Alcoholic Drinks Market in the Netherlands

Sales of alcoholic drinks continue to experience a decline in demand due to the popularity of drinks such as beer and a steady decline in sales of traditional ones such as spirits, triggered by changes in consumer habits with a greater preference for healthier drinks. On-trade sales showed initial improved results in comparison to the previous year, impacted by very good weather during spring that motivated more people to visit outdoor cafés and bars. However, the shift towards off-trade sales within alcoholic drinks continued in 2011 as more people concerned with rising foodservice prices were motivated to entertain at home more.

Dutch consumers shift towards products with a healthier image

Dutch consumers are increasingly health conscious; keen to reduce consumption of food and drinks considered to be unhealthy or leading to disease. Alcoholic drinks is influenced by this trend as more consumers are drinking less alcohol or switching to products that contain with lower alcohol content. Wine is experiencing healthy growth in The Netherlands triggered by more demand from consumers who usually drink other alcoholic drinks, such as young males. Other sparkling wine, such as prosecco, or cider are gaining popularity as an alternative to beer or spirits. Government campaigns to prevent the young from drinking alcohol are intensifying while media reports of alcohol abuse with fatal consequences continue to harm the image of alcohol further. Products such as non-alcoholic beer registered the highest growth in 2011, impacted by rising demand from consumers who are shifting from standard beer, for example.

Grocery retailers place pressure on price in order to capture demand

The Dutch distribution map for alcoholic drinks is led by grocery retailers, as supermarkets continue to concentrate more sales through intense promotion and offers in key products such as beer and wine. Internet retailing is registering the fastest growth rate in terms of distribution, although from a smaller base. More Dutch people are using the internet not only to compare prices and research products, but also to purchase. Traditional retailers such as food/drink/tobacco specialists are witnessing intensified pressure from grocery retailers and non-store retailing, trying to respond with more price promotions in categories such as wine or beer.

Manufacturers resort to promoting alternatives to capture new demand

To counteract the threat from maturity and declining per capita volumes, manufacturers are resorting to extensions aimed at triggering curiosity and targeting new consumers. Sales of beer in 2011 are driven by non-alcoholic beer, a product with a traditionally low share of total beer volume in the Netherlands. New products such as Bavaria 0.0% Rose are doing well as they are in demand from Dutch women attracted by the healthy perception and focus on flavour. Manufacturers such as Heineken continue to actively promote cider with brands such as Jillz, which is targeted at women and younger consumers as a trendy and healthier drink alternative to beer or wine.

Health trend to further shape alcoholic drinks in the Netherlands

Sales of alcoholic drinks are forecast to register a continuing decline in volume over the forecast period. The shift from consumers towards healthier lifestyles will create changes as more people choose to reduce their alcohol intake in order to improve their general health and prevent disease. Products with higher abv content such as spirits are estimated to show the highest decline as a direct result of this trend. Beer, a traditional product in the Dutch drinking culture will witness falling per capita volume as younger consumers switch to alternatives such as wine or non-alcoholic drinks. Manufacturers will respond with more frequent extensions as a measure to secure demand and prevent a deeper fall, offering products with lower abv content or promoting others such as non-alcoholic beer.

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