Sustainable Food Spending Dips to 18% in 2022: Monitor

In 2021, this proportion was 19%. The two main reasons for this decline are: the post-COVID-19 shift in consumer demand from retail back to food service and rising food prices.

In 2022, consumer spending on sustainable food increased by 13% to€10.8 billion. Total spending on food rose by 15% to €58.5 billion. Inflation and a post-COVID-19 shift in consumer demand from retail to food service played important roles in these developments. The increase in total food sales is relatively large, especially in the food service sector, but the proportion of sustainable food in that sector is much lower than in retail.

These facts are presented in the Sustainable Food Monitor 2022 compiled by Wageningen Economic Research on behalf of the Ministry of Agriculture, Nature and Food Quality. Sales in three channels were reported: supermarkets, the food service sector (hospitality, catering, care facilities, and recreation) and shops specialising in sustainable food, such as natural food shops.

Product groups

Although total spending on sustainable food increased in all product groups, the proportion of spending on sustainable food fell slightly or remained the same. The share of products with sustainability labels fell the most for Eggs (from 66% to 60%) and Fish (57% to 53%), while the largest increase was seen in Beverages (27%).

Food service

In 2022. the food service sector showed continued recovery in sales of both sustainable and other food. After the COVID-19-related restrictions in 2020 and 2021, food spending in this sector has returned to pre-pandemic levels. Compared to 2021, spending on sustainable food increased by 52% and total spending by 43%.

Supermarkets and speciality shops

After the pandemic ended in 2022, sales in supermarkets and in shops specialising in sustainable food (especially sales of organic and biodynamic foods) have been affected by the shift in demand from retail back to food service. At the same time, the increased spending in these channels has not kept pace with food price inflation of 10% to 11%, while at shops specialising in sustainable food, such as natural food shops, spending has even declined.

Spending on sustainable food in supermarkets in 2022 was 10% higher than in 2021, while total food spending rose by 6%. Shops specialising in sustainable food reported a decline in sales of 4%. This indicates that spending on sustainable food in supermarkets remained the same - relative to inflation - as in 2021, and that the total volumes of products sold in both retail channels actually declined.

Consumers spent most on products with the Beter Leven, Rainforest Alliance and Biologisch quality labels

In 2022, consumers spent around €3.8 billion on Beter Leven (better animal welfare) products, €2.6 billion on Rainforest Alliance products and €1.8 billion on Biologisch (organic) products.The biggest percentage increase in spending was seen in Rainforest Alliance products (+16%). In early 2018, Rainforest Alliance merged with UTZ Certified. As a result, the Rainforest Alliance label is found on more and more products that previously carried the UTZ Certified label. UTZ Certified is being phased out over time. Spending on the remaining UTZ Certified products is therefore included in the spending on Rainforest Alliance products.

The biggest quality label in the measured retail sales channels in 2022 was Beter Leven (€3.8 billion in consumer spending), followed by Rainforest Alliance (€2.6 billion) and Biologisch (€1.8 billion). According to estimates, Dutch consumers also spent several million euros on sustainable food with the Biologisch label in retail channels that were not included in the Monitor 2022, such as ethnic food shops, market stalls, online-only shops and speciality shops (e.g. bakeries, butchers and delicatessens).

Meat and meat products was the product group with the largest increase in the percentage of food with a quality label - from 43% in 2021 to 47% in 2022. This was due to strong growth in the supply of poultry meat and poultry meat products with the Beter Leven quality label.

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