The market for local products - Belgium

From 2020 onwards, the Belgian market for local produce has experienced various trends indicating a strong consumer preference for fresh, organic products. Demand for these products has exploded, as shown by historical data from 2008 to 2017, which indicate a doubling of spending on organic fresh food and beverages in Belgium, including a tripling in the Brussels region. The market itself is characterized by product diversity and is highly competitive, with small local producers, SMEs and large food companies. Despite this competition, there is considerable room for growth, as Belgians are showing a willingness to increase their consumption of organic products. Projections point to further growth, with 8 out of 10 respondents expressing a desire to consume more organic products. The market is also influenced by international trade, with France remaining a key export partner for Belgium in this sector. Sales are mainly via supermarkets, which account for 95.3% of market share, compared with 4.7% for retailers, although direct purchases from farms, cooperatives and online initiatives are on the increase. Finally, Belgium is following the European trend in organic farming, with a marked increase in the area devoted to organic farming, the number of organic producers and sales of organic products, outstripping the rate of growth within the EU. Recognition of local products is facilitated by labels such as PDO, PGI and TSG, which guarantee and signal quality to consumers.Belgian market trends in local and organic food demand In Belgium, the popularity of local and organic food products has grown impressively, with demand more than doubling between 2008 and 2017. In Flanders alone, spending on organic products soared from almost 84 million to around 190 million euros, while the Brussels region saw a staggering threefold increase, from around 22.5 million to some 70 million euros. This increase reflects a sustained and substantial appetite for fresh and organic produce on the Belgian market. What's more, when compared with the international landscape, Belgian consumers have mixed views on future food quality and access to healthy diets. Anticipation of an improvement in access to healthy food is divided, with almost 30% predicting an improvement, against around 25% predicting a decline. Belgians also seem less optimistic about the quality of future food consumption, with only 23% expecting an improvement, compared to 25% who predict a deterioration. Local food, although gradually gaining ground amidst these perceptions, is not of primary concern to Belgian consumers; a slim majority of 51% express a preference for local products, even if this limits their options. This percentage is significantly lower than in neighboring countries such as Germany and France, where it hovers between 60 and 70%. Conventional distribution channels still dominate the market, accounting for the lion's share of fresh produce purchases. However, progressive circles advocating short supply chains have begun to develop. These initiatives, such as Boeren and online platforms like Local Eat, are changing consumer buying habits, providing direct links between producers and consumers and strengthening the local produce movement. Even traditional supermarkets are taking this trend into account by including a selection of local products. The organic food offer continues to grow, following European trends. Belgium has witnessed a pronounced increase in organic farming indicators, with the number of organic producers rising substantially by 80-85% between 2010 and 2017. Belgian consumers in particular are embracing organic products, with nearly eight out of ten expressing a desire to increase their consumption of organic products, which is particularly noticeable among young people aged 18 to 24. Belgium's thriving local produce market is punctuated by a list of products bearing PDO, PGI and TSG labels, verification mechanisms that deliver a powerful message to consumers about product origin, quality and manufacturing tradition. Labels such as PDO underline the unique know-how and geographical uniqueness inherent in many Belgian products #### Supermarkets and hypermarkets - The dominant distribution channel As mentioned above, supermarkets and hypermarkets account for the lion's share of the market for local products, representing 95.3% of purchases. This traditional retail model remains very popular due to its convenience and ability to offer a wide range of products, including local and organic options to meet growing consumer demand. #### Food giants and private labels In addition to traditional retailers, competition in the local produce market includes large agri-food companies and private brands, which often have extensive reach and resources to promote their products. These entities can offer a varied range of local products, capitalizing on consumers' growing interest in local and traditional foods. #### Local producers and artisans The backbone of the local produce scene, local producers and artisans are dedicated individuals or small teams who maintain traditional methods to create authentic local products. They are essential to preserving the cultural heritage associated with Belgian gastronomy and ensuring a continuous supply of authentic local food products. #### Emerging SMEs and innovative startups Small and medium-sized enterprises (SMEs) and innovative startups are shaking up the market by introducing new ways of connecting consumers to local products. These are often online platforms and direct-to-consumer models that aim to shorten the supply chain and provide fresher produce while supporting the local economy. #### Online markets and location-based services Digital initiatives such as Topino, The Hive That Says Yes, Efarmz and Local Eat are gaining ground by offering geolocation services and web platforms that make it easy for consumers to find local producers and buy their produce directly. This business model responds to consumers' growing preference for convenience and support for local economies. #### Community-supported agriculture and cooperatives Community-supported agriculture (CSA) and cooperative models such as the Groupement d'achat solidaire de l'agriculture paysanne (GASAP) or the Floreffe farmers and artisans play a crucial role in fostering direct relationships between producers and consumers. These models not only support the local economy, but also encourage sustainable farming practices. #### Traditional and local initiatives Belgian consumers still value traditional purchasing methods, as demonstrated by the success of initiatives such as the "C'est bon, c'est wallon" market and local distribution platform Boeren, which adheres to a "short chain 2.0" approach. These initiatives aim to promote sustainable systems where there is a direct link between producer and consumer

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• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 14/12/2021

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