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Accessguide Template Document CBI MARKET SURVEY: THE (ORGANIC) COFFEE, TEA AND COCOA MARKET IN THE NETHERLANDS CBI MARKET SURVEY THE (ORGANIC) COFFEE, TEA AND COCOA MARKET IN THE NETHERLANDS Publication date: May 2007 Report summary This CBI market survey discusses, amongst others, the following highlights for the (organic) coffee, tea and cocoa market in The Netherlands: • The Netherlands is a fairly big coffee consumer and, although recent developments have not been positive, in the future renewed growth is expected. • Tea consumption is relatively more limited and has a less favourable outlook, but does show an interesting shift towards herbal, fruit and green tea. • The Netherlands is the largest grinder in the world, and grindings are increasing by 3% annually. • The Netherlands is an important market for developing country producers of coffee as well as tea. The country occupies an important position in EU trade of coffee and to a lesser extent, for tea (imports as well as re-exports). Developing countries account for a considerable share of imports, especially for coffee. • As the principal entry point and processing location for cocoa beans from developing countries, and an important entry point for cocoa powder and paste, The Netherlands is among the most interesting countries for developing country producers. Imports are increasing, and the proportion of imports coming from developing countries is significantly above the EU average. This survey provides exporters of (organic) coffee, tea and cocoa with sector-specific market information related to gaining access to The Netherlands. By focusing on a specific country, this survey provides additional information, complementary to the more general information and data provided in the CBI market survey ‘The (organic) coffee, tea and cocoa market in the EU’, which covers the EU market in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.eu/marketinfo. 1. Market description: consumption and production Due to the interesting perspectives offered to developing country exporters in organic and other certified markets for coffee, tea and cocoa, these are given a particular focus in this survey. These markets grow faster, offer a premium, and traded volumes are smaller than in the conventional market. Moreover, whereas coffee and tea consumption is referred to simply as consumption, where cocoa is concerned it is referred to as industrial demand. Coffee and tea processors produce consumer products, while cocoa grinders produce ingredients for chocolate manufactures and food processors. Data on final consumption of coffee and tea by EU citizens is available, while data on processing is not. In contrast, consumption of cocoa is unknown, due to the fact that cocoa products are processed in a large range of products. However, EU grindings, combined with the imports of processed cocoa products, offer a good indication of industrial demand. Consumption Coffee • The Netherlands is a fairly big coffee consumer, with a 4.0% EU market share (ICO, 2006). • Total coffee consumption in The Netherlands was erratic between 2001 and 2005, with an average annual decline of 4.3% amounting to 1.6 million bags in 2005. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Page 1 of 14 CBI MARKET SURVEY: THE (ORGANIC) COFFEE, TEA AND COCOA MARKET IN THE NETHERLANDS • More recently there is increasing demand for coffee for coffee pod systems, which is extremely popular in The Netherlands. Traditionally, filter coffee used to be most common in The Netherlands. Also, the demand for premium coffee is developing well. Due to higher prices for these systems, value sales at the retail level are showing a positive development. • Per capita consumption has been decreasing since 2003 and shows an average annual decrease of 4.8% between 2001 and 2005, amounting to 5.4 kg in 2005. Tea • The Netherlands is a quite big tea consumer, with an EU market share of 3.2% (ITC, 2006) • Total Netherlands tea consumption is growing slightly. The annual average increase was 0.6% between 2001 and 2005, amounting to 7.5 thousand tonnes in 2005. • Per capita consumption of tea shows a slight increase between 2001 and 2005, amounting to 0.5 kg in 2005. • Pure black tea still holds a large market share of about 70% but has been declining in favour of the consumption of fruit and herbal ‘teas’. Herbal teas are becoming a part of the mainstream tea market, and many different kinds are sold at supermarkets. Furthermore increasing quantities of rooibos and, to a lesser extent green tea are consumed (NVTK: 2004). Consumers in The Netherlands are also increasingly consuming more expensive teas instead of the conventional black teas; this is increasing average unit prices at the retail level (Euromonitor, 2006). • An increasingly important segment is the consumption of iced tea. According to the Dutch Soft Drinks Association (NFI), the consumption of iced tea in The Netherlands increased from 106.6 million litres in 2003 to 121.6 million litres in 2005, representing a share of 8% of total soft drinks consumption. Cocoa • The Netherlands is the biggest industrial user of cocoa beans in the EU, with an EU market share of 35.0% (Icco, 2006). • Total cocoa beans grindings show an annual average increase of 3.0%, amounting to 470 thousand tonnes in 2005/2006. • Per capita consumption of chocolate confectionery in The Netherlands is medium to small at 4.5 kg in 2004 (Coabisco, 2007). Organic and Fair trade • The organic market in The Netherlands is relatively limited in size, with annual per capita consumption of organic food products under € 30. In 2005, the total organic food market amounted to around € 400 million, or 1.8% of the total food market. However, general expectations on further developments are favourable and 2006 showed considerable growth (FiBL, 2007). • Max-Havelaar-labelled tea held a market share of 0.45% in 2003 (Max Havelaar Foundation: 2005). Between 2001 and 2003, Max Havelaar saw its share decreasing by 23% due to a declining consumption by individual consumers. This can be explained by fierce competition on the tea market and the related weak loyalty to tea brands. Large scale consumers, however, have been showing increasing interest in Max Havelaar tea (ProFound, 2006). • The Netherlands is one of the leading EU market for Fair-Trade-certified coffee, with volume sales amounting to 2,860 tonnes in 2005 (Fair-Trade, 2005). Market segmentation • Market segmentation of coffee, tea and cocoa in The Netherlands does not differ from overall EU segmentation. For more information, please refer to the CBI survey covering the coffee, tea and cocoa market in the EU. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Page 2 of 14 CBI MARKET SURVEY: THE (ORGANIC) COFFEE, TEA AND COCOA MARKET IN THE NETHERLANDS Production • Because of climatic conditions, no production of coffee, tea and cocoa beans takes place within the EU. The Netherlands is fully dependent on imports of these products from other countries. • The Netherlands is, however, the EU’s principal grinder of cocoa beans imported from developing countries. These companies are mentioned under Section 3. Tea and coffee processing predominately takes place in the EU, and The Netherlands itself has several major players. Trends • ‘The single portion revolution is a change which is already underway, but is picking up speed, and will be with us for the next years. This applies to instant coffee, as well as filter and espresso. • In the instant market, there is an increasing variety of single-portion instant coffee sachets, including recipes such as Viennese coffee, Cappuccino and Latte Macchiato. • For the filter market, the coffee pods for machines like the Senseo and others are really taking off, particularly in Northwest Europe. • The outlook for coffee and tea remains somewhat favourable, with coffee consumption also increasing in volume terms, but also a further shift to premium specialty coffees, as consumers become increasingly choosy about coffee. • Consumption of tea will show a further shift herbal and green tea. Opportunities and threats • Ready-to-drink tea, like iced tea, are increasingly popular on the Netherlands market. Products like these, however, are not likely to be supplied by developing country exporters, since most production is done in the EU itself. • Opportunities for developing country exporters of tea, however, do exist in the supply of herbal, fruit and green tea, as consumption of these teas is growing. • The Netherlands is the leading EU grinder of cocoa beans. These cocoa beans come from developing countries, which makes The Netherlands a interesting market for exporters in these countries. • Particularly niche markets like organic and Fair-Trade are an interesting segment on the Netherlands market. Useful sources • Association of Dutch Coffee Roasters and Tea Packers (Vereniging van Nederlandse Koffiebranders en Theepakkers (VNKT)) at http://www.vnkt.nl • International Trade Centre’s coffee guide http://www.thecoffeeguide.org • International Coffee Organization’s Coffee Market Reports, online available at http://www.ico.org/show_doc_category.asp?id=2 • International Tea Committee's Annual Bulletin of Statistics 2006, which can be purchased at http://www.inttea.com/publications.asp • An interesting source for information on cocoa is http://r0.unctad.org/infocomm/anglais/cocoa/sitemap.htm • International Cocoa Organization at http://www.icco.org • Fairtrade Labelling Organizations International coffee, tea and cocoa information at http://www.fairtrade.net/coffee.html or tea.html or cocoa.html • Furthermore, national associations, mentioned under Section 6, also offer valuable information. Æ For more useful sources on consumption and production of coffee, tea and cocoa, please refer to the EU survey, Chapters 4 and 5.
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