remain a major concern. Innovation and process improvements are needed to boost productivity.

Raw material market volatility is another persistent challenge. On average, raw materials account for 45 percent of total costs, and fluctuations in prices and availability add uncertainty. Dairy processing plants and slaughterhouses, for example, are dealing with a lower supply of milk and livestock. Climate change and stricter regulations, such as the European Deforestation Regulation (EUDR), are making raw material sourcing more complex.

Sustainability and regulations drive change

Supermarkets are playing an increasingly active role in the shift toward healthier eating, while regulations like the Corporate Sustainability Reporting Directive (CSRD) require companies to be more transparent about their sustainability efforts.

In addition, the new EU regulation on packaging waste is placing further demands on the sector. From 2030, single-use packaging will be banned, which is expected to have a significant impact. Food waste reduction, the protein transition, and water quality are also key topics that remain in focus.

With consumers demanding more in terms of price, quality, and sustainability, food companies must make strategic decisions and invest in innovation and efficiency to stay competitive.

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