Belgian households are buying fewer locally-produced goods as Dutch supermarket chains gain ground in the country.
The share of Belgian products in household food and drink spending dropped to 62.3% in 2023, down from nearly 67% in 2010, according to the Belgian food industry federation Fevia. In comparison, domestic products account for around 75% of food spending in France and Germany.
Dutch products have seen significant growth in Belgium during the same period, now making up 16% of total spending - a figure which has doubled. This growth is linked to the expansion of Dutch chains Albert Heijn and Jumbo in Flanders, which source their goods from the Netherlands. Belgian food producers struggle to compete, particularly in private-label markets. Belgian consumers living near France also frequently cross the border to shop.
Price competition among supermarket chains has intensified due to the presence of Dutch retailers. A recent “2+5 free” promotion from Albert Heijn sparked controversy, with Fevia’s economist Carole Dembour criticising such campaigns as harmful to the entire sector. “There are no winners. It puts enormous pressure on the entire food supply chain,” she said.
Belgian food companies under pressure
Belgian food companies face greater pressure domestically than abroad, according to Dembour. The profit margins for firms not exporting are minimal. While exports account for around half of sector revenue, Belgian products abroad are recognised for quality and safety. Companies increasingly focus on niche products with high added value rather than large-scale production.
New Fevia CEO Ann Wurman highlighted sustainability as a key area for differentiation. Fevia launched a five-year sustainability plan in 2021 and has now developed another with 21 goals, which Wurman labelled “unique in Europe.”
Globally, competition has also grown, with regions like Asia, Latin America, and Eastern Europe increasing their share in world exports, while Western and Northern Europe’s market presence has diminished.
Despite challenges, Fevia predicts a cautious recovery for Belgium’s food sector in early 2025 after disappointing performance in 2024. Revenue in the sector rose 5.4% in the first six months of 2025 compared to the same period last year. This growth reflects equal contributions from increased production—up 2.8%—and higher prices.
The industry continues to add jobs, though at a slower rate than before the pandemic. About 440 jobs were created in 2024, with 330 expected this year, compared to an annual average of 1,500 pre-Covid. Investments in the sector are still growing, but increasingly focus on efficiency and cost reduction, said Dembour.
Fevia is calling for clearer and more predictable regulations to attract investments. CEO Wurman also advocates lower labour and energy costs compared to neighbouring countries, as well as reduced bureaucratic burdens. While the federal government’s recent multi-year budget deal marks progress, many uncertainties remain, warned Wurman.
