Netherlands: Food Processing Ingredients

  |   Attaché Report (GAIN)   |   NL2022-0019

The turnover of the Dutch food processing industry for 2021 is forecast at $88 billion. Food companies that traditionally sell to HRI-foodservice outlets saw sales drop by roughly one-third due to the global pandemic. The beverage sector suffered a lot from the closure of clubs, bars, and restaurants. Last year was also the start of a significant increase in various cost components, ranging from agricultural raw materials to packaging materials, transport (containers), and energy. Additional challenges include the situation in Ukraine which has contributed to some supply chain disruptions and price increases for some raw materials. Product replacement and reformulation might be possible, where necessary, but requires testing and product label adjustments. Other challenges include trade with the United Kingdom becoming more complicated due to Brexit and the imminent introduction of a deposit levy on cans.

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