Millennials and Gen Z make signifi­cant cuts to food spending

The foodservice market faced a challenging year. In 2024, the sector struggled under a combination of rising prices, cautious consumers, and poor spring weather. According to the FoodService Instituut Nederland (FSIN), which presented the 2024 figures at the Horecava, foodservice revenue grew by just 4.1% to €22.2 billion. This is a sharp decline compared to the 12.1% growth seen the previous year. A key point: this growth was entirely due to price increases, while volume actually decreased.

Rain and rising prices curb spending

The spring of 2024 was literally washed out by heavy rainfall in April and May. Restaurants, cafés, and beach venues saw their revenue drop as consumers ate out less frequently. Moreover, many consumers tightened their belts, despite an increase in purchasing power. Gen Z and Millennials, typically the biggest spenders in the hospitality sector, significantly reduced their dining-out frequency. In 2022, nearly half of Gen Z dined out weekly, but last year, this fell to just a quarter. FSIN director Inga Blokker explains this cautious behavior: “The price increases of recent years have made consumers more mindful. For many, dining out has simply become too expensive.”

Fast service and delivery hit by unexpected losses

A striking trend is that more affordable alternatives, such as fast service and meal delivery, were hit harder than expected. Typically, these segments benefit during periods of economic restraint, but rising prices have narrowed the gap with traditional dining options. Consumers feel the price-quality ratio has become skewed and are opting more often for supermarkets instead.

The effect of price-conscious consumers on the food market is a trend that will remain visible in 2025. Although the sector expects slight recovery, Blokker warns that further scaling up and a strong focus on margins will be essential to safeguard profitability.