How the food sector is developing into a ‘domain’

The food sector faces major challenges. A growing global population must be fed, whilst food production is coming up against ecological and spatial limits. At the same time, consumers are demanding food that is healthy, tasty, of good quality, and still affordable. This calls for cross-sectoral changes, innovation, and for parties in the chain to reinvent themselves. As a result, there is a shift from the traditional agrifood sector to a broader domain in which far more parties are involved. We call this the 'How we feed ourselves' domain. We have investigated the key driving forces behind food production and consumption in the Netherlands and how these contribute to the emergence of this domain.

The annual added value of the Dutch 'How we feed ourselves' domain is €71 billion

The Dutch ‘How we feed ourselves’ domain is strongly export-oriented and based on cooperation between businesses, government and research institutions. In 2022, it generated €71 billion in added value and plays a key role globally. The Netherlands is, after the USA and Brazil, the third largest exporter of agricultural products, making it a true agricultural superpower. Although the traditional agrifood sector forms the core, the domain is expanding into health, technology, and life sciences. Sectors that are becoming increasingly important for food and nutrition.

The main drivers

Supply side: technology is crucial for increasing production

• Our research shows that simply increasing production is not an option, especially in the Netherlands, where both ecological and physical space is scarce.
• Increasing crop yields is possible, but the focus needs to be on, for example, organic fertilisers and technology. Up to now, agricultural productivity has mainly relied on greater use of resources such as artificial fertilisers, pesticides and antibiotics. This approach is becoming increasingly problematic in countries like the Netherlands, as excessive use leads to environmental and health issues.
• Furthermore, reducing food waste—currently around forty percent of the chain—is a straightforward and effective way to meet nutritional needs. More efficient calorie intake also plays a role, given the surplus in wealthy countries and the shortage in developing nations.

Demand side: consumers set high standards for food, but also for affordability

• On the demand side, the pressure is also considerable, as consumers increasingly expect food to meet multiple criteria such as affordability, convenience (always available, innovative and tasty), sustainability, ethical consumption (socially responsible and animal-friendly), and quality (healthy, safe and nutritious).

The sector must reinvent itself

‘If you look at the challenges on both the demand and supply sides, it is important to realise that the agrifood sector has developed over the years into a broad ecosystem of different parties. No single party can provide a solution on its own. Cooperative collaboration is therefore the magic word,’ says Milo Hartendorf, food sector expert at PwC Netherlands. He believes that the Dutch sector is ideally placed to drive the global transformation of food systems.

Hartendorf: ‘This is not only a threat, but also a major opportunity for companies to reinvent themselves, experiment with new business models and thus become more future-proof. In the Netherlands, entrepreneurs and scientists have long been working together on innovative projects to continuously improve the agrifood sector. I am fully confident that we also have the right knowledge and experience to find answers to all the challenges.’

Stuti Sethi, food expert at Strategy&, is also optimistic: ‘The Netherlands is at the forefront of global food innovation. By combining leading research, technology and collaboration, the Dutch food sector is uniquely positioned to develop climate-resilient solutions that are scalable and affordable for consumers worldwide.’