Food & Drink Sector Outlook 2025 – France, Belgium, Netherlands

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The food & drink sector forms a major part of the economies of France, Belgium and the Netherlands and provides a diverse and buoyant range of capex projects. Suppliers of capital equipment and machinery are rightly interested in the future prospects of the food & drink sector in these countries, so in this article will take a brief look into the outlook in France, Belgium and the Netherlands for 2025.

France Food & Drink Capex

Food & Drink Sector Trends

France is particularly buoyant at present. There is continued growth in traditional sectors such as dairy, poultry, meat, and beverages, including significant expansion in the mineral water market.

Wastewater reuse is expected to rise, with new wastewater treatment plant (WWTP) projects likely to emerge as a result.

Organisations are still focusing on packaging innovations, with companies like Nestlé introducing cardboard cans and paper packaging, aiming to increase sustainability by reducing plastic usage by 90%.

There is growing demand in alternative proteins, particularly mycelium-based proteins, spirulina, algae cultivation, and black soldier fly larvae, though they remain relatively small markets despite strong growth. Further, hybrid protein products, combining animal and vegetable sources, are attracting interest from multinationals, catering to the growing number of flexitarians emerging in France.

Zero-alcohol beverages, mocktails, and fermented teas such as kombucha are gaining traction due to changing preferences around alcohol consumption.

Acquisition activity is expecting to continue, with large multinationals aiming to acquire emerging businesses and SMEs to integrate innovation and leverage existing distribution networks.

Challenges

Scaling production of imitation meat, dairy, and fish remains difficult, with high costs compared to traditional products which may keep it a high-cost luxury purchase in the medium term. As outlined above, alcohol consumption is in decline due to a trend toward healthier lifestyle choices, cost, and taxes, though there are exceptions in craft beer.

Like many sub-sectors, the fresh fish industry is facing labour shortages and environmental/sustainability burdens which is having a knock-on impact on emerging capex.

Small and medium enterprises (SMEs) and startups struggle to fund Corporate Social Responsibility (CSR) projects compared to larger manufacturers, limiting innovation and R&D investment.

Belgium & The Netherlands Food & Drink Sector Capex

Food & Drink Sector Trends

Alt protein and alt meat sectors are particularly active in the Netherlands, though still niche and not at mass production scale. Companies like Revyve and Redefine Meat stand out as ones to watch. Innovation in traditional sectors like dairy, poultry, meat, beverages, and snacks continues, but meat consumption is declining due to cost and lifestyle changes.

Existing products and packaging are being adjusted to meet recycling demands and consumer preferences.

CSR and sustainability projects remain a focus, particularly in the food production sector, impacting capital expenditure through Q4 2024 and into 2025.

Challenges

There remain high energy costs, especially in the Netherlands, which is affecting the capex pipeline. Energy intensive processes are therefore less appealing to situate in the Netherlands compared to France where energy and land costs are generally lower.

There are also labour shortages and higher salary expectations, particularly in Belgium, causing businesses to relocate elsewhere in some cases, with a resulting drop in potential capex.

Inflation, rising land, rental, and construction costs are all increasing project delivery expenses.

Local taxes in Belgium are significantly higher than in neighbouring countries, posing an additional potential financial burden on businesses.

Our Coverage

At Protel we are currently covering over 200 food & drink sector capex projects across France, Belgium and the Netherlands. These capex projects have a combined potential capex value of just over €6bn. Full details are available to subscribers, including full scope of requirement and key decision maker contact details.

Conclusion

Overall, there is plenty of potential in the food and drink sectors in France, Belgium and the Netherlands in 2025. Belgium is definitely weaker than previously seen, with the Netherlands edging ahead in terms of the capex picture, but both are dwarfed by the extent of the capex pipeline for France.

There is still ample smaller capex emerging in Belgium and the Netherlands, but there are greater challenges for manufacturers and suppliers to overcome. France is the stand-out market and we would encourage suppliers of capital equipment and machinery to consider targeting this region.

There are growth areas of focus for manufacturers. Cost pressures mean that capex is generally moving quickly when approved, so it is vital suppliers are building key relationships as early as possible to find commercial success.

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Are you interested in growing your sales to food and drink capex projects in France, Belgium or the Netherlands? Book a call with our team to discover how we can save you time, effort and boost your commercial success.