Dutch people spend 2.1 billion euros a year on groceries in Germany and Belgium

More and more Dutch people are shopping across the border—mainly in Germany, but also in Belgium. The food industry fears that if the Dutch government introduces a sugar tax, this trend will only gain momentum, since price is the main driver of cross-border shopping.

Four in ten Dutch people shop across the border

Dutch consumers are estimated to already spend 2.1 billion euros per year on groceries across the border: Germany attracts more than 15 million grocery shopping trips annually, and Belgium nearly 4 million. Four in ten Dutch people occasionally cross the border to do their grocery shopping. In border regions, as many as 55 to 70 percent of consumers shop in neighboring countries, according to the Dutch Food Industry Federation (FNLI). As a result, the Dutch treasury loses at least 340 million euros in tax revenue annually.

Research by EFMI Business School shows that price is the main motive for cross-border shopping. It is not the general price level, but the price of specific products that prompts consumers to shop across the border. Examples include alcoholic and non-alcoholic beverages, on which the Netherlands imposes relatively high taxes and excise duties.

The Dutch government’s plan to introduce a sugar tax in 2030 is therefore a cause for concern in the food sector. This proposed sugar tax threatens to make certain groceries 10 to 20% more expensive. In addition to higher prices in the Netherlands, the FNLI fears this will also cause a further shift in spending toward other countries.