Consumer Lifestyle Netherland

8/13/2019 Consumer Lifestyle Netherland

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Consumer Lifestyles Netherlands

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List of Contents and Tables

Consumer Trends.................................................................................................................................................... 1 Consumer Confidence............................................................................................................................................... 1 Ageing Population ...................... ..................... ..................... ...................... ..................... ..................... .................... 2 Busier Lifestyles Drive the Need for Convenience .................... ..................... ..................... ...................... ................ 3 Slow But Steady Trend Towards Healthier Lifestyles.................. ...................... ..................... ..................... ............. 3 the Rise of Internet Retailing..................................................................................................................................... 4

Population................................................................................................................................................................ 5 Population Change ..................... ..................... ..................... ...................... ..................... ..................... .................... 5 Population by Gender .................... ...................... ..................... ..................... ..................... ...................... ................ 6 Population by Marital Status .................... ..................... ..................... ...................... ..................... ..................... ...... 7 Population by Education........................................................................................................................................... 8 Population by Rural/urban Areas .................... ..................... ...................... ..................... ..................... .................... 9

Table 1

Population by Age and Gender: 1995/2000/2005/2007/2010/2015................................. 10

Table 2 Population by Age and Gender (% Analysis and % Growth):1995/2007/2015/1995-2007/2007-2015 ..................... ..................... ..................... ........... 11

Table 3 Median Age of Population: 1995/2000/2005/2007/2010/2015........................................ 11 Table 4 Median Age of Population (Actual Growth): 1995-2007/2007-2015 ................... ........... 11 Table 5 Population Change: 1995/2000/2002/2004/2006-2007 ................... ..................... ........... 11 Table 6 Population Change (% Growth): 1995-2007/2000-2007 .................... ...................... ....... 12 Table 7 Birth Rates: 1995/2000/2002/2004/2006-2007................................................................ 12 Table 8 Death Rates: 1995/2000/2002/2004/2006-2007 ................... ...................... ..................... 12 Table 9 Birth Rates (Actual Growth): 1995-2007/2000-2007 .................. ...................... .............. 12 Table 10 Death Rates (Actual Growth): 1995-2007/2000-2007..................................................... 12 Table 11 Fertility and Birth: 1995/2000/2002/2004/2006-2007..................................................... 13 Table 12 Fertility and Birth (Growth): 1995-2007/2000-2007 ................... ...................... .............. 13 Table 13 Population by Marital Status: 1995/2000/2002/2004/2006-2007 ...................... .............. 13 Table 14 Population by Marital Status (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 ..................... ..................... ..................... ........... 13 Table 15 Marriage Rates: 1995/2000/2002/2004/2006-2007 ..................... ...................... .............. 14 Table 16 Divorce Rates: 1995/2000/2002/2004/2006-2007 .................... ..................... .................. 14 Table 17 Marriage Rates (Actual Growth): 1995-2007/2000-2007................................................ 14 Table 18 Divorce Rates (Actual Growth): 1995-2007/2000-2007.................................................. 14 Table 19 Population by Highest Educational Attainment: 1995/2000/2002/2004/2006-

2007................................................................................................................................. 15 Table 20 Population by Highest Educational Attainment (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 .................... ...................... ..................... ........... 15 Table 21 Literacy Rates: 1995/2000/2002/2004/2006-2007........................................................... 15 Table 22 Literacy Rates (Actual Growth): 1995-2007/2000-2007 .................... ...................... ....... 15 Table 23 Population by Urban/Rural Locations and Major Cities:

1995/2000/2002/2004/2006-2007.................................................................................... 16 Table 24 Population by Urban/Rural Locations and Major Cities (% Analysis and %

Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 16 Table 25 Population Density: 1995/2000/2002/2004/2006-2007 ................... ..................... ........... 16 Table 26 Population Density (% Growth): 1995-2007/2000-2007................................................. 16

Consumer Segmentation....................................................................................................................................... 17 Babies and Infants................... ..................... ..................... ...................... ..................... ..................... ...................... 17 Kids......................................................................................................................................................................... 17 Tweenagers .................. ...................... ..................... ..................... ..................... ...................... ..................... ........... 18 Teenagers................................................................................................................................................................ 19




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Students................................................................................................................................................................... 19 People in Their 20s ..................... ..................... ..................... ...................... ..................... ..................... .................. 20 People in Their 30s ..................... ..................... ..................... ...................... ..................... ..................... .................. 21 Middle-aged Adults ..................... ..................... ..................... ...................... ..................... ..................... .................. 21 Pensioners............................................................................................................................................................... 22

Table 27 Babies and Infants: 1995/2000/2005/2007/2010/2015 .................... ..................... ........... 22 Table 28 Babies and Infants (% Growth): 1995-2007/2007-2015.................................................. 22 Table 29 Kids: 1995/2000/2005/2007/2010/2015 ..................... ..................... ..................... ........... 23 Table 30 Kids (% Growth): 1995-2007/2007-2015........................................................................ 23 Table 31 Tweenagers: 1995/2000/2005/2007/2010/2015............................................................... 23 Table 32 Tweenagers (% Growth): 1995-2007/2007-2015 ..................... ..................... .................. 23 Table 33 Teenagers: 1995/2000/2005/2007/2010/2015.................................................................. 23 Table 34 Teenagers (% Growth): 1995-2007/2007-2015 .................... ...................... ..................... 23 Table 35 People in their 20s: 1995/2000/2005/2007/2010/2015 .................... ..................... ........... 23 Table 36 People in their 20s (% Growth): 1995-2007/2007-2015.................................................. 24 Table 37 People in their 30s: 1995/2000/2005/2007/2010/2015 .................... ..................... ........... 24

Table 38 People in their 30s (% Growth): 1995-2007/2007-2015.................................................. 24 Table 39 Middle-aged Adults: 1995/2000/2005/2007/2010/2015 ..................... ...................... ....... 24 Table 40 Middle-aged Adults (% Growth): 1995-2007/2007-2015................................................ 24 Table 41 Older Population: 1995/2000/2005/2007/2010/2015....................................................... 24 Table 42 Older Population (% Growth): 1995-2007/2007-2015 .................... ..................... ........... 25

Household Profiles .................... ..................... ..................... ..................... ...................... ..................... .................. 25 Households by Number of Occupants ..................... ..................... ..................... ...................... ..................... ........... 25 Household Annual Disposable Income ................... ..................... ..................... ...................... ..................... ........... 26 Homeownership ................... ..................... ..................... ..................... ...................... ..................... ..................... .... 26 Possession of Household Durables ..................... ...................... ..................... ..................... ...................... .............. 27 Pet Ownership......................................................................................................................................................... 28

Table 43 Households by Number of Occupants: 1995/2000/2002/2004/2006-2007...................... 28 Table 44 Households by Number of Occupants (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 .................... ...................... ..................... ........... 28 Table 45 Occupants per Household: 1995/2000/2002/2004/2006-2007......................................... 29 Table 46 Occupants per Household (Actual Growth): 1995-2007/2000-2007 .................... ........... 29 Table 47 Number of Households by Disposable Income Bracket:

1995/2000/2002/2004/2006-2007.................................................................................... 29 Table 48 Number of Households by Disposable Income Bracket (% Analysis and %

Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 29 Table 49 Total Housing Stock and New Dwellings Completed:

1995/2000/2005/2007/2010/2015.................................................................................... 30 Table 50 Total Housing Stock and New Dwellings Completed (% Growth): 1995-

2007/2007-2015............................................................................................................... 30 Table 51 Households by Tenure and Type of Dwelling:

1995/2000/2005/2007/2010/2015.................................................................................... 30 Table 52 Households by Tenure and Type of Dwelling (% Analysis and % Growth):

1995/2000/2007/1995-2007/2007-2015 .................... ...................... ..................... ........... 31 Table 53 Households by Number of Rooms: 1995/2000/2002/2004/2006-2007............................ 31 Table 54 Households by Number of Rooms (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 .................... ...................... ..................... ........... 31 Table 55 Ownership of Household Durables: 1995/2000/2005/2007/2010/2015........................... 31 Table 56 Ownership of Household Durables by Type (Actual Growth): 1995-

2007/2007-2015............................................................................................................... 32

Household Segmentation .................... ..................... ...................... ..................... ..................... ..................... ........ 33 Single-person Households....................................................................................................................................... 33 Couples Without Children....................................................................................................................................... 33




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Couples With Children............................................................................................................................................ 34 Single-parent Families............................................................................................................................................ 34

Table 57 Households by Type: 1995/2000/2005/2007/2010/2015 .................... ...................... ....... 34 Table 58 Households by Type (% Analysis and % Growth) 1995/2007/2015-/1995-

2007/2007-2015............................................................................................................... 35

Labour ................................................................................................................................................................... 35 Working Conditions .................... ..................... ..................... ...................... ..................... ..................... .................. 35 Employed Population by Age .................... ..................... ..................... ...................... ..................... ..................... .... 36 Unemployed Population by Age.............................................................................................................................. 36 Part-time Employment ................... ...................... ..................... ..................... ..................... ...................... .............. 37

Table 59 Employed Population by Age Group: 1995/2000/2002/2004/2006-2007........................ 37 Table 60 Employed Population by Age Group (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 ..................... ..................... ..................... ........... 38 Table 61 Unemployed Population by Age Group: 1995/2000/2002/2004/2006-2007 ................... 38 Table 62 Unemployed Population by Age Group (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 ..................... ..................... ..................... ........... 38

Table 63 Unemployment Rate: 1995/2000/2002/2004/2006-2007................................................. 39 Table 64 Unemployment Rate (Actual Growth): 1995-2007/2000-2007 ..................... .................. 39 Table 65 Part-Time Employment by Gender: 1995/2000/2002/2004/2006.................................... 39 Table 66 Part-Time Employment by Gender (% Analysis and % Growth)

1995/2000/2006: /1995-2006/2000-2006 ................... ..................... ..................... ........... 39

Income.................................................................................................................................................................... 40 Annual Disposable Income ....................... ..................... ..................... ...................... ..................... ..................... .... 40 Income by Educational Attainment ..................... ...................... ..................... ..................... ...................... .............. 40 Income by Gender ................... ..................... ...................... ..................... ..................... ..................... ...................... 40

Table 67 Mean Annual Disposable Income by Education and Gender:1995/2000/2002/2004/2006-2007.................................................................................... 40

Table 68 Mean Annual Disposable Income by Education and Gender (% Growth):1995-2007/2000-2007 ................... ..................... ...................... ..................... .................. 41

Consumer Expenditure......................................................................................................................................... 41 Spending on Consumer Goods and Services by Broad Category............................................................................ 41

Table 69 Consumer Expenditure by Broad Category:1995/2000/2005/2007/2010/2015.................................................................................... 42

Table 70 Consumer Expenditure by Broad Category (% Analysis and % Growth)1995/2007/2015-/1995-2007/2007-2015 ................... ...................... ..................... ........... 43

Table 71 Consumer Expenditure by Commodity Type:1995/2000/2005/2007/2010/2015.................................................................................... 43

Table 72 Consumer Expenditure by Commodity Type (% Analysis and % Growth)1995/2007/2015-/1995-2007/2007-2015 ................... ...................... ..................... ........... 43

Table 73 Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007 .................... .................. 43 Table 74 Consumer Prices and Costs (Actual Growth): 1995-2007/2000-2007............................. 44

Eating Habits......................................................................................................................................................... 44 Spending on Food ................... ..................... ...................... ..................... ..................... ..................... ...................... 44 Shopping for Food ...................... ..................... ..................... ..................... ...................... ..................... .................. 45 Eating Preferences.... ..................... ..................... ...................... ..................... ..................... ..................... ............... 46 Cooking Habits ................... ...................... ..................... ..................... ...................... ..................... ..................... .... 47

Table 75 Consumer Expenditure on Food: 1995/2000/2002/2004/2006-2007............................... 48 Table 76 Consumer Expenditure on Food (% Analysis and % growth):

1995/2000/2007/1995-2007/2000-2007 .................... ...................... ..................... ........... 48 Table 77 Per Capita Expenditure on Food: 1995/2000/2002/2004/2006-2007............................... 48

Table 78 Per Capita Expenditure on Food (% Growth): 1995-2007/2000-2007 ..................... ....... 48 Drinking and Smoking.......................................................................................................................................... 49




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Spending on Alcoholic Drinks................................................................................................................................. 49 Spending on Soft and Hot Drinks............................................................................................................................ 49 Spending on Tobacco.............................................................................................................................................. 50

Table 79 Consumer Expenditure on Non-alcoholic Beverages:1995/2000/2002/2004/2006-2007.................................................................................... 50

Table 80 Consumer Expenditure on Non-alcoholic Beverages (% Analysis and %growth): 1995/2000/2007/1995-2007/2000-2007............................................................ 50

Table 81 Per Capita Expenditure on Non-alcoholic Beverages:1995/2000/2002/2004/2006-2007.................................................................................... 51

Table 82 Per Capita Expenditure on Non-alcoholic Beverages (% Growth): 1995-2007/2000-2007............................................................................................................... 51

Table 83 Consumer Expenditure on Alcoholic Beverages and Tobacco:1995/2000/2002/2004/2006-2007.................................................................................... 51

Table 84 Consumer Expenditure on Alcoholic Beverages and Tobacco (% Analysisand % growth): 1995/2000/2007/1995-2007/2000-2007................................................. 51

Table 85 Per Capita Expenditure on Alcoholic Beverages and Tobacco:1995/2000/2002/2004/2006-2007.................................................................................... 52

Table 86 Per Capita Expenditure on Alcoholic Beverages and Tobacco (% Growth):1995-2007/2000-2007 ................... ...................... ..................... ..................... .................. 52

Buying Alcohol and Tobacco .................... ..................... ..................... ...................... ..................... ..................... .... 52 Buying Soft and Hot Drinks .................. ...................... ..................... ..................... ..................... ...................... ....... 53 Drinking Habits .......................... ..................... ..................... ..................... ...................... ..................... .................. 54 Smoking Habits....................................................................................................................................................... 54

Fashion................................................................................................................................................................... 55 Spending on Clothing and Footwear ...................................................................................................................... 55 Spending on Accessories and Personal Goods ....................................................................................................... 56 Shopping for Clothing and Footwear...................................................................................................................... 56 Shopping for Accessories and Personal Goods....................................................................................................... 56 Traditional Clothing ............................................................................................................................................... 57 Fashion Trends .................... ..................... ..................... ..................... ...................... ..................... ..................... .... 57

Table 87 Consumer Expenditure on Clothing and Footwear:1995/2000/2002/2004/2006-2007.................................................................................... 57

Table 88 Consumer Expenditure on Clothing and Footwear (% Analysis and %Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 58

Table 89 Per Capita Expenditure on Clothing and Footwear:1995/2000/2002/2004/2006-2007.................................................................................... 58

Table 90 Per Capita Expenditure on Clothing and Footwear (% Growth): 1995-2007/2000-2007............................................................................................................... 58

Table 91 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, travelgoods: 1995/2000/2002/2004/2006-2007 ................... ..................... ..................... ........... 58

Table 92 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks,

Travel Goods (% Analysis and % Growth): 1995-2007/2000-2007................................ 58 Table 93 Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks,

Travel Goods: 1995/2000/2002/2004/2006-2007............................................................ 59 Table 94 Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks,

Travel Goods (% Growth): 1995-2007/2000-2007.......................................................... 59

Housing and Associated Costs.............................................................................................................................. 59 Renting Versus Buying................... ..................... ...................... ..................... ..................... ...................... .............. 59 Utility Costs ..................... ..................... ..................... ...................... ..................... ..................... ...................... ....... 60 Maintenance and Repair .................... ..................... ..................... ..................... ...................... ..................... ........... 60

Table 95 Consumer Expenditure on Housing: 1995/2000/2002/2004/2006-2007.......................... 61 Table 96 Consumer Expenditure on Housing (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 .................... ...................... ..................... ........... 61 Table 97 Per Capita Expenditure on Housing: 1995/2000/2002/2004/2006-2007 ..................... .... 61




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Table 98 Per Capita Expenditure on Housing (% Growth): 1995-2007/2000-2007 ................... .... 62

Household Goods and Services ..................... ..................... ...................... ..................... ..................... .................. 62 Spending on Household Goods and Services ..................... ..................... ..................... ...................... ..................... 62 Shopping for Household Goods ................... ...................... ..................... ..................... ...................... ..................... 62 DIY and Gardening..................... ..................... ..................... ...................... ..................... ..................... .................. 63

Table 99 Consumer Expenditure on Household Goods and Services:1995/2000/2002/2004/2006-2007.................................................................................... 63

Table 100 Consumer Expenditure on Household Goods and Services (%Analysis and %Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 63

Table 101 Per Capita Expenditure on Household Goods and Services:1995/2000/2002/2004/2006-2007.................................................................................... 64

Table 102 Per Capita Expenditure on Household Goods and Services (% Growth):1995-2007/2000-2007 ................... ...................... ..................... ..................... .................. 64

Health..................................................................................................................................................................... 64 Spending on Health Goods and Medical Services................................................................................................... 64 Healthcare System .................. ..................... ...................... ..................... ..................... ...................... ..................... 65

Major Causes of Death .................. ...................... ..................... ..................... ..................... ...................... .............. 66 Prevalence of Smoking............................................................................................................................................ 67 Reported Aids Cases ................... ..................... ..................... ..................... ...................... ..................... .................. 67 Drug Abuse .................. ...................... ..................... ..................... ...................... ..................... ..................... ........... 68 Health and Wellness ................... ..................... ..................... ..................... ...................... ..................... .................. 69

Table 103 Consumer Expenditure on Health Goods and Medical Services:1995/2000/2002/2004/2006-2007.................................................................................... 70

Table 104 Consumer Expenditure on Health Goods and Medical Services (% Analysisand % Growth): 1995/2000/2007/1995-2007/2000-2007................................................ 70

Table 105 Per Capita Expenditure on Health Goods and Medical Services:1995/2000/2002/2004/2006-2007.................................................................................... 70

Table 106 Per Capita Expenditure on Health Goods and Medical Services (% Growth):

1995-2007/2000-2007 ................... ...................... ..................... ..................... .................. 70 Table 107 Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006 ................... .... 71 Table 108 Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006 .................... .................. 71 Table 109 Healthy Life Expectancy at Birth (Actual Growth): 1995-2006/2000-2006.................... 71 Table 110 Healthcare Workers: 1995/2000/2002/2004/2006-2007.................................................. 71 Table 111 Healthcare Workers (% Growth): 1995-2007/2000-2007................................................ 71 Table 112 Major Causes of Death by Disease: 1995/2000/2002/2004/2006-2007........................... 72 Table 113 Major Causes of Death by Disease (% Growth): 1995-2007/2000-2007..................... .... 72 Table 114 Obese Population: 1995/2000/2002/2004/2006-2007...................................................... 72 Table 115 Obese Population (Actual Growth): 1995-2007/2000-2007................... ..................... .... 72 Table 116 Smoking Prevalence: 1995/2000/2002/2004/2006-2007................................................. 73

Table 117 Smoking Prevalence (Actual Growth): 1995-2007/2000-2007........................................ 73 Table 118 Reported AIDS Cases: 1995/2000/2002/2004/2006-2007............................................... 73 Table 119 Reported AIDS Cases (% Growth): 1995-2007/2000-2007 ................... ..................... .... 73

Personal Grooming ................... ..................... ..................... ..................... ...................... ..................... .................. 73 Spending on Cosmetics and Toiletries .................... ..................... ..................... ...................... ..................... ........... 73 Shopping for Cosmetics and Toiletries ................................................................................................................... 74 Attitudes Towards Personal Grooming..... ..................... ..................... ..................... ...................... ..................... .... 74

Table 120 Consumer Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007 ................. 75 Table 121 Consumer Expenditure on Personal Care (% Analysis and % Growth): 1995-

2007/2000-2007............................................................................................................... 75 Table 122 Per Capita Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007................. 75

Table 123 Per Capita Expenditure on Personal Care (% Growth): 1995-2007/2000-2007............... 76 Education............................................................................................................................................................... 76




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Spending on Education .................. ...................... ..................... ..................... ..................... ...................... .............. 76 Pre-primary Education .................. ...................... ..................... ..................... ..................... ...................... .............. 76 Primary and Secondary Education ...................... ..................... ..................... ..................... ...................... .............. 77 Higher Education.. ...................... ..................... ..................... ...................... ..................... ..................... .................. 78 Adult Education .......................... ..................... ..................... ...................... ..................... ..................... .................. 79

Table 124 Consumer Expenditure on Education: 1995/2000/2002/2004/2006-2007................... .... 80 Table 125 Consumer Expenditure on Education (% Growth): 1995-2007/2000-2007..................... 81 Table 126 Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007....................... 81 Table 127 Per Capita Expenditure on Education (% Growth): 1995-2007/2000-2007..................... 81

Transport............................................................................................................................................................... 81 Spending on Transport............................................................................................................................................ 81 Air Transport ................... ..................... ...................... ..................... ..................... ..................... ...................... ....... 82 Road Transport .................... ..................... ..................... ..................... ...................... ..................... ..................... .... 83 Rail Transport....... ...................... ..................... ..................... ..................... ...................... ..................... .................. 83 Transport Infrastructure .................... ..................... ..................... ...................... ..................... ..................... ........... 84

Table 128 Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007........................ 85 Table 129 Consumer Expenditure on Transport (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 ..................... ..................... ..................... ........... 85 Table 130 Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007 ................... .... 85 Table 131 Per Capita Expenditure on Transport (% Growth): 1995-2007/2000-2007 ..................... 85

Communications and the Internet.................... ..................... ..................... ..................... ...................... .............. 86 Spending on Communications................................................................................................................................. 86 Television, Cable and Satellite................................................................................................................................ 86 Printed Media ...................... ..................... ..................... ..................... ...................... ..................... ..................... .... 88 Telephones ................... ...................... ..................... ..................... ...................... ..................... ..................... ........... 88 Computers and the Internet..................................................................................................................................... 89 E-commerce ..................... ..................... ...................... ..................... ..................... ..................... ...................... ....... 90

M-commerce ........................... ..................... ...................... ..................... ..................... ..................... ...................... 91 Table 132 Consumer Expenditure on Communications: 1995/2000/2002/2004/2006-

2007................................................................................................................................. 92 Table 133 Consumer Expenditure on Communications (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007 ..................... ..................... ..................... ........... 92 Table 134 Per Capita Expenditure on Communications: 1995/2000/2002/2004/2006-

2007................................................................................................................................. 92 Table 135 Per Capita Expenditure on Communications (% Growth) 1995-2007/2000-

2007:................................................................................................................................ 92 Table 136 Penetration of Televisions and Number of TV Channels:

1995/2000/2002/2004/2006-2007.................................................................................... 93 Table 137 Penetration of Televisions and Number of TV Channels (% Growth): 1995-

2007/2000-2007............................................................................................................... 93 Table 138 Penetration of Cable and Satellite Television: 1995/2000/2002/2004/2006-

2007................................................................................................................................. 93 Table 139 Penetration of Cable and Satellite Television (% Growth): 1995-2007/2000-

2007................................................................................................................................. 93 Table 140 National and International Phone Calls, Telephone Lines in Use and Mobile

Phone Users: 1995/2000/2002/2004/2006....................................................................... 93 Table 141 National and International Phone Calls, Telephone Lines in Use and Mobile

Phone Users(% Growth): 1995-2006/2000-2006 .................... ...................... .................. 94 Table 142 Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007.................. 94 Table 143 Household PC Penetration and Internet Usage (% Growth): 2000-2007......................... 94

Leisure and Recreation......................................................................................................................................... 94 Spending on Leisure and Recreation ...................................................................................................................... 94 Leisure Time ....................... ...................... ..................... ..................... ..................... ...................... ..................... .... 96




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Culture .................. ...................... ..................... ..................... ...................... ..................... ..................... .................. 96 Sport and Exercise .................. ..................... ...................... ..................... ..................... ...................... ..................... 97 Going Out ............................................................................................................................................................... 99 Travel and Tourism................................................................................................................................................. 99

Table 144 Consumer Expenditure on Leisure and Recreation:

1995/2000/2002/2004/2006-2007.................................................................................. 101 Table 145 Consumer Expenditure on Leisure and Recreation (% Analysis and %

Growth): 1995/2000/2007/1995-2007/2000-2007......................................................... 101 Table 146 Per Capita Expenditure on Leisure and Recreation:

1995/2000/2002/2004/2006-2007.................................................................................. 102 Table 147 Per Capita Expenditure on Leisure and Recreation (% Growth): 1995-

2007/2000-2007............................................................................................................. 102 Table 148 Consumer Expenditure on Accommodation: 1995/2000/2002/2004/2006-

2007............................................................................................................................... 102 Table 149 Consumer Expenditure on Accommodation (% Analysis and % Growth):

1995-2007/2000-2007 ................... ...................... ..................... ..................... ................ 102 Table 150 Per Capita Expenditure on Accommodation: 1995/2000/2002/2004/2006-

2007............................................................................................................................... 102 Table 151 Per Capita Expenditure on Accommodation (% Growth): 1995-2007/2000-

2007...................... ...................... ..................... ..................... ..................... .................... 103

Eating Out ........................................................................................................................................................... 103 Spending on Catering............................................................................................................................................ 103 Attitudes Towards Eating Out. ..................... ...................... ..................... ..................... ..................... .................... 104

Table 152 Consumer Expenditure on Catering: 1995/2000/2002/2004/2006-2007........................ 104 Table 153 Consumer Expenditure on Catering (% Growth): 1995-2007/2000-2007 ................... .. 105 Table 154 Per Capita Expenditure on Catering: 1995/2000/2002/2004/2006-2007 ..................... .. 105 Table 155 Per Capita Expenditure on Catering (% Growth): 1995-2007/2000-2007..................... 105

Banking and Financial Services...... ..................... ..................... ...................... ..................... ..................... ......... 105

Spending on Banking and Financial Services .................... ..................... ..................... ..................... .................... 105 Pensions................................................................................................................................................................ 108

Table 156 Consumer Expenditure on Insurance: 1995/2000/2002/2004/2006-2007...................... 108 Table 157 Consumer Expenditure on Insurance (% Analysis and % Growth): 1995-

2007/2000-2007............................................................................................................. 108 Table 158 Per Capita Expenditure on Insurance: 1995/2000/2002/2004/2006-2007 ................... .. 109 Table 159 Per Capita Expenditure on Insurance (% Growth): 1995-2007/2000-2007 ................... 109 Table 160 Consumer Expenditure on Financial Services: 1995/2000/2002/2004/2006-

2007............................................................................................................................... 109 Table 161 Consumer Expenditure on Financial Services (% Analysis and % Growth):

1995-2007/2000-2007 ................... ..................... ...................... ..................... ................ 109 Table 162 Per Capita Expenditure on Financial Services: 1995/2000/2002/2004/2006-

2007............................................................................................................................... 109 Table 163 Per Capita Expenditure on Financial Services (% Growth): 1995-2007/2000-

2007...................... ...................... ..................... ..................... ..................... .................... 109

Structure of the Report....................................................................................................................................... 110

Definitions............................................................................................................................................................ 111 Summary 1 Country Coverage.......................................................................................................... 111




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CONSUMER LIFESTYLES IN THE NETHERLANDS

CONSUMER TRENDS

Consumer Confidence

According to Statistics Netherlands, in 2007 Dutch consumers were among the most optimistic in Europe aboutthe direction of their national economy. In March 2008, despite the storm clouds of the economic slowdownbeginning to gather, optimists remained in the majority. By December 2008, however, with the economicdownturn in full swing, all pretence of consumer confidence disappeared, and (again, according to StatisticsNetherlands) economic pessimism became the prevalent attitude among the vast majority of Dutch consumers.

Dutch consumers witnessed many of the signs of their country’s stagnating economy. For example, by the endof 2008 the value of Dutch exports to both European Union and non-EU countries had fallen by 5%, the firstdecline since 2004. The decline was led by Dutch exports to the UK, which fell by 8% during the year. Thisdecline led, in turn, to decreasing rates of production, which fell by a significant 6.5% in December 2008

compared to one year earlier.

At the same time, many Dutch companies began taking steps to address the increasingly poor economicconditions. These included cutting costs, dismissing temporary staff and reducing working hours. All of theseactions affected the outlook of Dutch consumers.

By the end of 2008, the government calculated that, in the fourth quarter, the Dutch economy had shrunken by0.9% compared to the previous quarter, the largest quarter-by-quarter decline since the early 1980s. Overall, itwas estimated that GDP grew by only 2% over 2008. After adjusting the output of previous quarters, thegovernment announced that the country’s economy had entered into recession.

Outlook

Generally, there is little on the horizon that looks like it will have a positive impact on consumer confidence inthe Netherlands in the near term. In 2009, GDP growth in the Netherlands is projected by the EU to contract by2% with all four quarters showing negative growth. GDP is projected to recover very slowly, contracting againby 0.2% in 2010.

Dutch consumers purchased more items on credit than ever before in 2008, including cars and durable goods.It’s expected that credit purchases will decrease in the near term as consumers try to pay down their debt inuncertain times. In many cases, consumers paying down debt will mean that they’ll make fewer purchases or, atthe very least, postpone purchases until they’re more comfortable with their financial situations.

Exports and, in turn, manufacturing output are expected to continue to decline over the near term, and therepercussions of this reduced activity will be felt throughout the Dutch economy.

Impact

The economic downturn will have an impact on almost every aspect of the consumer market in the Netherlands,and the robust growth that many product sectors saw in 2007 as the Netherlands came out the 2000-2006recession is expected to stagnate.

In the short term, many Dutch consumers will find themselves in a position of having to reconsider whatproducts they believe are essential and what products are non-essential and making hard decisions about what tobuy, what to postpone buying or what not to buy at all. Overall, this will have a negative impact on manyproduct sectors. For example, sales of larger and more expensive products and services, such as cars, foreignholidays, furniture and luxury items are expected to decline in the short-term. As well, investment in housing isexpected to stagnate as consumers postpone purchases in uncertain times.

It’s expected that there will be a marked incidence of consumers “trading down” from branded goods to private-label products in the near term. This will be particularly evident in expenditure for food and non-alcoholic





beverages. As well, many of those who continue to travel will opt for budget airlines and tourist packages, andcompanies operating in this segment of the market will capture increased share.

Ageing Population

The most significant demographic trend in the Netherlands is the country’s ageing population, a phenomenonthat is also occurring throughout the rest of Europe. Inhabitants of the Netherlands are living longer than beforebecause of medical advances and improved health car products and services. Some people are also leadinghealthier lives, eating healthier foods and giving up such habits as smoking.

At the same time, birth rates in the country are falling. Many women are deciding to enter the workforce andpursuing professional careers, and they are getting married and having children at later ages (or not havingchildren at all). For a number of other reasons, many young families are waiting longer to have children andhaving fewer of them.

Overall, it’s projected that there will be far too few people working and paying taxes in the Netherlands toadequately support the burgeoning number of pensioners. What measures the government implements to addressthis will significantly affect the consumption patterns not only of the country’s pensioners but of those people

that in the workforce, as well. There will also be an increased financial burden placed on the country’shealthcare sector as the number of patients suffering from age-related disorders grows. Again, how thegovernment addresses this issue will affect consumer healthcare expenditure and influence spending patternsand trends throughout the country.

On the other hand, Baby Boomers (those born between 1946 and 1964) are a relatively affluent populationsegment, and many in this group have saved and built up healthy pensions. In many ways, they have defined themodern consumer. During their working lives, they were not afraid to spend and borrow, traits not exhibited bymembers of previous generations.

Outlook

People in the Netherlands will continue living longer and birth rates will continue to decline over the forecast

period, with the result being the overall Dutch population continuing to age at a fast rate. By 2015, it’s projectedthat more than 24% of the population will 60 years-old or older. In contrast, 17.6% of the Dutch population in1995 was over 60 years of age. While the median age in 1995 was 35.8, it’s projected to rise to 42.6 in 2015.

Impact

The effects of the ageing Dutch population will be felt in a wide range of social and economic arenas, and it willhave a significant impact on consumer trends and spending patterns over the forecast period. On the other hand,it’s uncertain how the economic downturn will affect consumption patterns in the short term.

Over the forecast period, the increasing number of older consumers in the Netherlands will drive demand for awide range of healthcare products and services. Sales of over-the-counter drugs and related products areexpected to grow, as are sales of medical supplies and equipment, assistive products, vitamins and dietary

supplements and exercise and sport equipment for seniors seeking to stay fit. As well, many older consumersprefer “natural” products to make them feel better or help them stay fit, so this niche segment of the market isexpected to grow.

The increasing number of older consumers will also drive sales in selected segments of the cosmetics andtoiletries sector. In particular, sales of so-called anti-aging make-up and creams are expected to grow. As in thehealthcare products sector, there is increasing demand for “natural” products in the cosmetics sector, and salesin this sub-sector should grow, as well.

Many members of the Baby Boomer generation are relatively affluent, and as large numbers of them retire it’sprojected that there will be increased demand for leisure and recreation and travel and tourism services.

With fewer children and young people in the overall population, volume sales of such items as toys and games

and children’s clothing and footwear are expected to decline. Regardless, value sales are expected to grow overthe forecast period as parents spend more on the fewer children that they have.





Busier Lifestyles Drive the Need for Convenience

The lives of most Dutch consumers have become more hectic over the review period. Many have foundthemselves swamped, working longer hours and often having to work harder. Many others, particularly recent

graduates and young workers, have moved to single-person households in urban areas and found themselvesfaced not only with a faster pace of living but with much more wider range of options on how to spend their freetime.

In particular, the lifestyles of many Dutch women changed over the review period as more of them chose orfound it necessary to enter the workforce, either as full-time or part-time workers, often while in the midst ofraising families. During the review period, the number of employed females in the Netherlands increased bynearly 33%, reaching 3.7 million in 2007.

In short, during the review period a great number of Dutch consumers discovered that their time away fromwork was an increasingly precious commodity, and they began to seek out products and services that promisedto save them valuable time.

Outlook

Many of the factors that have led to busier lifestyles among the population of the Netherlands are expected tointensify over the forecast period. For example, the number of urban households, which grew by 13% during thereview period, is expected to increase by a further 8% over the forecast period. Most significantly, the numberof Dutch women entering the workforce is expected to continue growing over the forecast period. This will havean impact not only on the pace of their own lives but, for those with families, on the lives of their husbands,partners and children, as well. In situations like these, consumers give strong weight to convenience whenmaking purchasing decisions about products and services.

Impact

The demand for time savings and convenience will continue to influence a number product sectors over the

forecast period. Busy Dutch consumers are expected to find themselves with less time to spend with familiesand friends and far more options for how that time is spent than in the past.

It’s projected that Dutch consumers, particularly single-family households and couples with no children, willdrive demand for more prepared and frozen foods, as making meals from scratch can take a great deal of time.In particular, prepared foods that carry a cache of being healthier (regardless of whether they really are) will seeincreased sales.

At the same time, household products that offer ease-of-use and convenience are expected to do well over theforecast period. For example, products such as microwave ovens that allow consumers to quickly defrost frozenfoods and to quickly prepare ready meals are expected to continue to do well over the review period. Sales ofdishwashers, which grew by 33% during the review period, are expected to continue to do well over forecastperiod, as are sales of freezers and tumble driers.

Some Dutch consumers will forego preparing meals at all, choosing to dine out more often. Of course, theeconomic slowdown may influence how often many of these consumers dine out and how much they spendwhen they do.

Slow But Steady Trend Towards Healthier Lifestyles

The Dutch government made great efforts during the review period to promote the benefits of healthier lifestylesamong the population. The latest effort came in 2006, when the Ministry of Health introduced the 'Kiezen voorgezond leven' (‘Opting for a Healthy Life’) initiative which set objectives for reducing the prevalence ofsmoking, alcohol misuse and obesity, among other health-related goals.

According to Statistics Netherlands, however, while there have been declines in the prevalence of so-called

unhealthy habits, the declines have not been to the government’s satisfaction. Over the review period, thenumber of obese adults continued to rise, while the number of smokers and heavy drinkers changed little over





the period. As well, there was little if any growth in the number of people who reported to undertake regularexercise to keep fit.

Regardless, there is a segment of the population which is aware of the benefits of healthier lifestyles and whoseek products and services that support their quest for fitness and health. With continued government initiatives,it’s expected that this attitude will gain momentum and spread relatively quickly among Dutch consumers.

Outlook

There is little to indicate that, in the short term, Dutch consumers will follow the lead of most of their Europeancounterparts and attempt to smoke and drink significantly less or to get a great deal more exercise. Thegovernment reports that in 2008, 28% of the Dutch population aged 12 years and older smoked, a numberunchanged from 2007. Although their number did decline over the review period, 10% of the Dutch populationaged 12 years and older were still considered “heavy drinkers” (consumption of at least six units of alcohol atleast once a week) in 2008. As well, from the early 1980s until 2005, the number of seriously obese adults in theNetherlands doubled, and it now stands at around 11% of the population.

Consumers attempting to lead healthier lifestyles are often confronted with products and services that are more

expensive than traditional “unhealthy” choices. For example, organic food is often more expensive thanprepared and frozen foods, and fees for health clubs, spas and gyms can be high. Unfortunately, in times ofeconomic uncertainly, these types of price increases and expenses are typical of those that many consumershesitate to take on as they are forced to consider what is and what is not essential.

On the other hand, there’s little doubt that increased government efforts to promote healthier lifestyles andoverall increased consumer awareness of the benefits of healthy living habits over the forecast period willeventually drive increased sales of health-related products and services. In particular, as the number of olderconsumers grows and as members of this group increasingly become concerned with their health, many productchoices are expected to change.

Impact

Government initiatives and other health awareness programs are expected to have a positive impact on a widerange of products and services in the Dutch market over the forecast period. On the other hand, it’s anticipatedthat sales of health-related products will not grow at rates as robust as those in other European countries.Regardless, it’s expected that sales of such healthy foods like fish, vegetables and yogurt will increase whilesales of less healthy foods like oils and fats will decline. As well, demand for exercise equipment and otherproducts related to getting and staying fit are expected to increase over the forecast period, albeit again not at thesame rates as in other European countries.

the Rise of Internet Retailing

The use of computers and the internet has been absorbed into mainstream Dutch society much more quicklythan it has been absorbed in other countries. In 2000, there were seven million internet users in the Netherlands;by 2007, there were more than 15 million. The Netherlands is the only country in the EU which is expected to

reach its stated targets for broadband connections. By 2007, 75% of Dutch households had broadband.

The wide availability of high-speed internet connections in the Netherlands provides a strong foundation for thegrowth of internet retailing. In 2000, it was estimated that there were 3,000 online retailing sites in theNetherlands. By 2005, that number had reached 10,000. A large percentage of Dutch consumers has becomeaccustomed to buying products and services online from internet retailers. In 2000, less than 19% of overallDutch internet users reported making an online purchase. By 2005, 52% of internet users had made an onlinepurchase, and the percentage has continued to grow.

By 2008, internet retailing showed not only significant growth but also stepped up to become a serious player inthe overall retail environment in the Netherlands. Dutch consumers have overcome early suspicions regardingthe safety and reliability of online retailers. Online stores have overcome most privacy and safety issues andhave become far more effective in completing sales and delivering purchased products in a timely manner.





Outlook

In 2007, the average time spent per day connected to the internet by Dutch users was 80 minutes, almost doublethe 2006 figure, and there is nothing to indicate that internet usage will do anything but grow over the forecastperiod. Overall, more computers, faster connection speeds and more online sites will all combine to drivedouble-digit growth in online sales over the forecast period.

Impact

During the review period, the most popular products and services acquired via internet retailers were related totravel and tourism. Other popular products bought online included books and CDs, clothing, tickets to concertsand other events and second-hand goods. Online sales of all of these products and services are expected toincrease over the forecast period. As Dutch consumers get more access to high-speed connections, as moreonline sites spring up and as more consumers become comfortable with buying online, the channel willexperience dynamic growth and internet retailers will capture a significantly larger distribution share in theDutch market.

Growth in this channel over the forecast period will also be driven by sales of new products and services. In

particular, following the pattern seen in other European countries, it’s anticipated that food and grocery sales viathe internet will grow over the forecast period, particularly as costs decline, delivery services improve and asharried consumers increasingly demand more convenient shopping options.

POPULATION

Population Change

In 2007, the Netherlands had a total population of 16.4 million people, which is a relatively high numberconsidering its small size (approximately 41,000 square kilometres). In terms of population, the Netherlands isthe largest of the small countries of Western Europe. It is significantly smaller than neighbouring countries suchas France, the United Kingdom and Germany, but also considerably more populated than countries of a similar

size, such as Belgium, Denmark and Switzerland. The Netherlands is one of the most densely populatedcountries in the world, with 482.3 people per square kilometre.

The population continues to grow. In 2015 the country is expected to have a total population of 16.6 million;this is over 1.1 million people more than in 1995. However, population growth in the 2000s has declinedsomewhat and has not been as rapid as in the second half of the 1990s. More significantly, the migration rate,which was especially high between 1995 and 2000, declined dramatically in the first years of the 21st century,and from 2004 onwards, emigrants have outnumbered immigrants. Reasons for this development include therestrictive migration policies implemented by the governments of Jan-Peter Balkenende (who became primeminister in 2002), which led to stricter regulations for all types of migration, including family and marriagemigration, a sharp decline in the number of asylum seekers (from 53,000 requests in 1994 to 10,000 in 2007according to the Centraal Bureau voor de Statistiek, or CBS) and an increasing emigration rate in the mid-2000s.

However, after four years of higher emigration, this trend seems to have come to an end, as in the first half of2008 there were more immigrants than emigrants. Moreover, in the first half of 2008, birth rate decline seems tohave come to an end, as more children were born than in the previous eight years. Accordingly, the population islikely to continue to rise slowly in the coming years, to an estimated 16.6 million in 2015.

The most significant demographic development is the fact that the population is ageing. In 1995, the median agewas 35.8 years; by 2015, this will have risen to 42.6 years old. The so-called “baby boom generation”, born inthe years after World War II, will soon retire, which is likely to have a significant impact on Dutch society andthe economy. Political parties disagree on issues such as whether elderly people with a relatively high incomeshould contribute to the “Algemene Ouderen Wet” (AOW) allowance, which every Dutch citizen older than age65 receives, and whether or not the age at which people retire should be raised. As a result, no significant socialsecurity reforms have been implemented yet. As the baby boom generation is about to reach the age ofretirement, and developments in medical science allow people to live longer than ever before, the number ofsenior citizens will rise significantly in the 2010s and 2020s.





Traditionally, women lived longer than men due to different gender roles (eg, men doing hard physical labour,fighting in the army and smoking and drinking more than women). Apparently, these patterns have still notcompletely disappeared. Whereas the number of Dutch people dying in conflict since World War II has beenvery low, men continue to work more than women and live less healthy lifestyles. According to the CBS, onaverage, men smoke and drink more than women.

Impact

In general, men and women have different spending patterns, and advertising campaigns differ likewise.Women’s magazines and TV commercials typically advertise products such as clothing, cosmetics, accessories,designer goods and healthy food products. Campaigns focused on men (via advertisements in men’s magazines,commercials before and after typical “men’s programmes” such as football games), on the other hand, typicallyadvertise alcoholic beverages (beer and spirits), cars, cosmetics, sports brands and luxury goods such aswatches. Advertisements and commercials continue to emphasise and strengthen traditional gender images anddivisions. Especially when it comes to clothing, cosmetics and accessories, gender differences are very real andstrongly influence consumer behaviour. Marketing companies in general reinforce the gender associations ofcertain products, and consumers seem to be attracted by products that are marketed, implicitly or explicitly, aseither particularly masculine or particularly feminine.

Population by Marital Status

General attitudes towards marriage have changed significantly over the past few decades. In particular, marriageis no longer seen as a necessary prerequisite for a couple to live together and have children. Religious views ofmarriage as a divinely confirmed bond are no longer the rule. As a result, more people choose not to hold achurch wedding service in addition to their civil marriage (which is required for everyone). Since 2001, theNetherlands is one of the few countries in the world where gay couples can get legally married.

Considering these shifting attitudes, it is not surprising that the percentage of the population that is married isgradually declining, while the number of single people (people who are not or have not been married) isgradually increasing. From 2002-2007, single people outnumbered married people, and accordingly, the numberof single households increased significantly over the mid-2000s years.

That is not to say, however, that marriage and traditional family life is no longer held in high esteem. On thecontrary, mediums such as dating shows on TV and advertising campaigns continue to portray marriage as theideal social unit. The Social Democratic-Christian coalition government in power in 2008 made family life andeducation one of its priorities (one of the vice-prime ministers served as Minister of Youth and Family). As arule, married couples with children benefit more from social security and government allowances than singlepeople, the large number of single-persons notwithstanding.

As attitudes towards marriage have changed, the average age at which people get married has also risen.Between 1995 and 2007, the average age of women at their first marriage has risen from age 27.1 to age 28.8years, and of men from age 29.4 to age 31.5. It seems as if the majority of people in their 20s give priority toinvesting in their careers, and to experiencing a number of short- or long-term relationships before they finallydecide to marry. In contrast to 30-40 years ago, it is now socially acceptable for a couple to live together for a

couple of years before marriage, or without marrying at all.

Considering all this, it comes as no surprise that the average age of women at childbirth has risen, and that thenumber of children born outside marriage has increased. This latter increase is quite dramatic, and illustrates thedeclining popularity of marriage. Between 1995-2007, the percentage of all children born outside marriage rosefrom 15.5% to 39.7%.

Given changing attitudes towards marriage, it comes as no surprise that the number of divorced peoplecontinues to rise as well. However, the divorce rate declined between 1995 and 2007, which suggests thatalthough the total number of divorcees has increased, the number of divorces per year has decreased somewhat.Now that fewer people get married, this rate may well decrease further in the coming years.

Impact





The increase in single-person households has influenced, and will continue to influence, the housing market.Demand for independent living units has risen, leading to a shortage of flats and rising prices, especially in themajor cities. As waiting lists for the semi-public (government-funded) housing corporations are sometimes aslong as 10 years, several commercial housing agencies have sprung up which let single-person studios and flatsfor significantly higher rents than those asked by the public corporations.

The increasing number of single-person households may also influence the market in other ways. For instance,smaller portions of food and household products are increasingly available, as are smaller furniture andappliances. Moreover, single people without children are likely to spend less money on household goods,nutrition and education, and can therefore spend more in areas such as luxury goods and entertainment. Single-person households constitute a varied and interesting group of consumers.

Families living together tend to spend more money than single people on household appliances, furniture, andfood, and if they have children, on education, toys and clothing. On the other hand, as a rule they spend less onluxury products, eating out and nightlife. However, the declining marriage and birth rates do not necessarilypoint to a declining market for household appliances, furniture, toys and the like. First, more people nowadayslive together as couples and/or have children without being married, so marriage is no longer the decisive factor.Second, the fact that people generally put off the decision to settle allows them to afford to spend more later on

housing, furniture and other durable goods.

Population by Education

Between 1995 and 2007, the number of people who finished higher education increased significantly, by almosta million. In general higher education is available to anyone, as the government provides university students(and students of higher vocational education, HBO) with a monthly scholarship (studiefinanciering) of,typically, about €250 during a maximum period of four years, low-interest student loans for another three years,and free use of public transportation either on weekdays or during the weekend.

However, over the course of a few decades, tuition fees have risen from zero to over €1,500 per year. Costs ofliving (and, in particular, costs of student accommodation) have rocketed in some cities, and the universityeducational system has changed significantly to become increasingly focused on efficiency and international

recognisability, rather than simply on academic quality. In the old system, most university programmesofficially lasted four years; in reality, students usually took a few years more, as they were encouraged to followextra courses, become active members of faculty committees and join student associations and fraternities. In2002, this leisurely system gave way to the new, “international”, bachelor-masters system (with the exception ofmedical science). Most bachelor programmes now last three years, and most masters programmes only one year.

The new system has made it easier for students to get a masters degree at another national or internationaluniversity. On the downside, however, the increasing costs (tuition fees and living costs), as well as aninstitutional focus on efficiency and speed (government funding of universities being dependent on how manystudents graduate, and how quickly) have resulted in students spending much less time studying and engaging inextracurricular activities, and graduate faster. According to some, this development has led to an overalldeterioration in the quality of higher education.

In general, higher education is considered important for a professional career. A clear difference is maintainedbetween the professionally-oriented “Hoger Beroeps Onderwijs” (HBO) institutions, and the traditionalacademies, which are the only ones allowed to consider themselves a “universiteit”, (“university”) is notprotected, so that many HBO-institutions refer to themselves as a “University” in English-language publications,which at times leads to confusion amongst international students. Both are considered higher education, butthere is a clear difference in prestige and level of education. There are only about 15 official “universiteit” (for atotal population of 16 million) – including the internationally-renowned universities of Utrecht, Leiden,Amsterdam, Groningen and Delft – but many more HBO-institutions.

Traditionally, only those who had graduated from one of the universities received the title Drs. (“doctorandus”);nowadays, this is generally considered as replaced by an MA or MSc. Accordingly, a BA or BSc degree isconsidered meaningless by most employers, who might ask a candidate with only this degree why they have notfinished their studies. On the other hand, a PhD (Dr.) degree is only considered relevant for those pursuing an

academic career. At best, a PhD is generally considered irrelevant for a successful professional; at worst, it canbe a disadvantage as those with a PhD degree have had less time to gain relevant work experience.





Impact

As anywhere, students generally are not the wealthiest members of society. Having said that, there are someproducts for which there is great demand amongst students despite very limited budgets. First, obviously,students need books. Most students still purchase their study books at local book stores – there is only one well-known Dutch website selling books, and it does not seem to specialise in study books, so there might actually bea niche there. Second, students spend heavily on alcoholic beverages. Many student fraternities (some of whichhave over a thousand members) have large buildings where students can get cheap beer; many beermanufacturers would be happy to have a contract with a large fraternity as their main outlet.

Print shops in university towns generally also do well, as many student groups and organisations have clothingand other items printed with their group’s name on them. Other products targeted at students include particularstudent-catered health insurances. There is also, of course, a constant demand for student accommodation, ofwhich there continues to be a serious shortage in popular cities, including Amsterdam, Utrecht, Haarlem andLeiden, despite local government efforts to improve the situation. Would-be market entrants should bear inmind, however, that the price and location of the official, non-commercial student housing agencies are veryhard to beat.

Population by Rural/urban Areas

There is very little discrepancy between rural and urban areas in the Netherlands. Of course, isolated villages inthe north of the provinces of Groningen or Friesland are strikingly different from cosmopolitan cities likeAmsterdam or Rotterdam, and there are some significant differences when it comes to language, socialbehaviour and ethnic composition. However, due to the small size of the country, almost everyone in thecountryside lives within easy distance of at least a relatively sizeable town.

Moreover, the Netherlands does not have any really large cities. Even the largest city, Amsterdam, has apopulation of only 737,000. More people live in medium-sized or small towns than in large cities. In 2006,29.7% of the population lived in towns with a population between 20,000 and 200,000, whereas only 21.8%lived in cities with a population higher than 200,000, according to the CBS. The strong division between urban

and rural that is found in some other European countries does not exist in the Netherlands. Accordingly,tailoring products specifically for the urban or rural population would probably not work, as these categories areso blurred. Countryside villages are inhabited not only by conservative farmers, but also by progressives andoffice workers. The main cities are inhabited not only by rich yuppies and university students, but also by a widevariety of immigrants.

However, that is not to say there are no differences at all, for there are. Economically, some rural, peripheralareas (for instance, East-Groningen and parts of Limburg) have traditionally suffered from a lack of investmentand high unemployment rates notwithstanding national economic growth. Linguistically, many rural areas (suchas Friesland, Limburg and Twente) have unique minority languages and dialects, which have experiencedsomething of a revival in recent years (as exemplified by the recent popularity of poetry and TV soap operas inlocal dialects).

In terms of religion, the so-called Dutch “Bible Belt” (a strip of land that goes from Zeeland and the isles ofZuid-Holland, via parts of Utrecht and the Veluwe region, to the province of Overijssel, and which has manymainly orthodox Calvinist churches of a variety of denominations) encompasses many differences, not onlyfrom the big cities in the West, but also from other rural areas. The southern provinces of Limburg and Brabant,for instances, are traditionally Catholic, and have a remarkably different culture from the Protestant north.

Overall, however, it seems that in recent years “urban” Netherlands has (re-)discovered its rural other; walkingand cycling trips in the countryside are very popular. Farm life has re-entered popular imagination, partly as aresult of the tremendously popular TV-show Boer zoekt vrouw (“Farmer seeks a wife”), a dating show in whichcity girls visit single farmers and help them on the farm. This development seems to be part of with a generaltrend towards nostalgia and cultural nationalism.

In recent years, population increase in urban areas has been slightly higher than in rural areas. But as the

differences between urban and rural are relatively vague (because so many people live in small or medium-sizedtowns), these figures do not really suggest a trend. Shifting municipality boundaries, for instance, may well





account for some of the urbanisation figures (sometimes smaller, “rural” municipalities are absorbed by largercities. The emergence of a large new town or suburb within the municipality boundaries of a bigger city willalso affect these figures. For instance, the seemingly dramatic population increase of Utrecht and to a lesserextent of Eindhoven, between 2000 and 2002 was the result of changing municipality boundaries.

One of the main differences, however, between the cities (in particular the main four, Amsterdam, Rotterdam,The Hague and Utrecht) and rural areas (villages and provincial towns) is the ethnic variety of the former. Themain immigrant populations live in the big cities. There are some exceptions to this rule – for instance, there arelarge Moluccan groups in particular towns in Brabant and Drenthe – but in general, this is the case. The largestminority in the Netherlands is of Turkish descent (372,000), followed by Surinamers (336,000) and Moroccans(335,000), and those from the Netherlands Antilles and Aruba (132,000) according to 2008 statistics from theCBS.

The ethnic make-up of the cities, in particular the older quarters surrounding the city centres, have caused sometensions and fierce political debates in recent years. As a result, since 2002, subsequent governments havefocused on the implementation of strict “integration policies”, including obligatory language and citizenshiptests, and the improvement of living conditions in ethnically diverse neighbourhoods. The Netherlands (inparticular the urban areas in the west of the country) is irrevocably a multiethnic and multicultural country, and

increasing parts of the population are of foreign or mixed descent.

Impact

The popularity of “the countryside” and of local minority cultures may well endure. Nostalgia sells. Walkingand cycling are not looked down upon by holidaymakers. In general, people engaged in these activities aremiddle-aged or older, and are willing to spend some money on a comfortable bed (say, at a farm providing bedand breakfast) and a good meal – ideally “traditional cuisine”. In France, so-called “gîtes rureaux” (small-scale,high quality holiday accommodations on the countryside) are very popular, and this trend is gradually spreadingin the Netherlands. If well marketed, good quality rural accommodation (and restaurants) can become verysuccessful. Likewise, local cultural festivals and traditions can be advertised much more effectively than is nowthe case.

As for urban culture, the ethnic variety of the population has influenced and will continue to influence trends,particularly when it comes to cuisine, youth culture and music. Members of ethnic minorities should be takeninto account when it comes to marketing products. In general, second generation immigrants in big cities tend tobe interested in brands and fashion and potentially constitute a significant consumer group.

Table 1 Population by Age and Gender: 1995/2000/2005/2007/2010/2015

'0001995 2000 2005 2007 2010 2015

0-4 yrs 989 983 1,011 967 908 8745-9 yrs 945 1,002 988 1,006 998 90010-14 yrs 904 960 1,010 986 981 997

15-19 yrs 922 927 979 998 1,010 98720-24 yrs 1,145 956 969 966 992 1,03025-29 yrs 1,302 1,176 993 989 979 1,00930-34 yrs 1,314 1,314 1,191 1,068 982 97435-39 yrs 1,220 1,315 1,314 1,295 1,168 96240-44 yrs 1,146 1,214 1,308 1,310 1,290 1,15045-49 yrs 1,167 1,134 1,202 1,236 1,285 1,27550-54 yrs 884 1,145 1,114 1,132 1,176 1,26855-59 yrs 757 859 1,114 1,111 1,081 1,15160-64 yrs 694 723 824 925 1,075 1,04765-69 yrs 621 644 678 707 778 1,03770-74 yrs 556 550 578 585 618 72275-79 yrs 382 457 460 475 494 53680+ yrs 476 500 574 601 625 670Female 7,797 8,018 8,240 8,269 8,306 8,377

Male 7,627 7,846 8,066 8,089 8,133 8,214TOTAL 15,424 15,864 16,306 16,358 16,439 16,590





Source: National statistics, UN, Euromonitor InternationalNote: As of 1 January 2008

Table 2 Population by Age and Gender (% Analysis and % Growth): 1995/2007/2015/1995-2007/2007-2015

% of total Population1995 2007 2015 1995-2007 2007-2015

0-4 yrs 6.41 5.91 5.27 -2.21 -9.615-9 yrs 6.13 6.15 5.42 6.42 -10.5610-14 yrs 5.86 6.03 6.01 9.00 1.1415-19 yrs 5.98 6.10 5.95 8.32 -1.1720-24 yrs 7.42 5.91 6.21 -15.64 6.6325-29 yrs 8.44 6.05 6.08 -24.00 2.0030-34 yrs 8.52 6.53 5.87 -18.69 -8.7735-39 yrs 7.91 7.92 5.80 6.16 -25.7240-44 yrs 7.43 8.01 6.93 14.26 -12.2245-49 yrs 7.57 7.55 7.69 5.89 3.2150-54 yrs 5.73 6.92 7.65 28.04 12.0355-59 yrs 4.91 6.79 6.94 46.75 3.6060-64 yrs 4.50 5.65 6.31 33.13 13.2265-69 yrs 4.02 4.33 6.25 14.01 46.5970-74 yrs 3.60 3.58 4.35 5.27 23.5175-79 yrs 2.47 2.90 3.23 24.49 12.7480+ yrs 3.08 3.67 4.04 26.29 11.53Female 50.55 50.55 50.49 6.06 1.30Male 49.45 49.45 49.51 6.04 1.55TOTAL 100.00 100.00 100.00 6.05 1.42Source: National statistics, UN, Euromonitor InternationalNote: As of 1 January 2008

Table 3 Median Age of Population: 1995/2000/2005/2007/2010/2015

years1995 2000 2005 2007 2010 2015

Median age of Population 35.75 37.28 38.85 39.62 40.76 42.63Median age: CLIFE 26.26 28.03 29.63 30.23 31.05 32.32countriesSource: National statistics, UN, Euromonitor International

Table 4 Median Age of Population (Actual Growth): 1995-2007/2007-2015

Years1995-2007 2007-2015

Median age of Population 3.87 3.01Median age: CLIFE countries 3.97 2.09Source: National statistics, UN, Euromonitor International

Table 5 Population Change: 1995/2000/2002/2004/2006-2007

'0001995 2000 2002 2004 2006 2007

Live births 190.51 206.62 202.08 194.01 185.12 182.39Deaths 135.68 140.53 142.35 136.55 135.81 137.41





Net migration 14.93 57.03 27.56 -9.96 -25.53 -19.82Balance 69.77 123.13 87.29 47.49 23.78 25.17Source: National statistics, UN, Euromonitor International

Table 6 Population Change (% Growth): 1995-2007/2000-2007

% change1995-2007 2000-2007

Live births -4.26 -11.73Deaths 1.28 -2.22Net migration -232.74 -134.75Balance -63.93 -79.56Source: National statistics, UN, Euromonitor InternationalNote: As of 1 January 2008

Table 7 Birth Rates: 1995/2000/2002/2004/2006-2007

per '000 inhabitants1995 2000 2002 2004 2006 2007

Birth rates 12.3 13.0 12.5 11.9 11.3 11.1Average of CLIFE 18.7 17.0 16.5 16.3 16.1 16.0countriesSource: National statistics, UN, Euromonitor International

Table 8 Death Rates: 1995/2000/2002/2004/2006-2007

per '000 inhabitants

1995 2000 2002 2004 2006 2007

Death rates 8.8 8.8 8.8 8.4 8.3 8.4Average of CLIFE 8.6 8.4 8.4 8.3 8.4 8.4countriesSource: National statistics, UN, Euromonitor International

Table 9 Birth Rates (Actual Growth): 1995-2007/2000-2007

Percentage points1995-2007 2000-2007

Birth rates -1.18 -1.83Average of CLIFE countries -2.68 -1.01Source: National statistics, UN, Euromonitor International

Table 10 Death Rates (Actual Growth): 1995-2007/2000-2007


Death rates -0.38 -0.43Average of CLIFE countries -0.21 -0.01Source: National statistics, UN, Euromonitor International





Table 11 Fertility and Birth: 1995/2000/2002/2004/2006-2007

As stated1995 2000 2002 2004 2006 2007

Fertility rates 1.53 1.72 1.73 1.73 1.75 1.75(children born perfemale)Average age of women at 28.60 29.10 29.20 29.33 29.39 29.44first childbirth (years)Average age of women at 30.20 30.70 30.90 30.99 31.06 31.10childbirth (years)Births outside marriage 15.52 24.94 28.96 32.49 37.06 39.73(per 100 births)Source: National statistics, Euromonitor International

Table 12 Fertility and Birth (Growth): 1995-2007/2000-2007

as stated1995-2007 2000-2007

Fertility rates (percentage points) 0.22 0.03Average age of women at first childbirth (years) 0.84 0.34Average age of women at childbirth (years) 0.90 0.40Births outside marriage (percentage points) 24.21 14.79Source: National statistics, Euromonitor International

Table 13 Population by Marital Status: 1995/2000/2002/2004/2006-2007

'000/as stated

1995 2000 2002 2004 2006 2007

Married 7,082 7,071 7,049 7,031 6,969 6,939Divorced 731 862 920 960 999 1,016Widowed 876 882 883 877 869 864Single 6,736 7,049 7,253 7,390 7,497 7,539Average age of men at 29.40 30.30 30.70 31.05 31.33 31.52first marriage (years)TOTAL 15,424 15,864 16,105 16,258 16,334 16,358Average age of women at 27.10 27.82 28.21 28.40 28.60 28.75first marriage (years)Average age of men at 32.40 34.10 34.70 35.17 35.52 35.78marriage (years)Average age of women at 29.60 31.10 31.60 32.00 32.30 32.53

marriage (years)Source: National statistics, Euromonitor International

Table 14 Population by Marital Status (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

as stated1995 2000 2007 1995-2007 2000-2007

Married (% of total 45.91 44.57 42.42 -2.01 -1.87Population/% change)Divorced (% of total 4.74 5.43 6.21 38.91 17.86Population/% change)

Widowed (% of total 5.68 5.56 5.28 -1.31 -2.02Population/% change)





Table 19 Population by Highest Educational Attainment: 1995/2000/2002/2004/2006-2007

1995 2000 2002 2004 2006 2007

No education ('000) 0 0 0 0 0 0

('000)Primary ‘000) 1,907 1,746 1,669 1,613 1,557 1,533Secondary ‘000) 8,186 8,236 8,305 8,359 8,371 8,381Higher ‘000) 2,493 2,936 3,133 3,271 3,423 3,486Other ('000) 2,838 2,946 2,998 3,016 2,985 2,959TOTAL ('000) 15,424 15,864 16,105 16,258 16,334 16,358

Compulsory education 6 6 6 6 6commencement age(years)School leaving age 18 18 18 18 18(years)Higher education 503 488 517 543 571 584students inc.universities ('000)

('000)Source: National statistics, Euromonitor International

Table 20 Population by Highest Educational Attainment (% Analysis and % Growth):1995/2000/2007/1995-2007/2000-2007

1995 2000 2007 1995-2007 2000-2007

No education (% of the 0.0 0.0 0.0Population / % growth)Primary (% of the 12.4 11.0 9.4 -19.63 -12.22Population / % growth)

Secondary (% of the 53.1 51.9 51.2 2.38 1.75Population / % growth)Higher (% of the 16.2 18.5 21.3 39.84 18.73Population / % growth)Other ('000) 18.4 18.6 18.1 -1.7 -2.6TOTAL (% of the 100.0 100.0 100.0 6.05 3.11Population / % growth)Higher education - - - 16.18 19.82students inc.universities (% of thePopulation / % growth)Source: National statistics, Euromonitor International

Table 21 Literacy Rates: 1995/2000/2002/2004/2006-2007

% of Population aged 15+1995 2000 2002 2004 2006 2007

Adult literacy rate 96.1 99.1 99.2 99.3 99.4 99.5Average of CLIFE 86.1 90.5 91.2 91.7 92.2 92.5countriesSource: National statistics, Euromonitor International

Table 22 Literacy Rates (Actual Growth): 1995-2007/2000-2007






Adult literacy rate 3.36 0.34Average of CLIFE countries 6.41 2.01Source: National statistics, Euromonitor International

Table 23 Population by Urban/Rural Locations and Major Cities: 1995/2000/2002/2004/2006-2007

'0001995 2000 2002 2004 2006 2007

Urban households 4,306.97 4,515.77 4,607.84 4,714.52 4,819.96 4,867.62Rural households 2,161.72 2,285.23 2,326.42 2,343.43 2,340.98 2,332.33Major citiesAmsterdam 722 731 736 737 737 737Rotterdam 598 593 599 600 601 601The Hague 443 441 458 467 478 483Utrecht 236 234 261 270 277 281Eindhoven 197 202 205 207 209 210Source: National statistics, Euromonitor International

Table 24 Population by Urban/Rural Locations and Major Cities (% Analysis and % Growth):1995/2000/2007/1995-2007/2000-2007

As stated1995 2000 2007 1995-2007 2000-2007

Rural households (% of 33.42 33.60 32.39 7.89 2.06households/% growth)Urban housholds (% of 66.58 66.40 67.61 13.02 7.79households/% growth)Major cities

Amsterdam (% of 4.68 4.61 4.51 2.08 0.81Population/% growth)Rotterdam (% of 3.88 3.74 3.68 0.53 1.47Population/% growth)The Hague(% of 2.87 2.78 2.95 9.07 9.52Population/% growth)Utrecht (% of 1.53 1.47 1.72 19.17 20.17Population/% growth)Eindhoven (% of 1.28 1.27 1.28 6.59 4.07Population/% growth)Source: National statistics, Euromonitor International

Table 25 Population Density: 1995/2000/2002/2004/2006-2007

people per sq km1995 2000 2002 2004 2006 2007

Population density 455.3 468.2 475.4 479.9 482.1 482.8Average of CLIFE 239.8 260.7 266.3 269.9 278.3 281.8countriesSource: National statistics, Euromonitor International

Table 26 Population Density (% Growth): 1995-2007/2000-2007






Population density (people per sq km) 27.56 14.58Average of CLIFE countries 41.99 21.16Source: National statistics, Euromonitor International

CONSUMER SEGMENTATION

Babies and Infants

Due to declining birth rates, there was a decrease in the number of babies and infants (ages 0-2 years) over thereview period, and a further decrease is projected over the forecast period. In 1995, there were 589,000 babiesand infants; by 2015 there will be an estimated 524,000. In the same period, the average age at which peoplehave their first children rose, as has the number of children per household. With the overall rise in disposableincome, people are able to spend more money on fewer children. As a result, value sales are likely to increasewhile volume sales decline.

In most families, both parents work, although many parents, especially women, choose to work part-time.

Consequently, there is continual demand for child care, which is partly financed by the government. Recently,child care and education of young children have been the topic of much debate, as the government increasinglytries to influence and monitor the ways in which people raise their children. This is exemplified by the plannednationwide implementation of an electronic dossier, containing personal and medical details for every Dutchchild.

Impact

Despite the decline in the total number of babies and infants, there is no reason to assume that there will be asignificant decline in demand for durable baby products such as clothing and toys. People are likely to buy moreof these goods per child because of increased disposable income. For instance, in the mid- to late 2000s, thenumber of toys and sweets sold in November and December has increased significantly, due to the continuingpopularity of Sinterklaas (St Nicholas Eve) on 5 December, which is celebrated by many Dutch families,

particularly those with young children. This confirms the general trend that as average disposable income hasrisen, people tend to buy more for fewer children, and, as a rule, will select higher quality products.

On the other hand, necessary non-durable products such as baby food and nappies may well experience adecline in sales, simply because there will be fewer children using those products. This does not apply toclothing and other durable goods. Traditionally, in large families, it is common for baby products and clothingto be reused by younger siblings, rather than bought new. Thus, the fewer children per household, the morelikely the parents are to buy new baby products rather than use second-hand goods, especially if they have theincome to afford this.

Kids

Between 1995 and 2007, the total number of children (ages 3-8) increased slightly, though their share of the

population decreased somewhat. A small decline is forecast for 2010 and 2015. Couples generally have theirchildren after they have already established a career, by which point they have higher incomes, and as thenumber of children per family has decreased, parents tend to spend more money on fewer children.

Impact

Kids are increasingly targeted as consumers since they (i.e., their parents) have more to spend. Moreover, thechildren's opinions should be taken into account not only for products explicitly for them, but also for otherproducts – such as holidays, furniture and household goods – since family decisions regarding the purchase ofgoods, holiday destinations and so on are increasingly made by all members.

Toys and food products for children are advertised on TV, in children's magazines and, increasingly, on theinternet. The issue of advertising for children, however, continues to be debated in Dutch media. At the end of

2007, a new rule of conduct was implemented: in order to combat obesity among young children, advertiserswill no longer make commercials for food products targeted at children younger than age seven. So far,





advertisements for toys and other products are allowed; however, considering the public debates as well as thecurrent government’s concern for children’s welfare, rules may well become stricter in the near future.

Children in primary school now own products that children 10 years ago would not have dreamed of. It is nolonger uncommon for young children of seven and eight years old to own MP3 players or mobile phones. Manychildren in the Netherlands cycle to school, and parents want them to be able to call in case of emergencies.

Other popular products for children include toys, electrical appliances such as PlayStation and Xbox and, ofcourse, clothing and shoes. Most luxury products such as toys and games are bought in November andDecember, as the number of people celebrating Sinterklaas on 5 December is increasing. In 2008, despite thefact that people have less confidence in the economy, trade organisations expect a rise in total Sinterklaasspending.

Young children today have more input when it comes to decisions regarding the purchase of goods that theentire family benefits from, such as furniture, food and holiday destinations. Companies and retailers sellingthese products should bear in mind that making their products attractive to children can be key to convincing theparents. This is particularly the case with products, such as clothing and shoes, which children choosethemselves (children in the Netherlands do not wear school uniforms). Some large stores specialising in

furniture and household goods already understand this, and have places where children can play with items soldin the store while their parents are shopping.

Tweenagers

Children ages 9-12 constitute a group that grew slightly in the mid-2000s and will remain relatively stable insize in the near future. During the review period (1995-2007), this age group increased from 717,000 to 780,000people; this is projected to rise further to 800,000 in 2010, then drop to 773,000 in 2015. They are anincreasingly powerful and affluent group of consumers.

What applies to younger children, applies even more to tweenagers: they have input in family decisions, theyown electronic products like mobile phones and MP3 players, and parents spend more money on them asfamilies are smaller and parental incomes are higher than in the past. Unlike younger children, they have some

money to spend independently. The amount of pocket money tweenagers receive differs; in 2006, 11-year-olds,on average, got between €1.00 and €2.30 per week, while for 12-year-olds, this was between €1.90 and €4.60according to Nationaal Instituut voor Budgetvoorlichting (NIBUD) 2006 research. Moreover, regulationsprohibiting food advertising targeting young children do not apply to tweenagers. This, however, could change.

In general, children in this age group spend a lot of time on hobbies and sports. Popular sports include football,field hockey, gymnastics, swimming, tennis, speed skating, volleyball and cycling. In addition, many children inthis age group take music lessons. In general, children in higher income families are more likely to be active insport clubs or take music lessons.

Impact

As this group has increasing economic power and influencing the choices of their parents, they have become an

important consumer group. When it comes to electronic products, for instance, many children now own itemslike mobile phones and iPods. Moreover, as a rule they are very active on the internet, which has given rise todebates about regulating internet advertisements. Sport goods, fashion, computer games, electronics, books andmagazines are other products this group is interested in. By far the most popular magazine, which is primarilytargeted at this age group, is the “Donald Duck”, one of the best-read magazines of the Netherlands, with acirculation of over 300,000. Advertising in this magazine or a related medium is seen as an effective way toreach a significant proportion of this age group.

In the mid- to late 2000s, given the general increase in disposable income, more children have joined sportclubs. Accordingly, sports products (such as hockey sticks, tennis rackets, footballs and sport clothing) are indemand.

What applies to younger children, certainly applies to this group: their opinion is taken into account when it

comes to family decisions such as the purchase of household goods, food and holiday destinations.





Teenagers

Over the review period the number of teenagers rose by just over 8% and is likely to remain stable. In general,teenagers (ages 13-19) have more money to spend individually than tweenagers. Their pocket money issignificantly higher, and rises as they get older. On average, 13-year-olds get an average €2.30-€4.60 per week,

while 17-year-olds get between €4.60 and €8.10 according to a study by NIBUD research in 2006. In addition topocket money, from the time they are about age 13 many teenagers also get clothing money, so they can decideindividually on the clothing they purchase. Accordingly, at this age they usually get their own bank accountswith debit card, so they can pay for clothing in shops or get cash at cash points. Moreover, from the time theyare about 15-16 years old, many teenagers have part-time jobs, especially during the summer holidays. As aresult, they have a small income which they are able to spend on themselves.

Most teenagers are in secondary education from about age 12. There are different types of secondary education.Approximately half of all students attend the VMBO, which lasts four years, and prepares students for differenttypes of professional and vocational education. The HAVO, which lasts five years, prepares students for HBO,higher professional education. Only students who have completed VWO, which lasts six years, can enteruniversity directly. Curricula and final examinations are, in theory, standardised and similar nationwide. Inreality, however, there are some significant differences between schools in terms of educational level, ethnic

composition and religious background. The vast majority of schools, both secular and religious, are public andfree, although schools may ask parents for small contributions for school trips and other additional expenses. Inprinciple, education is compulsory until age 16, or 18 if the student has not received a school leaving certificateby age 16.

Impact

Since teens have some freedom when it comes to decisions about spending their money, and often have part-time jobs, they are an economically powerful group whose autonomy increases as they grow older. In fact, manypeople in their late teenage years can afford to spend money on fashion and other luxury products, whichstudents in higher education living independently cannot. Popular culture and fashion trends change quickly. Asa rule, however, the influence of American popular culture and music is significant. In recent years, for instance,hip-hop culture and clothing has been popular amongst Dutch teens, especially (but not only) those of migrant

descent. In general, this is the age group that is most interested in brands.

In addition to fashion, as they get older and have more money to spend, they also become more interested inproducts such as accessories and make-up, laptop computers and other electronics, video games, films andmusic – although many teenagers download music from the internet, usually illegally, rather than buying CDs.They also spend freely on nightlife and holidays. In the Netherlands, smoking and drinking (beer and wine) isallowed from age 16 (spirits are allowed from age 18). Accordingly, the minimum age to enter most clubs andbars is 16. However, many younger teenagers also drink, at times excessively, which is the topic of much publicdebate. Some argue that the minimum drinking age for all alcoholic products should be 18.

Currently, in the Netherlands, teenagers have a fair amount of freedom when it comes to going out at night,going on holidays with friends and so on. As a rule, parents are not very strict with children over the age of 16.Accordingly, many teenagers book packet holidays to Spanish resorts, and much money is spent on alcohol and

nightlife. Some liquor brands have understood this, and market their products as trendy, youthful beverages.

As people move from primary to secondary education, they often need new products such as school bags,stationary products and bicycles. As a rule, the distance between home and school is much greater for secondaryschool than primary school students, especially in rural areas. School books are provided by schools and, to alarge extent, financed by the state.

Students

From 1995-2007, the number of people having completed higher education rose significantly, from 2.5 millionin 1995 to 3.5 million in 2007. In 2007, there were 584,000 students enrolled in higher education, as opposed to488,000 in 2000.

Unlike teenagers, the economic position of students in higher education seems to have not improved in recentyears. Increasing numbers of students have student loans and part-time jobs, and spend less time on their





studies. This is because tuition fees and housing costs have risen significantly in the 2000s. Moreover, youngpeople are increasingly leaving their parents’ homes, and live independently at an earlier age than students didin the 1980s and 1990s. This means that, while they spend relatively little things like clothing and electronics,they do spend more on housing, household goods, insurance and food than teenagers living with their parents. Italso means that, as the number of housing units has not kept pace with the growing number of students livingindependently, it has become more difficult to get official, state-funded student accommodation. Many studentsend up living in overpriced student rooms let by commercial housing agencies.

Impact

Despite their having relatively little money to spend, some products are directly targeted at students. Forinstance, companies hand out free products during university introduction weeks, or make special deals withstudent fraternities. These products include newspapers and opinion magazines – which usually have specialoffers for students – as well as food and drink (in particular, beer brands), financial services (special bankaccounts for students) and health insurances. People tend to remain true to brands they are familiar with andhave used since they were young. If a student gets used to a particular newspaper, or drinks a particular kind ofbeer most of the time, they may well stick to that product for the rest of their lives, provided that they aresatisfied with the product.

Of course, there is a high demand for specific products as well, such as textbooks and stationary, sports goods,specially customised clothing (as a rule, student fraternities and organisations order their own merchandising),and food and beverages. Students tend to eat out relatively often, albeit at cheap places, since this is animportant part of social student life, and go to bars and cafés.

Some students are also interested in culture. However in sharp contrast to, say, newspapers or banks, museumsand theatres do very little to attract students. In general, in the Netherlands, student discounts are insignificantand not as widely available as in some other countries (with the exception of newspapers and magazines).Stores, travel agencies and insurers, amongst others, have started offering special student discounts to gain acompetitive edge.

People in Their 20s

Between 1995 and 2007, the share of the total population made up of people in their 20s decreased seriously,from 15.9% to 12% of the entire population, going from 2.45 million in 1995 to 1.96 million in 2007. Over theforecast period, however, a small increase is projected, rising to 2.04 million in 2015.

People in their 20s make up a diverse group. Traditionally, many people pursuing higher education continuedstudying until their well into their late 20s. However, with rising university costs, people are likely to graduateearlier, now typically sometime between the ages of 22 and 25. There are significant differences between thosewho work and those who do not yet work, as well as significant income discrepancies. Despite the general trendtowards people marrying and having children at a later age, there are still many people who marry and buy ahouse when they are still in their early 20s. While consumers in their 20s are at the mercy of the shortage ofindependent housing units and rising prices, in general those who work can afford to spend more on housing andother living costs than students. As a rule, however, people in their late 20s have a regular income, remain single

and childless for a longer period, and have relatively few living expenses. As a result, they have more disposableincome than their married counterparts.

In general, disposable incomes rise after people finish student life. Since on average people get married andhave children at a later age, consumers in their 20s generally do not need to invest much yet in furniture andhousehold goods, or in the education of their children. And as most people do not settle until their late 20s orearly 30, they are not yet tied to mortgages. As a result, many people in their 20s can afford to spend widely onculture, luxury products, eating out and travel.

Impact

As people in their 20s generally spend less on housing and children compared to other age groups, they spendrelatively more on leisure activities and on transportation. Therefore, products that can be effectively aimed at

these groups include nightlife and entertainment (such as pop concerts), holidays (flights, accommodation), cars(few university students own a car, since they can use public transport for free most of the time; however, once





people start working, they loose this privilege), designer products and fashion. People in their 20s who work arean increasingly powerful group of consumers.

People in Their 30s

The number of people in their 30s is declining. In 2000, this group consisted of 2.6 million people; by 2015, thisnumber is projected to decline by 18.1% to approximately 1.9 million. Accordingly, their share of the totalpopulation is dropping from 16.6% in 2000, to 11.7% in 2015. Since most people who buy their first house,have children and (sometimes) marry are in their 30s, the fact that the Netherlands is facing a further decline inbirth rates and marriages is hardly surprising.

In general, people in their 30s spend much more on housing and related goods than people in their 20s.Moreover, if they have children, they spend more on children’s clothing, on food and so on. This leaves themless disposable income (and less time) to spend on leisure, travel, eating out and luxury products. On the otherhand, generally, their incomes are higher than those of people in their 20s, and accordingly many in this agegroup buy their first house and make other large purchases. Other products they are interested in include durablegoods such as furniture and household appliances, and passenger cars.

Impact

Considering the general rise in disposable incomes, and the fact that people in their 30s tend to make some bigpurchases such as a house and a new car, they do constitute an important group of consumers, albeit with aprofile very different from average consumers in their 20s. Although their share of the total population isdeclining, since they number more than two million they still constitute a large and significant group ofconsumers. Whereas they may not eat out, visit concerts or go on holiday to faraway destinations as often assingles in their 20s, they do spend much on housing and related products, on children’s products and ontransport.

Many people in their 30s buy their first house, which makes them an attractive group for brokerage firms andbanks providing mortgages. They also invest in furniture, household appliances, and other household goods. Thesame applies to those living in rented houses, as they also tend to settle and have a family at this age.

Middle-aged Adults

The Netherlands has an ageing population. The “baby boom” generation are now in their 50s and 60s, and willsoon retire. By 2010, there will be 5.9 million middle-aged people (35.9% of the total population), making thisby far the largest age group in the country. In the mid-2000s, their average disposable income rose significantly.As a result, middle-aged adults are seen to be the wealthiest consumer group in the country.

However, that does not mean they can purchase as much as they like. Apart from the significant incomedifferences in the population, middle-aged adults are often challenged by the rising costs of education,especially if their children pursue higher education. While secondary education is almost entirely state-financed,higher education is not and is consequently much more expensive. The state expects parents with an averageincome or higher to give their children who are students about €250 per month (students whose parents earn less

get additional funding). In reality, many parents give or lend their children more as the state does not take livingcost increases into account. This is a serious financial burden, which does not disappear until the childrengraduate. Other financial burdens may include higher mortgages. Consumers age 55-64 are the group thatspends the most on housing, since people tend to move to bigger houses as their incomes rise.

Impact

The growing numbers of middle-aged people, especially those in their 50s and 60s, is a demographicdevelopment that significantly influences the market. This group is large and relatively wealthy. Since thisgroup is growing, they represent an increasingly important and powerful category of consumers. In advertising,many products (including food products, cosmetics and cars) associate themselves with the young and trendy;however, the most powerful group of consumers is now approaching their 60s, so other strategies will beneeded. Within 5-10 years, many of these people will retire, which gives them time for travel, hobbies

(including sports, music, reading and walking). Accordingly, it is likely that more products will be targeted tothem, rather than at younger people. This applies especially to tourism and recreation. Besides, they will





continue spending money on their children and grandchildren. Some banks now advertise special mortgageswhich parents can get for their children in higher education. Such initiatives reflect the fact that those witheconomic power are getting older.

In particular, middle-aged people are a significant group for the housing market, and spend more on furnitureand household goods, food, cultural activities such as theatre, concerts and museum visits, and on holidays. Bythe time people are in their 60s, when their children finish their studies, they work less and are still in arelatively good health. They can also afford to spend heavily on leisure, culture and, especially, travel.

As people grow older, they also become more concerned about their health. In recent years, there has been a“health boom”, especially when it comes to nutrition. Food products with added vitamins, low cholesterol andantioxidants tend to sell well. This is a trend influencing all age groups, but it is undoubtedly related to the factthat the population is ageing and, thus, is more concerned with health issues.

Pensioners

The number of pensioners increased over the review period, and will increase more sharply during the forecastperiod. In 1995, this group numbered 2 million; in 2015, this number will have increased by almost 50% to 3

million. The post-World War II generation is on the verge of retirement, and life expectancy continues to rise.Accordingly, this group is growing fast. The number of people older than age 65 who continue working isrising, but the majority have much more time, which they will spend on hobbies, holidays and tourism, andcultural activities. As people are relatively mobile, they will also continue to spend on money on transport.

Impact

Currently, people over age 65 do spend significantly less than those under age 65; of what is spent, a relativelylarge share goes towards housing and related costs. However, it is likely that with the retirement of the “babyboom” generation, who are more accustomed to luxury and mobility than the older generation, pensioners willspend more and their spending pattern will likewise change. Older consumers will continue to spend relativelymore on housing and health care, but they will also become an increasingly important consumer group when itcomes to tourism, culture, eating out and leisure.

Up until recently pensioners were, by and large, ignored by marketers. Significantly, statistical data on olderpeople are almost all related to health issues. It seems as if, apart from health-related products, they are nottaken very seriously as consumers. The popular image of elderly people is very much influenced by heatedpolitical debates on poverty amongst the elderly, and the reportedly poor condition of many retirement andnursing homes. While these problems do exist, at the same time an increasing proportion of the older populationis relatively healthy and affluent. Moreover, as there is a positive correlation between income level and health,those who can spend the most are the ones who have the health to enjoy retirement. Demographic, economicand medical developments are making them an increasingly important consumer group.

Table 27 Babies and Infants: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015

Babies/infants 589 597 598 565 538 524as % of total Population 3.82 3.77 3.67 3.45 3.27 3.16Source: National statistics, Euromonitor International

Table 28 Babies and Infants (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Babies/infants -3.98 -7.30

Source: National statistics, Euromonitor International





Table 29 Kids: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015

Kids 1,162 1,185 1,206 1,213 1,162 1,065as % of total Population 7.53 7.47 7.40 7.42 7.07 6.42Source: National statistics, Euromonitor International

Table 30 Kids (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Kids 4.44 -12.19Source: National statistics, Euromonitor International

Table 31 Tweenagers: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015

Tweenagers 717 784 795 780 800 773as % of total Population 4.65 4.94 4.88 4.77 4.87 4.66Source: National statistics, Euromonitor International

Table 32 Tweenagers (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Tweenagers 8.78 -0.87Source: National statistics, Euromonitor International

Table 33 Teenagers: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015

Teens 1,293 1,307 1,389 1,398 1,396 1,395as % of total Population 8.38 8.24 8.52 8.55 8.49 8.41Source: National statistics, Euromonitor International

Table 34 Teenagers (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Teens 8.18 -0.26Source: National statistics, Euromonitor International

Table 35 People in their 20s: 1995/2000/2005/2007/2010/2015





'000/as stated1995 2000 2005 2007 2010 2015

People in their 20s 2,447 2,132 1,962 1,956 1,972 2,039as % of total Population 15.87 13.44 12.03 11.95 11.99 12.29

Source: National statistics, Euromonitor International

Table 36 People in their 20s (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

People in their 20s -20.09 4.29Source: National statistics, Euromonitor International

Table 37 People in their 30s: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015

People in their 30s 2,534 2,629 2,506 2,364 2,149 1,937as % of total Population 16.43 16.57 15.37 14.45 13.07 11.67Source: National statistics, Euromonitor International

Table 38 People in their 30s (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

People in their 30sz -6.72 -18.06Source: National statistics, Euromonitor International

Table 39 Middle-aged Adults: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015

Middle aged Adults 4,649 5,077 5,561 5,713 5,907 5,892as % of total Population 30.14 32.00 34.11 34.93 35.93 35.51Source: National statistics, Euromonitor International

Table 40 Middle-aged Adults (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Middle aged Adults 22.89 3.12Source: National statistics, Euromonitor International

Table 41 Older Population: 1995/2000/2005/2007/2010/2015

'000/as stated1995 2000 2005 2007 2010 2015





Older Population 2,034 2,152 2,289 2,368 2,514 2,965as % of total Population 13.18 13.57 14.04 14.48 15.29 17.87Source: National statistics, Euromonitor International

Table 42 Older Population (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Older Population 16.46 25.21Source: National statistics, Euromonitor International

HOUSEHOLD PROFILES

Households by Number of OccupantsBetween 1995 and 2007, the average number of occupants per household decreased slightly, from 2.4 to 2.3,making the Netherlands one of the countries in the world with the lowest average household size. According to2007 CBS research, this size is expected to decrease further, to 2.1 in 2050. In particular, there has been agrowth in the number of single-person households (from 2.1 million in 1995, to 2.5 million in 2007). Currently,over 35% of all households only have one person, and this number is likely to increase further in years to come.Reasons for this include the rise in average age at which people marry and have their first children, the fact thatmore people do not marry at all and the increasing number of divorced people. Moreover, given the differencein life expectancies between men and women, many elderly women outlive their husbands and go on to livealone.

Over the 2000s, the average age at which children leave their parental home has become lower. Girls tend to

move out earlier (at age 21 on average) than boys (at age 23). However, there are significant differencesbetween regions when it comes to the age at which young people move out. According to 2007 CBS research, inregions with few higher education institutions (such as the northern provinces, as well as Zeeland andFlevoland), the average age is remarkably lower than in densely populated areas that have many institutions forhigher education and good public transport facilities. Reliable public transport is particularly important foryoung people who commute to school, go shopping, and enjoy nightlife. This suggests that many people leavetheir parental home primarily for practical reasons, although the desire for independence is also an importantfactor. Those pursuing higher education move out earlier than those with lower levels of education.

Impact

The rise in the number of households from 6.5 million in 1995, to 7.2 million in 2007, and the rise in the numberof single-person (and, to a lesser extent, two-person) households, has resulted in increasing demand for small,

independent housing units. In the main cities, it has become very difficult to get a house from one of the non-commercial housing corporations. Consequently, many young people rent from commercial housing agencies,which typically ask much higher rents.

Apart from the housing market, people living alone or with only a partner tend to spend more per person onenergy and household goods than people living in larger families, since they share the costs of heating, furnitureand appliances, and phone and TV bills among fewer people. Accordingly, the rise in the number of single- andtwo-person households has led to increasing expenditure on energy, water, and communications.

Few products are explicitly targeted at single-person households. However, given the rise in their number, thereis an increasing demand for products such as food to be sold in smaller portions, for special internet and TVoffers for single users and for travel agencies that do not charge extra for single rooms. People in single-personhouseholds are more likely to purchase prepared food and smaller sofas, closets and tables.





Household Annual Disposable Income

Over the review period, average disposable income has risen significantly. In 2000, 85.7% of households had anannual disposable income of over US$15,000; by 2007 this percentage had risen to 98.1%. In 2000, 49.6% hadan income higher than US$25,000 and only 23.8% had an income higher than US$35,000, making those with an

annual disposable income between US$15,000 and US$25,000 the largest income group. In 2007 thesepercentages had risen to, respectively, 89.6% and 27.8%. The largest income group (approximately 20%) had anannual disposable income of between US$35,000 and US$45,000 per year. This is partly due to the fact that inthe mid-2000s, the US dollar lost much of its value in relation to the Euro. With the dollar rising again, thesenumbers are likely to change accordingly. There has been a rise in disposable income and in purchasing power,especially in 2006 and 2007, when purchasing power increased by 2.4% and 3.1%. These were years with higheconomic growth, as well as a decrease in unemployment from 6.5% in 2005 to 4.5% in 2007.

The rise in disposable income is particularly visible amongst the highest income groups, which increasedsignificantly.

In 2007, consumers in the Netherlands could spend more than in previous years. However, world economicdevelopments naturally influence Dutch economy. Though recession had not yet come to the Netherlands by the

end of 2008, the economic growth of the mid-2000s is very unlikely to continue. Consumers have lessconfidence in the economy, and are therefore less likely to spend much money. In mid-2008, compared to 2007,there was still a slight growth in consumption (in particular for electronics and other durable goods), but,according to recent CBS research, there was a decline in the consumption of clothing, food and restaurantexpenditure.

Impact

During the review period, as a result of the general increase in disposable income and purchasing power, and therise in the number of high-income households, people have spent more on durable goods, food, housing,financial products, tourism and related products. The economy as a whole has benefited from these economicdevelopments. However, the financial crisis of the second half of 2008, and the impact it has on the economy,has influenced consumer behaviour as well. As they become less confident, many consumers may be more

reluctant to make large purchases, buy luxury goods and spend money on eating out and holidays. However,demand for necessary products such as food and household goods is likely to remain more stable.

The government has announced measures to support people in the lowest income groups as well as thechronically ill, so that their purchasing power will not decrease. It remains to be seen how fast the economy willrecover from the current crisis.

Homeownership

Between 1995 and 2007, the total number of houses increased from 6.2 million to 7 million; by 2015, this isexpected to have risen to 7.3 million. The percentage of owned houses increased significantly as well (from47.2% in 1995 to 54.4% in 2007), while in the same period the percentage of rented houses dropped, from51.1% to 44.3% . Slightly more than half all homeowners have a mortgage. Provided one has proof of a regular

income and sufficient funds, it is relatively easy to get a mortgage in the Netherlands. In general, owning ahouse confers a higher social status than does renting. Most people with an average or higher income will,sooner or later, purchase a own house.

Most rented houses serve as social housing for people in lower income groups. In recent years, many citygovernments have renovated dwellings and sold them as part of a strategy to combat social problems (includingrelative poverty, high unemployment and crime rates and ethnic tensions) in some of the older city quarters,which mainly consist of non-commercial, rented houses. This, and the fact that more new dwellings are soldthan rented, accounts for the relative increase of homeownership and the decrease of rentals.

Mobility is high, and very few people now live in the same house their entire lives. Typically, per year, about10% of the population move houses: in 1995, 1.7 million people moved, and in both 2000 and 2007 1.6 millionmoved per year. Of the 1.6 million who moved in 2007, approximately one million moved to another house

within the same municipality, and 600,000 moved to another municipality, as 2008 CBS research has shown.





As a result of the high population density, only 16.9% of all dwellings are detached houses, versus 53% semi-detached or terraced houses and 23% apartments. The type of housing is dependent on whether they are built inurban or rural areas: in rural areas, the number of detached and semi-detached houses is higher than in cities,where there are more terraced houses and, in particular, flats. Other types of dwellings (2.5% of the total)include farms and houseboats.

Impact

As the number of people owning houses is increasing so is the demand for financial products, such asmortgages. Furthermore, when people own a house, they are more likely to make investments in their property,and spend more on furniture, do-it-yourself (DIY) goods, gardening, and so on than renters. This is also becausehomeowners generally have higher incomes.

Research has also shown that homeowners spend significantly more on gas and electricity than renters. Forinstance, in 2000, homeowners used on average approximately 3,800 KWh electricity and 2,000 m³ gas, whilerenters used only 2,300 KWh electricity and 1,500 m³ gas. This is due to the fact that owned houses as a rule arelarger and more often detached than rented houses, and to the fact that homeowners more often have tumbledryers and dishwashers than renters.

Possession of Household Durables

Nearly all households in the Netherlands possess household goods such as washing machines, vacuum cleaners,telephones, cookers, (microwave) ovens and showers. These are considered essentials by most people. The samenow applies to colour TVs, personal computers, DVD players, hi-fi stereos, mobile phones and bicycles – infact, it is not uncommon for a household to own more than one of these goods. In particular, mobile phones andbicycles – one of the most important means of transport in the Netherlands, a country with an impressivelyextensive network of cycle paths and lanes – are goods that are possessed by individuals rather than byhouseholds. In addition, as they grow older, many children get their own PC, TV and hi-fi stereo or CD-player.

Over the review period there has been a significant rise in the spread of a number of products. For example thepercentage of households with internet-enabled computers has risen from 4% to 84.1%. This is estimated to rise

even further, to 95.1% in 2015. Other products that have become remarkably more widespread includedishwashers (20% of all households in 1995, forecast to be 64.7% in 2015), DVD players (0.1% of allhouseholds in 1995, 94.1% in 2015), freezers (61% in 1995, 90.1% in 2015), microwave ovens (51% in 1995,95.6% in 2015) and passenger cars (68% in 1995, 80.1% 2015). This points to a general increase in the standardof living. Other products which have been very successful and are expected to sell more in years to comeinclude air conditioners (which in 1995 were found in only 1.6% of all households, but, will be in an estimated,8.3% in 2015) – partly due to a few heat weaves in recent years, but also a result of the general rise in disposableincome – and motorcycles (6% in 1995 versus an estimated 15.2% in 2015), which no doubt is a reaction totraffic congestion, especially in the urban west.

Products that are considered “old-fashioned” such as black and white TVs, cassette players and video recordersare less common, as they have been replaced by newer technologies. Likewise, cable TV is generally givingway to satellite TV (thus the estimated decline from 83.2% in 2007 to 80.3% in 2015). CD players are becoming

less widespread as more people listen to music on their PC, or attach speakers to their iPod (in 2007, CD playerscould be found in 86.8% of all households, in 2015 this is estimated to be 82.2%). Fewer people have videocameras (currently 29.7% of all households, in 2015 23.9%), probably because it has become possible to makeshort films with regular cameras and even mobile phones.

Finally, people in general have become busier than they used to be. Durable goods making life “easier”, such astumble driers, microwave ovens, dishwashers and so on, have benefited from this. On the other hand,“traditional” machines, such as sewing machines, are owned by increasingly fewer people, as many do not havethe time to repair their own clothing, and instead usually buy new items.

Impact

As people are generally becoming wealthier, there will be a continuing demand for durable goods and new

technologies. Things like colour TVs, (microwave) ovens, DVD players, passenger cars, washing machines,refrigerators and vacuum cleaners (and perhaps, in the future, dishwashers) are considered essentials, and are





possessed by the vast majority of the population. In 2007, these products were owned by, respectively, 98.5%,83.8%, 77.1%, 97.0%, 98.5%, 97.1% and 53% of the population. There will be continuing demand for theseproducts.

New communication technologies will continue to influence the market. New trends are not always immediatelysuccessful. Internet access via mobile phone, for example, is gradually becoming more widespread, but as itcontinues to be relatively expensive, it can hardly be compared with, say, some countries in East Asia wherealmost every mobile phone is connected to the internet. On the other hand, most people in the Netherlands havean internet connection at home, and this number continues to rise.

“New” products becoming more popular include satellite TV systems, estimated to rise from a householdpenetration of 13.8% in 2007 to 16.3% in 2015; air conditioners are estimated to rise from 5.8% in 2007 to 8.3%in 2015; and alternative means of transport, such as motorcycles and bicycles, of which the householdpenetration is estimated to rise in the forecast period, from 91.4% to 92.8% and from 11.4% to 15.2%,respectively. The latter is not surprising, given the serious problem of traffic congestion and city parking costs.However, it seems that most people do not replace their car, but rather want an alternative for shorter trips, asthe household penetration of passenger cars is also rising. Currently, 77.1% of all households own at least onecar (versus 68% in 1995), and this is expected to rise to 80.1% by 2015.

Pet Ownership

The Netherlands can be characterised as a pet-loving country. Many people own cats and/or dogs, most smalltowns have a pet shop, and a great number of TV commercials advertise pet food. One often comes acrosspeople walking their dogs in big cities as well as in the countryside. In 2007, 56% of all households in theNetherlands possessed one or more pets, the same percentage as in 2003 and 2005. According to researchconducted in 2008, 49% of all households have a cat (or more than one), while 36% own a dog. On average,households spend €24.60 per month on pet food.

In general, many people consider themselves to be animal-lovers.

Impact

The spread and general acceptance of pets is likely to remain stable, as it has in the mid-2000s. Pet owners canbe found in all age and income groups. In general, given the rise in disposable income, the amount of moneyspent on food and medication has increased in recent years. As many people care greatly about their pets, theyare willing to spend money on relatively expensive food, which is advertised everywhere.

Nearly every supermarket has a large section devoted to pet (mainly cat and dog) food, and consumers canchoose from a variety of products. There is no reason to assume that this demand will decrease; if anything,demand could very well increase, given the general high esteem for pets in Dutch society. However, the marketfor pet food is already quite competitive, given the wide range of products available. As with other products, thecurrent economic crisis may lead people to opt for cheaper alternatives when it comes to pet food.

Table 43 Households by Number of Occupants: 1995/2000/2002/2004/2006-2007

'0001995 2000 2002 2004 2006 2007

1 person 2,109 2,272 2,345 2,427 2,502 2,5362 persons 2,058 2,242 2,275 2,308 2,334 2,3423 persons 903 897 903 903 901 8984 persons 957 944 959 969 976 9785+ persons 441 446 452 451 448 446TOTAL 6,469 6,801 6,934 7,058 7,161 7,200Source: National statistics, Euromonitor International

Table 44 Households by Number of Occupants (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007





% of total households / % growth1995 2000 2007 1995-2007 2000-2007

1 person 32.61 33.41 35.22 20.22 11.592 persons 31.82 32.97 32.53 13.78 4.45

3 persons 13.97 13.20 12.47 -0.58 0.084 persons 14.80 13.87 13.58 2.17 3.655+ persons 6.81 6.55 6.20 1.27 0.13TOTAL 100.00 100.00 100.00 11.30 5.87Source: National statistics, Euromonitor International

Table 45 Occupants per Household: 1995/2000/2002/2004/2006-2007

number1995 2000 2002 2004 2006 2007

Occupants per household 2.4 2.3 2.3 2.3 2.3 2.3

at 1 January (number)Average of CLIFE 3.7 3.7 3.6 3.6 3.5 3.5countriesSource: National statistics, Euromonitor International

Table 46 Occupants per Household (Actual Growth): 1995-2007/2000-2007


Occupants per household at 1 January (number) -0.11 -0.06Average of CLIFE countries -0.18 -0.13Source: National statistics, Euromonitor International

Table 47 Number of Households by Disposable Income Bracket: 1995/2000/2002/2004/2006-2007

'0001995 2000 2002 2004 2006 2007

above US$500 6,469 6,801 6,934 7,058 7,161 7,200above US$750 6,469 6,801 6,934 7,058 7,161 7,200above US$1,000 6,469 6,801 6,934 7,058 7,161 7,200above US$1,750 6,468 6,800 6,934 7,058 7,161 7,200above US$2,500 6,467 6,799 6,932 7,057 7,161 7,200above US$5,000 6,453 6,779 6,915 7,051 7,156 7,197

above US$7,500 6,409 6,707 6,860 7,032 7,141 7,187above US$10,000 6,316 6,544 6,745 6,991 7,108 7,166above US$15,000 5,919 5,828 6,259 6,805 6,950 7,062above US$25,000 4,297 3,374 4,343 5,844 6,075 6,453above US$35,000 2,539 1,617 2,420 4,279 4,546 5,244above US$45,000 1,430 837 1,305 2,794 3,017 3,802above US$55,000 851 502 763 1,765 1,924 2,585above US$65,000 555 346 500 1,144 1,253 1,739above US$75,000 396 266 366 783 858 1,199Total 6,469 6,801 6,934 7,058 7,161 7,200Source: National statistics, Euromonitor International

Table 48 Number of Households by Disposable Income Bracket (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007





% of total households1995 2000 2007 1995-2007 2000-2007

above US$500 100.00 100.00 100.00 11.30 5.87above US$750 100.00 100.00 100.00 11.31 5.87above US$1,000 100.00 100.00 100.00 11.31 5.87

above US$1,750 99.99 99.99 100.00 11.31 5.87above US$2,500 99.98 99.97 100.00 11.33 5.89above US$5,000 99.76 99.67 99.96 11.53 6.17above US$7,500 99.07 98.62 99.82 12.15 7.16above US$10,000 97.63 96.22 99.52 13.46 9.50above US$15,000 91.51 85.69 98.08 19.30 21.17above US$25,000 66.42 49.61 89.63 50.20 91.25above US$35,000 39.25 23.78 72.83 106.51 224.20above US$45,000 22.10 12.31 52.81 165.90 354.29above US$55,000 13.16 7.38 35.90 203.60 414.97above US$65,000 8.58 5.09 24.15 213.39 402.80above US$75,000 6.13 3.91 16.65 202.40 350.41Households 100.00 100.00 100.00 11.30 5.87Source: National statistics, Euromonitor International

Table 49 Total Housing Stock and New Dwellings Completed: 1995/2000/2005/2007/2010/2015

'0001995 2000 2005 2007 2010 2015

Housing stock 6,192 6,590 6,858 6,952 7,085 7,314New dwellings completed 94 71 51 46 42 40New dwellings as % of 1.52 1.07 0.75 0.67 0.60 0.55total housing stockSource: National statistics, Euromonitor International

Table 50 Total Housing Stock and New Dwellings Completed (% Growth): 1995-2007/2007-2015

% change1995-2007 2007-2015

Housing stock 12.28 5.20New dwellings completed -50.58 -13.84Source: National statistics, Euromonitor International

Table 51 Households by Tenure and Type of Dwelling: 1995/2000/2005/2007/2010/2015

'000 1995 2000 2005 2007 2010 2015

Households by tenureHome owner 3,056 3,430 3,792 3,916 4,092 4,357Home owner, without 1,498 1,689 1,861 1,919 2,000 2,122mortgageHome owner, with mortgage 1,557 1,741 1,930 1,998 2,092 2,235Rented 3,308 3,270 3,224 3,187 3,117 2,978Other 105 101 98 97 94 89TOTAL 6,469 6,801 7,114 7,200 7,303 7,424Households by type ofdwellingDetached house 938 1,090 1,183 1,215 1,261 1,329Semi-detached and 3,530 3,614 3,772 3,814 3,863 3,915terraced houseApartment 1,736 1,861 1,959 1,987 2,023 2,069





Other 264 235 200 183 157 110TOTAL 6,469 6,801 7,114 7,200 7,303 7,424Source: National statistics, Euromonitor International

Table 52 Households by Tenure and Type of Dwelling (% Analysis and % Growth):1995/2000/2007/1995-2007/2007-2015

% analysis / % growth1995 2000 2007 1995-2007 2007-2015

Households by tenureHome owner 47.2 50.4 54.4 28.2 11.2Home owner, without 23.2 24.8 26.6 28.1 10.6mortgageHome owner, with mortgage 24.1 25.6 27.7 28.3 11.9Rented 51.1 48.1 44.3 -3.7 -6.6Other 1.6 1.5 1.3 -7.5 -8.2TOTAL 100.0 100.0 100.0 11.3 3.1Households by type ofdwellingDetached house 14.5 16.0 16.9 29.6 9.4Semi-detached and 54.6 53.1 53.0 8.0 2.6terraced houseApartment 26.8 27.4 27.6 14.4 4.1Other 4.1 3.5 2.5 -30.6 -39.8TOTAL 100.0 100.0 100.0 11.3 3.1Source: National statistics, Euromonitor International

Table 53 Households by Number of Rooms: 1995/2000/2002/2004/2006-2007

'000

1995 2000 2002 2004 2006 2007

1 room 163 173 180 188 197 2012 rooms 473 491 498 505 510 5113 rooms 1,161 1,358 1,419 1,472 1,519 1,5404 rooms 2,389 2,354 2,373 2,401 2,425 2,4335+ rooms 2,283 2,426 2,464 2,492 2,511 2,515TOTAL 6,469 6,801 6,934 7,058 7,161 7,200Source: National statistics, Euromonitor International

Table 54 Households by Number of Rooms (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

% of total households1995 2000 2007 1995-2007 2000-2007

1 room 2.52 2.54 2.79 23.06 16.262 rooms 7.31 7.22 7.10 8.14 4.113 rooms 17.94 19.96 21.39 32.72 13.464 rooms 36.93 34.61 33.79 1.84 3.355+ rooms 35.30 35.67 34.93 10.14 3.67TOTAL 100.00 100.00 100.00 11.30 5.87Source: National statistics, Euromonitor International

Table 55 Ownership of Household Durables: 1995/2000/2005/2007/2010/2015

% of households





Telephone 1.67 0.12Tumble drier 19.91 1.11Vacuum cleaner 1.63 0.52Video camera 13.69 -5.83Video game console 0.06 -0.66Videotape recorder 12.40 -9.59

Washing machine 5.04 1.69Source: National statistics, Euromonitor International

HOUSEHOLD SEGMENTATION

Single-person Households

Over the review period the number of single-person households increased from 2.1 million to 2.54 million. Inthe forecast period, this number is estimated to rise further, to 2.77 million by 2015. While in 1995 thepercentage of single-person households was slightly lower than that for households consisting of a couple withchildren (32.6% versus 32.7%), in 2007 single-person households were by far the largest group, constituting

35.2% of all households. This group is made up of divorced people and widows, as well as those who remainunmarried.

In January 2008, there were 1.38 million female and 1.18 million male singles. This difference is mainly due todiffering life expectancies for men and women. Approximately 54% of all women age 75 or older now livealone.

The rise of single people is most significant amongst men ages 35-54 (300,000 in 1996, and 419,000 in 2006).Between ages 15-54, the percentage of single men is higher than single women. According to research, nearlyall single persons age 34 or younger want a long-term relationship; the older the person, the less this is the case.

Impact

The rise in single-person households has increased demand for small, independent housing units such as flatsand studios. Moreover, people tend to buy smaller portions of food and other non-durable goods, so demand forproducts in single-serving packages is likely to increase. In terms of entertainment and tourism, dating TVshows and websites have become very popular, and there is more demand for special events such as “singlesparties” and holidays targeted at singles.

Couples Without Children

There was an increase in the number of couples without children between 1995 and 2007, from 1.84 to 2.07million. In the mid-2000s, however, this number has been quite stable, and in the forecast period, it is projectedto decrease slightly, to 2.04 million in 2015. Currently, 28.7% of all households are made up of couples withoutchildren; in 2015, this is expected to fall to 27.5%. Declining birth and marriage rates have caused an increase in

the number of two-person households without children, but the number is stabilising as increasing numbers ofpeople opt to remain single.

Impact

In general, couples without children have comparatively high disposable incomes since both partners can affordto work full-time, and have more freedom to spend their money on leisure and luxury goods than do those whohave children. They typically spend more on holidays and travel further than families with children, and eat outmore often. They also tend to have smaller houses than large families.

As the rise of two-person households in the review period coincided with the rise in single-person households,there has been a significant change in housing demand – away from large, expensive houses and towards smallor medium-sized flats – in the mid- to late 2000s. This group, however, can afford to spend more on furniture

and electronic appliances, as they generally have a double income.





Couples With Children

Between 1995 and 2007, the number of households consisting of couples with children decreased from 2.11million to 2.07 million. This is estimated to decrease sharply over the forecast period, to 1.97 million.Currently, their share of all households is 28.7%. By 2015, this is estimated to be 26.5%.

The decrease in the total number of couples living with children, and of their share of all households, is due to anumber of demographic factors, including the declining birth rate, the ageing population and an increase in thenumber of single-parent families.

Impact

Couples with children generally spend less on luxury products, tourism and catering than couples or singleswithout children. In general, households with children have lower incomes than those without, as families whereboth parents work full-time are very rare. In some families, both parents work part-time, but in the majority ofcases only the mother continues to work part-time (or, occasionally, leaves the workplace altogether). In anycase, in contrast with childless couples, most households with children do not have two full incomes.Furthermore, they have different priorities: couples with children spend more money on housing as they need

more space, and spend more on food, clothing, toys and education for the children. They also typically needlarger passenger cars. Regardless of their income, parents with children do get an allowance from the state(kinderbijslag), but this does not cover all extra expenses.

Single-parent Families

During the review period, the number of single-parent families increased by more than 33%, from 361,000 in1995 to 480,000 in 2007. In the forecast period, this is estimated to rise a further 24%, to 596,000, which is 8%of all households. In general, as divorces have become more common and marriage is not considered asinevitable as it once was, single-parent families are no longer socially unacceptable.

However, being a single parent remains a serious challenge. It is hard to combine full-time work withparenthood, if only because primary schools usually end at 15.30hrs, and do not provide child care afterwards.

Combining a professional career with single parenthood is nearly impossible, since not only are child carefacilities limited, but it is also considered socially unacceptable for a parent to work full-time, spending littletime with his or her children.

Impact

Government funding helps single-parent families cope economically, but as a rule they cannot afford to spendanything on extras. Their expenses are generally limited to bare necessities, such as housing and transport costs,food, nappies and clothing.

There is a difference, however, between single-parent families where the mother has remained unmarried(usually in lower socio-economic classes where unemployment rates are high), or single-parent families whichare the result of divorce. In the latter case, both divorced parents usually share costs. It is not uncommon for

children of divorced parents to live with one parent during the first half of the week, and with the other thesecond half. In fact, divorced parents tend to buy more, as well as more expensive, products for their childrenthan couples living together. Children celebrating Sinterklaas with one parent, and Christmas with the other, aregetting two sets of presents.

Table 57 Households by Type: 1995/2000/2005/2007/2010/2015

'0001995 2000 2005 2007 2010 2015

Single person 2,109 2,272 2,466 2,536 2,631 2,771Couple without children 1,843 2,016 2,061 2,067 2,065 2,044Couple with children 2,112 2,082 2,085 2,069 2,037 1,966

Single-parent family 361 384 453 480 522 596Other 44 46 49 49 48 47Households 6,469 6,801 7,114 7,200 7,303 7,424





Source: Euromonitor International from trade sources and national statisticsNote: Figures stated as zero refer to a negligible percentage of total households

Table 58 Households by Type (% Analysis and % Growth) 1995/2007/2015-/1995-2007/2007-2015

% analysis/% growth1995 2007 2015 1995-2007 2007-2015

Single person 32.61 35.22 37.33 20.22 9.30Couple without children 28.49 28.70 27.53 12.13 -1.09Couple with children 32.65 28.74 26.48 -2.03 -5.00Single-parent family 5.58 6.67 8.02 33.08 24.07Other 0.68 0.67 0.63 11.08 -2.87Households 100.00 100.00 100.00 11.30 3.11Source: Euromonitor International from trade sources and national statisticsNote: Figures stated as zero refer to a negligible percentage of total households

LABOUR

Working Conditions

Working conditions in the Netherlands are generally good. Traditionally, unions have a strong position, whichhas led to extensive legislation stating and protecting the rights of employees. A full-time working week lastsbetween 32 and 40 hours, depending on the type of work; 36 to 38 hours is common. In addition to theirsalaries, employees receive premiums for their pensions and for holidays, and employers are obliged by law tosupport ill employees and allow parental leave. Employees cannot be fired unless strict conditions have beenmet. As a rule, labour regulations and conditions are the product of national legislation as well as agreementsbetween unions and employer organisations. In general, people who work freelance, or who do temporaryand/or part-time labour via employment agencies, have fewer rights than those employed directly by companies

or by the state.

Working hours have become somewhat more flexible in recent years, and more people now work from home.Both developments are actively encouraged by the government, for two reasons: first, it will increaseopportunities for parents with young children to continue working, and second, it may help solve the seriousproblem of traffic congestion during rush hours. Nevertheless, the majority of jobs are still “nine-to-five” jobs.Most people continue to commute between home and work daily, so further steps are needed. In most jobs,overtime is not very common, though when it does occur, employees are paid accordingly.

The Netherlands has only seven official holidays on which employees get the day off, and only if they fall on aweekday: New Year, Queen’s Day (30 April), Easter Monday, Ascension Day, Pentecost Monday, Christmasand Boxing Day. Liberation Day (5 May) is a national holiday, but employees only get this day off once everyfive years. On the other hand, employees can take long holidays. For a full-time job, 25 days per year is

common, while 20 is the national minimum. Accordingly, most Dutch people go on holiday at least once a year.During the summer holidays, people typically spend two or three weeks abroad, the vast majority going toFrance or Germany.

Part-time jobs are widespread in the Netherlands, and, in particular, many women work part-time. Whereaspaternal leave is organised by national law, few companies provide child care. This is one of the reasons whyfewer women have successful professional careers, despite the fact that, in general, their level of education is atleast the same as that of their male peers. Accordingly, a salary gap between men and women continues to exist.According to 2007 research, women’s average earnings in the Netherlands are 80% of men’s, which is wellbelow EU (83.9%) and Eurozone (86.3%) averages.

Discrimination at work does occur, albeit not very openly. The number of female managers is rising steadily,but it is still significantly smaller than the number of male managers. In addition, many members of ethnicminorities face discrimination when they apply for jobs, as research has demonstrated. Job candidates with Arab





or Turkish names are invited for job interviews significantly less often than “Dutch” candidates with similarqualifications. The city of Nijmegen has advocated legislation that would make all job applications anonymous.

Employed Population by Age

In 2007, the employed population numbered 8.12 million people, which is significantly higher than in 1995,when the employed population was only 6.83 million. Of the 2007 employed population, 54.4% (4.42 million)was male, versus 45.6% (3.7 million) female. In 1995 these percentages were, respectively, 59.2% and 40.8%.Thus, the gender discrepancy has gradually become smaller, as more women have become employed.

Employees became older during the review period. Fewer young people started working, which is related to thedeclining birth rate. In 1995, the largest age groups in the working population were ages 25-29 (1.03 million)and ages 30-34 years (1.02 million). Twelve years later, these age groups were significantly smaller, and thelargest age groups in 2007 were ages 40-44 (1.1 million) and ages 35-39 years (1.08 million). There was adecline in the employed population ages 20-34. Only those younger than age 20 have become more numerous(from 349,000 to 501,000), due to the fact that it has become more common for teenagers to have part-timeand/or summer jobs.

The most significant growth occurred in older age groups, due to population ageing. During the review period,the group age 55-59 increased dramatically from 328,000 to 781,000, and the age group 60-64 from 93,000 to346,000.

Impact

The employed population is likely to continue to grow older. This will lead to higher average disposableincomes, as salaries usually rise as employees age. Official retirement age is 65, but some people continue towork longer, while others change to working part-time when they grow older. This leaves them with acombination of increased free time and a relatively high income which they can spend on culture, holidays,luxury goods and household goods and appliances.

The fact that the employed population is ageing, however, also means a higher financial burden for many

employers, as salaries have risen.

Now that more women work, and fewer people stay at home, there is an increasing demand for child care,domestic help and other forms of help. When people have their houses repaired or painted, they are more likelyto have it done by others as they generally do not have the time to do it themselves.

Unemployed Population by Age

In 1995, unemployment was fairly high at 527,000 people, or 7.2%. This decreased sharply in the second half inthe 1990s, and by 2000 it had dropped to 264,000 for an unemployment rate of 3.3% – significantly lower thanthe international average of 8.8%. After an increase in unemployment in 2004, to 418,000 (5%), anotherdecrease followed as a result of economic growth in the years thereafter. In 2007, the unemployed populationwas 296,000. In 2008, a further decrease was reported; in the period August-October 2008, average

unemployment was at 276,000. Unemployment rates are still declining, but more slowly than in 2007.

Unemployment does not affect all age groups similarly. Overall, in the period 2000-2007, unemploymentincreased for most age groups, but it decreased for 15-19-year-olds and 25-29-year-olds. Apparently, employershave become more interested in cheap labour (the minimum wage for teenagers being lower than for adults),and there has been an increasing demand for well-educated, recently graduated young talent, who are stillrelatively cheap (mainly ages 25-29). On the other hand, middle-aged and older employers have suffered more.When people over age 50 (or even age 40) lose their jobs, for whatever reason, they usually find it very hard toget a new job. As their salaries are higher, employers are generally reluctant to employ middle-aged or olderpeople, despite their experience. Such age discrimination is quite widespread. The fact that the unemployedpopulation aged 55-59 increased 80.6% between 2000 and 2007, and the unemployed aged 60-64 in the sameperiod by 93.3%, seems to indicate that this is happening.

The current financial and economic crisis may end the decline in unemployment, and lead to temporary higherunemployment. In a few years, however, the retirement of a large group of employers (the “baby boom”





generation) will lead to labour shortages. Already, some types of unskilled labour, such as seasonal labour in theagricultural sector, are done by temporary labour migrants, usually from Eastern Europe. In the coming years,the need for labour migrants is likely to extend to other sectors and include skilled labour as well. Examplesinclude nurses and teachers. There is a discrepancy, however, between existing migration legislation, whichmakes it very difficult for non-EU citizens to obtain a work visa for the Netherlands, and the anticipated needfor labour.

Impact

Despite the global economic crisis, unemployment is not a major issue in the Netherlands. There have beensome debates about the relation between age discrimination and unemployment, but in general unemployment isnot considered a great challenge. The foreseen retirement of a part of the employed population, which mainlyaffects particular sectors (such as education), will lead to a new increase in jobs.

As most people are employed, and the social security system is well developed, poverty is not very widespread.Hence, almost everyone can afford to buy food, clothing, electronic appliances such as TVs, PCs and (mobile)telephones, as well as their own transport.

Part-time EmploymentPart-time employment is widespread in the Netherlands, and became increasingly so during the review period.In 1995, 2 million people worked part-time; by 2006, this had increased by almost half to 2.95 million. In 2006,part-time employees made up 36.8% of the total employed population.

There is a significant discrepancy, however, between men and women: 76% of all part-time employees arewomen, and only 24% are men. Furthermore, in 2006, 62.1% of all female employees worked part-time, versusonly 16.1% of all male employees.

In general, then, many employers do offer the opportunity to work part-time, and the Netherlands is known forits flexibility in this respect. However, the question remains as to what extent working part-time in reality can becombined with a good career. The striking difference in part-time employment between men and women points

to lingering role patterns, with women taking more responsibility for children and the household than men.

Impact

The common choice to work part-time is undoubtedly related to the limited child care facilities and low socialesteem for families where both parents work full-time.

In any case, the flexible working hours do allow many families to have two incomes (as a rule, one partnerworking full-time, one part-time), so that they can spend more on things like housing, food, children’s productsand holidays than could the traditional family where one parent earned the entire household’s income.

The availability of part-time work has led to a significant increase in the size of the employed population, whichhas been one of the causes of economic growth, and has led to generally higher disposable income per

household, so that people could consume more, and more expensive, products. As such, the system whereby alarge part of the employed population, mostly women, works part-time has been beneficial for general consumerexpenditure and for the overall economy.

Table 59 Employed Population by Age Group: 1995/2000/2002/2004/2006-2007

'0001995 2000 2002 2004 2006 2007

15-19 yrs 349 508 540 502 496 50120-24 yrs 783 730 729 726 722 73125-29 yrs 1,027 977 893 843 816 81130-34 yrs 1,015 1,110 1,112 1,028 941 919

35-39 yrs 939 1,090 1,126 1,080 1,072 1,08040-44 yrs 859 996 1,058 1,058 1,077 1,09545-49 yrs 866 891 917 963 993 1,022





50-54 yrs 573 825 899 837 836 83355-59 yrs 328 467 498 657 734 78160-64 yrs 93 138 142 274 321 34665+ yrsEmployed male Population 4,044 4,419 4,458 4,418 4,397 4,419Employed female 2,787 3,313 3,456 3,549 3,611 3,700

PopulationTotal employed Population 6,831 7,732 7,913 7,967 8,008 8,119Source: ILO, Euromonitor International

Table 60 Employed Population by Age Group (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

% analysis / % growth1995 2000 2007 1995-2007 2000-2007

15-19 yrs 5.11 6.57 6.17 43.66 -1.3220-24 yrs 11.46 9.44 9.00 -6.65 0.1125-29 yrs 15.03 12.64 9.99 -21.04 -17.0130-34 yrs 14.86 14.36 11.32 -9.41 -17.1835-39 yrs 13.74 14.10 13.30 15.05 -0.9140-44 yrs 12.57 12.88 13.49 27.47 9.9245-49 yrs 12.68 11.52 12.59 18.08 14.7550-54 yrs 8.39 10.67 10.26 45.37 0.9555-59 yrs 4.80 6.04 9.62 138.07 67.1860-64 yrs 1.36 1.78 4.26 271.80 150.5265+ yrsEmployed male Population 59.20 57.15 54.43 9.27 -0.01Employed female 40.80 42.85 45.57 32.76 11.68PopulationTotal employed Population 100.00 100.00 100.00 18.85 5.00Source: ILO, Euromonitor International

Table 61 Unemployed Population by Age Group: 1995/2000/2002/2004/2006-2007

'0001995 2000 2002 2004 2006 2007

15-19 yrs 79 54 52 64 59 4920-24 yrs 87 33 29 60 47 3925-29 yrs 82 32 29 47 32 2530-34 yrs 67 27 28 40 40 3435-39 yrs 65 30 32 52 45 3740-44 yrs 52 27 26 48 42 3545-49 yrs 47 25 25 41 29 23

50-54 yrs 30 21 22 33 31 2655-59 yrs 13 11 12 25 23 2060-64 yrs 5 4 4 8 9 865+ yrsUnemployed male 258 119 131 228 162 133PopulationUnemployed female 269 145 129 190 195 163PopulationTotal unemployed 527 264 260 418 357 296PopulationSource: ILO, Euromonitor International

Table 62 Unemployed Population by Age Group (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007





% analysis / % growth1995 2000 2007 1995-2007 2000-2007

15-19 yrs 14.99 20.45 16.71 -37.44 -8.4820-24 yrs 16.51 12.50 13.07 -55.57 17.1225-29 yrs 15.56 12.12 8.60 -68.97 -20.48

30-34 yrs 12.71 10.23 11.44 -49.48 25.3735-39 yrs 12.33 11.36 12.48 -43.19 23.0940-44 yrs 9.87 10.23 11.83 -32.69 29.6445-49 yrs 8.92 9.47 7.83 -50.70 -7.3250-54 yrs 5.69 7.95 8.70 -14.24 22.5255-59 yrs 2.47 4.17 6.72 52.84 80.6360-64 yrs 0.95 1.52 2.61 54.66 93.3365+ yrsUnemployed male 48.96 45.08 44.98 -48.43 11.81PopulationUnemployed female 51.04 54.92 55.02 -39.50 12.23PopulationTotal unemployed 100.00 100.00 100.00 -43.87 12.05PopulationSource: ILO, Euromonitor International

Table 63 Unemployment Rate: 1995/2000/2002/2004/2006-2007

% of Economically Active Population1995 2000 2002 2004 2006 2007

Unemployment rate (% of 7.2 3.3 3.2 5.0 4.3 3.5Economically ActivePopulation)Average of CLIFE 8.5 8.8 9.0 8.8 7.7 7.5countriesSource: ILO, Euromonitor International

Table 64 Unemployment Rate (Actual Growth): 1995-2007/2000-2007


Unemployment rate (% of Economically Active -3.65 0.21Population)Average of CLIFE countries -1.00 -1.31Source: ILO, Euromonitor International

Table 65 Part-Time Employment by Gender: 1995/2000/2002/2004/2006

'0001995 2000 2002 2004 2006

Male 475 601 680 683 710Female 1,521 1,925 2,091 2,157 2,241TOTAL 1,996 2,526 2,771 2,839 2,950Source: ILO, Euromonitor International

Table 66 Part-Time Employment by Gender (% Analysis and % Growth) 1995/2000/2006: /1995-2006/2000-2006

% of part-time employees/% growth





1995 2000 2006 1995-2006 2000-2006

Male 23.80 23.81 24.05 49.38 17.98Female 76.20 76.19 75.95 47.33 16.42TOTAL 100.00 100.00 100.00 47.82 16.79Source: ILO, Euromonitor International

INCOME

Annual Disposable Income

During the review period, mean annual disposable incomes increased significantly. Disposable income levelsdepend on a number of factors, including education and gender, but the increase occurred across all populationgroups. This is due to a general rise in incomes: for instance, in 2006, gross mode income – the standard mostcommonly used by the Netherlands Bureau for Economic Policy Analysis (CPB) – was €29,000 per year. In2007 this was €30,000 and by 2008 was €31,000, which is related to the relative economic prosperity of the pastyears. The worldwide economic crisis may well lead to an end to the increases.

While incomes have increased, income taxes did not rise significantly over the review period. Currently,employees with an annual income between about €31,600 and €53,900 pay 42% income tax, while higherincomes pay 52%.

Higher disposable incomes are partially a result of inflation and rising prices. However, according to the CBS,after a small decline in 2005, purchasing power increased significantly in 2006 and 2007 by 2.4% and 3.1%respectively. Higher disposable incomes have led to more purchasing power, which has led to moreconsumption.

Income by Educational Attainment

There is a correlation between income and educational attainment. In 1995, employees with only a primaryeducation had an average disposable income of €10,900; by 2007, this had increased by 44.5%, to €15,800. Forthose who finished secondary education, their average disposable income was notably higher: in 1995, it was

€12,400, and by 2007 this had risen by 52.8% to €18,900. People who had finished tertiary (higher) educationaveraged much higher disposable incomes: €17,300 in 1995, and €25,800 in 2007 (a rise of 49.3%).

Percentage-wise, the incomes of workers with secondary education rose the most; in absolute terms, those withhigher education experienced greater increases. Overall, the differences are not very significant, and all incomegroups benefited proportionally from the economic conditions.

It must be emphasised, however, that in terms of size of these groups, the group of people with only primaryeducation has decreased, whereas increasing numbers of people have completed higher education. By the late2000s, few people leave school without at least a secondary education diploma. These general higher

educational achievements have further contributed to a rise in average disposable incomes.

Income by Gender

The income gap between male and female employees continues to be significant, although it is not as wide as itused to be. In 1995, the average disposable income of female employees was only €6,500, while that of maleemployees was €15,000. Between 1995 and 2007, however, average female incomes increased by 86.3% to

€12,100, while that of men increased by 42%, to €21,300. Still, the difference is striking.

In general, women get the same salaries as men for the same work. The difference is mainly due to theremarkably high percentage of women working part-time (62.1%). Accordingly, fewer women reachmanagement positions, so their income remains lower.

Table 67 Mean Annual Disposable Income by Education and Gender: 1995/2000/2002/2004/2006-2007





As stated1995 2000 2002 2004 2006 2007

Disposable income byeducation

Primary (EUR) 10,900.4 13,467.7 14,644.7 15,147.6 15,418.8 15,754.4Secondary (EUR) 12,381.6 14,952.0 17,082.4 17,826.9 18,327.5 18,913.8Tertiary (EUR) 17,279.6 20,867.6 23,084.2 23,848.6 24,515.9 25,806.1Disposable income bygenderFemale (EUR) 6,489.2 8,650.9 10,128.5 10,935.8 11,387.3 12,090.3Male (EUR) 15,027.6 17,660.8 19,600.9 20,089.2 20,711.5 21,343.3Source: National statistics, Euromonitor International

Table 68 Mean Annual Disposable Income by Education and Gender (% Growth): 1995-2007/2000-2007

% growth 1995-2007 2000-2007

Disposable income by educationPrimary 44.53 16.98Secondary 52.76 26.50Tertiary 49.34 23.67Disposable income by genderFemale 86.31 39.76Male 42.03 20.85Source: National statistics, Euromonitor International

CONSUMER EXPENDITURE

Spending on Consumer Goods and Services by Broad Category

In 2007, the category on which consumers spent most was housing (€59.4 billion; 22.8% of all consumerexpenditure), followed by transport (€29.5 billion; 11.3%), leisure and recreation (€27.5 billion; 10.6%) andfood (€26.7 billion; 10.3%). In the period 1995-2007, expenditure on food remained fairly stable, as didexpenditure on clothing and footwear (€13.4 billion in 2007; 5.2% of all expenditure) and education (€1.4billion; 0.5%). By contrast, there were significant rises in expenditure in several other categories.

Expenditure on housing costs rose sharply (from €41.8 billion in 1995, to €59.4 billion in 2007, a rise of42.1%), as costs of houses and rents increased during this period. So did expenditure on transport (from €22.4billion to €29.5 billion, a rise of 31.7%), as gasoline prices and public transport costs rose, while the number of

people commuting to work increased. Not surprisingly, so have traffic congestion and public transport capacityproblems.

Other categories with a significant increase in expenditure include leisure and recreation, which increased from €21.6 billion in 1995 to €27.5 billion in 2007 (this rise, however, dates from before 2000); health goods andmedical services, on which €8.1 billion was spent in 1995, versus €14.3 billion in 2007 (a rise of 77.4%), whichis due to rising costs for health care and medication as well as a growing interest in health issues; andcommunications, which increased dramatically by 180.9% from €4.3 billion in 1995 to €12.2 billion in 2007,due to the rapid spread of new technologies such as mobile phones and internet.

Further strong increases are expected over the forecast period. Housing expenditure is expected to grow by afurther 22.1%, to €72.5 billion by 2015. Health goods and medical services are forecast to rise a further 22.4%,to €17.5 billion by 2015, with transport rising a further 11.9%, to €33 billion and communications by 25.9% to

€15.4 billion. Increased expenditure on housing will be due to rising housing costs, as well as to peoplegenerally becoming more demanding about their houses, and willing to spend a higher proportion of their





income to satisfy these demands. The rising expenditure on health care and medical services is hardly surprisingconsidering that though life expectancies have increased in recent years, healthy life expectancies are lagging –people live longer, but do not stay healthy any longer than they did in the past. The number of elderly people,who generally spend more on health than young people, is also increasing. The rise in expenditure on transportis related to expected rises in oil and energy prices, and the continuously increasing mobility of the population.Finally, the estimated rise in communications will likely be due to the expectancy that even more people willhave access to and spend money on the latest communication technologies.

The only category for which a small decrease is forecast is clothing and footwear. The rise in expenditure inother categories may lead to people spending slightly less on these goods. In general, expenditure on durableand semi-durable goods is expected to decline in the forecast period (by, respectively, 13.8% and 5.3%),whereas expenditure on durable goods and services is expected to rise further (11% and 20.5%, respectively).Total consumer expenditure is expected to rise from €260.3 billion in 2007, to €294.7 billion in 2015, a rise of13.2%.

Impact

The most striking trends are the increases in expenditure on housing, health, transport and communication. With

the growing number of small households, there is an increasing demand for houses and flats. The housingmarket is partly public (non-commercial agencies letting affordable houses) and partly privatised (commercialagencies and brokers). As demand increases, yet more competition can be expected. Considering rising prices, itis likely that there will be more demand for mortgages and loans.

Doctors and healthcare institutions in the Netherlands have to meet high standards and conform to qualitycontrol measures. Many hospitals and pharmacies are now (partly) privatised, and with increasing healthawareness and demand for health-related products and services, this is a growing market. So is public transport,where, despite the privatisation, most areas have only one provider of buses and trams. The NederlandseSpoorwegen (Dutch Railways) continues to have a monopoly on trains for all major routes. However,considering the traffic congestion and high costs of parking, as well as the expensive tickets and many delays inpublic transport, more transport services are needed.

Finally, as in other countries, developments in mass communications technology follow each other rapidly, andmany people, particularly younger consumers, spend considerable amounts of their income on mobile phonesand/or internet access. This is expected to continue over the forecast period.

Table 69 Consumer Expenditure by Broad Category: 1995/2000/2005/2007/2010/2015

EUR million1995 2000 2005 2007 2010 2015

Food and non-alcoholic 25,459.7 27,079.3 26,890.7 26,686.2 26,745.0 28,221.0beveragesAlcoholic beverages and 6,524.9 6,966.5 7,562.5 7,667.6 7,644.9 7,877.1tobaccoClothing and footwear 12,619.3 14,713.9 13,705.5 13,436.2 12,995.4 12,962.2Housing 41,786.5 49,421.5 56,272.8 59,391.4 62,753.3 72,510.2Household goods and 13,811.4 17,845.6 15,805.5 15,412.1 15,229.1 15,837.5servicesHealth goods and 8,073.3 10,289.0 13,443.8 14,318.8 15,158.9 17,526.9medical servicesTransport 22,400.0 27,883.7 28,782.3 29,507.4 30,118.9 33,027.7Communications 4,344.6 9,418.6 11,471.5 12,204.6 13,164.8 15,368.2Leisure and recreation 21,646.3 28,564.4 27,482.1 27,492.5 27,701.1 29,859.7Education 1,253.1 1,367.4 1,372.4 1,375.7 1,384.8 1,454.4Hotels and catering 11,017.9 13,564.4 12,925.6 12,785.3 12,593.3 12,856.6Misc goods and services 26,430.7 35,830.1 38,034.5 40,032.5 41,721.2 47,166.4TOTAL 195,367.5 242,944.3 253,749.1 260,310.3 267,210.7 294,668.0Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices





Table 70 Consumer Expenditure by Broad Category (% Analysis and % Growth) 1995/2007/2015-/1995-2007/2007-2015

% of total consumer expenditure1995 2007 2015 1995-2007 2007-2015

Food and non-alcoholic 13.03 10.25 9.58 4.82 5.75beveragesAlcoholic beverages and 3.34 2.95 2.67 17.51 2.73tobaccoClothing and footwear 6.46 5.16 4.40 6.47 -3.53Housing 21.39 22.82 24.61 42.13 22.09Household goods and 7.07 5.92 5.37 11.59 2.76servicesHealth goods and 4.13 5.50 5.95 77.36 22.40medical servicesTransport 11.47 11.34 11.21 31.73 11.93Communications 2.22 4.69 5.22 180.91 25.92Leisure and recreation 11.08 10.56 10.13 27.01 8.61Education 0.64 0.53 0.49 9.79 5.72

Hotels and catering 5.64 4.91 4.36 16.04 0.56Misc goods and services 13.53 15.38 16.01 51.46 17.82TOTAL 100.00 100.00 100.00 33.24 13.20Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 71 Consumer Expenditure by Commodity Type: 1995/2000/2005/2007/2010/2015

EUR million1995 2000 2005 2007 2010 2015

Durable goods 25,898.1 34,782.3 30,069.5 28,950.9 27,109.4 24,958.0

Semi-durable goods 6,806.0 7,940.7 8,310.5 8,048.3 7,890.5 7,623.1Non-durable goods 58,079.4 68,835.7 72,664.8 74,055.2 75,618.2 82,198.4Services 104,584.0 131,385.5 142,704.3 149,255.8 156,592.6 179,888.6TOTAL 195,367.5 242,944.3 253,749.1 260,310.3 267,210.7 294,668.0Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 72 Consumer Expenditure by Commodity Type (% Analysis and % Growth) 1995/2007/2015-/1995-2007/2007-2015

% of total consumer expenditure1995 2007 2015 1995-2007 2007-2015

Durable goods 13.26 11.12 8.47 11.79 -13.79Semi-durable goods 3.48 3.09 2.59 18.25 -5.28Non-durable goods 29.73 28.45 27.90 27.51 11.00Services 53.53 57.34 61.05 42.71 20.52TOTAL 100.00 100.00 100.00 33.24 13.20Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 73 Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007

1995 = 1001995 2000 2002 2004 2006 2007

Index of consumer 100.0 111.4 119.8 123.9 127.4 129.5prices (1995 = 100)





Average of CLIFE 100.0 326.2 475.7 605.1 706.0 760.9countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 74 Consumer Prices and Costs (Actual Growth): 1995-2007/2000-2007


Index of consumer prices (1995 = 100) 29.45 18.08Average of CLIFE countries 660.89 434.67Source: National statistics, OECD, Eurostat, Euromonitor International

EATING HABITS

Spending on FoodOver the review period expenditure on food remained fairly stable. In 1995, total expenditure on food was €23billion, which increased to €25.6 billion in 2002. This then dropped slightly, to €24.6 billion in 2007. As food isan essential commodity, expenditure is unlikely to change dramatically over the short-term. Per capitaexpenditure on food, however, has risen, in particular between 2000 (US$1,200 per capita) and 2007 (US$2,100per capita). In the years 2002-2004, when this rise was most pronounced, food prices rose significantly, afterwhich prices stabilised. These statistics may be influenced, however, by changing euro-US dollar rates.

However, whereas overall expenditure on food has not changed significantly, there have been some changes inspending patterns. For instance, between 1995 and 2007, overall expenditure on meat decreased gradually, from

€6.6 billion to €6.47 billion, which may be due to negative publicity as a result of livestock diseases, animalsuffering and health issues. Between 2000 and 2007, the same was the case for milk, cheese and eggs, which

may be due to similar factors.

Much more dramatic was the decrease in expenditure on oils and fats, by 17.8% between 2000 and 2007. This isundoubtedly due to the growing interest in and publicity for “healthy”, low-fat products. As elsewhere, Dutchconsumer concerns about the health-value of the food products they consume have increased seriously in the2000s, and products that are marketed as healthy are generally quite successful. Such products include low-fatand low-sugar products, juices and yoghurt with added vitamins and fibre.

Accordingly, most products that are considered healthy are doing well. The consumption of fish, which hasreceived positive publicity for being a healthy alternative to meat, increased by 20% between 1995 and 2007. Sodid the consumption of fruit, by 21.1%, which seems to have benefited from the general “healthy food” trend, aswell as government campaigns urging people to eat two pieces of fruit a day.

Finally, it is important to note the significant rise in the consumption of “other food”. An important contributionto this rise may be the popularity of “international cuisine”. In the last decade, the availability of “international”products in supermarkets has increased dramatically, encouraged by immigration and more people travellingabroad. These items include a wide variety of pastas and rice, Asian spice mixes and sauces, Mexican cuisineingredients, and so on. This popularity of international food products, and correspondingly changing diets, isone of the most significant changes of the past decade in food consumption.

Impact

Changes in diets and culinary preferences have changed the type of products that are for sale. Products that arean integral part of Dutch cuisine (including potatoes, bread, vegetables and meat) will continue to be consumed.However, due to changing food trends, they will be consumed less than in the past. The consumption of meatand potatoes may decrease, for example, while fish and vegetarian products may become more popular. And

while people will continue to consume vegetables, the types of vegetables have changed as well. “Traditional”





vegetables, such as cabbage, carrots and turnips, have been partly replaced by more “exotic” vegetables such asaubergine, courgette and peppers.

Consumers in general are quite familiar with Italian, Chinese and Indonesian products; however, Middle Eastern(with the exception of fast food), African, Caribbean and even Indian cuisine are much less well-known. Dutchconsumers are open to new offerings in these areas.

Ethnic minorities mainly purchase products imported from their country of origin, from local grocery stores andsmall markets. Only the biggest supermarkets in the main cities have small sections of halal meat, and sell somebasic ingredients, but even here the choice is limited. Nonetheless, this is potentially a large market. It seems asif thus far most nutrition companies have avoided producing food products catering to ethnic minorities, perhapsbecause they consider this market unpredictable. However, bearing in mind demographic developments, therewill continue to be demand for such products in years to come. This demand will come not only from membersof ethnic minorities themselves, but also increasingly from the wider population, considering the general trendtowards “internationalisation” of cuisine.

The popularity of and concern for healthy food is likely to continue, as is the popularity of organic food,provided that organic alternatives are not dramatically more expensive than non-organic products. In general,

people are willing to spend a little extra on organic food, as evidenced by the increase of such products in majorsupermarkets. However, if the price is much higher, most people will opt for the non-organic product instead.To boost sales, products such as cereals, dairy products and juice are marketed as invaluable for a healthy life.Apparently, consumers are so concerned about their health that it has become one of the major criteria whenchoosing a product. On the other hand, products such as candy, crisps, alcohol and sodas continue to beconsumed in large quantities, health trends or not.

There is a growing preoccupation with authenticity and nostalgia for local foods. The resurgence of popular andpolitical nationalism in the Netherlands in the 2000s has led to a growing interest in products that are perceivedas “authentically” Dutch. One major brand of soup, sauces, sausages and the like has based its entire publicitycampaign on this notion of nostalgia, as have beer, liquorice and peanut butter brands. These brands invokeimages of traditional hospitality, which is generally a successful strategy.

Shopping for Food

Most people buy their food in supermarkets. In contrast to neighbouring country France, the Netherlands hasfew enormous supermarkets and/or malls outside city centres or villages. Most people buy food in theirneighbourhood supermarket. There is strong competition amongst supermarkets, although one is by far thelargest, with shops varying from small convenience stores in train stations to large supermarkets in the maincities, and a mix of cheap food and more luxury food products.

In addition to supermarkets, people buy food at markets in city centres, bakeries, butcher shops, vegetablestores, delicatessen stores, liquor stores and so on. However, competition from supermarkets has become fierce,and in the 2000s many traditional food stores ceased to exist.

Supermarkets do have special offers and loyalty cards, but most people do their shopping in local or

neighbourhood supermarkets and do not base their preference on special offers. Some supermarket chains areknown for their cheap products, but they are not as widespread as in neighbouring countries, and generally havefew fresh or high-quality products. Accordingly, their popularity is limited, as consumers prefer supermarketswhere they can buy all the food products they need. However, large supermarkets selling goods such asclothing, books and CDs are very rare; generally, their products are limited to food and household goods such ascleaning products and pet food.

In rural areas, people tend to go shopping less often and buy more products at once, whereas in cities, it is morecommon to buy fewer products and visit supermarkets more often.

In general, people in the Netherlands consume a lot of fresh products, in particular vegetables, fruit, meat andbread. However, as many people do not spend much time cooking, especially on weekdays, chopped and mixedvegetables or ready-made salads have become very popular in recent years. So have packages with herb and

sauce mixes to which people add fresh vegetables and meat.





Internet shopping is not very widespread, especially not when it comes to food. The possibility does exist, but ingeneral Dutch people do not make many purchases via the internet.

Genetically modified (GM) food has received some bad press, and the majority of the people would prefer foodthat is not genetically modified. Organic food has gradually become widespread, and organic vegetables, fruit,dairy products and – to a lesser extent – meat is now easily available in most large supermarkets.

Impact

The biggest trend to emerge over the review period is the clear market demand for increased convenience. Thisdemand has stimulated the market for the plethora of ready-prepared meals that have appeared on the shelves ofDutch supermarkets, appealing to an increasingly cash-rich, time-poor society. It is clear that this trend is set tocontinue.

In the past, supermarkets have tried to diversify into larger, out-of-town concerns, which sold a diverse range offood and non-food products alike. But this strategy did not work in the Netherlands as well as it has inneighbouring countries, such as France and Germany, since the Dutch prefer to shop for food in a morelocalised, food-specific supermarket atmosphere.

However, there is the opportunity for larger Dutch supermarket chains to combine the “convenience” concept,with which they are already associated, and the “local” store, which is popular with the Dutch consumer, to apethe “convenience store” model which has been so popular in other markets (such as the UK). That is, a small,local branch of a national supermarket chain located in an area of high footfall, which specialises in sellingconvenience food, and has extended opening hours to take advantage of longer consumer working hours. Someof these convenience stores have already begun to spring up, however this trend for convenience is one that isset to continue. Internet shopping, though still in its early stages, is also set to continue, another trend which fitsin with the modern concept of prioritising shopping convenience.

As the supermarkets continue to erode market share traditionally inhabited by the independent stores, more ofthe independents will be disappearing in their wake. To date there has been little activity in the Netherlands bythe discounting chains which are popular in Germany since Dutch consumers have the perception that these

outlets tend not to specialise in fresh produce. It is predicted that as the recession bites harder and as thereputations of these retailers spread, then discounters will continue to gain market share at the expense of otherfood retailers – motivating consumers to trade down from their regular supermarkets to shop here, as well ascannibalising the business of the independents stores and open markets.

Eating Preferences

The Dutch devote a relatively low amount of their total income to food, at just 9.4%, versus an average of11.7% across the whole of the eurozone.

It is traditional for the Dutch to have three meals per day: a cold breakfast, a lunch sandwich and a hot dinner.

There are a variety of Dutch snack foods that are sometimes eaten in place of lunch and consumed on the go.

The most popular of these is French fries served with mayonnaise, although various toppings, including hotpeanut sauce, are also popular. Processed meat snacks are often served alongside this. Turkish food is verypopular due to the large numbers of Dutch of Turkish ancestry, with shoarma and kebab being the most populardishes. Surinamese food is also increasingly popular, with roti, a meat and onion-based dish wrapped in dough.Another favourite and typically Dutch snack is raw herring, eaten with chopped onions and sometimes served ina roll.

The types of food eaten at dinnertime in the Netherlands are evolving. Traditional Dutch fare is being replacedby an influx of more cosmopolitan cuisine, stimulated by immigration, consumer demand for more varieddishes, and supermarkets’ increasingly diverse purchasing patterns. Initially developments were limited toSurinamese and Indonesian dishes, however now, Chinese, Japanese, Moroccan and Spanish dishes are growingin popularity. Mexican and North American dishes, such as tacos, enchiladas and pizzas are also increasinglypopular.





The most popular foreign cuisine has always been, and still is, Italian, with an increasing variety of ingredientsavailable, including specialised olive oils and breads, as well as organically produced pastas. This has developeda demand for specialist Italian kitchenware and spices – a trend that is likely to continue, with similar interestpredicted to follow in other cuisines.

A 2003 study by TNS indicated that 81% of those interviewed thought eating habits would change in the next25 years, with 70% of these believing the biggest change would be in the types of foods eaten, with moreforeign dishes and ready-meals being consumed. More than half believed that the microwave would play anincreasingly important role in the kitchen, indicating the expected growth in ready-meal consumption due tomore hectic lifestyles and less time for cooking, particularly as women, who prepare the vast majority of mealsin Dutch households, are working more.

Other important factors behind this growth are the increase in disposable income, allowing people greatervariation in their shopping habits, and the decline in food prices overall as a result of the price wars in Dutchsupermarkets. The Dutch government has also subsidised fresh foods in an effort to encourage people to eatmore healthily. This has contributed to the popular market culture in the Netherlands, with fruit, vegetable andfish markets becoming more and more popular in Dutch towns during the weekend.

Impact

Clearly the increasing influence of foreign cultures on cuisine of the Netherlands is set to continue, with morediverse and exotic styles being eaten both at home and out as Dutch eating habits continue to develop. At thesame time, the more traditional Dutch dishes will continue to become less popular as these are increasinglyovertaken by global influences.

Health is also set to stay high on the Dutch food industry's agenda, as the nation becomes more educated abouthealth concerns. This too will have a further impact on the types of food being consumed, with traditional Dutchfoods which are high in fat (such as sausage, cheese and other meats) being the hardest hit.

It is predicted that, despite the recession, this will not have as much an impact on the Dutch foodservice industryas might be expected. Consumers have become so accustomed to the convenience of dining out, they will not

want to give this up. However it is predicted there will be a switch in behaviour amongst the hardest-hitconsumers in the recession, who will trade down from dining at foodservice cafés and restaurants to eating morein-home, ready-prepared, packaged meals.

Cooking Habits

As in other Western European countries, there has been a significant rise in the number of single-personhouseholds in the Netherlands, driven by young people putting off marriage and the number of older peopleliving longer than before. The number of single-person households, for example, increased by 12%, to reach254,000, between 2000 and 2007. This increase in single-person households is driving a considerable rise in theconsumption of ready-prepared foods – total value sales, for example, increased by 2% in 2007, compared with1% in 2006.

The cooking habits of Dutch families are also incorporating more convenience and packaged foods as thepopulation begins to spend more time outside the home working and less time in the home cooking.

Hand-in-hand with the accelerated uptake in packaged foods is the increasing trend towards better-for-you andnaturally healthy packaged foods, driven by health concerns about increased obesity levels. This is inspiringpackaged food companies to undertake new product development programmes to find ever more healthy foodsolutions, such as lower sugar or lower fat products.

Impact

The increasing trend towards packaged foods, and the increased awareness of obesity which drives the marketfor value-added healthy food, will continue as Dutch consumers become more accustomed to the convenience ofthese foods, and feel more comfortable including them in their in-home consumption repertoire. These foods

will not be hit by the recession as much as other premium goods in the Dutch economy as they offer clearproduct benefits which have a marked influence on the consumer’s day-to-day life. They offer either





quantifiable health benefits or time-savings to the user – in some cases both at the same time. For these reasonsthis dietary trend is now so entrenched as to be regarded as an essential part of the modern Dutch lifestyle.

Table 75 Consumer Expenditure on Food: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

- Bread and cereals 4,120.3 4,601.3 4,723.4 4,693.6 4,597.8 4,636.6- Meat 6,601.7 6,562.0 6,651.4 6,583.4 6,459.4 6,466.1- Fish and seafood 1,238.4 1,465.3 1,472.6 1,470.1 1,464.0 1,485.8- Milk, cheese and eggs 3,313.9 3,620.8 3,801.3 3,645.0 3,402.1 3,426.0- Oils and fats 695.6 738.6 739.8 678.6 613.5 607.3- Fruit 1,674.4 1,788.8 1,970.8 2,008.7 2,011.3 2,028.9- Vegetables 2,319.3 2,496.9 2,618.2 2,514.9 2,409.5 2,427.1- Sugar and confectionery 2,094.9 2,248.6 2,343.0 2,310.0 2,201.1 2,220.1- Other food 974.6 1,154.3 1,249.9 1,288.0 1,295.4 1,336.3TOTAL 23,033.1 24,676.6 25,570.4 25,192.4 24,454.2 24,634.3Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 76 Consumer Expenditure on Food (% Analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

- Bread and cereals 17.9 18.6 18.8 12.5 0.8- Meat 28.7 26.6 26.2 -2.1 -1.5- Fish and seafood 5.4 5.9 6.0 20.0 1.4- Milk, cheese and eggs 14.4 14.7 13.9 3.4 -5.4- Oils and fats 3.0 3.0 2.5 -12.7 -17.8

- Fruit 7.3 7.2 8.2 21.2 13.4- Vegetables 10.1 10.1 9.9 4.6 -2.8- Sugar and confectionery 9.1 9.1 9.0 6.0 -1.3- Other food 4.2 4.7 5.4 37.1 15.8TOTAL 100.0 100.0 100.0 7.0 -0.2Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 77 Per Capita Expenditure on Food: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Food 1,576.94 1,234.36 1,385.06 1,842.35 1,848.74 2,064.11Average of CLIFE 920.63 796.18 832.76 1,080.08 1,230.38 1,398.25countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 78 Per Capita Expenditure on Food (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Food 30.89 67.22Average of CLIFE countries 51.88 75.62Source: National statistics, OECD, Eurostat, Euromonitor International





DRINKING AND SMOKING

Spending on Alcoholic Drinks

The Dutch alcoholic drinks sector has been declining since 2002, reaching €3 billion in 2007. The biggestdecline has been seen in spending on wine, which fell by 13.8% between 2000 and 2007. Sales of beer buckedthe trend and increased by 3.9% to reach €1.2 billion in 2007.

Wine accounts for a small proportion of spending on alcoholic drinks as this tends to be favoured by olderconsumers who drink less than younger consumers. The market for wine is declining because older consumersare becoming more aware of health and wellness concerns and are reducing their alcohol consumption. At thesame time, these consumers are prioritising quality over quantity. Dutch wine brands have been hit particularlyhard, as consumers have been switching to consumption of higher-quality foreign wines.

Spending on spirits and beer are roughly similar, with both accounting for 39% of total spending on alcohol in2007. Beer is increasing for two reasons: first, it appeals to a younger clientele that is not as concerned about

health and wellness, and have not cut down on drinking as much as older consumers; and second, it receivedsignificant investment from the breweries during 2007 in the form of new initiatives to stimulate growth.

Spirits, like wine, are decreasing as they have been hit by older drinkers consuming less alcohol due to healthconcerns, and with consumers’ increasingly prioritising quality over quantity.

Impact

Population ageing will adversely affect the areas of the Dutch drinks industry which targets an olderdemographic (such as wine and spirits). The increasing importance of health and wellness issues for thisdemographic will continue to affect the sales of these drinks. Also, as the recession bites, this demographic willbe the most affected and will cut back spending on non-essential items such as alcohol.

Beer will not be hit as hard by either the recession or changing attitudes towards alcohol. However alcoholcompanies will need to continue to work hard to keep this sector buoyant.

Spending on Soft and Hot Drinks

Since 2007 spending on coffee, tea and cocoa has underperformed against the soft drinks category as a whole,having slumped by a massive 48.1% in value terms between 2000 and 2007. The total soft drinks category,meanwhile, only decreased by 14.6%. In 1995 the coffee, tea and cocoa sector was worth €850.3 million; by2007, this figure was a mere €407.2 million. Coffee and tea consumption has traditionally always been verypopular in the Netherlands, but traditional consumption patterns undermined by the tidal wave of innovation inthe soft drinks sector over the review period.

Innovation in the soft drinks sector has been driven mainly by health and wellness considerations, with the softdrinks sector seeing the introduction of a plethora of exotic juices, smoothies, still waters and carbonated drinksmaking health claims. As consumers, particularly older consumers, become increasingly concerned abouthealth, drinks like tea, coffee and cocoa with their caffeine, sugar and fat content look comparatively unhealthy.This inspires consumers to switch to the healthier new soft drink products on the market.

However, within the tea category, there is growth in the green, herbal and fruit sub-sectors. Again this can beattributed to the health and wellness trend, with consumers seeking out non-caffeinated drinks and teas whichare high in antioxidants and has other health properties.

Other soft drinks grew between 2006 and 2007, from €1.63 billion to €1.64 billion, as consumers increasinglyshifted their purchases towards healthy and “better-for-you” drinks. This increase was driven predominantly bysales of fruit and vegetable juices, yoghurt drinks and smoothies. Since 2007 saw a poor summer in the

Netherlands, sales of carbonated soft drinks and bottled waters were adversely affected. During warm summers,bottled water is required for on-the-go consumption; in a cool summer consumers make do with tap water.





Impact

As wellness trends are driving down the consumption of “normal” black tea, premiumisation is being enteringinto the tea category as consumers prioritise the quality of the tea they drink over the quantity. This has seen anincrease in the unit price in the overall tea category, and soaring value performance in the “other tea” sub-category.

There has also been an increase in unit price within the coffee and hot chocolate beverages categories, but withlower volume consumption, again attributable to consumers seeking out quality products. The launch of coffeeand chocolate pods has contributed to this trend, as consumers increasingly make coffee by the single cup, ratherthan by the whole pot, which has the potential to revolutionise the category in the future.

Spending on Tobacco

Tobacco expenditure rose from €4.5 million in 2006 to €4.6 in 2007, which continues the upward trend inexpenditure since 1995. Spending on tobacco is driving growth in the alcohol and tobacco sector, having grownfrom 51.4% of the sector in 1995 to 60.3% in 2007. This represents growth in the tobacco sector of 37.9%between 1995 and 2007 and growth of 22.5% between 2000 and 2007.

However, these figures actually mask a decline in smoking and can be attributed to a continued rise in taxationon tobacco products. The government has made a concentrated effort to improve the health of the population byspreading awareness of the dangers of smoking. The decline in smoking from 2006 was not as much as it hasbeen in previous years though.

Impact

Legislation aimed to reduce smoking amongst Dutch consumers has been implemented. As of January 2007, tarlevels in cigarettes were legally required to be reduced, and tobacco products could no longer be labelled withthe terms “light” and “ultra light” so that consumers do not perceive these products to be less harmful to theirhealth than other cigarettes. In place of these terms, many cigarette companies have introduced lighter colouredpackaging to give the impression of lighter cigarettes by association. This does not necessarily encourage more

smoking, but can encourage brand switching, as consumers are increasingly encouraged to switch to lower-tarbrands.

As with other unhealthy products that have experienced a decline in the Dutch market, there has been anincrease in demand for premium tobacco products. Demand for cigarillos and cigars increased for the samereason during 2007.

The 2008 smoking ban in hotels, restaurants, bars and nightclubs was the subject of media coverage andgovernment awareness campaigns. As a result, by 2007 it was already regarded as socially unacceptable tosmoke in these environments, despite the ban not being enforced until 2008, and could be part of the reason thatsmoking slightly declined during 2007.

Table 79 Consumer Expenditure on Non-alcoholic Beverages: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

- Coffee, tea and cocoa 850.3 784.6 720.2 553.3 436.8 407.2- Other soft drinks 1,576.4 1,618.0 1,661.8 1,647.2 1,630.9 1,644.7TOTAL 2,426.7 2,402.6 2,382.0 2,200.5 2,067.7 2,051.9Source: National statistical offices, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 80 Consumer Expenditure on Non-alcoholic Beverages (% Analysis and % growth):1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007





Table 85 Per Capita Expenditure on Alcoholic Beverages and Tobacco:1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Alcoholic beverages and 446.72 348.47 401.77 551.85 574.90 642.47tobaccoAverage of CLIFE 224.48 205.47 223.04 296.71 327.73 375.10countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 86 Per Capita Expenditure on Alcoholic Beverages and Tobacco (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Alcoholic beverages and tobacco 43.82 84.37Average of CLIFE countries 67.10 82.56Source: National statistics, OECD, Eurostat, Euromonitor International

Buying Alcohol and Tobacco

Specialist shops traditionally held the core Dutch market for alcohol purchases. However, in the 2000s, theirmarket share was eroded by supermarkets running aggressive price promotions to attract customers. Tocounteract this, specialist shops have begun to concentrate more on wine than on beer and spirits. They are alsoincreasing their ranges and even developing websites.

As the alcohol market is mature, manufacturers need to innovate in order to gain sales and market share. In

2007, alcohol manufacturers increased their focus on female consumers (who were under-represented in pastyears). This included launching drinks that are sweeter in taste and lower in alcohol, with trendy, colourfullabels. The result was that sales of rosé wine and fruit beer were particularly buoyant in 2007.

Other sectors of the market which enjoyed healthy sales in 2007 include lower ABV drinks, spurred byconsumer interest in health and wellness issues. This has resulted in the sales of spirits tailing off, especially asthe government has promoted the benefits of healthier lifestyles and the dangers of consuming too much alcoholand calories.

Advertising tobacco products and sponsorship by tobacco companies are already banned in the Dutch marketand all packs must carry warnings which take up at least half the pack. Smoking is already banned in all workplaces.

Clearly, after the smoking ban in the horeca channel introduced in January 2008, fewer cigarettes have been soldthrough the on-trade channel than previously. This could have the effect of increasing sales through otherchannels. However it will most likely have the effect of decreasing overall sales as people will not smoke asmuch in public places as before.

Impact

As more alcoholic drink business goes to the major supermarkets, specialists are increasingly forced to find amarket niche for themselves or face closure. This will result in more specialists opting to concentrate on winesales, where they are able to specialise in premium, niche products that the larger supermarket chains are notable to carry. Whilst business is buoyant, there will be enough money in the system to support this strategy.However as consumer confidence begins to waiver with the onset of the recession, consumers will eventuallyfeel they cannot afford to purchase these premium items.





The two price hikes on tobacco in 2008 will have a significant effect on the way that cigarettes are purchased.First, consumers will be encouraged to trade down from premium brands to budget brands, and premium brandcigarettes will see their sales increasingly cannibalised. Second, consumers will increasingly move away fromshopping in more expensive channels, which will see an increase in the rise of shopping on-line for cigarettes incheaper bulk packs, and the rise in sales of contraband product.

The government are considering raising the minimum legal age limit to purchase cigarettes, which is currently16 years old, to 18 years old, which should have the effect of still further reducing the consumption cigarettesamongst Dutch youth.

Buying Soft and Hot Drinks

Increasingly consumers are prioritising quality and health concerns when purchasing soft and hot drinks. This isparticularly true amongst older female consumers, who have had the most significant alteration in consumptionpatterns, away from cocoa, coffee and tea products, and towards fruit and herbal teas and healthy soft drinks.Men, on the other hand, are more likely to purchase traditional beverage products, especially when it comes totea, coffee and sugary carbonated beverages.

Senseo coffee pods are the most innovative coffee product to hit the Dutch retail market, which is in line withthe new trend towards Italian premium coffees such as espressos, lattes and cappuccinos. This trend comes atthe expense of the more traditional large pots of Dutch coffee.

Similarly sales of tea are changing in the retail environment. More tea is being sold unpackaged (eg, loose leaf)and with new types of packaging, such as tea pyramids. Again, these are riding the wave of categorypremiumisation and only represent a niche but growing sector of the market at present. However, this still offersinteresting potential for tea companies in the future.

Between 2002 and 2006 there was a particularly aggressive price war in the larger Dutch supermarkets,instigated by market leader Albert Heijn. This had the effect of suppressing prices in the soft drinks sector overthat period, and meant that there was little product innovation being launched in many categories (soft drinksincluded). Throughout 2006-20007 however the market recovered sufficiently for retailers to begin launching

new products and there has been much movement in the marketplace.

This accounts for some interesting new product launches during 2007 in the soft drinks sector, aimed atretaining sales by encouraging consumers to shift from high-sugar regular brands to low-sugar diet alternatives.Most interesting of these is Coca-Cola Zero, a product predominantly aimed at young men. Coca-Cola Zerotackles head-on the perception amongst young men that it is uncool to consume Coca-Cola Light, which ispredominantly perceived to be a female drink.

Within soft drinks, the largest sector is still colas, with the market being dominated by Coca-Cola.

Many brands surreptitiously repackaged their soft drinks in 2007, altering bottle sizes from 1.5 litres to 1 litre or1.25 litres while keeping prices consistent, thereby hoping to fool the market into not noticing the price increase.Often these are offered to the market as multipacks to further confuse the consumer and making it more difficult

to compare prices with the former size offering.

Private label soft drinks brands have stabilised following the supermarket price war between 2002 and 2006,when they increased substantially. Instead, branded soft drinks have shown a steady increase over the 2006-2007 period.

Impact

The coffee off-trade outperformed the on-trade in 2007, as more people chose to use espresso machines at home.The sales of coffee through vending machines have also been popular in the Netherlands in 2007 compared tosales of other drinks through vending machines. The trend for consuming coffee on the go has gained currencywith the Dutch. Although this is coming under increasing pressure from the rise of US-style specialist coffeeoutlets, coffee on the go has become more popular.





Tea is expected to grow in the Dutch off-trade. However, other drinks will pose more of a threat in the on-trade.Coffee is seen as more suitable for the daytime, while green tea and fruit and herbal tea and other teas that arelow in caffeine are particularly suitable to drink at the beginning of the day or in the evening (ie, at home). Sogrowth in the off-trade is expected to be higher than in the on-trade.

Soft drinks is a mature market, so value growth is most likely to come from value-added benefits, particularlybased around premium or healthy identifiers, than in volume terms. Soft drinks which are best placed to takeadvantage of this new renaissance are those with health associations, such as the waters, the fruit and vegetable

juices and smoothies. Carbonated drinks are suffering, however, due to their negative associations with sugar,so switching to low-calorie diet alternatives has become popular.

Premium flavours have started to emerge in the soft drinks category already. Mango and passion fruit, forexample, are common ingredients in drinks, and even ingredients as exotic as cactus juice have entered themarketplace – all of which command premium prices. Super-fruits and healthy herbs are also areas which havesignificant growth potential.

Drinking Habits

Dutch people have a strong alcohol drinking culture, with most socialising done in cafés and bars. Althoughsocialising out of home is particularly popular amongst young men, women are also drinking more frequentlyand are therefore becoming a growth market for alcohol producers, who are producing more female-orienteddrinks. Hence a strong increase in the popularity of wines during 2007, both for household and away-from-homeconsumption. The drink of choice for young men is normally beer, with many older drinkers opting for a Dutchgin-like liqueur known as “Jenever”.

Drinking out in bars and cafés is far more popular than drinking at home with an estimated 11,500 pubsproviding this service both indoors during the colder winter months and outside on terraces during the summer.Alcohol consumed at home tends to be wine drunk with a meal rather than beer.

The Netherlands has a strong brewing tradition and has some of the world’s biggest brewers, such as Heineken.As a result, there is a wide selection of beers available, from golden lagers to dark brown “tripel” beers, and

even white beers imported from Belgium.

Although the numbers are declining, there are a significant number of heavy drinkers amongst young people,ages 12-17, although these figures are declining year on year. Many are allowed to drink at home and are evenserved alcohol in bars, due to a lax attitude towards drinking. However the government is tightening up on youthdrinking and passed a law in 2000 banning the sale of alcoholic drinks to those under the age of 16, with stiffpenalties for any establishment found to be in breach of the regulations. This does not seem to have beeneffective in altering young people’s drinking tendencies yet.

Impact

The main trend affecting Dutch drinking habits going forward will be that of health and wellness. The increasedawareness around the harm that excessive alcohol consumption causes will lead many people (especially older

people) to trade down from higher ABC drinks, such as spirits like the traditional “jenever”, and switch insteadto lower ABV drinks, such as wine.

The recession will also have a marked effect on the on-trade side of the business, as more young people chooseto stay in and drink, where it is cheaper (and they will be able to smoke). As well as forcing many pubs out ofbusiness, this will also see the supermarkets take an increased market share of the alcohol trade, and a lot ofpromotions and offers will be instigated through this channel in order for the brewers and alcoholic beveragecompanies to attract custom and retain market share.

Smoking Habits

Adult smoking prevalence (persons age 16 and over) declined in the period 2006-2007. The CBS listed the rateat 28% of those age 15 and over, which has remained roughly the same in the last three years. The rate declined

amongst the younger 12-24-year-old group. Around 9% of men and 6% of women are classified as heavysmokers.





The CBS estimates that in 2007 figures show 40% of the Dutch population have never smoked and 30% havestopped smoking. Smokers and ex-smokers typically began the habit between the ages of 16-25. Between thegenders there is no observable difference in terms of starting age. Men stop smoking around age 36 after havingsmoked for 19 years on average. Women stop smoking around age 33 after 16 years of smoking.

The average age of a smoker has increased from 41 years to 43 years since 2001. There are still more mensmoking than women. Though 13% of smokers are not considering quitting, for 64% health is would be themain reason that would make them quit.

There have been several high-profile government campaigns which have caused these dips in figures, althoughthey tend to be more effective at dissuading people from beginning smoking, rather than influencing hardenedsmokers to quit or reduce their consumption – hence the reason why it is the younger age group which has seenthe largest reduction in smoking.

Impact

With the combination of the ban on smoking in the horeca channel, the 2008 tax increases on tobacco products,

the proposed increase in the minimum age limit to purchase cigarettes and the extra government anti-smokingcampaigns, the figures for smoking in 2008 will probably be much lower than in 2007. This could poseproblems for some of the cigarette brands, which may find that it is no longer viable for them to import some oftheir products, especially their high-tar or premium cigarettes. This has already happened in some other westernEuropean markets.

FASHION

Spending on Clothing and Footwear

Consumer spending on fashion increased in 2007 to €11.1 billion, following six years of decline following thepeak of €12.2 billion in 2000, to hit a low of €11 billion in 2006. Between 2000 and 2007 the greatest decline

was in the clothing materials subsector, a drop of -27.6%, as more production was shifted away from WesternEurope, to China and Eastern Europe where production prices are cheaper. Spending on garments also droppedby -9.9%, as clothing became relatively cheaper due to the decreased cost of material.

Spending on clothing cleaning, hire and repair between 2000 and 2007 also shrank by -3.8%, indicating that theDutch are buying new clothing more often rather than servicing older ones. Reduced spending on clothingindicates that more cheap clothing is being purchased than expensive clothing. Spending on footwear similarlydecreased from €2.5 billion in 2000 to €2.3 billion in 2007.

In 2007 consumer expenditure on fashion and footwear accounted for 5.2% of overall consumer expenditure.This is a reduction from the 1995 figure of 6.5%, meaning the Dutch population is spending proportionately lessof their overall consumer spending on clothing and footwear.

Traditionally the fashion and footwear spending patterns of Dutch consumers were rigidly dictated by theseasons. There were very distinct summer and winter collections, and Dutch consumers would buy their fashionat these times accordingly. However, with the entry into the market of the “fast fashion brands”, such as H&Mand Zara, which typically have six week buying seasons, the market has been shaken up completely. Now Dutchconsumers are becoming more accustomed to buying fashion all year round, to keep abreast of the latest looks.

Impact

The entrance into the market of the fast fashion brands has caused a shift in the whole Dutch clothing andfootwear market. Consumers are demanding more up-to-the-minute fashion which is constantly evolving, andthey are becoming used to paying cheaper prices for their fashion items than before. Their expectations are nolonger that an item must cost a lot of money and last a long time – they are satisfied if it is cheap, fashionableand even relatively disposable. This will have the largest impact on smaller independent fashion chains, whichmay not be able to keep up with the evolving six week fashion cycles, and will not be able to compete with theprices of the new chains such as H&M and Zara.





Spending on Accessories and Personal Goods

Dutch consumer expenditure on jewellery, silverware, watches, clocks and travel goods similarly declined from €2.2 billion in 2000, to €1.9 billion in 2007, representing growth of -12.6%. This follows on from the decline in

spending in the economy in general and decreasing consumer confidence, putting the Dutch high street underincreasing pressure. Combined with the soaring price of precious metals, expensive jewellery is an out-of-reachluxury item for many Dutch consumers.

Impact

Dutch consumers and Dutch women in particular are very interested in looking good, so are increasinglyswitching away from real jewellery to costume jewellery. The decline in consumer spend on jewellery,silverware, watches, clocks and travel goods follows the trend for decreased consumer spending on fashionproducts in general, as more of this spend is directed through the cheaper fast fashion brands that have enteredthe market.

Costume jewellery made from steel, titanium, and copper with charms, glass beads, crystals, shells, wood,

leather, rhinestones and other materials has grown in popularity. In particular, neckwear, pendants, wrist wearand cocktail rings showed strong growth.

Precious metal jewellery is increasingly combined with stones and (pavé set) diamonds. The latest designer jewellery features romantic forms with a touch of “kitsch”. The most popular stones in 2008 were citrines,amethysts, rubies, sapphires (yellow, red, pink, orange and blue), mandarine granites, aqua marines, greenberyls and white, brown and yellow diamonds. In addition, white gold or dark green pearls and coloured enamelwere often featured in rings, neckwear, bracelets or pendants. Pendants have gone through a trend of beingadorned with all sorts of charms (hearts, stars, stones, insects or baby shoes). The most common shapes in Dutch

jewellery design were of animals (reptiles, frogs, snakes or birds), leaves, hearts, wings and flowers.

Shopping for Clothing and Footwear

Falling consumer expenditure figures between 2000 and 2006 for clothing and footwear can be explained by thepressure that the Dutch economic slump has put on the economy. This was combined with the arrival andsuccess of cheap, disposable fashion brands which have taken high streets by storm across the whole of WesternEurope, the Netherlands included.

The entrance and success of fast fashion brands into the Dutch market has irrevocably changed the retailenvironment. Clothing and shoes are now purchased more often, and purchase triggers are more occasion-oriented rather than seasonal.

The internet is also becoming a more important sales channel than before, with Dutch consumers migratingaway from merely browsing and researching clothing on-line, to actually making purchases. The fact that during2007 the internet was the most popular form of home shopping channel in the Netherlands proves how strong aninfluence it now has on the retail landscape, and that it will be around for some time to come.

Impact

The changing picture of the Dutch clothing and footwear market will mean that many of the larger chains havehad to alter the way that that they do business to survive and compete in the current climate. This couldsignificantly affect the way that they manage their supply chains as they try to compete with the cheaper, fastfashion brands and the internet sites. Many more traditional high street bricks and mortar stores will set up aninternet shop window, and in order to keep costs down and keep up with the evolving purchasing patterns of thefast fashion houses, they will need to increasingly join wholesale groups and source fashion items from the FarEast, where they are cheaper. The smaller shops and fashion companies will be the ones that will be most at risk,as they will not have the purchasing power to compete either with the prices or speed of the fast fashion brands.

Shopping for Accessories and Personal Goods





From fast fashion brands women can buy reasonably-priced costume jewellery to match their outfits and youngpeople with very limited budgets can buy gifts for each other.

More traditional items of luxury jewellery tend to be given more as gifts from men to women, at times such asbirthdays, Valentine’s Day, Christmas and engagements. In traditional jewellery, silver is the most popularmetal, however white, pink and yellow gold are also popular.

During 2007 a key driver in precious jewellery sales was an active promotion by the two main jewellery chains– Luigi Lucardi and Siebel – encouraging consumers to purchase jewellery for special occasions. The promotionactively sought to appeal to fashion-conscious consumers, as well as to older consumers, who traditionallyspend more on jewellery and prioritise quality.

Impact

As the Netherlands enters recession, the middle classes will be hardest hit. As a result, more of the market willmove towards costume jewellery and jewellery bought from the fast fashion brands. In order to stimulate sales,luxury jewellery brands will have to work extremely hard, offering lots of price promotions. There may also besome closures in the jewellery sector as the recession becomes particularly difficult.

Traditional Clothing

The style of traditional clothing worn by the older generation in Holland is typically casual and brightlycoloured. The style for most Dutch people is very relaxed, and suits are very seldom worn, even at work.

Dutch women age 40 and older are likely to have little interest in current fashion trends, being quite similarlydressed in plain unbranded tops and khaki trousers. They will not be extravagant when it comes to shopping forfashion and will tend to shop at H&M or Vroom and Dreesman.

Similarly, men of this age group will most likely be seen in chinos or jeans and a polo shirt, with the addition ofa sailing jacket in the winter.

Impact

Sales of suits and formal clothing are more buoyant in the Netherlands than in other countries. However, 2007saw a rise in demand for men's formal wear for special occasions.

Fashion Trends

Younger people in the Netherlands are increasingly influenced by imported fashion trends and are becomingmore brand-conscious than their parents. Young women will shop at stores such as Mango, H&M and Zara.Young men are also increasingly brand-conscious, favouring international sports brands such as Nike andAdidas. Dutch schools do not have uniforms, so children are able to wear these fashions in and out of school.

Impact

As the influence of international fashion spreads, international fashion chains will be increasingly common inthe Dutch high street. This will bring a greater awareness of fashion to the populace in general, and to youngpeople in particular. The brands that will initially benefit the most from the upsurge of interest in fashion will bethe more reasonably-priced international brands, as these will appeal recession-squeezed Dutch consumers.

Table 87 Consumer Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

Clothing 10,591.4 12,228.8 12,183.4 11,133.8 11,093.4 11,111.6- Clothing materials 122.1 124.5 113.3 99.1 92.9 90.2

- Garments 9,371.8 10,819.8 10,734.0 9,793.5 9,746.1 9,752.4- Other clothing 812.2 957.3 1,014.2 939.8 941.2 954.3





- Clothing cleaning, 285.3 327.1 321.9 301.4 313.2 314.8repair and hireFootwear 2,027.9 2,485.1 2,473.9 2,265.1 2,302.6 2,324.6TOTAL 12,619.3 14,713.9 14,657.3 13,398.9 13,396.0 13,436.2Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 88 Consumer Expenditure on Clothing and Footwear (% Analysis and % Growth):1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

Clothing 83.9 83.1 82.7 4.9 -9.1- Clothing materials 1.0 0.8 0.7 -26.1 -27.6- Garments 74.3 73.5 72.6 4.1 -9.9- Other clothing 6.4 6.5 7.1 17.5 -0.3- Clothing cleaning, 2.3 2.2 2.3 10.3 -3.8repair and hireFootwear 16.1 16.9 17.3 14.6 -6.5TOTAL 100.0 100.0 100.0 6.5 -8.7Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 89 Per Capita Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Clothing and footwear 863.97 736.01 793.93 979.88 1,012.74 1,125.82Average of CLIFE 404.74 340.34 347.89 444.02 499.05 561.89

countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 90 Per Capita Expenditure on Clothing and Footwear (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Clothing and footwear 30.31 52.96Average of CLIFE countries 38.83 65.10Source: National statistics, OECD, Eurostat, Euromonitor International

Table 91 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, travel goods:1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

TOTAL 1,579.1 2,199.1 2,093.9 2,012.9 1,915.5 1,921.8Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 92 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods (%

Analysis and % Growth): 1995-2007/2000-2007

% analysis/% growth





1995-2007 2000-2007

TOTAL 21.7 -12.6Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 93 Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods:1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Jewellery/silverware/ 108.11 110.00 113.42 147.21 144.81 161.03watches/clocks/travelgoodsAverage of CLIFE 53.56 51.69 52.82 65.88 74.22 83.53countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 94 Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods (%Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Jewellery/silverware/watches/clocks/travel goods 48.95 46.39Average of CLIFE countries 55.96 61.59Source: National statistics, OECD, Eurostat, Euromonitor International

HOUSING AND ASSOCIATED COSTS

Spending on housing and associated costs reached €59.4 billion in 2007, 20.2% higher than the figure in 2000.Almost half of all spending on housing is directed at imputed rentals – in effect mortgages – and this spendingexperienced strong growth of 22% 2000-2007. The second largest share is directed at rental spending but thisgrew at the much lower rate of 5.7% between 2000 and 2007.

House prices have risen substantially in the Netherlands, but after a decade-long boom they began to plateau in2009. In Amsterdam, the capital, the average house price was €3,360 per square metre in September 2008, 7.5%up from a year earlier. The average house price in the first quarter of 2007 was €237,800. The boom was drivenby a buoyant economy and the related increase in purchasing power. Between 1996 and 2001, prices rose by13.2% annually and between 2003 and 2006 by 13.9% annually.

Impact

The current economic situation is exerting downward pressure on housing prices. As long as this is the case,households are more likely to stay put rather than move. This will have a negative impact on those sectorsdirectly linked to the housing market. Dutch consumers are more likely to shy away from investing in expensivedurables such as new washing machines or refrigerators.

Any wealth effect gained from rising house prices in the review period will tail off as house prices plateau. Thiswill have a negative impact on spending overall, but particularly on luxuries which some households wouldfinance through re-mortgaging.

Renting Versus Buying





The rate of homeownership in the Netherlands is high, with more than half of Dutch households owning theirown property in 2007. What is more, the number of owner-occupiers with mortgages increased by 15% between2000 and 2007 – a faster rate than the number of owners without mortgages. Renters still make up 44% of allhouseholds, but renting is declining in popularity and is expected to account for only 40% of all households by2015.

The Dutch mortgage market expanded rapidly over the 2000s, with residential mortgage debt rising to 98.6% ofGDP in 2007, up from only 49.3% of GDP in 1997. The liberalisation of the mortgage market increased marketcompetition, resulting in cheaper mortgages as well as an increase in the loan-to-value ratio – with manyhouseholds taking out mortgages of more than 100% of the value of their home.

The rental market is pro-tenant and once a dwelling has been let it is very difficult to evict a tenant. The basicDutch rental contract is one of unlimited duration. Landlords can only give notice in strictly defined cases, and itis extremely difficult for owners to evict tenants. This puts off some investors from entering the buy-to-letmarket.

Tenure in the Netherlands is very much correlated with social standing because the country has a long history ofsocial housing. Around 80% of all rental property is social housing. Therefore, the higher the income, the more

likely a person is to buy a dwelling rather than to rent. As the economy prospered in the 2000s, more and moreDutch have been able to get on the housing ladder.

Impact

The higher rate of owner-occupiers has led to increasing interest in do-it-yourself (DIY). This is closely tied toeconomic growth and overall consumer confidence. The uncertainty generated by the global economic crisis islikely to result in homeowners postponing large DIY projects in the foreseeable future.

Many homeowners have taken out large mortgages, which have a negative impact on the account ofdiscretionary income available. With many mortgages over 100% LTV (loan-to-value), the end of the houseprice boom will leave consumers feeling increasingly uncertain about their economic prospects. This will leadthem to cut back on luxuries such as eating out, holidays and spending on big-ticket items.

As renters are generally assured long-term leases, they tend to regard their rental property as their home and aremore likely to invest in improvements. However, since most renters are low-income earners, these“investments” are not likely to be expensive.

Utility Costs

Spending on electricity, gas and other fuels experienced the fastest growth of all housing-related spending,increasing by more than 50% between 2000-2007. This growth was driven by spending on gas, which increasedby 73% in the same period. The Netherlands was not immune to global spikes in gas and oil prices.Furthermore, electricity prices in the Netherlands are high compared with other EU countries. In 2007, theNetherlands had the sixth highest prices (€0.14 per kWh) in the European Union. Gas prices meanwhile, arecloser to the eurozone average at €12.3 per gigajoule in 2007

Each person in the Netherlands uses an average of 126 litres of water per day. The price of drinking water hasthree elements. The water company charges a price for the drinking water supplied, the water boards charge forwastewater treatment and the municipalities impose sewerage charges (a sum for the construction andmaintenance of the sewers). Drinking water charges account for the lion’s share of spending on water andsewerage.

Impact

Energy bills have increased substantially and this eats into household budgets. With elevated energy prices,Dutch households have less to spend on discretionary items. Higher prices have also promoted increased interestin low-energy products, including consumer electronics.

Maintenance and Repair





Spending on maintenance and repair is declining in the Netherlands. In 2007 it stood at €3.9 billion, or 6.6% oftotal spending on housing. In 2000, it contributed 8.3%. Spending is expected to be squeezed further over theforecast period.

Impact

Many Dutch householders are adept at DIY and avoid spending on maintenance. Spending on maintenance andrepair has decreased in tandem with the decrease in the proportion of rental properties. Social landlords are tiedto expensive repairs and maintenance. Home-owners also have the option of paying tradesmen in cash andavoiding taxes. This means that spending is often underestimated in official sources. With economic uncertainty,householders will be even less reluctant to spend on DIY.

Table 95 Consumer Expenditure on Housing: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

Actual rentals for 12,731.8 13,383.0 12,839.9 13,497.3 14,024.8 14,149.9

housingImputed rentals for 16,219.5 20,561.5 21,144.5 22,688.0 24,448.8 25,087.0housingMaintenance and repair 3,111.5 4,091.6 4,267.2 3,991.2 3,835.4 3,893.0Water and sewerage 2,800.1 3,190.6 3,377.7 3,532.6 3,692.0 3,804.9Electricity, gas and 6,923.6 8,194.9 9,527.9 10,313.1 12,034.4 12,456.6other fuels- Electricity 3,779.2 3,907.1 4,593.9 5,042.2 5,565.5 5,659.2- Gas 1,474.5 1,859.8 2,475.0 2,680.4 3,066.3 3,225.8- Liquid fuels 1,073.4 1,785.1 1,714.2 1,871.3 2,630.3 2,788.5- Solid fuels 245.9 229.8 262.5 228.9 227.9 222.5- Heat energy 350.7 413.2 482.3 490.4 544.4 560.7TOTAL 41,786.5 49,421.5 51,157.1 54,022.2 58,035.4 59,391.4Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 96 Consumer Expenditure on Housing (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

Actual rentals for 30.5 27.1 23.8 11.1 5.7housingImputed rentals for 38.8 41.6 42.2 54.7 22.0housingMaintenance and repair 7.4 8.3 6.6 25.1 -4.9

Water and sewerage 6.7 6.5 6.4 35.9 19.3Electricity, gas and 16.6 16.6 21.0 79.9 52.0other fuels- Electricity 9.0 7.9 9.5 49.7 44.8- Gas 3.5 3.8 5.4 118.8 73.5- Liquid fuels 2.6 3.6 4.7 159.8 56.2- Solid fuels 0.6 0.5 0.4 -9.5 -3.2- Heat energy 0.8 0.8 0.9 59.9 35.7TOTAL 100.0 100.0 100.0 42.1 20.2Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 97 Per Capita Expenditure on Housing: 1995/2000/2002/2004/2006-2007

US$ per capita





1995 2000 2002 2004 2006 2007

Housing 2,860.89 2,472.14 2,771.00 3,950.72 4,387.48 4,976.41Average of CLIFE 1,249.90 1,176.09 1,265.74 1,678.54 1,910.86 2,175.19countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 98 Per Capita Expenditure on Housing (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Housing 73.95 101.30Average of CLIFE countries 74.03 84.95Source: National statistics, OECD, Eurostat, Euromonitor International

HOUSEHOLD GOODS AND SERVICES

Spending on Household Goods and Services

The value of the household goods and services category has dropped since 2000, when it was €17.8 billion. In2007, the category had dropped to €15.4 billion, a 13.6% reduction. In 2000 this category represented 7.3% ofoverall Dutch consumer spending, whilst by 2007 this dropped to 5.9%. The furniture, furnishings and floorcoverings subcategory showed the sharpest decline between 2000 and 2007 at -21.8%. This was closelyfollowed by the household textiles subcategory with a drop of -18.4%.

Impact

The increasing availability of cheaper household goods – and intensified competition amongst Dutch retailers –has led to a reduction in unit prices. As lifestyles change, and people adopt more casual attitudes towards eatingand drinking, consumers have become increasingly interested in price.

Shopping for Household Goods

To some extent the homeware and furniture market is polarised in the Netherlands. On the one hand, consumerslike the low-priced goods from retailers such as IKEA or HEMA. These two retailers offer superior value formoney home in furnishings and housewares ranges, and this is definitely a recipe for success in the Dutchmarket.

However, on the other hand, the Dutch market is rare in Europe as specialist retailers still dominate. Animportant distribution format, particular to the Netherlands, is the “Woonboulevard”. These rows of furniture

retailers include franchises such as Bo Concept, Piet Klerkx, Ligne Roset and others.

Yet even in the Netherlands, competition has come increasingly from discount grocery stores. DIY stores arealso starting to lure customers with promotions on small furniture or inexpensive cookware. The internet has

joined the fray and is playing an increasingly important role since it is not only used to examine products andprices, but is also increasingly used to make purchases.

High-end designer products attract a small but growing group of consumers who can afford their prices.

Impact

Low-priced goods are set to do well as economic uncertainty increases. Consumer wallets, increasinglysqueezed by stagnant wages and more expensive and difficult-to-access credit, will not stretch to expensive

purchases. Consumers are likely to search out bargains at supermarkets and DIY stores at the expense oftraditional specialist retailers.





Internet retailing is expected to increase in popularity. Consumers use the internet to research prices andinformation and increasingly to make purchases. Specialist retailers, who rely on their unique selling position ofbeing able to offer advice on purchases, are coming under increasing pressure from the internet.

DIY and Gardening

The DIY market is closely linked to the economy and the performance of the housing market. Since the housingmarket was strong to 2007 the performance of DIY and hardware outperformed the overall household goodssector. Nevertheless, spending declined by 6.5% between 2000 and 2007.

Kitchen and bath products are the largest single subsector. In the modern home, the kitchen and bathroom arebecoming more important. The kitchen has become more of a status symbol and the idea of the kitchen as theheart of the home has also caught on in the Netherlands. The growth of bathroom-related products was alsofuelled by the health and wellness trend that is impacting this particular room in the house. These two rooms areseen as spaces that define a house and therefore they are fitted with products of increasingly higherspecifications.

Gardening is also becoming more important and Dutch consumers are more and more prepared to spend money

on their gardens. This does not translate to more time spent gardening however – the number of landscapegardening businesses increased by nearly 80% over the period 1995-2005. In 1995, there were more than 2,900landscape gardening businesses in the Netherlands; a decade later their number had grown to 5,600. The boomin landscape gardening is partly due to the readiness of owners of private gardens to spend more money ondesign and layout.

According to the Social and Cultural Planning Office, Dutch 50-64-year-olds are most likely to participate inodd jobs and gardening. In 2000, 82% of Dutch in this age took part in gardening each week for an average of4.4 hours. However across all age groups, both the number of people participating and the amount of time spenton odd jobs and gardening is in decline.

Impact

There is a market developing for GSI (Get Someone In) at the expense of gardening, which is increasingly seenas a chore rather than a hobby. With busy lifestyles dominating and the demand for convenience strong, thistrend is set to continue. However, with the advent of economic uncertainty, in the short term the trend willprobably plateau if not even decline. The long term direction however is certainly for GSI to increase.

Table 99 Consumer Expenditure on Household Goods and Services: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

Furniture, furnishings, 6,058.7 8,112.5 7,677.7 6,680.9 6,273.4 6,340.0floor coverings

Household textiles 1,129.9 1,414.5 1,368.8 1,236.9 1,146.4 1,154.2Household appliances 1,906.0 2,269.6 2,169.7 2,032.1 1,962.1 1,998.9Glassware, tableware 1,327.2 1,720.7 1,745.2 1,621.2 1,476.1 1,503.8and household utensilsHardware and DIY goods 614.6 902.2 983.6 905.4 831.0 843.3Household and domestic 2,775.0 3,426.1 3,709.2 3,625.8 3,530.7 3,571.8servicesTOTAL 13,811.4 17,845.6 17,654.2 16,102.4 15,219.8 15,412.1Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 100 Consumer Expenditure on Household Goods and Services (%Analysis and % Growth):1995/2000/2007/1995-2007/2000-2007

% analysis/% growth





1995 2000 2007 1995-2007 2000-2007

Furniture, furnishings, 43.9 45.5 41.1 4.6 -21.8floor coveringsHousehold textiles 8.2 7.9 7.5 2.2 -18.4Household appliances 13.8 12.7 13.0 4.9 -11.9

Glassware, tableware 9.6 9.6 9.8 13.3 -12.6and household utensilsHardware and DIY goods 4.5 5.1 5.5 37.2 -6.5Household and domestic 20.1 19.2 23.2 28.7 4.3servicesTOTAL 100.0 100.0 100.0 11.6 -13.6Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 101 Per Capita Expenditure on Household Goods and Services: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Household goods and 945.59 892.66 956.26 1,177.59 1,150.62 1,291.38servicesAverage of CLIFE 402.97 365.26 377.72 497.29 565.08 642.22countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 102 Per Capita Expenditure on Household Goods and Services (% Growth): 1995-2007/2000-2007

% growth

1995-2007 2000-2007

Household goods and services 36.57 44.67Average of CLIFE countries 59.37 75.83Source: National statistics, OECD, Eurostat, Euromonitor International

HEALTH

Spending on Health Goods and Medical Services

Since 2001 the Dutch government has aimed to improve general health to address some of the national health

problems, such as obesity, poor diet, lack of exercise and smoking- and alcohol consumption-related diseases.Since this undertaking the Dutch have become more aware of health and wellness issues, and have begunaltering their lifestyles accordingly. Tied in with this growing promotion of the “cause and effect” of healthissues, the government is aiming to reduce its expenditure on health goods and medical services, instead shiftingmore of the cost burden onto the user.

Consumer spending on health goods and medical services increased to €3.5 billion in 2007 from the 2000 figureof €3.2 billion. This represents a rise of 39.2%. In 2000 health goods and medical services represented 4.2% ofoverall consumer spending, which rose to 5.5% in 2007.

Within the category the sharpest growth was in outpatient services (60.4% between 2000 and 2007), followedby hospital services (43.3%). Pharmaceuticals, medical appliances and equipment saw the smallest growth overthe 2000-2007 period, though even this increased by 11.0% from €3.2 billion to €3.5 billion.





Over-the-counter (OTC) medications in the Netherlands are mainly purchased in drugstores, and this appliesespecially to traditional OTC medicines, such as paracetamol and cold and flu remedies. As of 2007, there arethree categories of OTC medicines: pharmacy-only, pharmacy- and drugstore-only, and those on general sale.Prescription-only medicines will remain restricted to pharmacies, although GPs in low-density population areasmay distribute them. Reimbursable non-prescription medicines that are not advertised to consumers aregenerally only available in pharmacies.

However so far, any increase in the supermarket share of OTC healthcare sales seems to be mainly the result ofadd-ons coming from improved vitamins and dietary supplements displays, with the bulk of standard OTChealthcare products still purchased through traditional chemists/pharmacies and drugstores.

Teleshopping of non-prescription medicines does not exist in the Netherlands. However, there are a few internetdrugstores and pharmacies that offer OTC healthcare products on-line. A pharmacist or druggist must beinvolved. Since May 2003, however, companies that sell OTC healthcare on the internet are no longer obliged tooperate from a drugstore or pharmacy that is accessible to the public. OTC healthcare must, by law, be presentedseparately from other products on the internet.

At the moment OTC drugs for chronic ailments are reimbursed when accompanied by a prescription. This

includes, for example, the use of paracetamol for a repetitive condition such as arthrosis. Dutch consumers areoften required to contribute to the cost of their prescriptions, as the Netherlands employs a “reference pricing”scheme. “Reference pricing” means there is a fixed reimbursement fee attached to a certain drug, above whichthe consumer has to pay the difference if the actual price is higher. The aim of this policy is to make prescriptioncosts more transparent and encourage GPs to prescribe cheaper generic drugs to their patients instead of brandeddrugs.

Impact

The large increases in consumer expenditure on health and medical services over the review period can beexplained partly by the increased reliance on medical services as the population grows and ages. This means arise in more serious and complex diseases which are costly to treat, such as cancer. Expenditure is further drivenup by the government’s policy of encouraging consumers to shoulder more of the cost burden for their

treatments.

In the future, there will be further increases in the cost of consumer spending on medical services as there isgreater reliance placed on the ageing population to pay for their own treatments.

Healthcare System

There are three tiers of health funding in the Netherlands, each governed by different bodies.

First, there is national health insurance for “exceptional medical expenses” which include expenses associatedwith long-term care or high-cost treatment. This covers everyone living in the Netherlands, with very fewexceptions, and represents about 40% of health expenditure. It is financed by payroll deductions, as well as fromadditional government funds.

Second, there are compulsory sickness funds which cover “normal and necessary medical care”. Sickness fundsinsure everyone (including all social security recipients) whose salary is below €30,700, or about 65% of thepopulation. Those who earn more generally have private health insurance; this equals about 28% of thepopulation. The health insurance schemes for public servants cover another 5% of the total population. Sicknessfunds account for 38% of health expenditure.

Finally, the main complementary sources of health care financing are private health insurance (15%) and out-of-pocket payments (6%). Voluntary supplementary health insurance covers “forms of care regarded as lessnecessary”, such as dental care, prosthetics or hearing aids. Supplementary private medical insurance largelycovers these costs.

Though the Dutch health service has worked very well for some time, satisfaction in the system is beginning to

wane as a larger and ageing population, with more serious diseases, begins to place additional strains on the





system. This is combined with the need to renew and reform the medical infrastructure, which includes theprovision of new hospitals.

The Dutch government faces the challenge of finding extra financial resources, which they are not able toprovide from increased government spending. As a result, they are encouraging people to increase contributionsto private voluntary health insurance schemes. This has been combined with spending reduction exercises, suchas de-listing brands from the government's reimbursement list and cutting the number of Social Securitysubsidised medications and treatments. These changes all contributed to increased consumer expenditure onhealth services over the review period.

The recent shift in the emphasis of spending in the Dutch healthcare system, from government spending to theprivate sector, has also been reflected in the shift of control and influence from central to provincial and localgovernments.

More than 90% of hospitals are private non-profit facilities. The remainder are mainly public universityhospitals.

Between 2000 and 2007 the number of all healthcare workers in the Dutch system increased as the population

increased and greater demands were made on the system. The system is rising to the challenges posed bye anageing population, improving the technical complexity of treatment and level of care offered, and the growingdemands of treating more serious diseases, such as cancer. This has seen the number of dentists rise from 7,258in 2000 to 8,812 in 2007, the number of doctors rise from 50,856 in 2000 to 65,686 in 2008, midwives rise from1,576 in 2,000 to 2,226 in 2007 and nurses rise from 213,100 in 2000 to 244,909 in 2007.

Since World War II the Netherlands has had regular shortages of health workers. One solution was to attractworkers from abroad. These came first from the former Dutch colonies of Indonesia and Suriname, and laterfrom the Philippines, South Africa, Ireland, Germany, Russia, Poland and Latvia. International migration towork in Dutch health care never involves large numbers. The main reason is that to work in Dutch health care,health workers have to speak Dutch. While recruitment abroad was once common practice, there was littleshortage in Dutch health care in 2005 and 2006. The ageing population caused a growing shortage of healthworkers by 2007 however, mostly in nursing homes, residential care homes and home care. Besides health

workers there has been extra demand for care workers, who are also recruited foreign staff.

Several studies have revealed that employers in the Netherlands generally treat foreign health workers well.They are paid the same salary as their Dutch colleagues, their working conditions are good, and employers payfor Dutch language courses and refresher courses. However, foreign staff often work in positions below theirstatus, as care workers, for example, and not as nursing staff. This is because staff shortages are most urgent inelder care, and because foreign nursing degrees are not always recognised in the Netherlands. This applies inparticular to degrees obtained in Eastern Europe. Foreigners who want to work in the Netherlands need aresidence permit. From January 2007 nationals of non-EU member states and “new” EU member states alsoneed a valid work permit.

Impact

The rising expense of the Dutch healthcare system, combined with the reluctance of the government to continueshouldering the total cost has driven consumers to increase spending contributions to the system by increasingcontributions to their private health insurance. Because many brands have been de-listed and some drugsremoved from social service reimbursement lists in cost-saving exercises, consumers have to find other ways topay. This situation is likely to continue in the future, which could result in only the rich, or those with sufficientprivate healthcare insurance, being able to pay for certain treatments.

The ageing population in the Netherlands is also set to age even further, stimulating the need for additionalmedical support services going forward, and for even more spending on medical staff, treatments andinfrastructure. Again, this will have a significant impact on future consumer expenditure as more personalwealth will need to be earmarked for health treatment in one’s old age.

Major Causes of Death





According to the World Health Organisation’s (WHO) 2002 figures, the major causes of death in theNetherlands are malignant neoplasms (cancer), which killed 242.8 people per 100,000 in 2007, and diseases ofthe circulatory system, which killed 255.3 people per 100,000 in 2007. The next deadliest are diseases of therespiratory system which killed 88.6 people per 100,000.

The high prevalence of these diseases is the reason that the government is putting so much effort behind theircampaign to inspire the population to lead healthier lifestyles, including encouraging healthier eating patterns,more exercise and quitting smoking.

There are some signs that the government’s campaigns are beginning to work as deaths by diseases of thecirculatory system have plummeted by 17.3% since 2000, and incidences of respiratory diseases decreased by3.9% over the same time period. However deaths from cancer have shown a 2.5% increase over the period; theremay be a time lag for the benefits of smoking abstinence to impact the data.

Impact

The outlook is good for the Dutch in the longer term. There are signs that government messages are gettingthrough and making an impact on the health of the nation.

This will have two impacts: first there will be less strain on the Dutch National Health Service to providecomplex and expensive treatments for these diseases. However, there will be the increased burden on the caresector as the population ages and potentially develops other diseases, such as Alzheimer’s.

Prevalence of Smoking

In 2007, 32% of the Dutch population smoked. This is a decrease from the recent peak of 33.5% in 2002.

In 2007, 33.1% of males were smokers, a decrease of 5.8% from the recent 2001 peak of 38.9%. The incidenceof smoking amongst women has also decreased from its 2005 peak of 31.5% of the population, by 1.2% to the2007 figure of 30.5%.

The government is making concerted efforts to discourage smoking. Their plans for 2008 are to increase tobaccotaxes, ban smoking in all hotels, restaurants, bars and clubs (horeca), and to increase the minimum legalpurchase age from age 16 to age 18.

Impact

It is anticipated that the 2008 rise cigarette taxes, the ban on smoking in the horeca channel and the increasedlegal purchase age to 18 years should discourage young people from taking up smoking. It might also drivehardened smokers to cut down on their smoking, or even give up altogether. This could reduce health spendingon smoking-related diseases such as respiratory disease, circulatory disease and cancer.

Reported Aids Cases

The incidence of AIDS in the Netherlands has markedly decreased since 1995, when the there were 534reported cases. By 2007 this figure had plummeted to 164 cases, a decrease over the period of 34.4%.

AIDS-related mortalities have decreased substantially since 1995. In 2007, 66 people (52 men and 14 women)died from AIDS in the Netherlands. In 1995 there were nearly 450 deaths attributed to AIDS-related illnesses.Though the decrease has mainly been amongst men, the figures for men are still much higher than for women,with fewer than 10 cases recorded amongst women in 2007.

Currently, 40% of AIDS-related deaths are amongst the immigrant population. Proportionally, AIDS mortalityis extremely high (13 in every 1,000 deaths) amongst people from Aruba and the Netherlands Antilles.

The AIDS mortality ratio is even higher amongst people from African countries like Rwanda, Zimbabwe andCameroon. However, the number of actual deaths is low because the communities living in the Netherlands are

small.





Impact

The impact of the significant reduction in cases of HIV over the review period has meant that more funding isfreed up to be spent on other serious medical conditions such as cancer. However due to the fact that moreexpensive anti-retrovirals are now available to treat those who are suffering from the AIDS, their treatment isalso more expensive than in the past.

Drug Abuse

The Dutch believe strongly in individual freedom and free and open discussion of social issues, without fear ofinterference from the government. This belief forms the central core of a free-minded attitude towards manyissues, encouraging an experimental approach which other states might find shocking. This standpoint is veryevident in Dutch drugs policy.

Harm reduction is at the centre of drug policy in the Netherlands, giving priority to minimizing many of therisks and hazards of drug use, rather than the suppression of all drugs. Healthcare and support is given to drugaddicts, and resources are devoted to combating organised crime.

A wide range of harm reduction interventions are in use in the Netherlands. Methadone maintenance is availableon demand. In 1998, a number of Dutch cities started experimenting with prescribing heroin, in combinationwith methadone, on medical grounds. Approximately 750 addicts are involved in the comparison of treatmentwith methadone and treatment with methadone and heroin. The experiment is ongoing and a comprehensiveevaluation has yet to be published. To prevent HIV/AIDS and hepatitis B and C, syringe exchange programmeswere developed in the 1980s; today, 130 programmes are operating in 60 Dutch cities and towns.

The idea of “market separation” is a key aspect of Dutch drug policy. Drugs are assessed and classifiedaccording to the risks they pose and policies relative to each are devised. The theory is that in separating thesystem, users of soft drugs (eg, cannabis), are less likely to come into contact with users of hard drugs, and aretherefore less likely to try hard drugs, like heroin, cocaine and methamphetamine. Possession of small amountsof cannabis for personal use has been decriminalized in the Netherlands, although the sale of cannabis istechnically an offence under the Opium Act. An operator or owner of a coffee shop (ie, not permitted to sell

alcohol) will avoid prosecution if he/she meets the following criteria:

• no more than 5 grammes per person may be sold in any one transaction;

• no hard drugs may be sold;

• drugs may not be advertised;

• the coffee shop must not cause any nuisance;

• no drugs can be sold to minors (under age 18), nor may minors enter the premises;

• the municipality has not ordered the establishment closed.

Impact

Decriminalization of the possession of soft drugs for personal use and the toleration of sales in controlledcircumstances has not resulted in worryingly high levels of consumption amongst young people. The extent andnature of soft drug use does not differ from the pattern in other Western countries. As for hard drugs, thenumber of addicts in the Netherlands is low compared with the rest of Europe, and considerably lower than thatin France, the United Kingdom, Italy, Spain and Switzerland. Dutch rates of drug use are lower than US rates inevery category.

This means that there is a small, sanctioned sector of the soft drugs economy which has developed in theNetherlands with its own sales channels – the coffee shops – and its own target demographic of predominantlyurban young people. It will be interesting to see how the smoking ban in the horeca channel will affect theoperations of the Dutch coffee shops. Technically as of July 2008, patrons are not permitted to smoke anytobacco products on their premises. Yet presumably this is entirely the reason that most of their customerspatronise those establishments – to smoke tobacco and cannabis together. Whether coffee shops will be strictabout imposing the tobacco smoking ban and force their clients to smoke pure cannabis, or turn a blind eye totobacco smoking, remains to be seen.





Health and Wellness

The Dutch are becoming a nation more interested in health and wellness. This is the result partly of thegovernment’s national health campaigns, but also of the growing trend for taking greater care of one’s physical

appearance amongst both women and men. This has seen an upsurge in health and fitness club memberships,and sales of products that go hand in hand with this. Likewise OTC products which enhance physicalappearance have seen increased sales, such as preparations which treat acne, eczema or cold sores.

Greater interest in health and wellness has also resulted in soaring demand for preventative medical remediesover treatments. This is combined with the trend for, and greater understanding of, natural remedies. Together,this has created a substantial rise in demand for natural preventatives such as herbal remedies. While moretraditional products such as vitamins and multivitamins were under pressure, dietary supplements such as fishoils, garlic and glucosamine appeal to a larger consumer base seeking to prevent diseases rather than curingthem after the fact.

During the review period, there have been significant entrants into the private label OTC drug market. In orderto stay competitive and convert customers back to more expensive branded products, drug companies embarked

on significant product innovation programmes. The major drug companies launched products in 2007 whichhave attracted customers back to their brands by promising better results, such as faster or more effectivetreatments. Sectors in which this is particularly evident are the analgesics, cough, flu and cold remedies sector.Bayer launched Sarixell, for example, which was successful in promising customers faster relief from cough,cold and flu symptoms.

Eco-friendly packing and social awareness issues, such as reducing CO2 emissions, and involving disabledpeople in product development, have also been growing considerations for drug companies involved in thepreparation of OTC products.

There has been a campaign by the Dutch government to promote healthy eating and exercise, particularly aimedat encouraging the population to consume vegetables. This has seen some dividends, as fresh foods arebecoming more popular and gym attendance increasing.

Consumption patterns for fresh food in the Netherlands demonstrate an increasing awareness of healthy eatingpatterns as the more unhealthy traditional foods start to recede. Healthy products, such as fruit, fish and seafood,experienced an increase between 2000 and 2007, although vegetables declined slightly. Foods such as meat,dairy products, oils and fats, and sugars and confectionery experienced a marked decline in consumption duringthe same period. However, these foodstuffs are all still quite common in typical Dutch dishes, as demonstratedby the large quantities consumed per capita.

The rate of Dutch people attending health clubs and fitness centres has never been higher, and the influence ofhealth factors in the national diet becomes more pronounced every year. Cycling is particularly popular in theNetherlands, and is one of the most popular forms of transport in urban areas.

Nevertheless obesity levels are also growing year on year, as they are in most developed countries, as portion

sizes and consumption of high fat, high calorie foods increase amongst certain sectors of society, particularlyamongst young people. This has seen the rate of obesity rise from 9.4% in 2002 to 11.2%, an increase of 1.82%.If obesity rates continue to rise in this manner, the incidence of diabetes-related deaths, deaths associated withcirculatory or digestive disease, and even deaths attributed to certain cancers could increase.

Impact

The fact that there is an ageing population in the Netherlands means that the country is becoming moreinterested in health and wellness, and that the propensity to purchase preventative treatments is becoming moreprevalent. The sales of garlic, for example, increased by 7% in 2007.

Although the largest growth is in the herbal and natural remedies market, this sector is still small. Herbalremedies only accounted for 5% of OTC sales in 2007. This market is set to increase, however, as the customer

perception is that “natural” equals “safe to use”, and there will be an increase in self-medication on these natural





preventative treatments. The natural market could even grow as high as in neighbouring countries. In Germany,for example, natural remedies account for 40% of the cough, cold and flu market.

OTC is also seeing the knock-on benefits from the raised profile of healthy and functional foods, such as pro-biotics and ginko biloba, aimed at reducing Alzheimer’s. The future will see more new product developmentaimed at producing OTC products for this very lucrative sector.

The rise in problems springing from obesity problems will create a greater burden on the medical system, andwill fuel demand for slimming-related health products.

Table 103 Consumer Expenditure on Health Goods and Medical Services:1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

Pharmaceuticals, 1,590.8 3,209.4 3,469.6 3,500.9 3,471.2 3,563.6medical appliances/equipmentOutpatient services 3,169.7 3,560.4 4,156.7 5,093.5 5,516.1 5,711.8Hospital services 3,312.8 3,519.2 4,367.9 4,817.2 4,970.7 5,043.4TOTAL 8,073.3 10,289.0 11,994.1 13,411.6 13,958.1 14,318.8Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 104 Consumer Expenditure on Health Goods and Medical Services (% Analysis and %Growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

Pharmaceuticals, 19.7 31.2 24.9 124.0 11.0medical appliances/equipmentOutpatient services 39.3 34.6 39.9 80.2 60.4Hospital services 41.0 34.2 35.2 52.2 43.3TOTAL 100.0 100.0 100.0 77.4 39.2Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 105 Per Capita Expenditure on Health Goods and Medical Services:1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Health goods and 552.73 514.67 649.68 980.81 1,055.23 1,199.77medical servicesAverage of CLIFE 277.70 283.64 320.98 424.47 490.78 554.97countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 106 Per Capita Expenditure on Health Goods and Medical Services (% Growth): 1995-2007/2000-2007

% growth

1995-2007 2000-2007

Health Goods and Medical Services 117.06 133.12





Average of CLIFE countries 99.85 95.66Source: National statistics, OECD, Eurostat, Euromonitor International

Table 107 Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006

% of total GDP1995 2000 2002 2004 2006

Share of total health 8.3 8.0 8.9 9.2 9.4expenditure in GDP (%of total GDP)Average of CLIFE 6.2 6.4 6.7 6.8 6.9countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 108 Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006

years1995 2000 2002 2004 2006

Healthy life expectancy 61.6 60.8 60.5 60.5 61.0at birthAverage of CLIFE 63.5 64.0 62.5 63.4 64.3countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 109 Healthy Life Expectancy at Birth (Actual Growth): 1995-2006/2000-2006

Percentage points

1995-2006 2000-2006

Healthy life expectancy at birth (years) -0.63 0.17Average of CLIFE countries 0.79 0.32Source: National statistics, OECD, Eurostat, Euromonitor International

Table 110 Healthcare Workers: 1995/2000/2002/2004/2006-2007

number1995 2000 2002 2004 2006 2007

Dentists 7,258 7,397 7,623 7,950 8,470 8,812

Doctors 50,856 54,624 58,675 63,220 65,686Midwives 1,276 1,576 1,725 1,907 2,119 2,226Nurses 213,100 219,773 231,863 241,298 244,909Source: National statistics, OECD, Eurostat, Euromonitor International

Table 111 Healthcare Workers (% Growth): 1995-2007/2000-2007

% change1995-2007 2000-2007

Dentists 21.41 19.13Doctors 29.16Midwives 74.45 41.24Nurses 14.93Source: National statistics, OECD, Euromonitor International





Table 112 Major Causes of Death by Disease: 1995/2000/2002/2004/2006-2007

per 100,000 inhabitants

1995 2000 2002 2004 2006 2007

Certain infectious and 7.6 10.3 10.8 11.5 11.1 11.1parasitic diseasesMalignant neoplasms 236.0 237.0 235.8 238.5 241.8 242.8Diabetes mellitus 19.3 21.0 25.3 23.1 22.6 22.4Mental and behavioural 26.6 32.2 40.0 40.0 39.3 39.1disordersDiseases of circulatory 337.0 308.8 297.2 274.2 260.2 255.3systemDiseases of respiratory 81.9 92.1 83.7 78.3 88.3 88.6systemDiseases of digestive 32.6 33.5 34.5 34.4 32.7 32.1systemCertain conditions 3.3 3.3 3.3 2.7 3.2 3.3originating in theperinatal periodCongenital 4.1 3.8 3.3 3.3 3.2 3.2malformations,deformations andchromosomal abnormalitiesSource: OECD, WHO, Euromonitor International

Table 113 Major Causes of Death by Disease (% Growth): 1995-2007/2000-2007

% change1995-2007 2000-2007

Certain infectious and parasitic diseases 46.21 7.80Malignant neoplasms 2.89 2.45Diabetes mellitus 15.88 6.74Mental and behavioural disorders 46.96 21.37Diseases of circulatory system -24.24 -17.34Diseases of respiratory system 8.14 -3.88Diseases of digestive system -1.43 -4.18Certain conditions originating in the perinatal -0.38 -2.01periodCongenital malformations, deformations and -22.65 -16.59chromosomal abnormalitiesSource: OECD, WHO, Euromonitor International

Table 114 Obese Population: 1995/2000/2002/2004/2006-2007


Obese Population (BMI 6.9 9.4 9.7 10.9 11.0 11.230kg/sq m or more)Average of CLIFE 11.5 13.1 13.6 14.4 15.2 15.5countriesSource: OECD, International Obesity Taskforce, Euromonitor InternationalNote: Data are for Population aged over 15 years

Table 115 Obese Population (Actual Growth): 1995-2007/2000-2007






Obese Population (BMI 30kg/sq m or more) (% of 4.32 1.82Population aged 15+)

Average of CLIFE countries 4.05 2.42Source: OECD, International Obesity Taskforce, Euromonitor InternationalNote: Data are for Population aged over 15 years

Table 116 Smoking Prevalence: 1995/2000/2002/2004/2006-2007


Smoking prevalence in 35.7 32.4 33.5 32.8 32.2 32.0Population aged 15+ (%of Population aged 15+)Average of CLIFE 30.6 30.7 30.7 30.7 30.9 31.0countriesSource: Euromonitor International

Table 117 Smoking Prevalence (Actual Growth): 1995-2007/2000-2007


Smoking prevalence in Population aged 15+ (% of -3.74 -0.44Population aged 15+)Average of CLIFE countries 0.37 0.21Source: Euromonitor International

Table 118 Reported AIDS Cases: 1995/2000/2002/2004/2006-2007

number1995 2000 2002 2004 2006 2007

AIDS incidence 534 250 295 281 189 164Source: UNAIDS, WHO

Table 119 Reported AIDS Cases (% Growth): 1995-2007/2000-2007

% change1995-2007 2000-2007

AIDS incidence -69.29 -34.40Source: UNAIDS, WHO

PERSONAL GROOMING

Spending on Cosmetics and Toiletries

Consumer expenditure on personal care in the Netherlands slipped from €5.39 billion in 2000 to €5.27 billion in2006. This was caused by pressures in the Dutch economy which dented consumer confidence. This seriouslyaffected high street sales of many non-essential products as consumers prioritised spending on essential items.





In turn, this resulted in a price war launched by the major supermarket brands, which has also kept prices down.However, 2007 showed a slight economic recovery, with cosmetics and toiletries sales also rising to €5.32billion. The overall trend is still down 1.3% on 2000 figures though. Per capita, US$445.86 was spent onpersonal care in 2007. This was a significant increase on the 2000 figure of US$269.77.

Impact

As the Dutch economy emerged from its recessionary period in 2007, this saw an end to the retail price war inthe Dutch market, which had been keeping prices in the cosmetics and toiletries sector down. The resultingincrease in consumer confidence has inspired companies once more to invest in NPD for the cosmetics andtoiletries sector, which had been held back as retailers were reluctant to invest in releasing new products into adepressed market.

The sector saw certain new trends emerging during 2007. There was a rapid increase in the market for productsthat contained a tanning factor, as more companies began to include this as a value-added extra in theirmoisturising and nourishing products. Another sector which saw healthy growth during 2007 was the market formen’s skincare products, both smaller independent companies and Nivea skincare, which launched their NiveaFace Care Summer Sunshine range. This Nivea range and the increasing use of self-tanning products tie in with

health issues related to excessive sun exposure.

Natural cosmetics are a small but expanding part of the market, as more people become concerned aboutenvironmental issues, skin allergies and other medical concerns which might be caused by chemicals such asparabens, aluminium, phthalates, petroleum, paraffin, dyes, mineral oil and the chemical sunscreen PABA. It isestimated that 30% of the Dutch population suffers from some type of skin irritation caused by cosmetics.

Shopping for Cosmetics and Toiletries

The last three years of the review period were characterised and impacted by a sharp price war within the retailsector. The economic slowdown that started after the introduction of the euro and rising concerns overemployment and future economic prospects dented consumer confidence, encouraging Dutch consumers topursue cost-saving measures. Leading supermarket retailer Albert Heijn began to lose share to cheaper

competitors and principally to discounters, motivating it to launch a price war in order to protect its industryposition. This measure was followed by drug store formulas such as Etos and Kruidvate and discounterspressuring A-brand manufacturers to lower prices and boost private labels.

During 2006, the effects of the price war were still mildly felt with some toiletries sectors still suffering fromdownward unit prices driven by intense volume promotion or little new product development. At the end of2006, Albert Heijn announced that it had once again achieved its desired industry share and that it was no longernecessary to pursue a price war. This brought relief as an improved economy changed the focus towards productrather than price.

Impact

The main impacts associated with the lifting of the pressure on the stores caused by both the Dutch economic

problems and the retailer price wars are the huge amount of new product development freedom this has offeredto manufacturers. They will be able to work harder on devising branded products with value-added formulationswhich can command premium prices, rather than being tied down to focusing on merely providing cheapsupermarket private-label generic “me-too” products. This will be good for producers and retailers as they willhave new products bringing in larger revenue streams, as well as for customers, who will receive the benefit ofexciting new product launches.

Attitudes Towards Personal Grooming

In addition to health and prevention attracting increased interest from Dutch consumers in 2007, image and thedesire to look good reached an unprecedented level in a country that has traditionally placed more importanceon inner health. Interest amongst younger consumers on image is spreading to mature Dutch women and men,who are increasingly willing to take action to make them feel as well as look good. Trends are driven by

aspirations to attain the perfect body image which is sold to Dutch consumers via the media, through fashionmagazines, international films, television commercials and the influence of foreign travel.





A survey undertaken by the magazine Margreet in 2006 found that 50% of Dutch women do not feel attractiveenough, and are willing to do almost anything to improve their personal image. In late 2007, image once againbecame one of the most mentioned factors that people want to improve. Not surprisingly, it featured strongly inNew Year resolutions, manifesting itself in resolutions ranging from losing weight to maintaining a healthierlifestyle.

Men’s personal grooming products are experiencing a particular boom period, as the Dutch male is more opento grooming and skincare products than his counterparts in other western countries.

A marked shift towards products that help prevent skin ageing or that improve its appearance is evident from therapid growth rates registered in cosmetics and toiletries ranges earmarked within this trend. Recent new productintroductions recognise the trend towards prevention and increased health awareness, particularly in terms ofobesity and disease prevention. For example, the introduction of Nivea Summer Sunshine, a body skin careproduct that provides a tanning effect, is a successful product that promises to not only care for the skin but alsoto make it more attractive.

More recently introduced skin care products also aim to help improve the skin’s appearance such as Nivea

DNAge, a facial care product with anti-ageing properties. Within sun care, sun protection formulas with firmingingredients are rapidly gaining ground amongst consumers willing to pay more for these extras.

Impact

Innovations will continue to play a key role in creating growth for the mature cosmetics and toiletries industry inthe forecast period. Manufacturers are expected to keep injecting value growth via further innovations andproduct extensions that focus on the concept of health. Products that also improve image, and which combatobesity or reduce the bad effects of unbalanced diets will also be a major focus of attention.

The marketing emphasis on cosmetics and toiletries products included within anti-ageing, skin firming andcolour cosmetics will remain high in the coming years. Sales will grow from consumer education and theintroduction of innovations that will boost consumer curiosity and focus on emotional aspects such as personal

image, glamour and peer acceptance. Large manufacturers such as Unilever often use concepts such as “vitality”and sex appeal for brands – such as Axe within male grooming – as elements that effectively build a consumerbase and provide value. It is expected that more products that focus on health and wellness as well as image willexpand within cosmetics and toiletries over 2009-2012. Dutch people will also be more willing to pay for suchproducts as long as the “added value” is palpable.

Table 120 Consumer Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007


Table 121 Consumer Expenditure on Personal Care (% Analysis and % Growth): 1995-2007/2000-2007

% analysis/% growth1995-2007 2000-2007


Table 122 Per Capita Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007





US$ per capita1995 2000 2002 2004 2006 2007

Personal care 315.80 269.77 310.39 402.65 398.59 445.86Average of CLIFE 123.29 119.68 130.12 175.85 200.19 229.75countries

Source: National statistics, OECD, Eurostat, Euromonitor International

Table 123 Per Capita Expenditure on Personal Care (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Personal care 41.19 65.27Average of CLIFE countries 86.35 91.97Source: National statistics, OECD, Eurostat, Euromonitor International

EDUCATION

Spending on Education

Consumer spending on education increased only slightly over the years 2000-2007 from €1.36 billion to €1.37billion – an increase of just .6%. The education system in the Netherlands provides primary and secondaryschooling free of charge to all Dutch children until age 16, as well as significant student support, loans andtransport subsidies to university students. Those over age 16 must pay, but the government can compensatehouseholds below a given income.

Education costs have become increasingly pronounced, a problem that was exacerbated by the recent economicslowdown.

Despite endemic staff shortages and under-funding, the standard of Dutch education is generally fairly high, butcontinuing staff shortages could damage this quality. The university system, which contains a number ofrespected research institutes for sciences, political studies, business and engineering, will also suffer from areduction in funding.

Impact

Class sizes are growing due to limits on the number of teachers available, particularly at primary school leveland in urban areas. This is an especially acute problem as class sizes tend to be fairly large as it is; more than 25students per class not uncommon. This situation is due to the ageing population, with large numbers of teacherscoming up for retirement and the prospect of 10,000 empty teaching vacancies. This has led to extra moneybeing allocated to teachers, as well as investments into new teaching methods. This has meant the Dutcheducation system is becoming more expensive to administer. The fact that schoolchildren over 16 have to payfor their education means that there is less money to be spent in the economy by well-off families who arehaving to pay for their children’s education, whilst the less well-off receive some subsidies, meaning that theyhave more money to spend in the economy.

Pre-primary Education

Frequently, children begin their education in a crèche or day-care facility before attending primary school. Thiscan be attributed to higher levels of female employment, but it is also increasingly seen as a positivedevelopmental step for the child, bridging the transition from home to primary school. The child care sector hasbeen severely under-funded, with the consequence that preschool positions are limited and prices high.

The Dutch system recognises two primary forms of child care: informal and formal care. Formal child care mustadhere to the rules and regulations of the official Childcare Act. In the Netherlands, all parents using formalchild care are entitled to the child care allowance. Day-care centres and home daycares are both considered





formal child care. However home daycares require the involvement of a day-care bureau in order to qualify forthe child care allowance.

The child care allowance is provided on a per child basis. In order to be eligible for the child care allowance,parents must both be employed (though no minimum income is required), and have children between the ages of0-12. There is no upper income limit, although lower-income families will receive more than higher-incomefamilies. The allowance is determined by an annually adjusted maximum hourly rate. The 2009 rate is €6.10 perhour. In certain circumstances this fee can cover as much as 80% of child care costs, depending on familyincome and the number of hours each child spends in eligible child care.

Every day, upwards of 320,000 children make use of facilities at over 3,500 child care centres. Day nurseriesprovide child care for children from 6-8 weeks of age until their fourth birthday and are open Monday to Fridayfrom 08.00hrs to 18.00hrs. Increasing childcare availability and improving its quality are high on the politicalagenda, based on the idea that an extensive network of high-quality child care facilities enables parents tocombine work or study and care.

Impact

The impact of the 2005 Childcare Act has been to give increased flexibility to women juggling work, study andchild care commitments. This is good for the women concerned who are able to earn more money, and is goodfor the Dutch economy which is able to take advantage of both the increased productivity from more womenbeing in the workforce, as well as reaping the rewards of their increase in purchasing power, not to mention theincome received from the tax collected on their wages.

Primary and Secondary Education

Primary education typically begins at age four, but the first two years are extremely basic and closer to pre-schooling, through which children are prepared for school, with proper primary education starting at age six.This continues for six years until age 12 and is compulsory. Children are required to continue secondaryeducation until age 16 after which they are free to leave, although most full secondary school programmescontinue until age 18. The vast majority of schools are state-funded, with private education restricted to the

English-speaking international schools, although there are some Dutch private schools in some wealthier areas.

The typical school day runs from 09.00hrs to 16.30hrs, although Wednesday is typically a half-day, particularlyfor primary school pupils, and finishes at 12:30hrs. There are a number of days off, including Easter, Ascensionand Queen’s Day, in addition to a week in October, the period between Christmas Eve and 8 January, a week inlate February, a week in May, and July until late August. The exact dates vary between the north, south andcentre of the country.

Block grant funding was introduced in 2006 to cover primary schools’ total costs (eg, staff costs, building costs,personnel and running costs). This was previously paid from separate budgets, but the idea in consolidating itinto one sum was to give primary schools and special schools more freedom in terms of spending. They can nowspend this money however they wish. The money is allocated according the number of pupils in each school onthe first of October, and is paid to the school board which distributes it to the schools under their care.

Over 80% of schools use the CITO test devised to measure school leaver attainment; 15% use a different test.Since the government's goal is for all pupils to sit an attainment test, it has proposed a compulsory attainmenttest for language and arithmetic be introduced for all pupils in the last year of primary school. This would enablea comparison between schools of basic performance. Until this happens schools will be free to choose the typeof test (i.e. CITO or other).

The Dutch secondary education system is based on multiple tiers into which pupils are divided, based onachievement and area of interest, dictating whether the student enters university, another form of highereducation, or goes directly into the labour market. This decision is made at age 16 following a series of exams,with MBO representing the lower level exam, normally leading to more vocational training, and HBO exams forthe higher level. At the end of school, students can opt to take the VWO exams, or the “Advanced ScientificEducation”, which grants them entry into university. There is also an upper tier at high school level called

Gymnasium which teaches Latin and Greek and is reserved for exceptional students.





Students in higher education pay tuition fees to the institution. As long as they are under age 30, they arecharged the statutory rate for tuition fees. The annual statutory tuition fees for all full-time courses during the2006/2007 academic year are €1,519. Statutory fees are fixed by law and adjusted every year in line with thefamily spending index.

Students age 30 or over have to pay fees at a separate rate, the level of which is set by the institution itself andcan therefore vary. However, the government has introduced study entitlements in order to encourage uptake ofhigher education study. A study entitlement is an individual’s right to higher education for a maximum numberof six-monthly periods for which statutory tuition fees are paid. In the 2007 coalition agreement, the new Dutchgovernment pledged to promptly introduce a new integrated bill on funding and management of highereducation and research. This would focus on improving the quality and position of vulnerable courses andwould include uniform, simple and enforceable funding rules that help students and prevent inappropriatefunding.

There are several other ways in which the government is seeking to encourage study. “Studielink” is an on-lineinterface, from which students will be able to apply and register for all higher education courses, making theprocess easier for students to apply and institutions to administrate. University admissions policies are beingrelaxed slightly by the government, so that if a University feels the prospective student has undergone life

experience to a certain level, it may be possible for the candidate to be accepted for a University degree, despitenot holding the requisite educational grades.

A pilot scheme for associate degree programmes was launched in order to address the shortage in the Dutchlabour market of workers educated to between MBO Level 4 and bachelor’s degree standard. These are intendedfor MBO certificate holders who want to pursue further study and working people who want to go back tohigher education. From September 2007, students resident in the Netherlands who want to pursue full-time orpart-time studies abroad can apply for financial assistance. Plans are also under way to allow privately-fundedinstitutions to fund training courses temporarily from government grants.

Normally those wishing to attend university are evaluated on the strength of the subjects in which they choose totake examinations at school at the age of 18. However they can also be assessed using other relevant subjects inwhich they may have taken optional examinations.

In comparison to the OECD and EU averages, the Netherlands has few short study programmes. Among itsneighbouring countries, Belgium in particular has the greatest variety of short programmes compared to theNetherlands. At 29%, the Netherlands has a higher proportion of 25-to-64-year-olds with qualifications attertiary level than the OECD and EU averages (25% and 23% respectively). This makes the Netherlands thesecond best performing country in the OECD area. The surrounding countries have similar proportions of 25-to-64-year-olds with qualifications at tertiary level. Germany, the only country lagging behind the Netherlands, stillscores slightly above the EU average.

In 2006, the Ministry of OCW formulated the goal of having half of the labour force (ages 25-44) earn adiploma at the tertiary level by 2020. In the Netherlands, 34% of 25-to-34-year-olds have completed either ahigher professional education or university education. This puts the Netherlands above OECD and EU averages.Of its neighbouring countries, only France (38%) and Belgium (41%) perform slightly better than the

Netherlands. In Germany, the proportion of the population with at least tertiary education qualifications fallsbelow the EU and OECD averages.

Adult Education

Social trends and the need for lifelong learning have made adult and vocational education crucially importantfor individuals, the labour market and society as a whole. As well as a socioeconomic function (matching supplyto demand, and greater employability), the Act also has the sociocultural function of promoting integration andgreater participation of disadvantaged groups.

The aim of secondary vocational education, as defined in the Adult and Vocational Education Act, is to provideboth theoretical instruction and practical training in preparation for the practice of a wide range of occupationsfor which a vocational qualification is necessary or useful. It also furthers the general education and personal

development of students and helps them to play an active part in society.





Adult education is geared towards furthering the personal development of adults and their participation insociety. The Adult and Vocational Education Act (WEB) identifies four types of course: adult general secondaryeducation (VAVO), leading to a pre-vocational secondary education (VMBO theoretical programme), seniorgeneral secondary education (HAVO) or pre-university education (VWO) certificate (Levels 4, 5 and 6) or partof one; courses providing a broad basic education (BMF); courses in Dutch as a second language (NT2); andcourses aimed at fostering self-reliance (SR).

As of 2005, school fees were abolished for all pupils and students ages 16-17. Students aged 18 or over on 1August who are in full-time vocational training (BOL) in secondary vocational education (MBO) or taking full-time adult general secondary education (VAVO) courses have to enrol with an education card and thereforehave to pay school fees.

The fees for the 2006/2007 school year were €963.

Students age 18 and over on day release schemes (BBL) or in part-time vocational training (BOL) have to paycourse fees instead of school fees. The amount depends on the level of the course. In 2006/2007 the course feeswere €199.71 for assistant-level or basic vocational training and €485.60 for middle management or specialisttraining.

The costs of adult education courses consist of statutory fees and learner costs (ie, all expenditure, other thanfees, directly related to the course of study, such as travel expenses and the purchase of textbooks and studymaterials). Adult learners age 18 or over on 1 August who are taking full-time or part-time adult generalsecondary education courses (VAVO) or courses in Dutch as a second language at levels B1 or B2 have to paycourse fees. In the 2006/2007 school year, these amounted to €9,463 for full-time courses (more than 850teaching periods a year) and €0.62 per 45 minutes for part time courses (fewer than 850 teaching periods a year).In 2007/2008, fees for a full-time course will amount to €975.

There are no statutory regulations governing the payment of fees in the non-formal adult education sector. Adulteducation institutes (“volksuniversiteiten”) charge an average of €5 per 45 minutes for a course.

With the abolition of fees for 16-17-year-olds, financial assistance is no longer necessary. From the 2005/2006

school year, the government allowance towards the cost of fees has therefore been abolished for students whono longer have to pay fees. However, MBO students under the age of 18 can still get financial assistance to helpwith educational expenses under the Fees and Educational Expenses (Allowances) Act (WTOS). Parents ofMBO students under age 18 are entitled to child benefit and can apply to the Information Management Group(IBG) for financial support.

As of the 2005/2006 school year, the rights and duties of MBO and HBO students ages 18-34 have been broughtinto line. This means that both MBO and HBO students are entitled to student finance, comprising a basic grant,a supplementary grant (depending on parental income), an interest bearing loan and a public transport pass. ForMBO students doing Levels 1 and 2, no conditions are attached to the basic and supplementary grants. Studentsdoing Levels 3 and 4 receive performance-related grants. This means that the grant is initially awarded in theform of a loan, which students only have to repay if they fail to complete their course within 10 years.

Students are entitled to a performance-related grant for four years. They can then take out a straightforward loanfor another three years. The standard duration of the course determines the number of months’ grant for which itcan be converted. Successful MBO candidates who decide to go on to higher professional education (HBO) areentitled to a new grant, depending on the length of their course. In certain circumstances these grants may beused to take study abroad.

Impact

Encouraging adult education will lead to greater levels of employment and higher levels of productivity amongstthe lower-income groups. This will be a positive step for the economy in general, decreasing the burden ofsocial payments on the government and injecting more spending into the Dutch economy, particularly onrelatively non-essential items, such as home entertainment (such as TVs, audio equipment and games consoles)and the leisure and recreation sector (particularly catering).

Table 124 Consumer Expenditure on Education: 1995/2000/2002/2004/2006-2007





EUR million1995 2000 2002 2004 2006 2007

TOTAL 1,253.1 1,367.4 1,421.3 1,595.8 1,361.9 1,375.7Source: National statistics, OECD, Eurostat, Euromonitor International

Note: Constant value at 2007 prices

Table 125 Consumer Expenditure on Education (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

TOTAL 9.8 0.6Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 126 Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Education 85.79 68.40 76.99 116.71 102.96 115.27Average of CLIFE 98.36 106.84 114.25 148.97 175.94 202.90countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 127 Per Capita Expenditure on Education (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Education 34.36 68.53Average of CLIFE countries 106.29 89.91Source: National statistics, OECD, Eurostat, Euromonitor International

TRANSPORT

Spending on Transport

Consumer expenditure on transport in the Netherlands increased from €27.9 billion in 2000 to €29.5 billion in2007, an increase of 5.8%. Within the sector the largest proportion of the overall figure was operation oftransport equipment, which accounted for 51.9% of the 2007 figures, closely followed by purchase of cars,motorcycles and other vehicles at 34%.

Purchases of cars, motorcycles and other vehicles showed the largest decrease in spending over the periodhowever, dropping from €9.5 billion to €8.3 billion, a decrease of 12.3%. Cars are high-ticket consumer items,and the period of economic uncertainty and low consumer confidence that the Netherlands experienced between2000 and 2006 translated into poor sales in retail environments such as car sales rooms. Spending recoveredslightly in 2007, but did not return even to the 2004 figure, much less to that of 2000.

All the other sectors grew in spend over the period 2000-2007. The largest growth in spend was in the air travelsector, which grew 23.4%, from €1.3 billion to €1.6 billion. This can largely be attributed to the growth of

budget airlines in the marketplace over the review period. Although they had been prevalent before 2000, thisperiod saw a significant expansion in the number of operators, routes and flights in this sector. As prices have





fallen, air travel has become more accessible, and consumer expenditure has risen. Budget operators have alsoforced the major airlines to review their prices, bringing the cost of air travel down all round.

Impact

Due to the relatively small size of the Netherlands and its generous public spending in recent history, both thepublic transport and road networks are of an extremely high quality. Public transport is widespread with goodconnectivity and comparatively high reliability. High-speed trains provide the predominant intercity links, andbus services dominate inner-city transport. In addition, larger cities like Amsterdam and Rotterdam have tramand metro networks.

Despite the high number of cycling and public transport facilities available in the Netherlands, the use of cars asa means of transport has risen considerably and plays a dominant role in commuting patterns. This has led toincreasing levels of congestion on Dutch roads, with the average distance covered by a car in 2004 rising to42kms per day, a sharp increase over previous years. This is directly related to a sharp decline in the popularityof trains, which increasingly came under attack for delays, bad planning and poor response to changingcommuting needs.

In 2005, Dutch commuters travelling by car spent a total of 65 million hours in congested traffic, despite adecline in traffic jams. Traffic jams are also spreading over the nation, making them harder to tackle, and areindicative of the significant increase in cars on Dutch roads. As a result, the Dutch train services witnessed a 4%growth in the number of commuters in 2005, making up slightly for the significant drop seen in earlier years.This increase was attributed to increasing traffic congestion, rising gas prices and a targeted advertisingcampaign by the Dutch train-operator, the NS.

Air Transport

The Netherlands and aviation are inextricably linked. The Netherlands’ international position is considerablymore important than it might initially appear, based on the size of the population. This position is due toAmsterdam's Schiphol Airport. Schipol, with 188 loading slots, is the main international airport in theNetherlands, handling not only a huge amount of industrial cargo, but also millions of business and leisure

passenger flights per year. In 2007, 47,793,602 passengers went through Schiphol, making it the fifth busiestairport in Europe (the leaders were London, Paris, Frankfurt and Madrid). About 68% of the passenger flightswere to Europe, almost 21% of its passengers travelled on intercontinental flights and 11% to Asia. Cargo goesmainly to Asia (44%) and North America (20%).

In addition to Schiphol, the Netherlands also has a large number of other airports and airfields, includingmilitary airfields. Some military airfields are also used by non-military aircraft. Regional airports, such asLelystad, Rotterdam and Maastricht are oriented towards business air traffic and offer direct low-cost carrierconnections to regional European airports. Small airfields are used by pleasure craft, helicopters and othersmaller, short-distance planes.

In 2007, close to 51million passengers travelled through Dutch airports. This was a 4% increase over 2006.Nearly 60% of these passengers were travelling within the EU; 70% were travelling within Europe. Most of

them – more than 8 million – travelled to and from the United Kingdom. With 5 million passengers, Spain wasrunner-up. Most passengers on intercontinental flights travelled between Europe and the United States (4.8million).

According to the Dutch statistics bureau CBS the number of passengers arriving at or taking off from Dutchairports grew by 18% to nearly 49 million over the period 2003-2006. In particular, budget operators increasedtheir share from 6.5 million passengers in 2003 to 9.8 million in 2006.

Budget airlines prefer regional airports because they offer lower landing fees and shorter turnaround times. Thenumber of passengers using regional airports increased from 640,000 to 2.1 million between 2003 and 2006.Over the same period the number of passengers travelling with traditional airlines from regional airportsdeclined by 42% to 0.5 million. In total, regional airports handled 2.6 million passengers in 2006, an increase of80% over 2003 figures. Eindhoven airport grew the most, with nearly 1.2 million passengers in 2006, three

times as many as it handled in 2003 and surpassing Rotterdam airport for the first time.





In 2006, Amsterdam Schiphol Airport handled 46 million passengers, an increase of 6 million over 2003. In2007, 78% of budget airline passengers (7.6 million persons) going through Dutch airports arrived at or took offfrom Amsterdam Schiphol Airport, an increase by 31% compared to 2003. The number of traditional airlinepassengers increased by 13% in this period.

Impact

As the Netherlands enters recession, foreign travel will be one of the first sectors affected. Business travellerswhose companies may have lost foreign accounts (or are looking to cut costs) will travel less. Leisure travellerswill cut back on either the frequency or distance of their foreign travel, opting instead for holidays within theNetherlands, or for cheaper short-haul flights.

The trends for 2009 will be fewer flights overall. Full-price operators will suffer most from the recession astravellers trade down from first or business class, or decide that the mild inconvenience this would representdoes not outweigh the savings in cost offered by budget airlines. There will also be the substitution of expensivelong-haul holidays with cheaper short-haul destinations, or even “staycations” (holidaying at home, rather thanabroad).

Road TransportThe use of cars as a means of transport has risen considerably and plays a dominant role in commuting patterns.In fact, it is the most commonly used form of transport in the country. This has lead to increasing levels ofcongestion on Dutch roads, with the average distance covered by a car in 2004 rising to 42kms per day, a sharpincrease over previous years. This is directly related to a sharp decline in the popularity of trains, whichincreasingly came under attack for delays, bad planning and poor response to changing commuting needs.

Traffic jams are common in the Netherlands. In 2005, Dutch commuters travelling by car were stuck for a totalof 65 million hours in congested traffic, despite a decline in traffic jams. Traffic jams are creeping across thenation, making them harder to tackle, and are indicative of a sharp increase in the number of cars on Dutchroads. Unlike in other countries, Dutch motorways usually have only 2x2 lanes. Exits are generally only about3000 metres or 2 miles apart, even in rural areas, disincentivising drivers from using local roads. Not

surprisingly, the quantity of local traffic using the motorway is high, though this is also due to the fact that localroads are largely underdeveloped, especially in the Randstad.

Another issue is the increasing number of trucks, which often form chains and occupy the entire right lane onsome motorways. Another problem is the limited number of river crossings, which are usually only viamotorways. Nearly all major river crossings are congested during rush hours. A usual rush hour accumulatesbetween 200 and 300 kilometres of congested traffic, but can be as high as 100 discrete sections of congestedtraffic totalling 500 kilometres. Outside of rush hours, the motorways are usually free-flowing, but can still bevery busy. Morning rush hour usually lasts from 06.00hrs until 10.00hrs. Evening rush hour generally lasts from15.30hrs to 19.00hrs. Fridays are exceptions, when the morning rush hour is lighter and shorter; the eveningrush hour makes up for this by starting by about noon.

Impact

As the Netherlands has entered another recessionary phase, the impact on large-ticket items such as cars will befelt very strongly as consumers find ways to curb their spending. Increasingly, small cars will begin to takemarket-share from larger cars, due to their smaller initial purchase costs and lower running costs. The need to“keep up appearances”, however, may drive consumers to excuse their cutting back as being “for environmentalreasons”. The recession may also see younger people delay buying a car altogether.

Rail Transport

As a direct result of the traffic congestion on Dutch roads and highways, Dutch train services witnessed a 4%growth in the number of commuters in 2005, making up slightly for the significant drop seen in earlier years.This increase was attributed to increasing traffic congestion, rising gas prices and a targeted advertisingcampaign by the Dutch train-operator, the NS.





Passenger trains account for 93% of all train kilometres in the Netherlands. Goods transport makes up theremaining 7%. The averages for Europe are 79% and 21%, respectively. The intensive use of the Dutch railwaysystem is reflected in the large volume of passenger transport per kilometre of track. In the Netherlands this is 5million passenger-kilometres, while the EU average is 1.8 million.

Part of the reason for this is Netherlands' relatively large share of multiple track railways. This allows trains topass each other more easily, thus generating a high volume of transport per kilometre of track.

Impact

The impact of increasing traffic congestion on Dutch roads combined with the economic slowdown andresulting lack of consumer confidence will drive increased use of the rail system as consumers rely on the railsystem rather than purchasing cars.

Transport Infrastructure

The Netherlands has one of the densest highway networks in the world. There are 135,470 kilometres of publicroads, of which 5,012 kilometres are national roads, 7,899 kilometres are provincial roads and 122,559

kilometres are local and other roads. The Netherlands has a motorway density of 57,5 kilometres per 1,000 km²,the densest motorway network in the European Union.

The Netherlands has one of the most advanced motorway networks in the world, with Variable Message Signsand electronic signalisation across most of the country. Dutch motorways use porous asphalt concrete (PAC),which allows water to be drained efficiently even in heavy rain, with no water splash-up, in contrast withconcrete or other pavement types. The Netherlands is the only country which uses PAC this extensively. Thegovernment's goal is to cover 100% of the motorways with PAC. PAC disadvantages include its initial cost(which is two to three times more expensive than regular pavement), and need for constant maintenance,especially under heavy traffic conditions. Sometimes, repaving is necessary within seven years. This isespecially so for routes with heavy truck traffic, which causes deep track formation.

A common feature of Dutch motorways are “managed” lanes. These allow motorists to use the hard shoulder or

a dynamic lane on the median side during times of high congestion to improve the traffic flow. All “managed”lanes are observed by CCTV cameras from a traffic control centre. These lanes improve traffic flow, but alsoresult in fewer places to safely move vehicles after accidents, which can lead to more congestion. It has beensuggested that these “managed” lanes should eventually be replaced by regular road widening.

Currently the government is undergoing a programme to construct more railway lines in order to improve therail network and encourage more people to use it. This plan is scheduled to be finished in 2009 and includeshigh-speed trains from Amsterdam via Rotterdam to Brussels. A high-speed link crossing from Amsterdam toGroningen in the North of the country is under construction. There has also been a series of measures to reducecar use, including fuel tax and increasing parking costs. These have so far failed to persuade commuters toswitch, however, leading to increasing inner-city congestion in particular. A number of large parking facilitiesnear public transport on the outskirts of cities, referred to as “Transferium”, have been introduced. The largest,housing a proposed 1,500 vehicles, is being constructed in Utrecht.

There is also a good network of cycle lanes in the Netherlands, which has resulted in there being substantiallymore bicycles than people. Cycling is extremely popular within cities and towns, and most Dutch people cyclefor more than an hour per week. This is often not for exercise, but the result of frustration at traffic congestion.Nevertheless, it ensures that the Dutch are keeping fitter than they otherwise would be.

Impact

As the recession goes on and the transport infrastructure improves, more Dutch consumers will be encouraged touse public transport. In some cases, the improved rail system could persuade people to decide againstpurchasing a car at all, and it will certainly see a rise in the number of rail tickets sold. As congestion increasesin towns and cities, the Dutch will continue to use bicycles to get around. The bicycle market is relativelyrecession-proof as a bicycle is a small-ticket item compared to a car, and can be justified by the fact that it is

aiding the user’s fitness levels as well as providing a means of transport.





Improvements in rail transport and number of journeys will be particularly evident after the new lines arecompleted.

Table 128 Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

Purchase of cars, 7,495.8 9,476.3 9,427.2 9,032.8 8,191.8 8,313.5motorcycles and othervehiclesOperation of personal 11,982.2 14,471.2 14,634.3 15,192.7 16,199.1 16,520.6transport equipmentTransport services 2,922.0 3,936.1 4,127.1 4,107.7 4,564.9 4,673.3- Rail travel 629.5 832.5 882.5 857.8 941.2 954.4- Buses, coaches and 787.1 957.0 1,037.8 1,031.2 1,147.2 1,168.3

taxis- Air travel 872.8 1,305.9 1,328.6 1,360.3 1,549.4 1,611.4- Other travel 632.5 840.6 878.3 858.4 927.1 939.3


Table 129 Consumer Expenditure on Transport (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

Purchase of cars, 33.5 34.0 28.2 10.9 -12.3motorcycles and othervehicles

Operation of personal 53.5 51.9 56.0 37.9 14.2transport equipmentTransport services 13.0 14.1 15.8 59.9 18.7- Rail travel 2.8 3.0 3.2 51.6 14.6- Buses, coaches and 3.5 3.4 4.0 48.4 22.1

taxis- Air travel 3.9 4.7 5.5 84.6 23.4- Other travel 2.8 3.0 3.2 48.5 11.7TOTAL 100.0 100.0 100.0 31.7 5.8Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 130 Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Transport 1,533.60 1,394.78 1,526.88 2,072.05 2,189.06 2,472.43Average of CLIFE 707.90 700.55 720.23 973.73 1,121.98 1,279.97countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 131 Per Capita Expenditure on Transport (% Growth): 1995-2007/2000-2007

% growth

1995-2007 2000-2007





Transport 61.22 77.26Average of CLIFE countries 80.81 82.71Source: National statistics, OECD, Eurostat, Euromonitor International

COMMUNICATIONS AND THE INTERNET

Spending on Communications

As in most countries, the Netherlands has seen a communications explosion in recent years, driven by the use ofelectronic communications, such as mobile phones, the internet and email. This has resulted in spending oncommunications growing exponentially over the period 1995 to 2007 by 180.9% – in 1995 the communicationsrevolution was still in its infancy. Even between 2000 and 2007 the communications market grew by 29.6%,from €9.4 billion to €12.2 billion.

In fact, the review period covers either the initial launch or at least the expansion into the mainstream of manyof the important communications infrastructure that are now taken for granted and used on a daily basis. These

include the internet, email, SMS messaging, social networking sites such as Facebook and Myspace, Skype,auction sites such as eBay, and a proliferation of e-commerce sites offering goods and services for sale on theinternet.

These communication methods have come to be regarded as such an integral part of life, that in some cases theyhave dominated and begun to threaten traditional means of interaction. For instance traditional phone calls fromfixed lines have been threatened by mobile phone calls, which in turn have been threatened by the youngergeneration using the relatively cheaper SMS messages or free social networking sites to keep in touch.Similarly, some high street stores have found that they have been under threat from internet stores, particularlyelectronics and book retailers. Traditional mail is similarly under threat from email.

Within the category as a whole, the largest growing sector, unsurprisingly, was telecommunications services,which grew by 206.4% between 1995-2007 and 41.7% between 2000 and 2007. Interestingly,

telecommunications equipment decreased by 35.9% as the sheer quantity of entrants into the handset marketsqueezed prices. In fact, handsets are often now given away for free, or bundled with line rental contracts toentice customers.

3G phone services are the latest technology and have proved to be extremely popular, as has mobile internetservices. These are becoming the latest “killer applications” for mobile technology, such as mobile phones andlaptops, to have. They allow the user to check emails, use the internet and check social networking sites whilston the move. Meanwhile cameras (whether audio or video) are no longer regarded as nice “extras” on mobilephones, but as essentials. Some of the more technical phones also offer the user built-in MP3 players or radios,often with external speakers.

Impact

The telecommunications industry has seen a very rapid period of development over 2002-2007 with theintroduction of a wide range of technology, hardware and services. As the world and the Netherlands enters arecessionary phase, it will see a slow-down in the pace of the launch of new technology as innovators becomemore reluctant to launch. Banks will also become apprehensive about lending to risky, innovative ventures.However new technology which has recently been introduced and offers clear benefits, but has not yet reachedits full penetration in the market, will still have the potential to grow sales. This includes such technologies as3G telecoms and satellite TV. Nevertheless these operators will need to work very hard in a competitivemarketplace, with lots of introductory offers and promotions to attract new subscribers.

Television, Cable and Satellite

With the declining popularity of books in the Netherlands, particularly amongst younger consumers, and thelimited popularity of radio, television is increasingly consolidating its role as the most important media outlet.

This is largely due to the widespread use of cable providing a large number of channels, ranging from the





publicly-funded to the commercial, as well as a number of international channels from the UK, France andBelgium.

Almost every household in the Netherlands (98%) owned a colour TV set in 2007, a figure that has remainedpretty constant over the review period, pointing to the fact that the TV market is a replacement market. Thereare currently three Dutch national TV channels. Household penetration of cable TV has declined since its peakof 95.2% in 2002 to 83.2% in 2007. Conversely over the review period satellite TV has showed extremelystrong growth, albeit from a much smaller base, increasing from 4.8% household penetration in 2000 to 13.8%in 2007.

The types of colour television sets have also been changing, however, with replacement purchases increasinglytending towards flat-screen televisions. The flat-screen market is led by Dutch electronics producer Philips,which dominates the Dutch flat-screen market with a third of sales. The arrival of HDTV and programmes thatexploit this new technology could mean another shift in the coming years. The biggest change was seen with theintroduction of wide-screen televisions. These are slowly becoming the norm, accounting for 50% of all salesafter 2001, despite only 5% of television programmes being available in wide-screen format.

According to a survey conducted by TNS in 2005, more than three quarters of the Dutch population watches

television every day, with an average watching time of almost three hours per day. Homes that have televisionstend to have two or more, suggesting that multiple channels are watched, often simultaneously, in one house.Additionally, the majority of those interviewed indicated a preference for “channel-surfing” as opposed toturning the television on for one specific programme. Around a quarter of those who watch television every dayleave it on during dinner, particularly in those households where both parents earn an income.

It should be noted that the majority of Dutch people like to watch television with a partner while only a smallnumber, primarily students and teenagers, watch alone. The vast majority of those interviewed expresseddissatisfaction at being disturbed during watching, with 50% citing the telephone as the main culprit. Thissuggests home-recording products like TiVo in the United States are likely to prove popular in the Netherlands.

Digital TV has been slow to get off the ground, having only been properly introduced in 2005, but is starting tomake an impact. This remains muted, however, due to high costs (€200 on average) and the limited number of

additional services available. One of the service providers, UPC, has invested €300 million in the transfer andairs around 30 channels, with prices starting from €15 per month for a subscription, which is only €5 more thanthe analogue price. UPC will also offer packages with a high number of Turkish TV stations to attract a Turkishaudience.

The relatively high price of these new technologies – wide-screen televisions are generally twice as expensive asnormal and flat-screens up to nine times as pricey – has kept sales revenues high despite sluggish overallgrowth. This has been boosted by the growing popularity of home-cinema systems which retail at between €300and €600 each. These are often bought separately from televisions and are available in a wide range of shops,including department stores and supermarkets.

Although the number of national television stations has remained constant since 1990, this refers only to thosewho are partially publicly subsidised. The majority of households have access to cable television which offers

around 25 channels, including foreign, sports, music and entertainment channels

Impact

Forecasts suggest the trends in television household penetration are likely to continue, with cable continuing todrop and satellite TV achieving over 12% household penetration by 2015. This would represent 52% growth inthe 2005-2010 period alone. This is related to the fact that costs for the two services are converging, to around

€12-€13 a month, although satellite television has higher start-up costs. Digital television, meanwhile, andspecialist channels like Canal+, which show a lot of international sport and films, cost substantially more.

As the popularity of cable TV increases, people will be replacing their TVs with more sophisticated equipmentthat is able to make use of services offered by satellite, such as HDTV. As HD offers higher definition picture-quality, average screen sizes will increase (with a higher percentage being wide-screen), and the higher audio

quality offered will also inspire the purchase of more home cinema systems.





However, this needs to be put into the context of the looming recession, which will increasingly see the marketturning into a replacement market rather than a luxury one.

Printed Media

Printed media is undergoing a great deal of change in the Netherlands. Annual circulation of daily newspapersdropped from 5.0 million in 2003 to 4.7 million in 2007. Non-daily newspapers dropped from 19.0 million to16.3 million over the same period. This is due to the rise of two trends in the marketplace which havesignificantly altered the Dutch media landscape. One is the emergence of the internet as an information source.The review period saw a significant rise in the frequency of Dutch consumers cutting back their use of hardcopy newspapers in order to rely on news websites instead. The other trend is the rise in publications distributedwith no cover charge. Daily newspapers such as Metro are given away for free and their business model reliessolely on advertising revenue rather than the cover fee for income.

The top 10 newspapers in order of annual circulation figures in the Netherlands are De Telegraaf (703,584), DeTelegraaf op Zondag (674,705), Metro (516,488, distributed free of charge), Dagblad De Pers (479,342,distributed free of charge), Algemeen Dagblad (479,122), Spits (421,858, distributed free of charge), DeVolskrant (272,884), and NRC Handelsblad (22,9285).

De Telegraaf is the most popular daily and is a right-wing newspaper. It combines both broadsheet and tabloidissues, such as celebrity gossip with more serious business issues. De Telegraaf has gained circulation in the late2000s due to its being given away for free to boost its circulation numbers. Left-wing newspapers, such as DerVolkskrant and NRC Handelsblad (which is evening newspaper), continued to lose circulation figures duringDe Telegraaf’s promotional campaign.

The most popular television and radio shows in the Netherlands remain news programmes, such as NOS journal,although soaps and reality shows are increasingly popular. Big Brother, a soap series called “Goede TijdenSlechte Tijde”, Idols and a political satire show called “Kopspijkers” are just some of the other most frequentlywatched television programmes. Music channels like MTV and TMF are extremely popular with the youngergeneration of viewers.

Impact

The future looks uncertain for printed media as the Netherlands once again enters a period defined by achallenging economic climate. Whilst there will always be a need for news (especially during a recession),consumers will increasingly read news on-line and pick up free newspapers to satisfy their need for information.Many newspaper advertisers will also have to curtail their marketing budgets, and will either be cancelling theiradvertising campaigns completely, or prioritising those publications with high circulations. This will result inmany publications going out of business. Those remaining in the market will be bidding to retain or, if possible,increase market share by any means necessary. This will lead to more measures to boost circulation, such asgive-aways and cross promotions with other companies.

Conversely this will see a strengthening in the marketplace of the internet news sites and free newspapers.

Telephones

The number of mobile telephone users grew by more than 17,900% in the 1990-2005 period. In 2005 there weremore than 14 million mobile users in the Netherlands, a country with a population of just over 16 million. Thebiggest growth was seen between 1995 and 2000, when the technology began to become affordable andconnectivity improved, with an increase in the number of mobile users of more than 1,895% in this period alone.

This boom was also reflected in the communications industry as a whole, with the number of telephone lines inuse increasing by more than 44% between 1990 and 2005 to more than 10 million. This growth precipitated acontinuing rise in the number of national and international calls being made, which both grew substantially inthe period under review. International calls, in particular, rose by more than 270% between 1990 and 2005 to3,355 million minutes in 2005. This substantial increase is largely due to the declining costs of internationalphone calls as a result of more competitive pricing. It is also the result of the proliferation of international

calling cards, the higher number of people of foreign origin in the Netherlands and the increasing numbers ofDutch ex-patriots.





The next generation of mobile phones in the Netherlands is expected to be extremely popular, challenging theaudio and MP3 player market in particular. New phones that offer internet access, an MP3 player and digitalcamera in a single unit could increasingly replace purchases of these items separately, a process referred to inthe Dutch market as “digital convergence”.

“Digital convergence” is already starting to be reflected in profits, with the 4.5 million mobile phones sold in2005 creating a market turnover of €370 million. This is aided by the fact that consumers increasingly tend toown more than one mobile phone, with a recent survey indicating 30% of mobile phone users owned twophones, with 12% even owning five or more. Additionally, 96% of those with internet at home owned a mobilephone. GfK surveys also indicated that, of the families with mobile phones, 29% had given one to a child 10years old or younger.

Impact

However, the increasing penetration rates of mobile phone ownership means only a small rise, just over 4%, isexpected in the number of mobile phone users between 2005 and 2015, meaning the market will migrate to areplacement market. This slowdown is also indicative of the ageing population, and is likely to put increasing

pressure on the mobile market.

The area of the telecommunications market with most growth potential is the next generation mobile technologysuch as 3G and UMTS, with 42% of European mobile users expressing interest in these technologies.

In order to pay for expensive 3G licenses, however, mobile phone network providers need to encourage moresubscribers to use 3G services. To date, handsets have been expensive, whilst most GSM phones are providedfree of charge. Costs to use 3G services have similarly been expensive. Thus far, uptake has remained relativelylow, despite steady increases.

As the Netherlands enters a period of economic uncertainty and low consumer confidence, the need toencourage more subscribers to take 3G services should see the introduction of more affordable contract offerswhich include complementary 3G handsets and cheaper rates for 3G services. Even with these measures in

place, the market will remain a competitive environment for operators, and there maybe some consolidation inthe marketplace.

Computers and the Internet

Household PC penetration increased from 64% of households in 2000 to 87.1% in 2007, a rise of 36.05%. Thisindicates the increasing necessity of computers to the average Dutch household. From the parents completingtheir office work or downloading digital photos, to the children keeping in touch with friends and completinghomework, it is clear that computers have now become an everyday part of Dutch life.

The figures that really underline the rise in the trend for computer use though, are those relating to internet use.In 2000 there were 7.0 million Dutch households with access to the internet. By 2007 this figure had risen to15.2 million, an increase of 117.8%. To further reinforce this, the International Telecoms Union (ITU) claims

there were 14.5 million internet users as of August 2007, which represents 88.4% of the Dutch population. In2000 there were only 3.9 million users, or 24.1% of the population, which represents a rise of 371.8%.

According to Eurostat, penetration of broadband connectivity increased from 20% in 2003 to 74% in 2007,whilst over the same period dial-up connections fell dramatically. By 2007, only 8% of Dutch households useddial-up to connect to the internet.

Although there has been a sharp increase in on-line shopping, this only accounts for a small percentage ofinternet usage. Most use the internet for communication, including e-mail and on-line chatting, as well as theincreasingly popular audio-chatting facilities like Skype. A high number use the internet as a quick source ofinformation and for entertainment, with an increasing number also turning to the internet for more practicalactivities like e-banking.

According to the TNS survey, laptop computers are gaining in popularity at the expense of the traditionaldesktop computers, with laptops accounting for 38% of total PC market sales in 2004. With laptops increasing





by 20% every year from 2004-2007 and PC sales remaining stable, this represents a strong switch in consumerhabits. Increased spending has been fuelled by lower prices, however, which has meant that the increase inrevenues is far lower than the increase in units sold, with only 4% growth in 2004 due to the average retail priceof laptops dropping to just over €1,000.

This increase in sales is limited to PCs, laptops and internet usage, with other related aspects of the IT marketincluding printers, scanners and copiers experiencing an overall drop in sales. This is indicative of the increasingimportance of communications rather than other aspects of the IT market.

The popularity of wireless internet connections has also grown in the Netherlands, with a number of serviceproviders experimenting with the idea of public hotspots. A company called HubHop began offering a networkof hotspots in public locations such as public transit points, libraries and restaurants. The popularity of these hasled to plans to rapidly increase their number, particularly in airport terminals and the like where travellers aremore likely to have the required hardware.

Impact

The rapid rise of computer technology purchases will slow as the Netherlands enters the recession, with

consumers relying on older computers rather than buying new ones. The software market will continue toexpand, however, and new releases on the market which force consumers to update their software forcompatibility reasons will drive this market forward. The increased popularity of laptop computers will continueto rise as consumers become used to the idea of computing on-the-go, rather than viewing their terminal as afixed box which sits in the corner of a room. This will also increase the popularity of wireless access.

E-commerce

The proliferation of internet usage has not only changed the pattern of media and communication in theNetherlands, but has also impacted consumer spending with the rising popularity of on-line shopping. Ease andpracticality, often combined with lower prices, have produced an on-line shopping boom.

Most purchases have to do with travel, holidays and accommodation, followed by books and magazines. About

half of on-line shoppers in 2007 had bought trips or holidays on-line within the previous three months, and 37%of on-line shoppers bought reading materials on-line. Moreover, the on-line purchases of clothing and sportsgear and tickets for events by frequent on-line shoppers rose spectacularly 2005-2007. In 2007 over a third offrequent on-line shoppers reported that they had bought or ordered these products on-line, compared to a fifth in2005.

Such spectacular increases were not seen for all purchases. There was very little grocery shopping or spendingin the category of lottery or gambling in 2007 by frequent on-line shoppers. However, a 2006 study conductedby the Netherlands Institute for Spatial Research pointed out the rapid increase in the on-line trade in second-hand goods.

Male and female frequent on-line shoppers buy different goods on-line. Men bought twice as many electronics,software and hardware goods over the internet than women in 2007. Women bought or ordered much more

clothing and sports gear through the internet (47% of the women vs 28% of the men in 2007). Women alsobought more books and magazines on-line (42%) than men (33%).

The percentage of on-line users who made purchases on-line rose from just under 19% in 2000 to 52% in 2005,a 33% increase in six years alone, suggesting that on-line shopping has far more potential. Nevertheless, asurvey conducted by TNS suggests people still find in-store shopping easier and more fun than on-lineshopping, and highlights lingering doubts as to the safety of buying on-line. The strongest growth was seen inon-line shopping for clothing, although CDs, books and holidays led the market, with the Netherlands secondonly to Germany in terms of the number of CDs bought on-line.

Internet sales are booming across all categories, as consumers gain confidence in internet retailing. They areparticularly attracted by its lower prices and the product comparisons that it enables. Current value growth in2007 was even higher than the review period CAGR as a whole, with almost all categories showing higher

levels of growth in 2007.





According to Thuiswinkel.org, the trade association for homeshopping companies in the Netherlands, there wereonly around 3,000 internet retailing sites in the Netherlands in 2000. It estimates that this figure grew to around10,000 in 2005, when internet sales expanded rapidly. Virtually all consumer goods retailers now at leastadvertise their products via the internet, even if they do not allow on-line purchases.

A particular trend seen during 2007 was for internet retailers to offer free delivery for products sold on-line.This enables them to stimulate sales and make internet shopping more attractive.

Domestic appliances internet retailing saw the highest level of current value growth in 2007 at 61%. Consumersparticularly like the ability to compare such products, as well as the convenience of delivery, rather than havingto collect such products themselves from a retail outlet. However, retailers are coming under pressure to collectold appliances themselves for the recycling of parts.

The lowest level of growth was seen in vitamins and dietary supplements internet retailing. This was due to theimportance of private label products from high street retailers in vitamins and dietary supplements.

Impact

Most product categories will continue to see double-digit constant value CAGRs throughout the forecast period.This will take the total value of internet retailing sales to €3 billion in 2012, nearly seven times the amount seenin 2002.

Although growth rates will still be high, they will be lower than those seen in the review period. Internet usagehad wide penetration by the end of the review period, and while it continues to increase, it is at lower levels thanpreviously. According to the Dutch Chamber of Commerce, the number of websites offering on-line sales in theNetherlands grew by 42% in 2007, although this is lower than the 49% achieved in 2006 or the 50% in 2005.

Security issues will continue to be a concern for some consumers, limiting internet retailing penetration.According to Thuiswinkel.org, other factors that will continue to limit sales include consumer preference fortouching and feeling products prior to purchase and high delivery charges. Because of this, the trend towardsfree delivery is likely to be seen among more internet retailers during the forecast period, making internet

retailing even more attractive for consumers in terms of price and convenience.

M-commerce

The review period saw the launch of more sophisticated mobile phone technology than the original generationof digital mobile phones. The first development was the launch of Wireless Access Protocol (WAP) enabledhandsets which could access a slow, specially-adapted version of the internet. This was used to access on-linemultimedia applications using the mobile phone handset as an access tool, with the user’s monthly telephone billas a payment method. Initially these phones were typically used for multimedia messaging, downloading ringtones, buying games and downloading graphics by young, less price-sensitive consumers.

Following the auction of third generation licences in 2000, which use UMTS technology instead of the previousGSM technology, the mobile phone landscape has altered rapidly in the Netherlands. Now Dutch consumers are

able to use handsets which are aimed at a more professional marketplace, such as the Blackberry range or moreadvanced consumer handsets such as Apple’s iPhone, to conduct far more sophisticated transactions. Theseinclude accessing email and the internet, downloading music via iTunes and paying for small-ticket items suchas coffee or parking tickets. However, the percentage of all phone calls made using 3G technology remains arelatively small proportion of the mobile telecoms market, having grown from 2% in 2005 to 7% in 2007. Thisis because 3G services are currently aimed at the premium end of the market, with expensive handsets andcontracts. Dutch consumers will not wholeheartedly embrace 3Gg technology until prices are reduced.

More than 2 million people, or 20% of internet users, in the Netherlands accessed the internet using mobileequipment, in 2007, with 13% of all users employing a laptop with a wireless modem. Another 8% percent ofinternet users used a mobile phone to access the internet, and only 3% used a palmtop. Men and young peoplewith higher education levels are more likely to use a mobile connection, .





Among male internet users, 24% accessed the internet via mobile equipment, versus only 14% of femaleinternet users. Men were also more likely than women to use their mobile phones for internet access at 12%versus 4%, respectively.

Mobile internet access is popular amongst younger people with high levels of education, with just over 30% ofthese users under age 45 accessing the internet with the aid of mobile equipment in 2007. Amongst olderinternet users and those with lower education levels, this was only 7%. The distribution pattern of mobileinternet access in Dutch society largely resembles that of all internet access at the end of the 1990s, when theearly internet users were younger men with higher education levels.

Impact

Take-up of 3G services will remain low until prices come down. Once this happens, these services will becomepopular regardless of economic conditions. There is a clear interest in and need for the services, especially forapplications such as mobile internet access and mobile email.

Table 132 Consumer Expenditure on Communications: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

Postal services 550.2 820.6 847.5 821.1 763.6 771.8Telecommunications 265.4 968.8 716.7 686.0 600.3 621.0equipmentTelecommunications 3,529.0 7,629.3 9,626.8 10,149.8 10,196.3 10,811.7servicesTOTAL 4,344.6 9,418.6 11,191.0 11,656.9 11,560.2 12,204.6Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 133 Consumer Expenditure on Communications (% Analysis and % Growth):

1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

Postal services 12.7 8.7 6.3 40.3 -5.9Telecommunications 6.1 10.3 5.1 134.0 -35.9equipmentTelecommunications 81.2 81.0 88.6 206.4 41.7servicesTOTAL 100.0 100.0 100.0 180.9 29.6Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 134 Per Capita Expenditure on Communications: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Communications 297.45 471.13 606.18 852.49 873.95 1,022.63Average of CLIFE 119.55 152.91 174.87 238.73 276.22 325.63countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 135 Per Capita Expenditure on Communications (% Growth) 1995-2007/2000-2007:

% growth





1995-2007 2000-2007

Communications 243.80 117.06Average of CLIFE countries 172.38 112.96Source: National statistics, OECD, Eurostat, Euromonitor International

Table 136 Penetration of Televisions and Number of TV Channels: 1995/2000/2002/2004/2006-2007

per 100 households1995 2000 2002 2004 2006 2007

Black and white TV set 19 10 7 6 4 4(% of households)Colour TV set (% of 97 99 98 98 98 98households)National TV channels 4 5 5 5 3 3(number)Source: National statistics, European Audiovisual Observatory, Euromonitor International

Table 137 Penetration of Televisions and Number of TV Channels (% Growth): 1995-2007/2000-2007

% change1995-2007 2000-2007

Black and white TV set -79.67 -61.38Colour TV set 1.50 -0.55National TV channels -25.00 -40.00Source: National statistics, European Audiovisual Observatory, Euromonitor International

Table 138 Penetration of Cable and Satellite Television: 1995/2000/2002/2004/2006-2007

% of households1995 2000 2002 2004 2006 2007

Cable TV 88.12 89.69 95.18 90.68 85.48 83.20Satellite TV system 4.51 4.84 7.50 11.20 13.17 13.82Source: Euromonitor International from trade sources and national statistics

Table 139 Penetration of Cable and Satellite Television (% Growth): 1995-2007/2000-2007

% change 1995-2007 2000-2007

Cable TV -5.58 -7.24Satellite TV system 206.30 185.57Source: Euromonitor International from trade sources and national statistics

Table 140 National and International Phone Calls, Telephone Lines in Use and Mobile PhoneUsers: 1995/2000/2002/2004/2006

as stated1995 2000 2002 2004 2006

National telephone 34,400 31,803 30,143 29,099calls (million minutes)





International outgoing 1,459 2,550 2,220 2,055 2,157telephone calls(million minutes)Total 1,459 36,950 34,023 32,198 31,256Telephone lines in use 8,124 9,889 8,026 7,861 7,688('000)

Mobile telephone 539 10,755 12,100 14,800 16,557subscribers ('000)Source: National statistics, International Telecommunications Union, World Bank, Trade sources, Euromonitor

International

Table 141 National and International Phone Calls, Telephone Lines in Use and Mobile PhoneUsers(% Growth): 1995-2006/2000-2006

% change1995-2006 2000-2006

National telephone calls -15.41International outgoing telephone calls 47.88 -15.40TOTAL 2,042.36 -15.41Telephone lines in use -5.37 -22.26Mobile telephone subscribers 2,971.74 53.94Source: National statistics, International Telecommunications Union, World Bank, Trade sources, Euromonitor

International

Table 142 Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007

As stated2000 2002 2004 2006 2007

Internet users ('000) 7,000.0 8,200.0 10,000.0 14,544.4 15,245.6

ISDN subscribers ('000) 1,185.0 1,536.0 1,515.0 1,480.0 1,463.0PC penetration (% of 64.0 69.0 75.4 84.7 87.1households)Source: National statistics, International Telecommunications Union, World Bank, Trade Sources, Jupiter Research,

Euromonitor International

Table 143 Household PC Penetration and Internet Usage (% Growth): 2000-2007

% change2000-2007

Internet users 117.79ISDN subscribers 23.46PC penetration 36.05Source: National statistics, International Telecommunications Union, World Bank, Trade source, Jupiter Research,

Euromonitor International

LEISURE AND RECREATION

Spending on Leisure and Recreation

Spending on leisure and recreation declined between 2000 and 2007 from €28.6 billion to €27.5 billion, areduction of 3.8%. The largest reduction in spending within the category was in

audio/video/photographic/information equipment, which is not surprising given that audio and photographicmedia (ie, tapes, camera film and hard-copy photographs) almost disappeared over the review period. That said,





retained relatively stable value shares towards the end of the review period. These two retailers have had astrong presence for many decades now and are household names for toys and games.

Sports goods stores put in a good performance in 2007, with current value sales rising by 3% over the previousyear to reach €1.9 billion. These stores sell relatively valuable equipment such as skis but are also importantoutlets for a wide range of sporting and leisure clothing, which is increasingly favoured by Dutch consumers.

The sports goods market in the Netherlands is extremely fragmented. However, there is a clear leader, UnlimitedSports Group, which enjoys a value share of 13% for its Aktiesport and Perry Sports formats. This sport goodsretailer has a broad appeal and gained by offering outdoor goods and fashion items.

Impact

It is anticipated that this sector will face a challenging period over the coming years of more challengingeconomic times. This will be especially so for retailers selling products such as toys, games and electronicitems, as well as expensive sporting goods stores, all of which were threatened during the previous economicdownturn. Other channels will further face strong competition from internet retailing, including booksellers andaudio-visual goods, with these continuing to see constant value sales decline.

Leisure Time

The Dutch have a very active leisure and social existence outside working hours. From attending sports clubs tosocialising with friends and family, much emphasis is placed on the need to enjoy one’s self. According to theDutch statistics office (CBS), in 2007 46% of all Dutch adults attended clubs or activities at least once permonth.

Many Dutch also engage in voluntary work. In 2007 5.6 million Dutch ages 18 years and older (making up 44%of the adult population) were active volunteers. Most voluntary workers are active in sports clubs. There areabout as many male as female voluntary workers, but they are active in different organisations. Men, forinstance, are frequently active in sports clubs, churches or mosques, whereas women tend to opt for volunteerwork in schools or welfare services. Most voluntary workers are age 35-44. The proportion of volunteers is

higher in rural areas than in urbanised areas. They also tend to be well-educated.

The Netherlands is internationally famous for its beautiful countryside peppered with flowers and windmills.The Dutch themselves enjoy their countryside, and 48% of adults indicate that they go on trips to thecountryside at least once per month. The Netherlands is also famous for its flat countryside and crowd ofbicycles. Not surprisingly, 50% of adults indicate they went on cycling trips at least once per month. This alsoties in with the government’s campaigns to get the Dutch population to become more active in their spare timeto help improve national health.

When it comes to socialising, 11% of Dutch adults go to the pub at least once per week. These are mainly youngpeople, who also like to meet up with friends at the numerous cafés and bars in the towns and cities. It isparticularly popular to drink on the sun-filled outdoor terraces during the daytime. More men visit pubs at leastonce per week (11%), than women (7%). This is because more men will be likely to visit pubs to entertain

business clients.

Impact

The leisure sector will be threatened over the forecast period as the Dutch economy enters a downturn. Non-essential spending, such as socialising in pubs once a week, will be curtailed as consumers prefer to save money.

However, leisure activities that do not cost much, and could be used as a substitute for a foreign holiday, arelikely to witness an increase in popularity over the forecast period. For instance, there may be more familiestaking their children out on day trips to the countryside, or to local beaches, or Dutch hotels, rather thanspending on more luxurious foreign travel.

Culture





The Dutch have a rich cultural history, particularly with regard to artists, and the Netherlands boasts a widevariety of extremely popular museums. The most famous of these – including the Van Gogh museum, thenational Rijksmuseum and Anne Frank’s house – are in Amsterdam and The Hague. Though less famous, mostDutch cities boast a number of museums and theatres.

Some of the most popular tourist attractions – as well as an integral part of the Dutch cultural experience and thesecond most popular pastime in the Netherlands – are boat trips along the canals of towns like Amsterdam,Utrecht, and Middelburg, with various tours operated by Holland International and other such companies.

Other popular pastimes include day and weekend trips to holiday parks like Centre Parcs, which has enjoyedwide-spread popularity. Originally a Dutch company, the brand has spread to Germany, France, Belgium andthe United Kingdom. The parks based in continental Europe were sold in 2001 to Pierre & Vacances of France.

Another kind of popular attraction in the Netherlands is the Efteling and other such amusement parks, whichfrequently use fairy tales as the main theme, with Land van Ooit being another such attraction. Theme parkshave enjoyed widespread popularity, but attendance has fallen as a result of the declining number of children inthe Netherlands, as well as the introduction of newer attractions like Six Flags which are aimed at thrill-seekers.As a result of this overall decline in attendance, as well as increasing pressure from attractions abroad (such as

the Warner Brothers theme park just across the border in Germany and even Disneyland in Paris), these themeparks are starting to put on events and concerts at night to generate additional income.

Zoos are popular in the Netherlands, with Diergaarde Blijdorp in Roterdam and Burgers Zoo in Arnhemattracting the most visitors. These two, together with the Van Gogh Museum in Amsterdam, attract the highestnumber of visitors after theme parks and the Centre Parcs chain in the Netherlands.

A new trend which has proven a big hit in the Netherlands is the introduction of factory outlet villages. The first,Batavia Stad in Lelystad near Amsterdam, was set up in 2001. Attracting more than two million visitors in 2006,it is being expanded by 10,000 square metres. The complex features Batavia Yard, a museum of shipbuilding,New Land Polder Museum, with exhibitions on the topic of land reclamation, and the Sportmuseum Olympion,which focuses on Dutch Olympic history.

According to 2003 national statistics, theatre visits are also an increasingly popular element of Dutch culture,with almost half (47%) of the population going to the theatre at least once a year. Another 34% expressed adesire to go but found it too expensive, with the average ticket costing €27.40. Musicals, operas and popconcerts are the most expensive at between €41-€34 per ticket. Indeed, government figures seem to indicate thefalling interest in the arts for many people: although the number of performances sponsored by the Ministry ofEducation, Culture and Science (OCW) grew slightly over the period 2001-2005 (from 13,332 to 13,362),attendance figures shrank from 3.0 million to 2.9 million. This includes performances such as performanceensembles, orchestras, ballet and dance, musical theatre and children’s theatre.

Cinema attendance rates dipped from 23 million in 2004 to 20.5 million in 2005, but rose again to 22.6 millionin 2006. Well over three quarters of the films showing in Dutch cinemas are American films, but thecompetitive position of Dutch films has improved. The market share of Dutch films increased from 4% in 1997to between 10%-13% over the mid-2000s. This appears to be primarily due to fiscal policy to promote Dutch

popular films. Young people, in particular, have discovered Dutch films in recent years.

Impact

Attendance at cultural events will suffer in the forecast period, both because there seems to be a dwindlinginterest in the arts in general, but also because consumers will be less inclined to spend money on expensivetheatre tickets, or on cinema tickets, when they could stay in and be entertained at home for less money. Theremay be a rise in visits to museums, however, as more Dutch people opt to spend their leisure time exploringtheir own country, rather than travelling abroad.

Sport and Exercise

According to 2006 national statistics, sport is relatively popular in the Netherlands. Roughly half all Dutch

people over the age of 15 do more than one hour of sport a week. The most popular sports are cycling, footballand field hockey, tennis and swimming. The sport demonstrating the fastest growth, however, is golf, which has





make the participant feel good about themselves. This is particularly true about gyms and cycling. Moreexpensive sports will suffer; however, as consumers struggle to afford the standard of life that they have becomeaccustomed to. In particular, equestrian sports will see a decline, and possibly water sports such as sailing andwindsurfing, as the cost involved are relatively high.

Going OutGoing out for a drink at a local pub is extremely popular in the Netherlands, with beer being the drink of choice.This is particularly popular in the summer, when large numbers of Dutch people head to the terraces to enjoywhite beers like Hoegaarden. The economic contraction since 2003 saw declining growth rates, but there hassince been a resurgence.

Café and terraces in the Netherlands are central to Dutch culture, with town centres packed with people sitting inthe sun enjoying a beer in the summers. Increasingly, however, these cafés are becoming themed, with moreexciting designs, and frequently offering tapas-style dishes as snacks.

This is particularly true for the restaurant industry, which has suffered a number of significant closures.Nevertheless, new restaurants do open, with those serving more international foods leading the way. Mexican,

Surinamese, Indian and Spanish restaurants are popular, as well as a number of exotic choices like Mongolianbarbecues and African restaurants.

Casinos experienced rising popularity in the 2000s. These have been heavily advertised and have increasinglygained a place in Dutch going-out culture. The most popular has been the large chain Holland Casino which isfrequently found in town centres, although there are a number of smaller casinos.

Impact

Going out to bars, pubs and clubs will be an area that suffers during the recession as consumers cut back non-essential spending. Instead of meeting friends and family in expensive drinking establishments, it will be morecommon to entertain people at home in order to save money. The restaurant industry will be further hit, withmore closures anticipated.

Travel and Tourism

The number of Dutch people travelling abroad recovered in 2007 from a bad year in 2006. Key reasons for theincrease in numbers included the disappointing summer weather in 2007 and rise in consumer confidencegenerally (foreign travel is generally more expensive and less popular when consumer confidence falls). ManyDutch tourists were tired of the gloomy summer weather and selected destinations where beautiful weather wasguaranteed.

The absence of sunny weather for most of the summer of 2007 was a major factor in the decline in domestictourists, and many Dutch tourists booked last minute holidays to sunny destinations in order to escape the grey,rainy summer. However, this was not the only factor. In 2006, activities associated with “Rembrandt 400” alsoproved a draw for Dutch tourists taking short breaks and day trips in their own country. Another contributing

factor was that 2006 was the soccer World Cup year and many Dutch fans chose to watch the matches at homeand take day trips instead of going abroad.

In 2007, the Dutch spent €22.4 million on holidays in the Netherlands and abroad, with 44% of adults takingmore than one holiday per year. A growing trend is to seek out remote, exotic holiday destinations. Moderntravellers are becoming more sophisticated and demanding when booking travel products since they are muchbetter informed than in the past. The internet has played a vital role in this development. With householdpenetration of broadband internet connections approaching 80%, the Dutch are amongst the most internet-savvyconsumers in the European Union. The internet has not only increased the transparency of the market in terms ofpricing, but has also placed quality and consumer satisfaction in the public domain.

The 2007 figures for domestic and foreign holidays were 8.5 and 13.9 million respectively. As a result, the totalnumber of domestic overnight stays is much lower than the number of foreign overnight stays, which come to

75.7 million and 165.7 million respectively. The number of summer holidays is twice as high as the number ofwinter holidays. On average, domestic holidays last 9.9 days, foreign holidays 12.9 days.





Between 1983 and 2007, the number of foreign holidays spent in Europe rose dramatically from 5.9 to 12.2million. The number of foreign holidays outside Europe increased from 0.2 to 1.7 million over the same period.

Many Dutch people spend their holidays in France, but the popularity of France as a holiday destination hasdeclined somewhat in recent years. Germany is gaining popularity. Turkey’s increasing popularity as a holidaydestination between 1999 and 2005 appears to have been short-lived. Since 2005, the number of Dutch going onholiday to Turkey has rapidly declined.

Given that 2006 was the year of “Rembrandt 400”, it would have been no surprise if incoming tourism figureshad declined in 2007. But this was not the case, and incoming tourism increased. There were several reasons forthis impressive performance. The first major reason was the growing importance of low-cost airlines for Dutchtourism. Each year there has been an increase in low-cost airline activity and more routes have been opened.This means that for many tourists, the Netherlands – and Amsterdam in particular – has become a moreattractive and accessible destination.

One of the major new laws that will impact the airline sector is the “vliegtaks” (flight tax) that was imposed inJuly 2008. The new tax means that short-haul flights (in this case flights up to 2,500 kilometres) will cost €11.25

more and long-haul flights will cost €45 more. At first the Dutch government suggested that the environmentwas the main motivation for this new tax. This has been criticised in the press and by several groups as studiesindicate that it will have little or no environment effect. Many organisations also argue that the revenue shouldbe used to fund projects that will help protect the environment, which it does not currently do.

The improved Dutch economy has inspired greater confidence among consumers, making them more willing tospend their money on travel and tourism. Dutch consumers are taking more short breaks in addition to theirannual summer holidays, with city breaks becoming increasingly popular. For long vacations, taken both athome or abroad, July and August are the most important months for Dutch tourists. Increasingly though Dutchtourists are interested in taking more than one trip each year. Dutch workers have between 25-40 days holidayeach year and this means that many have time to take several trips each year. Another trend related to this is thatmore and more people are taking trips with groups of friends or extended family.

The Netherlands has been planning on promoting its four major cities, with an emphasis on interesting historicalsites and cultural riches. Amsterdam in particular hopes to convince older, more affluent tourists that theyshould come and visit the city for its museums filled with Dutch masters, old and new architecture and special“Old World” atmosphere. The goal is to optimise Amsterdam as an attractive destination compared with othernorth-western European cities.

Each year, Dutch Tourism Board decides on a different theme to promote the Netherlands abroad, and thenorganises special activities to support the theme. Every two years, there will be a major event. This newapproach started with a celebration of Rembrandt's 400th birthday in 2006, “Dance & Music” in 2007 and“Amsterdam Hidden Treasures” in 2008.

Upgrading the quality of travel and tourism products in coastal areas and Wadden Islands should attract moretourists, especially from neighbouring countries such as Germany and Belgium. Holidays in the Dutch North

Sea bathing resorts and on the Wadden Islands should become more attractive, but to remain competitive, theseresorts are in need of an upgrade to meet modern standards.

There will be an emphasis over the forecast period on developing the so-called MICE (Meetings, Incentives,Conventions and Exhibitions) industry in the Netherlands.

One major policy that went through the national parliament in the Netherlands in 2007 was the vliegtaks (flighttax). This new law was imposed in July 2008 and means that short-haul flights (of up to 2,500 kilometres) willcost €11.25 more and long-haul flights will cost €45 more.

The Dutch Tourism Board is the organisation that is responsible for the implementation of government policy.The board is concentrating its marketing efforts on growing tourism from Germany, the UK, Belgium andFrance, maintaining the same level of visitors from the US and Japan and, finally, developing a major new area,

China. As all this has to be achieved with limited government funding, the Dutch Tourism Board is very keen tobuild public-private partnerships.





Impact

The Dutch travel economy will suffer a huge decrease over the early forecast period due to the recession.Foreign travel will be particularly affected, with long-haul, luxury destinations suffering the most. Whilst thelong-haul destinations are cut back, this will see a rise in holidays to closer destinations which are cheaper, suchas France, Germany and other places in western Europe, as well as more travel money spent at home. More ofthe Dutch population will choose to stay at home to save money rather than travel abroad.

It is unclear what impact the flight tax will have on consumer behaviour. Some studies suggest that the impactmight be considerable and could curb growth significantly. Other studies indicate that airports might lose 10%-15% of passenger traffic. It is unclear, however, if this would be due entirely to the flight tax, since other factors– such as higher fuel prices – may also influence consumer behaviour. There are also fears that it will limit thenumber of budget airlines that will fly to the Netherlands and could increase the number of Dutch touristschoosing to fly from German or Belgian airports.

The main Dutch airports have expressed their frustration about the flight tax as they expect that many Dutchconsumers will now choose to fly from Belgian or German airports in order to avoid the flight tax. It is alsolikely that alternative forms of transportation such as high speed trains, international trains and buses will

benefit as well.

The demographic developments in the Netherlands are also likely to have a major impact on consumerlifestyles. Older consumers tend to be more concerned with comfort and luxury than younger tourists and onaverage are also willing to spend more for good quality.

Government policies towards travel and tourism are also expected to have some positive benefits. The first fewmajor themed events have seen a significant increase in inbound tourism in particular, which will be verywelcome in during the recession. Other policies such as upgrading the tourism infrastructure of the WaddenIslands are also starting to bear fruit.

Additionally there will be an upturn in Dutch consumers opting for “staycations”, which should add to themoney spent on accommodation within the Netherlands.

Table 144 Consumer Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007

A-V/photographic/ 4,579.2 6,324.6 6,305.7 5,636.0 5,206.3 5,281.8information processingequipmentOther major 942.2 1,394.1 1,431.0 1,270.3 1,228.3 1,264.0recreational durablesOther recreational items 4,333.0 5,585.0 5,525.7 5,264.6 5,036.9 5,089.2Recreational and 4,625.4 5,756.4 6,262.3 6,410.7 6,671.2 6,866.8cultural services

Newspapers, magazines, 4,466.3 5,563.7 5,557.4 5,043.6 4,941.1 5,003.7books and stationeryPackage holidays 2,700.2 3,940.7 4,026.7 3,995.4 3,851.7 3,987.1TOTAL 21,646.3 28,564.4 29,108.9 27,620.5 26,935.4 27,492.5Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 145 Consumer Expenditure on Leisure and Recreation (% Analysis and % Growth):1995/2000/2007/1995-2007/2000-2007

% analysis/% growth1995 2000 2007 1995-2007 2000-2007

A-V/photographic/ 21.2 22.1 19.2 15.3 -16.5information processing





equipmentOther major 4.4 4.9 4.6 34.1 -9.3recreational durablesOther recreational items 20.0 19.6 18.5 17.5 -8.9Recreational and 21.4 20.2 25.0 48.5 19.3cultural services

Newspapers, magazines, 20.6 19.5 18.2 12.0 -10.1books and stationeryPackage holidays 12.5 13.8 14.5 47.7 1.2TOTAL 100.0 100.0 100.0 27.0 -3.8Source: National statistics, OECD, Eurostat, Euromonitor InternationalNote: Constant value at 2007 prices

Table 146 Per Capita Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Leisure and recreation 1,482.00 1,428.83 1,576.72 2,019.93 2,036.32 2,303.60Average of CLIFE 533.71 532.08 554.98 737.00 829.46 945.36countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 147 Per Capita Expenditure on Leisure and Recreation (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Leisure and recreation 55.44 61.22Average of CLIFE countries 77.13 77.67Source: National statistics, OECD, Eurostat, Euromonitor International

Table 148 Consumer Expenditure on Accommodation: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007


Table 149 Consumer Expenditure on Accommodation (% Analysis and % Growth): 1995-2007/2000-

2007

% analysis/% growth1995-2007 2000-2007


Table 150 Per Capita Expenditure on Accommodation: 1995/2000/2002/2004/2006-2007

US$ per capita

1995 2000 2002 2004 2006 2007

Accommodation 90.50 81.42 95.72 127.78 131.04 148.38





Average of CLIFE 74.27 73.71 77.13 106.17 121.48 139.67countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 151 Per Capita Expenditure on Accommodation (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Accommodation 63.95 82.24Average of CLIFE countries 88.05 89.47Source: National statistics, OECD, Eurostat, Euromonitor International

EATING OUT

Spending on CateringConsumer expenditure on eating out was affected significantly by the downturn in the Dutch economy between2000 and 2006, when spending in this category went from €11.9 billion to just under €11 billion. With the 2007upturn in the economy and returning consumer confidence, the eating out category recovered to just over €11billion. These figures are fairly low by European standards, and have resulted in the closure of numerousrestaurants and cafeterias.

Snack bars, cafeterias and fast food outlets achieved a 5.8% higher turnover in 2007 compared to 2006. This is ahigher-than-average figure and can be explained by the growth seen in convenience foods in every sector of theeconomy, particularly ready-meals. The strongest growth in eating-out expenditure was seen in foods thatrequired the least amount of time and were available to people on the move. The fast-food area in particulargrew by more than 11% between 2000 and 2005, to €155.3 per capita expenditure in 2005, and home-

delivery/takeaway services which grew by almost 11% reaching €17.3 per capita in the same year. In order tocompete, restaurants are increasingly offering takeaway services. This has diversified the takeaway marketwhich is dominated by pizza deliveries.

In common with other trends in the food industry, foodservice restaurants in the Netherlands are becoming morecosmopolitan in their offerings, as more Dutch people travel abroad and become more curious and open-mindedabout experiencing new cultures. Immigrants who have imported their own tastes in food also influence Dutchcuisine. As a result of these developments, there is a proliferation of diverse and exotic restaurants, includingThai, Brazilian, North African, Asian and Middle Eastern restaurants. Even those dining in more traditionalrestaurants often find more unusual dishes on the menu, such as sushi, tacos or tandoori chicken.

Full-service restaurants accounted for the largest proportion of eating out expenditure, although this is moreindicative of the prices rather than their popularity. Nonetheless, independent, full-service restaurants have an

increasing reputation for good quality, value and service, which helping to drive the category. Expenditure inrestaurants grew by 5.6% in 2007, which was above-average performance for the category. Traditional Dutchrestaurants include those serving meat dishes with vegetables and potatoes, as well as the ever-popular pancakehouses which target families in particular. Increasingly these institutions face growing competition fromrestaurants specialising in foreign cuisine, particularly Italian, Thai and Indonesian.

Cafés and bars also showed strong growth in 2007, with the more traditional specialised Dutch coffee housesincreasingly being usurped by a new appetite for international premium coffee shops, espresso bars andtakeaway coffee establishments, such as Starbucks.

Growth in the fast food sector was led by major chains like McDonald's and Burger King, which continue tostrengthen their grip on the Dutch fast food market. These have adapted to demands for healthier eating styleswith the introduction of salads and healthier alternatives to the typical burgers and fries. Overall there has been a

decline, however. The 9,000 fast food outlets in the Netherlands in 2004 represented a 15% decline from theirnumbers in 1995. There are also wide regional discrepancies, with the coastal cities and the province of Zeeland





in the southwest accounting for the highest numbers. The increasing popularity of burger chains is also replacingthe dominance of traditional snack bars in the Dutch fast-food market.

Impact

Spending on eating out in the fast food category will continue to be healthy over the forecast period. Since fastfood offers improved convenience to consumers, they will find money for it, despite the recession. Full-servicerestaurants, however, will suffer from the recession, as meals eaten out are treated as a non-essential luxurywhich can be cut back. This will especially be the case for premium-priced restaurants, which will suffer themost.

An increase in franchised chain restaurants, which also represents growth in the foodservice sector, givesentrepreneurs the opportunity to access the brand credibility and marketing muscle of well-known nationalbrands, whilst offering the flexibility of being their own boss. This is providing a model which is increasinglyreplacing traditional family-owned independent restaurants.

Attitudes Towards Eating Out

About 34% of all Dutch consumers eat out at least once per month, with 36% of Dutch men eating out once permonth and 31% of women. The reason for this is that single men are more likely to eat out rather than cook forthemselves, and men are more likely to go out to entertain clients in a business situation than women.

It is traditional for the Dutch to have three meals per day. Breakfast is usually cold, consisting of cereal, breadwith cheese and ham, and tea. Lunch is almost exclusively a bread sandwich containing processed meats andcheeses, with a salad, although some larger companies are now offering their employees warm dishes in acanteen environment. Dinner is usually a hot meal of meat, potatoes and vegetables. One of the most popularDutch dinner dishes is potato and vegetables mashed together and served with smoked sausage.

There are a variety of Dutch snack foods that are sometimes eaten in place of lunch, consumed on the go. Themost popular of these is French fries served with mayonnaise, although various toppings, including hot peanutsauce, are also popular. Processed meat snacks are often served alongside this. Turkish food is very popular due

to the large numbers of Dutch of Turkish ancestry, with shoarma and kebab being the most popular dishes.Surinamese food is also increasingly popular, with roti, a meat and onion-based dish wrapped in dough. Anotherfavourite and typically Dutch snack is raw herring, eaten with chopped onions and sometimes served in a roll.

The types of food eaten at dinnertime in the Netherlands are evolving. Traditional Dutch fare is being replacedby an influx of more cosmopolitan cuisine, stimulated by immigration and consumer demand for more varieddishes. Initially developments were limited to Surinamese and Indonesian dishes. However now, Chinese,Japanese, Moroccan and Spanish dishes are growing in popularity. Mexican and North American dishes, such astacos, enchiladas and pizzas are also increasingly popular.

When the Dutch do go out for meals, the general atmosphere is very casual and only a small minority ofrestaurants impose formal dress requirements. There are very few that have a four or five star rating. This trendtowards casual is on the rise, and it is increasingly rare to see restaurant-goers dressing up, with casual eating

establishments more likely to succeed in the future.

Impact

The trend towards casual dining will become stronger as the recession continues. Dressing smart will becomeless of a requisite, as this will become more associated with affluent times, and premium-priced restaurants thattake this type of approach will begin to see their profits suffer. At the upper end of the market, there will bemany restaurant closures over the early forecast period.

A 2003 study by TNS indicated that 81% of those interviewed thought eating habits would change in the next25 years, with 70% of these believing the biggest change would be in the types of foods eaten, with moreforeign dishes and ready-meals being consumed.

Table 152 Consumer Expenditure on Catering: 1995/2000/2002/2004/2006-2007





EUR million1995 2000 2002 2004 2006 2007


Table 153 Consumer Expenditure on Catering (% Growth): 1995-2007/2000-2007

% analysis/% growth1995-2007 2000-2007


Table 154 Per Capita Expenditure on Catering: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Catering 663.83 597.09 641.97 805.79 828.53 922.90Average of CLIFE 386.95 367.75 392.79 520.39 590.16 669.68countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 155 Per Capita Expenditure on Catering (% Growth): 1995-2007/2000-2007

% growth

1995-2007 2000-2007

Catering 39.03 54.57Average of CLIFE countries 73.07 82.10Source: National statistics, OECD, Eurostat, Euromonitor International

BANKING AND FINANCIAL SERVICES

Spending on Banking and Financial Services

Dutch consumer spending on the financial services sector decreased markedly between 2000 and 2004. This

was because the economy was suffering severe economic recession and a downturn in consumer confidence.Spending in the sector fell from €9.1 billion in 2000 to €7.5 billion in 2004. During the period 2006-2007however, spending began to improve as a renewed confidence entered the economy, taking spending in thesector from €7.9 billion in 2006 to €8.1 billion in 2007. This is still represents a fall of 11.3% over the period2000-2007 though. Over the same period, consumer spending on insurance rose significantly, and – apart from adip in the market in 2002 – fairly consistently, having risen from €10.4 billion in 2000 to €14.9 billion in 2007,a rise of 42.8% over this period.

Almost all Dutch adults have at least one bank account, with children also increasingly being offered generouscredit systems to encourage loyalty with a given bank. The biggest banks in the Netherlands are ABN Amro,Rabobank, Postbank, and ING bank, creating a competitive atmosphere.

Increasingly people in the Netherlands use their debit cards for internet banking. This has grown in popularity in

line with the increasing penetration of internet facilities in households, available in more than 75% of Dutch





households. According to TNS, roughly 54% of those with an internet connection in the Netherlands useinternet banking, suggesting increasing consumer confidence in the safety and ease of this form of banking.

Internet banking is also extremely popular in the Dutch corporate scene, with 75% of all Dutch business using it.It is popular amongst smaller shops as well. Larger business still tends to use software-based banking andfinancing systems.

The Dutch financial sector is extremely well developed for a country the size of the Netherlands, and reflects itsmercantile history. It has the largest pensions fund in Europe in the form of ABP, which is also the secondlargest in the world with 1.1 million active members and €180 billion in invested funds. The country also hassome of the largest bank and insurance companies in the world which, if combined, command far more capitalthan the Dutch GDP. The insurance industry saw a resurgence in profits after a post-2002 slowdown. Legalchanges to the financial system known under the acronym nFTK have put tighter controls on the amount ofinterest offered to pension fund members, a system which could spread across Europe if the EU adopts it as partof a Europe-wide pension system.

Debit card usage increased considerably during 2007. Payment by debit card accounts for the vast majority ofelectronic payments at POS terminals. As advertising campaigns encourage consumers to use their debit card to

pay for small amounts at supermarkets, hypermarkets, convenience stores and fast food outlets, both transactionvolume and value are expected to increase.

The number and usage of credit and charge cards is relatively low, but growing. Consumers rely on their debitcards for daily payments. “Credit card” is synonymously used as a term for credit and charge cards and areviewed as back-up cards, which are predominantly used while travelling abroad. Dutch issuers aim to convinceconsumers of the benefits of credit cards and to overcome reservations about security and spendingmanagement. About 48% of Dutch people own a credit card, with a quarter of these claiming never to use it,forcing banks to offer more attractive deals.

Dutch households borrowed less money for consumption purposes in 2007 than in the preceding years.Consumer credit balances fell by 3% to €9,348 million. Overdrafts on current accounts increased, however, withthis appearing to be the preferred method of obtaining consumer credit. However, consumers are also borrowing

increasing amounts on their credit cards, with the total outstanding balance reaching €1,410 million in 2007.

Over the review period, the average value of cash withdrawal stagnated at an average of €114 per domestictransaction (average €147 per foreign transaction) and the number of transactions stagnated at around 60million, up 1% over the previous year, including domestic transactions and transactions abroad made by cardsissued in the Netherlands.

Payment by debit card accounts for about 98% of electronic payments at POS terminals. The remainder is madeup of e-purse (Chipknip) and credit card payments. Consumers used their bankcards with PIN more frequentlyin 2007. In total, almost 1.6 billion PIN payments were made in the review period. Supermarkets, petrol stationsand the fashion retail trade had the strongest share.

Consumers paid for over 30% of all shop purchases with PIN in 2007. Conversely, the number of cash payments

fell further, to below 65%. In 2003 cash payments accounted for 68% of shop purchases.

In 2007, campaigns further encouraged the use of debit cards for small value payments at the point of sale.Retailers will stop charging a fee at the point of sale for PIN usage for amounts smaller than €10. In 2007, 20%of shops charge consumers a surcharge of €0.10-€0.25 for payments below €10 by debit card.

In early 2007, the Dutch banks, together with the Dutch National Bank (De Nederlandsche Bank or DNB) andCurrence, created the SEPA NL Migration Steering Group. Its main task will be to prepare the way for theintroduction of new EPC-developed pan-European payment products in the Netherlands. From 2008, three newpayment products will be introduced: credit transfer, direct debit and card payments. These will replace thecurrent Dutch products following a transition period. During the transition period, the non-SEPA-compliantproduct will coexist with the new SEPA payment products. The current Dutch products cover an estimated 92%of total domestic non-cash payments.

For the Netherlands, the migration to SEPA will be especially difficult. The Dutch payment system is alreadyvery efficient and characterised by low costs and prices compared to other European countries. Most other





European countries will therefore find it easier than the Netherlands to demonstrate the short-term benefits ofthe SEPA migration to all stakeholders. The downside of the current level of efficiency in the Netherlands is thatusers will worry about whether the same efficiency and cost levels will be preserved under SEPA.

There is a nationwide collective agreement on EMV, adhered to by all debit and credit card holders and retailinterest groups. Consequently, migration to EMV is taking place according to a migration path based on theeconomic lifecycle of POS terminals. This migration path implies that the EMV migration of POS terminalsshould be completed in 2013.

Over the last thirty years, Dutch consumers have become more positive about putting money into savingsaccounts. Even though economic downturns often have a negative effect on expected consumers savingbehaviour, in the second quarter of 2008, 81% of Dutch consumers thought it was worthwhile to put moneyaway in savings accounts. On the other hand, 15% percent of consumers said that saving was not worthwhile atthat point in time. While this is a difference of 66 percentage points, thirty years ago this difference was only14.

Consumers ages 18-35 are the most positive demographic about the use of savings, with this positive attitudediminishing as age rises.

Internet savings however are waning. By the end of 2007, the aggregate amount deposited in internet savingsaccounts by Dutch households exceeded €66 billion, a decrease of nearly €8 billion compared to the end of2006. According to figures published by Statistics Netherlands, this is the first time since 2002 that theaggregate amount in on-line savings accounts declined.

In 2007, the average Dutch household deposited €9,000 in internet savings accounts, compared with more than €10,000 at the end of 2006. Interest is declining, because banks have started offering higher interest rates onforms of fixed-term saving. For the average saver, it is now more profitable to transfer their internet savingsaccount to a fixed-term savings account.

Impact

The need for flexible consumer credit will fuel demand for credit cards in the Netherlands during the forecastperiod. Current account overdrafts are expected to further be used for consumer credit.

The outstanding mortgage debt showed an unbroken rise for many years. In 2007, total lending, which is mainlydriven by mortgages, reached more than €630 billion, up 5% compared with 2006. Internationally speaking,also, the debt is high. Government policy, favourable economic conditions and consumers taking advantage ofspecific economic circumstances are the underlying reasons. The combination of these factors is unique to andcharacteristic of Dutch housing and encourages people to finance a house purchase with borrowed funds.

An important reason for the decline in newly issued mortgages can be found in the rising capital market interestrates. Capital market interest rates increased from as low as 3.2% in 2005 to 5% in 2007. This reduced thenumber of refinancing mortgages in particular. A large percentage of homeowners have already refinanced theirmortgage. For those who have not, higher interest rates are acting as a deterrent to many.

Although the number of new mortgages issued also declined, this trend was less sharp. The output of newmortgage loans is much less volatile than refinancing and is in keeping with a decline in the number oftransactions in housing sales. Home mortgages accounted for 80% of the total €14 billion increase in householddebt. Household debt was meanwhile higher than the total monetary value of all goods and services produced inthe Netherlands (GDP) in 2007.

Two controversial trends can be observed in the Netherlands. The number of cash payments will decreasefurther during the forecast period as usage of card transactions increases. This will reduce demand for cash foreveryday purchases. The number of ATM terminals is meanwhile expected to increase further, as retail bankscompete for share, especially in urban areas.

SEPA migration is ongoing, and is working towards migrating all existing Dutch credit transfer and direct debit

products to their European replacements, replacing all existing Dutch account numbers with by IBAN accountnumbers and migrating the card payment infrastructure to full EMV and SCF compliance.





One of the requirements for SEPA Cards Framework (SCF) compatibility is that cards, POS terminals, ATMsand the underlying payment infrastructures are equipped with EMV chip technology. In the Netherlandsmigration to EMV technology began in 2005.

EMV migration is ongoing for all formats. Debit cards started their roll-out for EMV migration in the finalquarter of 2006, with completion expected in 2010. Credit cards are already 30% migrated. Completion of theroll-out is expected in 2008. ATM terminal migration is expected to be completed in 2007. POS terminalmigration started by the end of 2007. However, due to dependence on merchants and terminal suppliers, 100%migration is not expected before 2013.

Dutch banks issuing debit cards will have to decide what approach to follow from 2008 onwards. They may optfor a co-branded card with PIN and an international card scheme or issue a card with an international cardscheme that can also be used domestically.

Pensions

The Dutch pension system is based on an old age pension of up to 70% of a worker's current wages. For olderemployees in particular, the attainable pension will be much lower. Pensioners’ incomes consist of AOW, which

is the national old age pension scheme (which is the same for everyone), plus a work-related payment thatemployees have built up in the course of their careers. Low-income workers do not build up much work-relatedpension. For this group the AOW forms a relatively large part of their income after retirement, which helpscompensates the reduction in wages. This effect is particularly marked amongst female pensioners. Womenoften earn less than men because they work part-time and in lower paid jobs. This makes the pension they canattain relatively high in relation to their wages, but lower overall than their male counterparts. The gap is evengreater in the older age brackets, because women in those age brackets worked less. The pensions built up bywomen are also substantially lower than those of men. This difference applies to all age groups.

For employees over age 55, the attainable pension as a percentage of their wage is lower than for youngerworkers. This is mainly because many people over age 55 with a high pension build-up retire before age 65.This reduces the average build-up of the older people who continue to work. This generation may also have aworse pension build-up as they do not build up pension rights in every sector of industry. They often only began

building up pension rights at age 25. Switching jobs also led to substantial breaks in pension rights.

Impact

As the Netherlands enters recession many people will lose their jobs, which will affect their pensioncontributions. Older workers who are approaching retirement who do not plan their finances effectively will beat risk of losing some or all of their personal pensions if they are invested in share schemes, rather than in cashplans. This will be particularly dangerous if they have a low wage. The dip in value of share plans will not besuch a problem for younger workers as the schemes will recover their value in the long term; the risk they faceis that of being made redundant.

Table 156 Consumer Expenditure on Insurance: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007


Table 157 Consumer Expenditure on Insurance (% Analysis and % Growth): 1995-2007/2000-2007

% analysis/% growth1995-2007 2000-2007






Table 158 Per Capita Expenditure on Insurance: 1995/2000/2002/2004/2006-2007

US$ per capita

1995 2000 2002 2004 2006 2007

Insurance 539.33 521.88 554.70 904.61 1,088.70 1,248.65Average of CLIFE 140.78 140.21 148.65 199.77 221.66 251.84countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 159 Per Capita Expenditure on Insurance (% Growth): 1995-2007/2000-2007

% growth1995-2007 2000-2007

Insurance 131.52 139.26Average of CLIFE countries 78.90 79.61Source: National statistics, OECD, Eurostat, Euromonitor International

Table 160 Consumer Expenditure on Financial Services: 1995/2000/2002/2004/2006-2007

EUR million1995 2000 2002 2004 2006 2007


Table 161 Consumer Expenditure on Financial Services (% Analysis and % Growth): 1995-2007/2000-2007

% analysis/% growth1995-2007 2000-2007


Table 162 Per Capita Expenditure on Financial Services: 1995/2000/2002/2004/2006-2007

US$ per capita1995 2000 2002 2004 2006 2007

Financial services 376.10 455.78 420.64 546.71 593.43 676.86Average of CLIFE 144.87 149.09 146.44 190.80 219.71 250.21countriesSource: National statistics, OECD, Eurostat, Euromonitor International

Table 163 Per Capita Expenditure on Financial Services (% Growth): 1995-2007/2000-2007

% growth

1995-2007 2000-2007




For slow trends where it is interesting to look at a long period as well as projections, data is presented for 1995,2000, 2005, 2007, 2010 and 2015. Fast-moving trends are illustrated with datasets relating to 1995, 2000, 2002,2004 and 2006-2007.

DEFINITIONSCLIFE: Consumer Lifestyles Countries (as listed below)

Euromonitor International’s Consumer Lifestyle series covers the following countries:

Summary 1 Country Coverage

Eastern Europe Belarus - Bulgaria - Croatia - Czech Republic - Estonia- Hungary - Latvia - Lithuania - Macedonia -Poland -Romania - Russia - Serbia and Montenegro - Slovakia-Ukraine - Slovenia

Western Europe Austria - Belgium - Denmark - Finland - France -

Germany - Greece - Ireland - Italy - Netherlands -Norway - Portugal - Spain - Sweden - Switzerland -Turkey - United Kingdom

Australasia Australia - New Zealand

Asia Pacific Azerbaijan - China - Hong Kong, China - India -Indonesia - Japan - Kazakhstan - Malaysia - Pakistan- Philippines - Singapore - South Korea - Taiwan -Thailand - Turkmenistán - Uzbekistán - Vietnam

North America Canada - United States

Latin America Argentina - Bolivia - Brazil - Chile - Colombia - CostaRica - Dominican Republic - Ecuador - Guatemala -Mexico - Peru - Uruguay -Venezuela

Middle East and Africa Algeria - Cameroon - Egypt - Iran - Israel - Kenya -Kuwait - Morocco - Nigeria - Saudi Arabia - SouthAfrica - Tunisia - United Arab Emirates

Source: Euromonitor International

Consumer Lifestyle Netherland

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Transcript of Consumer Lifestyle Netherland