Innovation is key to growth in the food sector

The Dutch food industry is facing significant pressure. Rising costs, a tight labour market, and high inflation present ongoing challenges for businesses. Despite these hurdles, there are positive signs, such as an increase in consumer spending. Companies are being pushed to invest in innovation to remain competitive and protect margins, even in this complex economic environment.

An unpredictable economic landscape

The past quarters have shown fluctuations in the Dutch economy, with alternating periods of growth and contraction. Rabobank economists are forecasting modest economic growth of 0.6% for 2024, with more optimistic prospects for 2025, where growth is expected to reach 1.4%. Despite these figures, the food industry continues to face major challenges, such as the tight labour market and low productivity growth. Rising food prices are another significant factor placing pressure on the sector.

Price pressure and government measures

Although some raw material prices are declining, many food products remain expensive. Supermarkets are unlikely to lower prices soon, partly due to the impact of wage increases and ongoing negotiations over new labour agreements. Additionally, government measures, such as higher excise duties, are playing a key role in reducing revenue, particularly in the beverage industry. The sector is expected to contract by 2.2% in 2024, though a slight recovery is anticipated in 2025, driven by export growth and increasing consumer spending.

Robotics as an opportunity

Innovation remains a crucial pillar in addressing the challenges faced by the food sector. Businesses are increasingly investing in robotics and automation, spurred on by the labour market's tightening and the need to reduce costs. Robots offer solutions for routine tasks, though their implementation often requires substantial investments and process adjustments. Entrepreneurs see particular opportunities in robotics for raw material processing and packaging lines.

According to Rabobank, innovation is the key to growth in the Dutch food sector, with robotics and automation playing a central role in future business strategies.

Rabobank.nl