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Consumer Lifestyles - Netherlands

Euromonitor International May 2009

Consumer Lifestyles

Netherlands

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: 1995/2000/2002/2004/20062007................................................................................................................................. 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): 19952007/2007-2015............................................................................................................... 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): 19952007/2007-2015............................................................................................................... 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-/19952007/2007-2015............................................................................................................... 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): 19952007/2000-2007............................................................................................................... 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 (% Analysis and % 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): 19952007/2000-2007............................................................................................................... 58 Table 91 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, travel goods: 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 (% Analysis and % 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): 19952007/2000-2007............................................................................................................... 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: 1995/2000/2002/2004/20062007................................................................................................................................. 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: 1995/2000/2002/2004/20062007................................................................................................................................. 92 Table 135 Per Capita Expenditure on Communications (% Growth) 1995-2007/20002007:................................................................................................................................ 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): 19952007/2000-2007............................................................................................................... 93 Table 138 Penetration of Cable and Satellite Television: 1995/2000/2002/2004/20062007................................................................................................................................. 93 Table 139 Penetration of Cable and Satellite Television (% Growth): 1995-2007/20002007................................................................................................................................. 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): 19952007/2000-2007............................................................................................................. 102 Table 148 Consumer Expenditure on Accommodation: 1995/2000/2002/2004/20062007............................................................................................................................... 102 Table 149 Consumer Expenditure on Accommodation (% Analysis and % Growth): 1995-2007/2000-2007 ................................................................................................... 102 Table 150 Per Capita Expenditure on Accommodation: 1995/2000/2002/2004/20062007............................................................................................................................... 102 Table 151 Per Capita Expenditure on Accommodation (% Growth): 1995-2007/20002007............................................................................................................................... 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): 19952007/2000-2007............................................................................................................. 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: 1995/2000/2002/2004/20062007............................................................................................................................... 109 Table 161 Consumer Expenditure on Financial Services (% Analysis and % Growth): 1995-2007/2000-2007 ................................................................................................... 109 Table 162 Per Capita Expenditure on Financial Services: 1995/2000/2002/2004/20062007............................................................................................................................... 109 Table 163 Per Capita Expenditure on Financial Services (% Growth): 1995-2007/20002007............................................................................................................................... 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 about the direction of their national economy. In March 2008, despite the storm clouds of the economic slowdown beginning to gather, optimists remained in the majority. By December 2008, however, with the economic downturn in full swing, all pretence of consumer confidence disappeared, and (again, according to Statistics Netherlands) economic pessimism became the prevalent attitude among the vast majority of Dutch consumers. Dutch consumers witnessed many of the signs of their countrys stagnating economy. For example, by the end of 2008 the value of Dutch exports to both European Union and non-EU countries had fallen by 5%, the first decline since 2004. The decline was led by Dutch exports to the UK, which fell by 8% during the year. This decline 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 economic conditions. These included cutting costs, dismissing temporary staff and reducing working hours. All of these actions affected the outlook of Dutch consumers. By the end of 2008, the government calculated that, in the fourth quarter, the Dutch economy had shrunken by 0.9% compared to the previous quarter, the largest quarter-by-quarter decline since the early 1980s. Overall, it was estimated that GDP grew by only 2% over 2008. After adjusting the output of previous quarters, the government announced that the countrys 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 in the Netherlands in the near term. In 2009, GDP growth in the Netherlands is projected by the EU to contract by 2% with all four quarters showing negative growth. GDP is projected to recover very slowly, contracting again by 0.2% in 2010. Dutch consumers purchased more items on credit than ever before in 2008, including cars and durable goods. Its expected that credit purchases will decrease in the near term as consumers try to pay down their debt in uncertain times. In many cases, consumers paying down debt will mean that theyll make fewer purchases or, at the very least, postpone purchases until theyre more comfortable with their financial situations. Exports and, in turn, manufacturing output are expected to continue to decline over the near term, and the repercussions 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 2000-2006 recession is expected to stagnate. In the short term, many Dutch consumers will find themselves in a position of having to reconsider what products they believe are essential and what products are non-essential and making hard decisions about what to buy, what to postpone buying or what not to buy at all. Overall, this will have a negative impact on many product sectors. For example, sales of larger and more expensive products and services, such as cars, foreign holidays, furniture and luxury items are expected to decline in the short-term. As well, investment in housing is expected to stagnate as consumers postpone purchases in uncertain times. Its expected that there will be a marked incidence of consumers trading down from branded goods to privatelabel products in the near term. This will be particularly evident in expenditure for food and non-alcoholic

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

Ageing Population
The most significant demographic trend in the Netherlands is the countrys ageing population, a phenomenon that is also occurring throughout the rest of Europe. Inhabitants of the Netherlands are living longer than before because of medical advances and improved health car products and services. Some people are also leading healthier 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 and pursuing professional careers, and they are getting married and having children at later ages (or not having children at all). For a number of other reasons, many young families are waiting longer to have children and having fewer of them. Overall, its projected that there will be far too few people working and paying taxes in the Netherlands to adequately support the burgeoning number of pensioners. What measures the government implements to address this will significantly affect the consumption patterns not only of the countrys pensioners but of those people that in the workforce, as well. There will also be an increased financial burden placed on the countrys healthcare sector as the number of patients suffering from age-related disorders grows. Again, how the government addresses this issue will affect consumer healthcare expenditure and influence spending patterns and trends throughout the country. On the other hand, Baby Boomers (those born between 1946 and 1964) are a relatively affluent population segment, and many in this group have saved and built up healthy pensions. In many ways, they have defined the modern consumer. During their working lives, they were not afraid to spend and borrow, traits not exhibited by members 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, its projected that more than 24% of the population will 60 years-old or older. In contrast, 17.6% of the Dutch population in 1995 was over 60 years of age. While the median age in 1995 was 35.8, its 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 will have a significant impact on consumer trends and spending patterns over the forecast period. On the other hand, its 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 a wide range of healthcare products and services. Sales of over-the-counter drugs and related products are expected 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 consumers prefer natural products to make them feel better or help them stay fit, so this niche segment of the market is expected to grow. The increasing number of older consumers will also drive sales in selected segments of the cosmetics and toiletries sector. In particular, sales of so-called anti-aging make-up and creams are expected to grow. As in the healthcare products sector, there is increasing demand for natural products in the cosmetics sector, and sales in this sub-sector should grow, as well. Many members of the Baby Boomer generation are relatively affluent, and as large numbers of them retire its projected 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 childrens clothing and footwear are expected to decline. Regardless, value sales are expected to grow over the forecast period as parents spend more on the fewer children that they have.

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Busier Lifestyles Drive the Need for Convenience


The lives of most Dutch consumers have become more hectic over the review period. Many have found themselves 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 themselves faced not only with a faster pace of living but with much more wider range of options on how to spend their free time. In particular, the lifestyles of many Dutch women changed over the review period as more of them chose or found it necessary to enter the workforce, either as full-time or part-time workers, often while in the midst of raising families. During the review period, the number of employed females in the Netherlands increased by nearly 33%, reaching 3.7 million in 2007. In short, during the review period a great number of Dutch consumers discovered that their time away from work was an increasingly precious commodity, and they began to seek out products and services that promised to save them valuable time. Outlook Many of the factors that have led to busier lifestyles among the population of the Netherlands are expected to intensify over the forecast period. For example, the number of urban households, which grew by 13% during the review period, is expected to increase by a further 8% over the forecast period. Most significantly, the number of Dutch women entering the workforce is expected to continue growing over the forecast period. This will have an 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 when making 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 families and friends and far more options for how that time is spent than in the past. Its projected that Dutch consumers, particularly single-family households and couples with no children, will drive 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 see increased sales. At the same time, household products that offer ease-of-use and convenience are expected to do well over the forecast period. For example, products such as microwave ovens that allow consumers to quickly defrost frozen foods and to quickly prepare ready meals are expected to continue to do well over the review period. Sales of dishwashers, which grew by 33% during the review period, are expected to continue to do well over forecast period, 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, the economic slowdown may influence how often many of these consumers dine out and how much they spend when 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 lifestyles among the population. The latest effort came in 2006, when the Ministry of Health introduced the 'Kiezen voor gezond leven' (Opting for a Healthy Life) initiative which set objectives for reducing the prevalence of smoking, 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 governments satisfaction. Over the review period, the number of obese adults continued to rise, while the number of smokers and heavy drinkers changed little over

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the period. As well, there was little if any growth in the number of people who reported to undertake regular exercise to keep fit. Regardless, there is a segment of the population which is aware of the benefits of healthier lifestyles and who seek products and services that support their quest for fitness and health. With continued government initiatives, its 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 European counterparts and attempt to smoke and drink significantly less or to get a great deal more exercise. The government reports that in 2008, 28% of the Dutch population aged 12 years and older smoked, a number unchanged from 2007. Although their number did decline over the review period, 10% of the Dutch population aged 12 years and older were still considered heavy drinkers (consumption of at least six units of alcohol at least once a week) in 2008. As well, from the early 1980s until 2005, the number of seriously obese adults in the Netherlands 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 than prepared and frozen foods, and fees for health clubs, spas and gyms can be high. Unfortunately, in times of economic uncertainly, these types of price increases and expenses are typical of those that many consumers hesitate to take on as they are forced to consider what is and what is not essential. On the other hand, theres little doubt that increased government efforts to promote healthier lifestyles and overall increased consumer awareness of the benefits of healthy living habits over the forecast period will eventually drive increased sales of health-related products and services. In particular, as the number of older consumers grows and as members of this group increasingly become concerned with their health, many product choices are expected to change. Impact Government initiatives and other health awareness programs are expected to have a positive impact on a wide range of products and services in the Dutch market over the forecast period. On the other hand, its anticipated that sales of health-related products will not grow at rates as robust as those in other European countries. Regardless, its expected that sales of such healthy foods like fish, vegetables and yogurt will increase while sales of less healthy foods like oils and fats will decline. As well, demand for exercise equipment and other products related to getting and staying fit are expected to increase over the forecast period, albeit again not at the same 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 quickly than 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 the growth of internet retailing. In 2000, it was estimated that there were 3,000 online retailing sites in the Netherlands. By 2005, that number had reached 10,000. A large percentage of Dutch consumers has become accustomed to buying products and services online from internet retailers. In 2000, less than 19% of overall Dutch internet users reported making an online purchase. By 2005, 52% of internet users had made an online purchase, 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 in the overall retail environment in the Netherlands. Dutch consumers have overcome early suspicions regarding the safety and reliability of online retailers. Online stores have overcome most privacy and safety issues and have become far more effective in completing sales and delivering purchased products in a timely manner.

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Outlook In 2007, the average time spent per day connected to the internet by Dutch users was 80 minutes, almost double the 2006 figure, and there is nothing to indicate that internet usage will do anything but grow over the forecast period. Overall, more computers, faster connection speeds and more online sites will all combine to drive double-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 to travel and tourism. Other popular products bought online included books and CDs, clothing, tickets to concerts and other events and second-hand goods. Online sales of all of these products and services are expected to increase over the forecast period. As Dutch consumers get more access to high-speed connections, as more online sites spring up and as more consumers become comfortable with buying online, the channel will experience dynamic growth and internet retailers will capture a significantly larger distribution share in the Dutch 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, its anticipated that food and grocery sales via the internet will grow over the forecast period, particularly as costs decline, delivery services improve and as harried 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 number considering its small size (approximately 41,000 square kilometres). In terms of population, the Netherlands is the largest of the small countries of Western Europe. It is significantly smaller than neighbouring countries such as 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 populated countries 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 declined somewhat 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 the restrictive migration policies implemented by the governments of Jan-Peter Balkenende (who became prime minister in 2002), which led to stricter regulations for all types of migration, including family and marriage migration, a sharp decline in the number of asylum seekers (from 53,000 requests in 1994 to 10,000 in 2007 according 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 of 2008 there were more immigrants than emigrants. Moreover, in the first half of 2008, birth rate decline seems to have come to an end, as more children were born than in the previous eight years. Accordingly, the population is likely 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 age was 35.8 years; by 2015, this will have risen to 42.6 years old. The so-called baby boom generation, born in the years after World War II, will soon retire, which is likely to have a significant impact on Dutch society and the economy. Political parties disagree on issues such as whether elderly people with a relatively high income should contribute to the Algemene Ouderen Wet (AOW) allowance, which every Dutch citizen older than age 65 receives, and whether or not the age at which people retire should be raised. As a result, no significant social security reforms have been implemented yet. As the baby boom generation is about to reach the age of retirement, and developments in medical science allow people to live longer than ever before, the number of senior citizens will rise significantly in the 2010s and 2020s.

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Birth rates declined during the review period, while the average age of women at childbirth rose. Women are now waiting longer to have children than in the past, which is due to a number of factors. These include the pursuit of professional careers, the easy availability of contraception (which is paid for by most health insurance companies) and the fact that more people tend to marry at a later age, or not at all. As child care and education are provided and paid for by the state, at least partly, and parents get monthly allowances, finances do not seem to be the main reason people wait longer before having children, or for not having children at all. Rather, this trend is due to shifting attitudes towards professional careers, family life and relationships. Despite the availability of child care facilities, combining parenthood with a successful professional career continues to be difficult. The number of women working part-time is much higher than men, and, as a result, women continue to earn less than their male colleagues. However, the declining birth rate seems to have come to an end in 2008, when for the first time since 2000 a rise in the number of births was reported, and in particular, in the number of second and third children per family. This may well be due to the economic growth of 2006 and 2007. Impact As the population is ageing, the market is changing. In the coming years, large numbers of the population will retire. However, since they are, in general, still healthy and relatively wealthy, they constitute a significant group of consumers. Traditionally, few advertising campaigns focused on the elderly, but this is likely to change. In recent years, only some financial products, life insurances and some vitamin drinks were marketed more or less explicitly towards older consumers. However, luxury goods, clothing, cosmetics, cars and other products which now tend to identify themselves in campaigns with successful, young people in their 30s may well change their strategies so that they will seem more attractive for consumers in their 60s and 70s. The tourism industry is likely to gain from these changing demographics. As people will have more free time, and continue to be healthy, they are likely to spend more time and money on holidays not just package holidays to, say, the Aegean Sea, but also high-quality, organised cultural tours to more faraway destinations, which are now offered only by a few small-scale travel agencies. Likewise, the cultural sector has much to gain, as people will have more time for activities like museum visits, theatre, concerts and reading. At the same time, health is a growing concern for the ageing population. Food products and cosmetics which are marketed as healthy are likely to sell well not only to older consumers, but also to younger people, for whom healthy (and, preferably, organic) products are also considered important and even trendy. On the other hand, despite declining birth rates, there will continue to be a market for baby products and toys. As the average age at which people have children rises, they can generally afford to spend more money per child. Moreover, since the number of people in their teenage years or 20s will remain relatively stable in the coming years, there will be a continuing demand for youth products, including fashion products, pop music and entertainment. As a result of a number of migration waves between the 1960s and 1990s, the population of the Netherlands is ethnically very varied, particularly in the main cities. This has led to a number of international cultural influences which have changed youth culture, as well as national cuisine and musical preferences. An interesting example of the new fusion culture would be Dutch teenagers of Moroccan descent, making hip-hop music in which they combine American, Arabic, Berber and Dutch vocabulary. At the same time, trendy Japanese bags and clothing are popular amongst many young people, most of whom listen to American popular music (as well as to home-made trance music). Youth culture has become increasingly multicultural, which is something marketers need to take into account.

Population by Gender
In 2007, the male-female ratio was still practically the same as in 1995 at 50.6% females versus 49.4% males. The statistics suggest that, by 2015, there will be a small change, with the percentage of men rising very slightly. The difference is due to the fact that women still have a higher life expectancy than men. In 2007, the female life expectancy was 82.3 years, whereas male life expectancy was 78.0 years. More boys are born than girls, and until about age 65, there are slightly more men than women. However, from age 65 onwards, the higher the age, the higher the percentage of women.

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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 not completely disappeared. Whereas the number of Dutch people dying in conflict since World War II has been very low, men continue to work more than women and live less healthy lifestyles. According to the CBS, on average, men smoke and drink more than women. Impact In general, men and women have different spending patterns, and advertising campaigns differ likewise. Womens 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 mens magazines, commercials before and after typical mens programmes such as football games), on the other hand, typically advertise alcoholic beverages (beer and spirits), cars, cosmetics, sports brands and luxury goods such as watches. Advertisements and commercials continue to emphasise and strengthen traditional gender images and divisions. Especially when it comes to clothing, cosmetics and accessories, gender differences are very real and strongly influence consumer behaviour. Marketing companies in general reinforce the gender associations of certain products, and consumers seem to be attracted by products that are marketed, implicitly or explicitly, as either particularly masculine or particularly feminine.

Population by Marital Status


General attitudes towards marriage have changed significantly over the past few decades. In particular, marriage is no longer seen as a necessary prerequisite for a couple to live together and have children. Religious views of marriage as a divinely confirmed bond are no longer the rule. As a result, more people choose not to hold a church wedding service in addition to their civil marriage (which is required for everyone). Since 2001, the Netherlands 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 is gradually declining, while the number of single people (people who are not or have not been married) is gradually increasing. From 2002-2007, single people outnumbered married people, and accordingly, the number of 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 the contrary, mediums such as dating shows on TV and advertising campaigns continue to portray marriage as the ideal social unit. The Social Democratic-Christian coalition government in power in 2008 made family life and education one of its priorities (one of the vice-prime ministers served as Minister of Youth and Family). As a rule, married couples with children benefit more from social security and government allowances than single people, 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 28.8 years, and of men from age 29.4 to age 31.5. It seems as if the majority of people in their 20s give priority to investing in their careers, and to experiencing a number of short- or long-term relationships before they finally decide 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 the number of children born outside marriage has increased. This latter increase is quite dramatic, and illustrates the declining popularity of marriage. Between 1995-2007, the percentage of all children born outside marriage rose from 15.5% to 39.7%. Given changing attitudes towards marriage, it comes as no surprise that the number of divorced people continues to rise as well. However, the divorce rate declined between 1995 and 2007, which suggests that although 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

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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 the major cities. As waiting lists for the semi-public (government-funded) housing corporations are sometimes as long as 10 years, several commercial housing agencies have sprung up which let single-person studios and flats for 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 and appliances. 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. Singleperson households constitute a varied and interesting group of consumers. Families living together tend to spend more money than single people on household appliances, furniture, and food, and if they have children, on education, toys and clothing. On the other hand, as a rule they spend less on luxury products, eating out and nightlife. However, the declining marriage and birth rates do not necessarily point to a declining market for household appliances, furniture, toys and the like. First, more people nowadays live 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 almost a 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 of living (and, in particular, costs of student accommodation) have rocketed in some cities, and the university educational 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 programmes officially lasted four years; in reality, students usually took a few years more, as they were encouraged to follow extra courses, become active members of faculty committees and join student associations and fraternities. In 2002, this leisurely system gave way to the new, international, bachelor-masters system (with the exception of medical 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 international university. On the downside, however, the increasing costs (tuition fees and living costs), as well as an institutional focus on efficiency and speed (government funding of universities being dependent on how many students graduate, and how quickly) have resulted in students spending much less time studying and engaging in extracurricular activities, and graduate faster. According to some, this development has led to an overall deterioration in the quality of higher education. In general, higher education is considered important for a professional career. A clear difference is maintained between the professionally-oriented Hoger Beroeps Onderwijs (HBO) institutions, and the traditional academies, which are the only ones allowed to consider themselves a universiteit, (university) is not protected, 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, but there is a clear difference in prestige and level of education. There are only about 15 official universiteit (for a total 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 is considered meaningless by most employers, who might ask a candidate with only this degree why they have not finished 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 can be a disadvantage as those with a PhD degree have had less time to gain relevant work experience.

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Impact As anywhere, students generally are not the wealthiest members of society. Having said that, there are some products 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 wellknown Dutch website selling books, and it does not seem to specialise in study books, so there might actually be a niche there. Second, students spend heavily on alcoholic beverages. Many student fraternities (some of which have over a thousand members) have large buildings where students can get cheap beer; many beer manufacturers 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 clothing and other items printed with their groups name on them. Other products targeted at students include particular student-catered health insurances. There is also, of course, a constant demand for student accommodation, of which there continues to be a serious shortage in popular cities, including Amsterdam, Utrecht, Haarlem and Leiden, despite local government efforts to improve the situation. Would-be market entrants should bear in mind, however, that the price and location of the official, non-commercial student housing agencies are very hard to beat.

Population by Rural/urban Areas


There is very little discrepancy between rural and urban areas in the Netherlands. Of course, isolated villages in the north of the provinces of Groningen or Friesland are strikingly different from cosmopolitan cities like Amsterdam or Rotterdam, and there are some significant differences when it comes to language, social behaviour and ethnic composition. However, due to the small size of the country, almost everyone in the countryside 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 a population 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 are so blurred. Countryside villages are inhabited not only by conservative farmers, but also by progressives and office workers. The main cities are inhabited not only by rich yuppies and university students, but also by a wide variety of immigrants. However, that is not to say there are no differences at all, for there are. Economically, some rural, peripheral areas (for instance, East-Groningen and parts of Limburg) have traditionally suffered from a lack of investment and high unemployment rates notwithstanding national economic growth. Linguistically, many rural areas (such as Friesland, Limburg and Twente) have unique minority languages and dialects, which have experienced something of a revival in recent years (as exemplified by the recent popularity of poetry and TV soap operas in local dialects). In terms of religion, the so-called Dutch Bible Belt (a strip of land that goes from Zeeland and the isles of Zuid-Holland, via parts of Utrecht and the Veluwe region, to the province of Overijssel, and which has many mainly orthodox Calvinist churches of a variety of denominations) encompasses many differences, not only from 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; walking and cycling trips in the countryside are very popular. Farm life has re-entered popular imagination, partly as a result of the tremendously popular TV-show Boer zoekt vrouw (Farmer seeks a wife), a dating show in which city girls visit single farmers and help them on the farm. This development seems to be part of with a general trend 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-sized towns), these figures do not really suggest a trend. Shifting municipality boundaries, for instance, may well

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account for some of the urbanisation figures (sometimes smaller, rural municipalities are absorbed by larger cities. The emergence of a large new town or suburb within the municipality boundaries of a bigger city will also affect these figures. For instance, the seemingly dramatic population increase of Utrecht and to a lesser extent 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. The main immigrant populations live in the big cities. There are some exceptions to this rule for instance, there are large Moluccan groups in particular towns in Brabant and Drenthe but in general, this is the case. The largest minority 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 the CBS. The ethnic make-up of the cities, in particular the older quarters surrounding the city centres, have caused some tensions and fierce political debates in recent years. As a result, since 2002, subsequent governments have focused on the implementation of strict integration policies, including obligatory language and citizenship tests, and the improvement of living conditions in ethnically diverse neighbourhoods. The Netherlands (in particular 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. Walking and cycling are not looked down upon by holidaymakers. In general, people engaged in these activities are middle-aged or older, and are willing to spend some money on a comfortable bed (say, at a farm providing bed and breakfast) and a good meal ideally traditional cuisine. In France, so-called gtes rureaux (small-scale, high quality holiday accommodations on the countryside) are very popular, and this trend is gradually spreading in the Netherlands. If well marketed, good quality rural accommodation (and restaurants) can become very successful. Likewise, local cultural festivals and traditions can be advertised much more effectively than is now the 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 taken into account when it comes to marketing products. In general, second generation immigrants in big cities tend to be interested in brands and fashion and potentially constitute a significant consumer group.
Table 1 '000 1995 0-4 yrs 5-9 yrs 10-14 yrs 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Female Male TOTAL 989 945 904 922 1,145 1,302 1,314 1,220 1,146 1,167 884 757 694 621 556 382 476 7,797 7,627 15,424 2000 983 1,002 960 927 956 1,176 1,314 1,315 1,214 1,134 1,145 859 723 644 550 457 500 8,018 7,846 15,864 2005 1,011 988 1,010 979 969 993 1,191 1,314 1,308 1,202 1,114 1,114 824 678 578 460 574 8,240 8,066 16,306 2007 967 1,006 986 998 966 989 1,068 1,295 1,310 1,236 1,132 1,111 925 707 585 475 601 8,269 8,089 16,358 2010 908 998 981 1,010 992 979 982 1,168 1,290 1,285 1,176 1,081 1,075 778 618 494 625 8,306 8,133 16,439 2015 874 900 997 987 1,030 1,009 974 962 1,150 1,275 1,268 1,151 1,047 1,037 722 536 670 8,377 8,214 16,590 Population by Age and Gender: 1995/2000/2005/2007/2010/2015

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Source: Note:

National statistics, UN, Euromonitor International As of 1 January 2008

Table 2

Population by Age and Gender (% Analysis and % Growth): 1995/2007/2015/19952007/2007-2015

% of total Population 1995 0-4 yrs 5-9 yrs 10-14 yrs 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Female Male TOTAL
Source: Note:

2007 5.91 6.15 6.03 6.10 5.91 6.05 6.53 7.92 8.01 7.55 6.92 6.79 5.65 4.33 3.58 2.90 3.67 50.55 49.45 100.00

2015 5.27 5.42 6.01 5.95 6.21 6.08 5.87 5.80 6.93 7.69 7.65 6.94 6.31 6.25 4.35 3.23 4.04 50.49 49.51 100.00

1995-2007 -2.21 6.42 9.00 8.32 -15.64 -24.00 -18.69 6.16 14.26 5.89 28.04 46.75 33.13 14.01 5.27 24.49 26.29 6.06 6.04 6.05

2007-2015 -9.61 -10.56 1.14 -1.17 6.63 2.00 -8.77 -25.72 -12.22 3.21 12.03 3.60 13.22 46.59 23.51 12.74 11.53 1.30 1.55 1.42

6.41 6.13 5.86 5.98 7.42 8.44 8.52 7.91 7.43 7.57 5.73 4.91 4.50 4.02 3.60 2.47 3.08 50.55 49.45 100.00
National statistics, UN, Euromonitor International As of 1 January 2008

Table 3 years

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

1995 Median age of Population Median age: CLIFE countries


Source:

2000 37.28 28.03

2005 38.85 29.63

2007 39.62 30.23

2010 40.76 31.05

2015 42.63 32.32

35.75 26.26

National statistics, UN, Euromonitor International

Table 4 Years

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

1995-2007 Median age of Population Median age: CLIFE countries


Source: National statistics, UN, Euromonitor International

2007-2015 3.01 2.09

3.87 3.97

Table 5 '000

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

1995 Live births Deaths 190.51 135.68

2000 206.62 140.53

2002 202.08 142.35

2004 194.01 136.55

2006 185.12 135.81

2007 182.39 137.41

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Net migration Balance


Source:

14.93 69.77

57.03 123.13

27.56 87.29

-9.96 47.49

-25.53 23.78

-19.82 25.17

National statistics, UN, Euromonitor International

Table 6 % change

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

1995-2007 Live births Deaths Net migration Balance


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

2000-2007 -11.73 -2.22 -134.75 -79.56

-4.26 1.28 -232.74 -63.93

Table 7

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

per '000 inhabitants 1995 Birth rates Average of CLIFE countries


Source:

2000 13.0 17.0

2002 12.5 16.5

2004 11.9 16.3

2006 11.3 16.1

2007 11.1 16.0

12.3 18.7

National statistics, UN, Euromonitor International

Table 8

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

per '000 inhabitants 1995 Death rates Average of CLIFE countries


Source:

2000 8.8 8.4

2002 8.8 8.4

2004 8.4 8.3

2006 8.3 8.4

2007 8.4 8.4

8.8 8.6

National statistics, UN, Euromonitor International

Table 9

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

Percentage points 1995-2007 Birth rates Average of CLIFE countries


Source: National statistics, UN, Euromonitor International

2000-2007 -1.83 -1.01

-1.18 -2.68

Table 10

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

Percentage points 1995-2007 Death rates Average of CLIFE countries


Source: National statistics, UN, Euromonitor International

2000-2007 -0.43 -0.01

-0.38 -0.21

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Table 11 As stated

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

1995 Fertility rates (children born per female) Average age of women at first childbirth (years) Average age of women at childbirth (years) Births outside marriage (per 100 births)
Source:

2000 1.72 29.10 30.70 24.94

2002 1.73 29.20 30.90 28.96

2004 1.73 29.33 30.99 32.49

2006 1.75 29.39 31.06 37.06

2007 1.75 29.44 31.10 39.73

1.53 28.60 30.20 15.52

National statistics, Euromonitor International

Table 12 as stated

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

1995-2007 Fertility rates (percentage points) Average age of women at first childbirth (years) Average age of women at childbirth (years) Births outside marriage (percentage points)
Source: National statistics, Euromonitor International

2000-2007 0.03 0.34 0.40 14.79

0.22 0.84 0.90 24.21

Table 13 '000/as stated

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

1995 Married Divorced Widowed Single Average age of men at first marriage (years) TOTAL Average age of women at first marriage (years) Average age of men at marriage (years) Average age of women at marriage (years)
Source:

2000 7,071 862 882 7,049 30.30 15,864 27.82 34.10 31.10

2002 7,049 920 883 7,253 30.70 16,105 28.21 34.70 31.60

2004 7,031 960 877 7,390 31.05 16,258 28.40 35.17 32.00

2006 6,969 999 869 7,497 31.33 16,334 28.60 35.52 32.30

2007 6,939 1,016 864 7,539 31.52 16,358 28.75 35.78 32.53

7,082 731 876 6,736 29.40 15,424 27.10 32.40 29.60

National statistics, Euromonitor International

Table 14

Population by Marital Status (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007

as stated 1995 Married (% of total Population/% change) Divorced (% of total Population/% change) Widowed (% of total Population/% change) 45.91 4.74 5.68 2000 44.57 5.43 5.56 2007 42.42 6.21 5.28 1995-2007 -2.01 38.91 -1.31 2000-2007 -1.87 17.86 -2.02

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Single (% of total Population/% change) TOTAL Average age of men at first marriage (change in years) Average age of women at first marriage (change in years) Average age of men at marriage (change in years) Average age of women at marriage (change in years)
Source:

43.67 100.00 -

44.43 100.00 -

46.09 100.00 -

11.92 6.05 2.12 1.65 3.38 2.93

6.95 3.11 4.02 3.32 4.94 4.61

National statistics, Euromonitor International

Table 15

Marriage Rates: 1995/2000/2002/2004/2006-2007

per '000 Population 1995 Marriage rates Average of CLIFE countries


Source:

2000 5.6 5.5

2002 5.2 5.3

2004 4.5 5.3

2006 4.3 5.3

2007 4.2 5.3

5.3 5.8

National statistics, Euromonitor International

Table 16

Divorce Rates: 1995/2000/2002/2004/2006-2007

per '000 Population 1995 Divorce rates Average of CLIFE countries


Source:

2000 2.2 1.7

2002 2.1 1.8

2004 1.9 1.8

2006 1.8 1.8

2007 1.8 1.8

2.2 1.7

National statistics, Euromonitor International

Table 17

Marriage Rates (Actual Growth): 1995-2007/2000-2007

Change in percentage points 1995-2007 Marriage rates Average of CLIFE countries


Source: National statistics, Euromonitor International

2000-2007 -1.34 -0.24

-1.07 -0.57

Table 18

Divorce Rates (Actual Growth): 1995-2007/2000-2007

Change in percentage points 1995-2007 Divorce rates Average of CLIFE countries


Source: National statistics, Euromonitor International

2000-2007 -0.43 0.13

-0.46 0.15

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Table 19

Population by Highest Educational Attainment: 1995/2000/2002/2004/2006-2007 1995 2000 0 1,746 8,236 2,936 2,946 15,864 6 18 503 488 2002 0 1,669 8,305 3,133 2,998 16,105 6 18 517 2004 0 1,613 8,359 3,271 3,016 16,258 6 18 543 2006 0 1,557 8,371 3,423 2,985 16,334 6 18 571 2007 0 1,533 8,381 3,486 2,959 16,358 6 18 584

No education ('000) ('000) Primary 000) Secondary 000) Higher 000) Other ('000) TOTAL ('000) Compulsory education commencement age (years) School leaving age (years) Higher education students inc. universities ('000) ('000)
Source:

0 1,907 8,186 2,493 2,838 15,424

National statistics, Euromonitor International

Table 20

Population by Highest Educational Attainment (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 1995 2000 0.0 11.0 51.9 18.5 18.6 100.0 2007 0.0 9.4 51.2 21.3 18.1 100.0 -19.63 2.38 39.84 -1.7 6.05 16.18 -12.22 1.75 18.73 -2.6 3.11 19.82 1995-2007 2000-2007

No education (% of the Population / % growth) Primary (% of the Population / % growth) Secondary (% of the Population / % growth) Higher (% of the Population / % growth) Other ('000) TOTAL (% of the Population / % growth) Higher education students inc. universities (% of the Population / % growth)
Source:

0.0 12.4 53.1 16.2 18.4 100.0 -

National statistics, Euromonitor International

Table 21

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

% of Population aged 15+ 1995 Adult literacy rate Average of CLIFE countries
Source:

2000 99.1 90.5

2002 99.2 91.2

2004 99.3 91.7

2006 99.4 92.2

2007 99.5 92.5

96.1 86.1

National statistics, Euromonitor International

Table 22

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

Percentage points 1995-2007 2000-2007

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Adult literacy rate Average of CLIFE countries


Source: National statistics, Euromonitor International

3.36 6.41

0.34 2.01

Table 23 '000

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

1995 Urban households Rural households Major cities Amsterdam Rotterdam The Hague Utrecht Eindhoven
Source:

2000 4,515.77 2,285.23 731 593 441 234 202

2002 4,607.84 2,326.42 736 599 458 261 205

2004 4,714.52 2,343.43 737 600 467 270 207

2006 4,819.96 2,340.98 737 601 478 277 209

2007 4,867.62 2,332.33 737 601 483 281 210

4,306.97 2,161.72 722 598 443 236 197

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 stated 1995 Rural households (% of households/% growth) Urban housholds (% of households/% growth) Major cities Amsterdam (% of Population/% growth) Rotterdam (% of Population/% growth) The Hague(% of Population/% growth) Utrecht (% of Population/% growth) Eindhoven (% of Population/% growth)
Source:

2000 33.60 66.40 4.61 3.74 2.78 1.47 1.27

2007 32.39 67.61 4.51 3.68 2.95 1.72 1.28

1995-2007 7.89 13.02 2.08 0.53 9.07 19.17 6.59

2000-2007 2.06 7.79 0.81 1.47 9.52 20.17 4.07

33.42 66.58 4.68 3.88 2.87 1.53 1.28

National statistics, Euromonitor International

Table 25 people per sq km

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

1995 Population density Average of CLIFE countries


Source:

2000 468.2 260.7

2002 475.4 266.3

2004 479.9 269.9

2006 482.1 278.3

2007 482.8 281.8

455.3 239.8

National statistics, Euromonitor International

Table 26

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

Percentage points 1995-2007 2000-2007

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Population density (people per sq km) Average of CLIFE countries


Source: National statistics, Euromonitor International

27.56 41.99

14.58 21.16

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 the review period, and a further decrease is projected over the forecast period. In 1995, there were 589,000 babies and infants; by 2015 there will be an estimated 524,000. In the same period, the average age at which people have their first children rose, as has the number of children per household. With the overall rise in disposable income, people are able to spend more money on fewer children. As a result, value sales are likely to increase while 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 increasingly tries to influence and monitor the ways in which people raise their children. This is exemplified by the planned nationwide implementation of an electronic dossier, containing personal and medical details for every Dutch child. Impact Despite the decline in the total number of babies and infants, there is no reason to assume that there will be a significant decline in demand for durable baby products such as clothing and toys. People are likely to buy more of these goods per child because of increased disposable income. For instance, in the mid- to late 2000s, the number of toys and sweets sold in November and December has increased significantly, due to the continuing popularity 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 has risen, 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 a decline in sales, simply because there will be fewer children using those products. This does not apply to clothing and other durable goods. Traditionally, in large families, it is common for baby products and clothing to be reused by younger siblings, rather than bought new. Thus, the fewer children per household, the more likely the parents are to buy new baby products rather than use second-hand goods, especially if they have the income 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 their children after they have already established a career, by which point they have higher incomes, and as the number 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, the children's opinions should be taken into account not only for products explicitly for them, but also for other products such as holidays, furniture and household goods since family decisions regarding the purchase of goods, 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 the internet. 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, advertisers will no longer make commercials for food products targeted at children younger than age seven. So far,

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advertisements for toys and other products are allowed; however, considering the public debates as well as the current governments concern for childrens 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 no longer uncommon for young children of seven and eight years old to own MP3 players or mobile phones. Many children 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, of course, clothing and shoes. Most luxury products such as toys and games are bought in November and December, as the number of people celebrating Sinterklaas on 5 December is increasing. In 2008, despite the fact that people have less confidence in the economy, trade organisations expect a rise in total Sinterklaas spending. Young children today have more input when it comes to decisions regarding the purchase of goods that the entire family benefits from, such as furniture, food and holiday destinations. Companies and retailers selling these products should bear in mind that making their products attractive to children can be key to convincing the parents. This is particularly the case with products, such as clothing and shoes, which children choose themselves (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 sold in 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 in size in the near future. During the review period (1995-2007), this age group increased from 717,000 to 780,000 people; this is projected to rise further to 800,000 in 2010, then drop to 773,000 in 2015. They are an increasingly powerful and affluent group of consumers. What applies to younger children, applies even more to tweenagers: they have input in family decisions, they own electronic products like mobile phones and MP3 players, and parents spend more money on them as families 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 4.60 according to Nationaal Instituut voor Budgetvoorlichting (NIBUD) 2006 research. Moreover, regulations prohibiting 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 in this age group take music lessons. In general, children in higher income families are more likely to be active in sport 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 items like mobile phones and iPods. Moreover, as a rule they are very active on the internet, which has given rise to debates about regulating internet advertisements. Sport goods, fashion, computer games, electronics, books and magazines are other products this group is interested in. By far the most popular magazine, which is primarily targeted at this age group, is the Donald Duck, one of the best-read magazines of the Netherlands, with a circulation of over 300,000. Advertising in this magazine or a related medium is seen as an effective way to reach a significant proportion of this age group. In the mid- to late 2000s, given the general increase in disposable income, more children have joined sport clubs. Accordingly, sports products (such as hockey sticks, tennis rackets, footballs and sport clothing) are in demand. 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.

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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 is significantly 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 to pocket money, from the time they are about age 13 many teenagers also get clothing money, so they can decide individually on the clothing they purchase. Accordingly, at this age they usually get their own bank accounts with debit card, so they can pay for clothing in shops or get cash at cash points. Moreover, from the time they are about 15-16 years old, many teenagers have part-time jobs, especially during the summer holidays. As a result, 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 different types 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 enter university directly. Curricula and final examinations are, in theory, standardised and similar nationwide. In reality, 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 and free, although schools may ask parents for small contributions for school trips and other additional expenses. In principle, education is compulsory until age 16, or 18 if the student has not received a school leaving certificate by age 16. Impact Since teens have some freedom when it comes to decisions about spending their money, and often have parttime jobs, they are an economically powerful group whose autonomy increases as they grow older. In fact, many people in their late teenage years can afford to spend money on fashion and other luxury products, which students in higher education living independently cannot. Popular culture and fashion trends change quickly. As a 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 in products such as accessories and make-up, laptop computers and other electronics, video games, films and music 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) is allowed from age 16 (spirits are allowed from age 18). Accordingly, the minimum age to enter most clubs and bars is 16. However, many younger teenagers also drink, at times excessively, which is the topic of much public debate. 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 secondary school than primary school students, especially in rural areas. School books are provided by schools and, to a large extent, financed by the state.

Students
From 1995-2007, the number of people having completed higher education rose significantly, from 2.5 million in 1995 to 3.5 million in 2007. In 2007, there were 584,000 students enrolled in higher education, as opposed to 488,000 in 2000. Unlike teenagers, the economic position of students in higher education seems to have not improved in recent years. Increasing numbers of students have student loans and part-time jobs, and spend less time on their

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studies. This is because tuition fees and housing costs have risen significantly in the 2000s. Moreover, young people are increasingly leaving their parents homes, and live independently at an earlier age than students did in 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. It also means that, as the number of housing units has not kept pace with the growing number of students living independently, it has become more difficult to get official, state-funded student accommodation. Many students end 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. For instance, companies hand out free products during university introduction weeks, or make special deals with student fraternities. These products include newspapers and opinion magazines which usually have special offers for students as well as food and drink (in particular, beer brands), financial services (special bank accounts for students) and health insurances. People tend to remain true to brands they are familiar with and have used since they were young. If a student gets used to a particular newspaper, or drinks a particular kind of beer most of the time, they may well stick to that product for the rest of their lives, provided that they are satisfied 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 an important part of social student life, and go to bars and cafs. Some students are also interested in culture. However in sharp contrast to, say, newspapers or banks, museums and theatres do very little to attract students. In general, in the Netherlands, student discounts are insignificant and 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 a competitive 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 the forecast 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 continued studying until their well into their late 20s. However, with rising university costs, people are likely to graduate earlier, now typically sometime between the ages of 22 and 25. There are significant differences between those who work and those who do not yet work, as well as significant income discrepancies. Despite the general trend towards people marrying and having children at a later age, there are still many people who marry and buy a house when they are still in their early 20s. While consumers in their 20s are at the mercy of the shortage of independent housing units and rising prices, in general those who work can afford to spend more on housing and other 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 disposable income than their married counterparts. In general, disposable incomes rise after people finish student life. Since on average people get married and have children at a later age, consumers in their 20s generally do not need to invest much yet in furniture and household goods, or in the education of their children. And as most people do not settle until their late 20s or early 30, they are not yet tied to mortgages. As a result, many people in their 20s can afford to spend widely on culture, 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 spend relatively 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

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people start working, they loose this privilege), designer products and fashion. People in their 20s who work are an 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, this number is projected to decline by 18.1% to approximately 1.9 million. Accordingly, their share of the total population 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 in birth 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 childrens clothing, on food and so on. This leaves them less disposable income (and less time) to spend on leisure, travel, eating out and luxury products. On the other hand, generally, their incomes are higher than those of people in their 20s, and accordingly many in this age group buy their first house and make other large purchases. Other products they are interested in include durable goods 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 big purchases such as a house and a new car, they do constitute an important group of consumers, albeit with a profile very different from average consumers in their 20s. Although their share of the total population is declining, since they number more than two million they still constitute a large and significant group of consumers. Whereas they may not eat out, visit concerts or go on holiday to faraway destinations as often as singles in their 20s, they do spend much on housing and related products, on childrens products and on transport. Many people in their 30s buy their first house, which makes them an attractive group for brokerage firms and banks providing mortgages. They also invest in furniture, household appliances, and other household goods. The same 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 will soon retire. By 2010, there will be 5.9 million middle-aged people (35.9% of the total population), making this by 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 income differences 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 average income 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 living cost increases into account. This is a serious financial burden, which does not disappear until the children graduate. Other financial burdens may include higher mortgages. Consumers age 55-64 are the group that spends 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 demographic development that significantly influences the market. This group is large and relatively wealthy. Since this group 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 be needed. 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 to them, rather than at younger people. This applies especially to tourism and recreation. Besides, they will

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continue spending money on their children and grandchildren. Some banks now advertise special mortgages which parents can get for their children in higher education. Such initiatives reflect the fact that those with economic power are getting older. In particular, middle-aged people are a significant group for the housing market, and spend more on furniture and household goods, food, cultural activities such as theatre, concerts and museum visits, and on holidays. By the time people are in their 60s, when their children finish their studies, they work less and are still in a relatively 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 and antioxidants tend to sell well. This is a trend influencing all age groups, but it is undoubtedly related to the fact that 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 forecast period. 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 is rising, but the majority have much more time, which they will spend on hobbies, holidays and tourism, and cultural 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 relatively large share goes towards housing and related costs. However, it is likely that with the retirement of the baby boom generation, who are more accustomed to luxury and mobility than the older generation, pensioners will spend more and their spending pattern will likewise change. Older consumers will continue to spend relatively more on housing and health care, but they will also become an increasingly important consumer group when it comes to tourism, culture, eating out and leisure. Up until recently pensioners were, by and large, ignored by marketers. Significantly, statistical data on older people are almost all related to health issues. It seems as if, apart from health-related products, they are not taken very seriously as consumers. The popular image of elderly people is very much influenced by heated political debates on poverty amongst the elderly, and the reportedly poor condition of many retirement and nursing homes. While these problems do exist, at the same time an increasing proportion of the older population is 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, economic and medical developments are making them an increasingly important consumer group.
Table 27 '000/as stated 1995 Babies/infants as % of total Population
Source:

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

2000 597 3.77

2005 598 3.67

2007 565 3.45

2010 538 3.27

2015 524 3.16

589 3.82

National statistics, Euromonitor International

Table 28 % change

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

1995-2007 Babies/infants
Source: National statistics, Euromonitor International

2007-2015 -7.30

-3.98

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Table 29 '000/as stated

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

1995 Kids as % of total Population


Source:

2000 1,185 7.47

2005 1,206 7.40

2007 1,213 7.42

2010 1,162 7.07

2015 1,065 6.42

1,162 7.53

National statistics, Euromonitor International

Table 30 % change

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

1995-2007 Kids
Source: National statistics, Euromonitor International

2007-2015 -12.19

4.44

Table 31 '000/as stated

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

1995 Tweenagers as % of total Population


Source:

2000 784 4.94

2005 795 4.88

2007 780 4.77

2010 800 4.87

2015 773 4.66

717 4.65

National statistics, Euromonitor International

Table 32 % change

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

1995-2007 Tweenagers
Source: National statistics, Euromonitor International

2007-2015 -0.87

8.78

Table 33 '000/as stated

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

1995 Teens as % of total Population


Source:

2000 1,307 8.24

2005 1,389 8.52

2007 1,398 8.55

2010 1,396 8.49

2015 1,395 8.41

1,293 8.38

National statistics, Euromonitor International

Table 34 % change

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

1995-2007 Teens
Source: National statistics, Euromonitor International

2007-2015 -0.26

8.18

Table 35

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

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'000/as stated 1995 People in their 20s as % of total Population


Source:

2000 2,132 13.44

2005 1,962 12.03

2007 1,956 11.95

2010 1,972 11.99

2015 2,039 12.29

2,447 15.87

National statistics, Euromonitor International

Table 36 % change

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

1995-2007 People in their 20s


Source: National statistics, Euromonitor International

2007-2015 4.29

-20.09

Table 37 '000/as stated

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

1995 People in their 30s as % of total Population


Source:

2000 2,629 16.57

2005 2,506 15.37

2007 2,364 14.45

2010 2,149 13.07

2015 1,937 11.67

2,534 16.43

National statistics, Euromonitor International

Table 38 % change

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

1995-2007 People in their 30sz


Source: National statistics, Euromonitor International

2007-2015 -18.06

-6.72

Table 39 '000/as stated

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

1995 Middle aged Adults as % of total Population


Source:

2000 5,077 32.00

2005 5,561 34.11

2007 5,713 34.93

2010 5,907 35.93

2015 5,892 35.51

4,649 30.14

National statistics, Euromonitor International

Table 40 % change

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

1995-2007 Middle aged Adults


Source: National statistics, Euromonitor International

2007-2015 3.12

22.89

Table 41 '000/as stated

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

1995

2000

2005

2007

2010

2015

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Older Population as % of total Population


Source:

2,034 13.18

2,152 13.57

2,289 14.04

2,368 14.48

2,514 15.29

2,965 17.87

National statistics, Euromonitor International

Table 42 % change

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

1995-2007 Older Population


Source: National statistics, Euromonitor International

2007-2015 25.21

16.46

HOUSEHOLD PROFILES
Households by Number of Occupants
Between 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 to 2007 CBS research, this size is expected to decrease further, to 2.1 in 2050. In particular, there has been a growth 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 that more people do not marry at all and the increasing number of divorced people. Moreover, given the difference in life expectancies between men and women, many elderly women outlive their husbands and go on to live alone. 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 differences between regions when it comes to the age at which young people move out. According to 2007 CBS research, in regions with few higher education institutions (such as the northern provinces, as well as Zeeland and Flevoland), the average age is remarkably lower than in densely populated areas that have many institutions for higher education and good public transport facilities. Reliable public transport is particularly important for young people who commute to school, go shopping, and enjoy nightlife. This suggests that many people leave their parental home primarily for practical reasons, although the desire for independence is also an important factor. 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 number of 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 noncommercial 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 on energy and household goods than people living in larger families, since they share the costs of heating, furniture and appliances, and phone and TV bills among fewer people. Accordingly, the rise in the number of single- and two-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, there is an increasing demand for products such as food to be sold in smaller portions, for special internet and TV offers for single users and for travel agencies that do not charge extra for single rooms. People in single-person households are more likely to purchase prepared food and smaller sofas, closets and tables.

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Household Annual Disposable Income


Over the review period, average disposable income has risen significantly. In 2000, 85.7% of households had an annual disposable income of over US$15,000; by 2007 this percentage had risen to 98.1%. In 2000, 49.6% had an 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 these percentages had risen to, respectively, 89.6% and 27.8%. The largest income group (approximately 20%) had an annual disposable income of between US$35,000 and US$45,000 per year. This is partly due to the fact that in the mid-2000s, the US dollar lost much of its value in relation to the Euro. With the dollar rising again, these numbers 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 high economic 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 increased significantly. In 2007, consumers in the Netherlands could spend more than in previous years. However, world economic developments 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 less confidence 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 restaurant expenditure. Impact During the review period, as a result of the general increase in disposable income and purchasing power, and the rise 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 economic developments. 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 the chronically ill, so that their purchasing power will not decrease. It remains to be seen how fast the economy will recover 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 is expected to have risen to 7.3 million. The percentage of owned houses increased significantly as well (from 47.2% in 1995 to 54.4% in 2007), while in the same period the percentage of rented houses dropped, from 51.1% 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 a house 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 city governments have renovated dwellings and sold them as part of a strategy to combat social problems (including relative 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 sold than 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, about 10% of the population move houses: in 1995, 1.7 million people moved, and in both 2000 and 2007 1.6 million moved 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.

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As a result of the high population density, only 16.9% of all dwellings are detached houses, versus 53% semidetached or terraced houses and 23% apartments. The type of housing is dependent on whether they are built in urban 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 as mortgages. 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 because homeowners generally have higher incomes. Research has also shown that homeowners spend significantly more on gas and electricity than renters. For instance, in 2000, homeowners used on average approximately 3,800 KWh electricity and 2,000 m gas, while renters used only 2,300 KWh electricity and 1,500 m gas. This is due to the fact that owned houses as a rule are larger and more often detached than rented houses, and to the fact that homeowners more often have tumble dryers 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 same now applies to colour TVs, personal computers, DVD players, hi-fi stereos, mobile phones and bicycles in fact, it is not uncommon for a household to own more than one of these goods. In particular, mobile phones and bicycles one of the most important means of transport in the Netherlands, a country with an impressively extensive network of cycle paths and lanes are goods that are possessed by individuals rather than by households. 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 the percentage 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 include dishwashers (20% of all households in 1995, forecast to be 64.7% in 2015), DVD players (0.1% of all households 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 standard of living. Other products which have been very successful and are expected to sell more in years to come include 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 disposable income and motorcycles (6% in 1995 versus an estimated 15.2% in 2015), which no doubt is a reaction to traffic congestion, especially in the urban west. Products that are considered old-fashioned such as black and white TVs, cassette players and video recorders are less common, as they have been replaced by newer technologies. Likewise, cable TV is generally giving way 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 players could be found in 86.8% of all households, in 2015 this is estimated to be 82.2%). Fewer people have video cameras (currently 29.7% of all households, in 2015 23.9%), probably because it has become possible to make short 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 as tumble 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 have the 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

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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 these products. New communication technologies will continue to influence the market. New trends are not always immediately successful. Internet access via mobile phone, for example, is gradually becoming more widespread, but as it continues to be relatively expensive, it can hardly be compared with, say, some countries in East Asia where almost every mobile phone is connected to the internet. On the other hand, most people in the Netherlands have an internet connection at home, and this number continues to rise. New products becoming more popular include satellite TV systems, estimated to rise from a household penetration 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 household penetration 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, as the household penetration of passenger cars is also rising. Currently, 77.1% of all households own at least one car (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 small towns have a pet shop, and a great number of TV commercials advertise pet food. One often comes across people walking their dogs in big cities as well as in the countryside. In 2007, 56% of all households in the Netherlands possessed one or more pets, the same percentage as in 2003 and 2005. According to research conducted 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 can be found in all age and income groups. In general, given the rise in disposable income, the amount of money spent on food and medication has increased in recent years. As many people care greatly about their pets, they are 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 can choose 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 market for pet food is already quite competitive, given the wide range of products available. As with other products, the current economic crisis may lead people to opt for cheaper alternatives when it comes to pet food.
Table 43 '000 1995 1 person 2 persons 3 persons 4 persons 5+ persons TOTAL
Source:

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

2000 2,272 2,242 897 944 446 6,801

2002 2,345 2,275 903 959 452 6,934

2004 2,427 2,308 903 969 451 7,058

2006 2,502 2,334 901 976 448 7,161

2007 2,536 2,342 898 978 446 7,200

2,109 2,058 903 957 441 6,469

National statistics, Euromonitor International

Table 44

Households by Number of Occupants (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007

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% of total households / % growth 1995 1 person 2 persons 3 persons 4 persons 5+ persons TOTAL
Source:

2000 33.41 32.97 13.20 13.87 6.55 100.00

2007 35.22 32.53 12.47 13.58 6.20 100.00

1995-2007 20.22 13.78 -0.58 2.17 1.27 11.30

2000-2007 11.59 4.45 0.08 3.65 0.13 5.87

32.61 31.82 13.97 14.80 6.81 100.00


National statistics, Euromonitor International

Table 45 number

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

1995 Occupants per household at 1 January (number) Average of CLIFE countries


Source:

2000 2.3 3.7

2002 2.3 3.6

2004 2.3 3.6

2006 2.3 3.5

2007 2.3 3.5

2.4 3.7

National statistics, Euromonitor International

Table 46

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

Percentage points 1995-2007 Occupants per household at 1 January (number) Average of CLIFE countries
Source: National statistics, Euromonitor International

2000-2007 -0.06 -0.13

-0.11 -0.18

Table 47 '000

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

1995 above US$500 above US$750 above US$1,000 above US$1,750 above US$2,500 above US$5,000 above US$7,500 above US$10,000 above US$15,000 above US$25,000 above US$35,000 above US$45,000 above US$55,000 above US$65,000 above US$75,000 Total
Source:

2000 6,801 6,801 6,801 6,800 6,799 6,779 6,707 6,544 5,828 3,374 1,617 837 502 346 266 6,801

2002 6,934 6,934 6,934 6,934 6,932 6,915 6,860 6,745 6,259 4,343 2,420 1,305 763 500 366 6,934

2004 7,058 7,058 7,058 7,058 7,057 7,051 7,032 6,991 6,805 5,844 4,279 2,794 1,765 1,144 783 7,058

2006 7,161 7,161 7,161 7,161 7,161 7,156 7,141 7,108 6,950 6,075 4,546 3,017 1,924 1,253 858 7,161

2007 7,200 7,200 7,200 7,200 7,200 7,197 7,187 7,166 7,062 6,453 5,244 3,802 2,585 1,739 1,199 7,200

6,469 6,469 6,469 6,468 6,467 6,453 6,409 6,316 5,919 4,297 2,539 1,430 851 555 396 6,469

National statistics, Euromonitor International

Table 48

Number of Households by Disposable Income Bracket (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

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% of total households 1995 above US$500 above US$750 above US$1,000 above US$1,750 above US$2,500 above US$5,000 above US$7,500 above US$10,000 above US$15,000 above US$25,000 above US$35,000 above US$45,000 above US$55,000 above US$65,000 above US$75,000 Households
Source:

2000 100.00 100.00 100.00 99.99 99.97 99.67 98.62 96.22 85.69 49.61 23.78 12.31 7.38 5.09 3.91 100.00

2007 100.00 100.00 100.00 100.00 100.00 99.96 99.82 99.52 98.08 89.63 72.83 52.81 35.90 24.15 16.65 100.00

1995-2007 11.30 11.31 11.31 11.31 11.33 11.53 12.15 13.46 19.30 50.20 106.51 165.90 203.60 213.39 202.40 11.30

2000-2007 5.87 5.87 5.87 5.87 5.89 6.17 7.16 9.50 21.17 91.25 224.20 354.29 414.97 402.80 350.41 5.87

100.00 100.00 100.00 99.99 99.98 99.76 99.07 97.63 91.51 66.42 39.25 22.10 13.16 8.58 6.13 100.00

National statistics, Euromonitor International

Table 49 '000

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

1995 Housing stock New dwellings completed New dwellings as % of total housing stock
Source:

2000 6,590 71 1.07

2005 6,858 51 0.75

2007 6,952 46 0.67

2010 7,085 42 0.60

2015 7,314 40 0.55

6,192 94 1.52

National statistics, Euromonitor International

Table 50 % change

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

1995-2007 Housing stock New dwellings completed


Source: National statistics, Euromonitor International

2007-2015 5.20 -13.84

12.28 -50.58

Table 51 '000

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

1995 Households by tenure Home owner Home owner, without mortgage Home owner, with mortgage Rented Other TOTAL Households by type of dwelling Detached house Semi-detached and terraced house Apartment 3,056 1,498 1,557 3,308 105 6,469 938 3,530 1,736

2000 3,430 1,689 1,741 3,270 101 6,801 1,090 3,614 1,861

2005 3,792 1,861 1,930 3,224 98 7,114 1,183 3,772 1,959

2007 3,916 1,919 1,998 3,187 97 7,200 1,215 3,814 1,987

2010 4,092 2,000 2,092 3,117 94 7,303 1,261 3,863 2,023

2015 4,357 2,122 2,235 2,978 89 7,424 1,329 3,915 2,069

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Other TOTAL
Source:

264 6,469

235 6,801

200 7,114

183 7,200

157 7,303

110 7,424

National statistics, Euromonitor International

Table 52

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

% analysis / % growth 1995 Households by tenure Home owner Home owner, without mortgage Home owner, with mortgage Rented Other TOTAL Households by type of dwelling Detached house Semi-detached and terraced house Apartment Other TOTAL
Source:

2000 50.4 24.8 25.6 48.1 1.5 100.0 16.0 53.1 27.4 3.5 100.0

2007 54.4 26.6 27.7 44.3 1.3 100.0 16.9 53.0 27.6 2.5 100.0

1995-2007 28.2 28.1 28.3 -3.7 -7.5 11.3 29.6 8.0 14.4 -30.6 11.3

2007-2015 11.2 10.6 11.9 -6.6 -8.2 3.1 9.4 2.6 4.1 -39.8 3.1

47.2 23.2 24.1 51.1 1.6 100.0 14.5 54.6 26.8 4.1 100.0

National statistics, Euromonitor International

Table 53 '000

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

1995 1 room 2 rooms 3 rooms 4 rooms 5+ rooms TOTAL


Source:

2000 173 491 1,358 2,354 2,426 6,801

2002 180 498 1,419 2,373 2,464 6,934

2004 188 505 1,472 2,401 2,492 7,058

2006 197 510 1,519 2,425 2,511 7,161

2007 201 511 1,540 2,433 2,515 7,200

163 473 1,161 2,389 2,283 6,469

National statistics, Euromonitor International

Table 54

Households by Number of Rooms (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007

% of total households 1995 1 room 2 rooms 3 rooms 4 rooms 5+ rooms TOTAL


Source:

2000 2.54 7.22 19.96 34.61 35.67 100.00

2007 2.79 7.10 21.39 33.79 34.93 100.00

1995-2007 23.06 8.14 32.72 1.84 10.14 11.30

2000-2007 16.26 4.11 13.46 3.35 3.67 5.87

2.52 7.31 17.94 36.93 35.30 100.00


National statistics, Euromonitor International

Table 55 % of households

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

Euromonitor International

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Netherlands

1995 Air conditioner Bicycle Black and white TV set Cable TV Camera Cassette/radio player CD player DVD player/recorder Colour TV set Cooker Dishwasher Freezer Hi-fi stereo Microwave oven Mobile telephone Motorcycle Passenger car Personal computer Internet enabled computer Piano Refrigerator Satellite TV system Sewing machine Shower Telephone Tumble drier Vacuum cleaner Video camera Video game console Videotape recorder Washing machine
Source:

2000 3.0 87.9 10.0 89.7 88.5 85.0 87.4 3.4 99.0 93.8 36.5 71.0 84.8 74.0 60.3 8.2 72.0 64.0 44.0 6.2 97.9 4.8 58.8 96.4 99.4 53.0 96.4 24.1 13.1 78.1 95.0

2005 5.0 90.8 5.0 89.3 89.7 75.7 87.7 67.6 98.1 95.0 49.0 80.6 90.0 87.1 91.0 10.6 75.9 82.0 78.0 6.0 98.3 12.3 52.9 98.1 99.6 59.8 96.9 31.1 13.4 83.1 96.4

2007 5.8 91.4 3.9 83.2 90.2 69.5 86.8 83.8 98.5 95.5 53.0 83.6 91.3 90.9 94.5 11.4 77.1 87.1 84.1 5.9 98.5 13.8 50.6 98.3 99.7 60.9 97.1 29.7 13.2 80.5 97.0

2010 7.0 92.2 2.6 80.4 90.9 63.4 85.0 91.2 99.0 96.0 58.5 87.1 92.6 93.5 96.6 12.8 78.5 92.2 90.1 5.9 98.6 15.2 47.2 98.3 99.7 61.7 97.3 27.5 12.9 76.7 97.8

2015 8.3 92.8 1.4 80.3 92.1 56.7 82.2 94.1 99.3 96.8 64.7 90.4 93.4 95.6 97.3 15.2 80.1 96.7 95.1 5.8 98.9 16.3 41.5 98.5 99.8 62.0 97.6 23.9 12.5 70.9 98.7

1.6 84.1 19.0 88.1 87.2 86.0 75.1 0.1 97.0 92.2 20.0 61.0 77.5 51.0 11.4 6.0 68.0 39.0 4.0 6.4 97.3 4.5 63.1 94.0 98.0 41.0 95.5 16.1 13.1 68.1 92.0

National statistics, Euromonitor International

Table 56 percentage points

Ownership of Household Durables by Type (Actual Growth): 1995-2007/2007-2015

1995-2007 Air conditioner Bicycle Black and white TV set Cable TV Camera Cassette/radio player CD player DVD player/recorder Colour TV set Cooker Dishwasher Freezer Hi-fi stereo Microwave oven Mobile telephone Motorcycle Passenger car Personal computer Internet enabled computer Piano Refrigerator Satellite TV system Sewing machine Shower 4.24 7.33 -15.14 -4.92 3.01 -16.50 11.73 83.72 1.45 3.27 33.00 22.59 13.73 39.90 83.13 5.37 9.12 48.07 80.13 -0.47 1.16 9.31 -12.47 4.29

2007-2015 2.44 1.40 -2.49 -2.90 1.92 -12.82 -4.58 10.32 0.83 1.35 11.69 6.80 2.07 4.69 2.81 3.78 3.00 9.61 11.01 -0.13 0.47 2.46 -9.10 0.22

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Telephone Tumble drier Vacuum cleaner Video camera Video game console Videotape recorder Washing machine
Source: National statistics, Euromonitor International

1.67 19.91 1.63 13.69 0.06 12.40 5.04

0.12 1.11 0.52 -5.83 -0.66 -9.59 1.69

HOUSEHOLD SEGMENTATION
Single-person Households
Over the review period the number of single-person households increased from 2.1 million to 2.54 million. In the forecast period, this number is estimated to rise further, to 2.77 million by 2015. While in 1995 the percentage of single-person households was slightly lower than that for households consisting of a couple with children (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 remain unmarried. In January 2008, there were 1.38 million female and 1.18 million male singles. This difference is mainly due to differing life expectancies for men and women. Approximately 54% of all women age 75 or older now live alone. 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, nearly all 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 flats and studios. Moreover, people tend to buy smaller portions of food and other non-durable goods, so demand for products in single-serving packages is likely to increase. In terms of entertainment and tourism, dating TV shows and websites have become very popular, and there is more demand for special events such as singles parties 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 2.07 million. In the mid-2000s, however, this number has been quite stable, and in the forecast period, it is projected to decrease slightly, to 2.04 million in 2015. Currently, 28.7% of all households are made up of couples without children; 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 of people opt to remain single. Impact In general, couples without children have comparatively high disposable incomes since both partners can afford to work full-time, and have more freedom to spend their money on leisure and luxury goods than do those who have children. They typically spend more on holidays and travel further than families with children, and eat out more 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 small or 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.

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Couples With Children


Between 1995 and 2007, the number of households consisting of couples with children decreased from 2.11 million 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 a number of demographic factors, including the declining birth rate, the ageing population and an increase in the number of single-parent families. Impact Couples with children generally spend less on luxury products, tourism and catering than couples or singles without children. In general, households with children have lower incomes than those without, as families where both parents work full-time are very rare. In some families, both parents work part-time, but in the majority of cases only the mother continues to work part-time (or, occasionally, leaves the workplace altogether). In any case, 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 need larger 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 in 1995 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 as inevitable 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 with parenthood, 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 care facilities limited, but it is also considered socially unacceptable for a parent to work full-time, spending little time with his or her children. Impact Government funding helps single-parent families cope economically, but as a rule they cannot afford to spend anything 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 which are 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 the second half. In fact, divorced parents tend to buy more, as well as more expensive, products for their children than couples living together. Children celebrating Sinterklaas with one parent, and Christmas with the other, are getting two sets of presents.
Table 57 '000 1995 Single person Couple without children Couple with children Single-parent family Other Households 2,109 1,843 2,112 361 44 6,469 2000 2,272 2,016 2,082 384 46 6,801 2005 2,466 2,061 2,085 453 49 7,114 2007 2,536 2,067 2,069 480 49 7,200 2010 2,631 2,065 2,037 522 48 7,303 2015 2,771 2,044 1,966 596 47 7,424 Households by Type: 1995/2000/2005/2007/2010/2015

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Source: Note:

Euromonitor International from trade sources and national statistics 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/% growth 1995 Single person Couple without children Couple with children Single-parent family Other Households
Source: Note:

2007 35.22 28.70 28.74 6.67 0.67 100.00

2015 37.33 27.53 26.48 8.02 0.63 100.00

1995-2007 20.22 12.13 -2.03 33.08 11.08 11.30

2007-2015 9.30 -1.09 -5.00 24.07 -2.87 3.11

32.61 28.49 32.65 5.58 0.68 100.00

Euromonitor International from trade sources and national statistics 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, which has led to extensive legislation stating and protecting the rights of employees. A full-time working week lasts between 32 and 40 hours, depending on the type of work; 36 to 38 hours is common. In addition to their salaries, employees receive premiums for their pensions and for holidays, and employers are obliged by law to support ill employees and allow parental leave. Employees cannot be fired unless strict conditions have been met. As a rule, labour regulations and conditions are the product of national legislation as well as agreements between unions and employer organisations. In general, people who work freelance, or who do temporary and/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 increase opportunities for parents with young children to continue working, and second, it may help solve the serious problem 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 a weekday: New Year, Queens Day (30 April), Easter Monday, Ascension Day, Pentecost Monday, Christmas and Boxing Day. Liberation Day (5 May) is a national holiday, but employees only get this day off once every five 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 to France or Germany. Part-time jobs are widespread in the Netherlands, and, in particular, many women work part-time. Whereas paternal leave is organised by national law, few companies provide child care. This is one of the reasons why fewer women have successful professional careers, despite the fact that, in general, their level of education is at least the same as that of their male peers. Accordingly, a salary gap between men and women continues to exist. According to 2007 research, womens average earnings in the Netherlands are 80% of mens, which is well below 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 ethnic minorities face discrimination when they apply for jobs, as research has demonstrated. Job candidates with Arab

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or Turkish names are invited for job interviews significantly less often than Dutch candidates with similar qualifications. 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 the declining 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 the largest age groups in 2007 were ages 40-44 (1.1 million) and ages 35-39 years (1.08 million). There was a decline 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-time and/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 to 346,000. Impact The employed population is likely to continue to grow older. This will lead to higher average disposable incomes, as salaries usually rise as employees age. Official retirement age is 65, but some people continue to work longer, while others change to working part-time when they grow older. This leaves them with a combination 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 likely to 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 in the 1990s, and by 2000 it had dropped to 264,000 for an unemployment rate of 3.3% significantly lower than the international average of 8.8%. After an increase in unemployment in 2004, to 418,000 (5%), another decrease followed as a result of economic growth in the years thereafter. In 2007, the unemployed population was 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, unemployment increased for most age groups, but it decreased for 15-19-year-olds and 25-29-year-olds. Apparently, employers have 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 still relatively 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 to get a new job. As their salaries are higher, employers are generally reluctant to employ middle-aged or older people, despite their experience. Such age discrimination is quite widespread. The fact that the unemployed population aged 55-59 increased 80.6% between 2000 and 2007, and the unemployed aged 60-64 in the same period 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 higher unemployment. In a few years, however, the retirement of a large group of employers (the baby boom

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generation) will lead to labour shortages. Already, some types of unskilled labour, such as seasonal labour in the agricultural 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. Examples include nurses and teachers. There is a discrepancy, however, between existing migration legislation, which makes it very difficult for non-EU citizens to obtain a work visa for the Netherlands, and the anticipated need for labour. Impact Despite the global economic crisis, unemployment is not a major issue in the Netherlands. There have been some debates about the relation between age discrimination and unemployment, but in general unemployment is not considered a great challenge. The foreseen retirement of a part of the employed population, which mainly affects 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 Employment
Part-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 are women, and only 24% are men. Furthermore, in 2006, 62.1% of all female employees worked part-time, versus only 16.1% of all male employees. In general, then, many employers do offer the opportunity to work part-time, and the Netherlands is known for its flexibility in this respect. However, the question remains as to what extent working part-time in reality can be combined 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 social esteem 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 partner working full-time, one part-time), so that they can spend more on things like housing, food, childrens products and holidays than could the traditional family where one parent earned the entire households income. The availability of part-time work has led to a significant increase in the size of the employed population, which has 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 a large part of the employed population, mostly women, works part-time has been beneficial for general consumer expenditure and for the overall economy.
Table 59 '000 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 349 783 1,027 1,015 939 859 866 2000 508 730 977 1,110 1,090 996 891 2002 540 729 893 1,112 1,126 1,058 917 2004 502 726 843 1,028 1,080 1,058 963 2006 496 722 816 941 1,072 1,077 993 2007 501 731 811 919 1,080 1,095 1,022 Employed Population by Age Group: 1995/2000/2002/2004/2006-2007

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50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Employed male Population Employed female Population Total employed Population
Source:

573 328 93 4,044 2,787 6,831

825 467 138 4,419 3,313 7,732

899 498 142 4,458 3,456 7,913

837 657 274 4,418 3,549 7,967

836 734 321 4,397 3,611 8,008

833 781 346 4,419 3,700 8,119

ILO, Euromonitor International

Table 60

Employed Population by Age Group (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007

% analysis / % growth 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Employed male Population Employed female Population Total employed Population
Source: ILO, Euromonitor International

2000 6.57 9.44 12.64 14.36 14.10 12.88 11.52 10.67 6.04 1.78 57.15 42.85 100.00

2007 6.17 9.00 9.99 11.32 13.30 13.49 12.59 10.26 9.62 4.26 54.43 45.57 100.00

1995-2007 43.66 -6.65 -21.04 -9.41 15.05 27.47 18.08 45.37 138.07 271.80 9.27 32.76 18.85

2000-2007 -1.32 0.11 -17.01 -17.18 -0.91 9.92 14.75 0.95 67.18 150.52 -0.01 11.68 5.00

5.11 11.46 15.03 14.86 13.74 12.57 12.68 8.39 4.80 1.36 59.20 40.80 100.00

Table 61 '000

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

1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Unemployed male Population Unemployed female Population Total unemployed Population
Source: ILO, Euromonitor International

2000 54 33 32 27 30 27 25 21 11 4 119 145 264

2002 52 29 29 28 32 26 25 22 12 4 131 129 260

2004 64 60 47 40 52 48 41 33 25 8 228 190 418

2006 59 47 32 40 45 42 29 31 23 9 162 195 357

2007 49 39 25 34 37 35 23 26 20 8 133 163 296

79 87 82 67 65 52 47 30 13 5 258 269 527

Table 62

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

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% analysis / % growth 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Unemployed male Population Unemployed female Population Total unemployed Population
Source: ILO, Euromonitor International

2000 20.45 12.50 12.12 10.23 11.36 10.23 9.47 7.95 4.17 1.52 45.08 54.92 100.00

2007 16.71 13.07 8.60 11.44 12.48 11.83 7.83 8.70 6.72 2.61 44.98 55.02 100.00

1995-2007 -37.44 -55.57 -68.97 -49.48 -43.19 -32.69 -50.70 -14.24 52.84 54.66 -48.43 -39.50 -43.87

2000-2007 -8.48 17.12 -20.48 25.37 23.09 29.64 -7.32 22.52 80.63 93.33 11.81 12.23 12.05

14.99 16.51 15.56 12.71 12.33 9.87 8.92 5.69 2.47 0.95 48.96 51.04 100.00

Table 63

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

% of Economically Active Population 1995 Unemployment rate (% of Economically Active Population) Average of CLIFE countries
Source: ILO, Euromonitor International

2000 3.3 8.8

2002 3.2 9.0

2004 5.0 8.8

2006 4.3 7.7

2007 3.5 7.5

7.2 8.5

Table 64

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

Percentage points 1995-2007 Unemployment rate (% of Economically Active Population) Average of CLIFE countries
Source: ILO, Euromonitor International

2000-2007 0.21 -1.31

-3.65 -1.00

Table 65 '000

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

1995 Male Female TOTAL


Source: ILO, Euromonitor International

2000 601 1,925 2,526

2002 680 2,091 2,771

2004 683 2,157 2,839

2006 710 2,241 2,950

475 1,521 1,996

Table 66

Part-Time Employment by Gender (% Analysis and % Growth) 1995/2000/2006: /19952006/2000-2006

% of part-time employees/% growth

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1995 Male Female TOTAL


Source: ILO, Euromonitor International

2000 23.81 76.19 100.00

2006 24.05 75.95 100.00

1995-2006 49.38 47.33 47.82

2000-2006 17.98 16.42 16.79

23.80 76.20 100.00

INCOME
Annual Disposable Income
During the review period, mean annual disposable incomes increased significantly. Disposable income levels depend on a number of factors, including education and gender, but the increase occurred across all population groups. This is due to a general rise in incomes: for instance, in 2006, gross mode income the standard most commonly used by the Netherlands Bureau for Economic Policy Analysis (CPB) was 29,000 per year. In 2007 this was 30,000 and by 2008 was 31,000, which is related to the relative economic prosperity of the past years. 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 higher incomes 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 more consumption.

Income by Educational Attainment


There is a correlation between income and educational attainment. In 1995, employees with only a primary education had an average disposable income of 10,900; by 2007, this had increased by 44.5%, to 15,800. For those 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) education averaged 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 with higher education experienced greater increases. Overall, the differences are not very significant, and all income groups 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 primary education has decreased, whereas increasing numbers of people have completed higher education. By the late 2000s, 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 it used to be. In 1995, the average disposable income of female employees was only 6,500, while that of male employees 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 the remarkably high percentage of women working part-time (62.1%). Accordingly, fewer women reach management positions, so their income remains lower.
Table 67 Mean Annual Disposable Income by Education and Gender: 1995/2000/2002/2004/20062007

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As stated 1995 Disposable income by education Primary (EUR) Secondary (EUR) Tertiary (EUR) Disposable income by gender Female (EUR) Male (EUR)
Source:

2000

2002

2004

2006

2007

10,900.4 12,381.6 17,279.6 6,489.2 15,027.6

13,467.7 14,952.0 20,867.6 8,650.9 17,660.8

14,644.7 17,082.4 23,084.2 10,128.5 19,600.9

15,147.6 17,826.9 23,848.6 10,935.8 20,089.2

15,418.8 18,327.5 24,515.9 11,387.3 20,711.5

15,754.4 18,913.8 25,806.1 12,090.3 21,343.3

National statistics, Euromonitor International

Table 68

Mean Annual Disposable Income by Education and Gender (% Growth): 1995-2007/20002007

% growth 1995-2007 Disposable income by education Primary Secondary Tertiary Disposable income by gender Female Male
Source: National statistics, Euromonitor International

2000-2007 16.98 26.50 23.67 39.76 20.85

44.53 52.76 49.34 86.31 42.03

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 consumer expenditure), followed by transport (29.5 billion; 11.3%), leisure and recreation (27.5 billion; 10.6%) and food (26.7 billion; 10.3%). In the period 1995-2007, expenditure on food remained fairly stable, as did expenditure on clothing and footwear (13.4 billion in 2007; 5.2% of all expenditure) and education (1.4 billion; 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 of 42.1%), as costs of houses and rents increased during this period. So did expenditure on transport (from 22.4 billion 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 capacity problems. 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 and medical services, on which 8.1 billion was spent in 1995, versus 14.3 billion in 2007 (a rise of 77.4%), which is due to rising costs for health care and medication as well as a growing interest in health issues; and communications, 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 a further 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 people generally becoming more demanding about their houses, and willing to spend a higher proportion of their

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income to satisfy these demands. The rising expenditure on health care and medical services is hardly surprising considering 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 transport is 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 will have 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 in other categories may lead to people spending slightly less on these goods. In general, expenditure on durable and 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 of 13.2%. 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 housing market is partly public (non-commercial agencies letting affordable houses) and partly privatised (commercial agencies and brokers). As demand increases, yet more competition can be expected. Considering rising prices, it is 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 quality control measures. Many hospitals and pharmacies are now (partly) privatised, and with increasing health awareness 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 Nederlandse Spoorwegen (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 in public transport, more transport services are needed. Finally, as in other countries, developments in mass communications technology follow each other rapidly, and many people, particularly younger consumers, spend considerable amounts of their income on mobile phones and/or internet access. This is expected to continue over the forecast period.
Table 69 EUR million 1995 Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL
Source: Note:

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

2000 27,079.3 6,966.5 14,713.9 49,421.5 17,845.6 10,289.0 27,883.7 9,418.6 28,564.4 1,367.4 13,564.4 35,830.1 242,944.3

2005 26,890.7 7,562.5 13,705.5 56,272.8 15,805.5 13,443.8 28,782.3 11,471.5 27,482.1 1,372.4 12,925.6 38,034.5 253,749.1

2007 26,686.2 7,667.6 13,436.2 59,391.4 15,412.1 14,318.8 29,507.4 12,204.6 27,492.5 1,375.7 12,785.3 40,032.5 260,310.3

2010 26,745.0 7,644.9 12,995.4 62,753.3 15,229.1 15,158.9 30,118.9 13,164.8 27,701.1 1,384.8 12,593.3 41,721.2 267,210.7

2015 28,221.0 7,877.1 12,962.2 72,510.2 15,837.5 17,526.9 33,027.7 15,368.2 29,859.7 1,454.4 12,856.6 47,166.4 294,668.0

25,459.7 6,524.9 12,619.3 41,786.5 13,811.4 8,073.3 22,400.0 4,344.6 21,646.3 1,253.1 11,017.9 26,430.7 195,367.5

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

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Table 70

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

% of total consumer expenditure 1995 Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL
Source: Note:

2007 10.25 2.95 5.16 22.82 5.92 5.50 11.34 4.69 10.56 0.53 4.91 15.38 100.00

2015 9.58 2.67 4.40 24.61 5.37 5.95 11.21 5.22 10.13 0.49 4.36 16.01 100.00

1995-2007 4.82 17.51 6.47 42.13 11.59 77.36 31.73 180.91 27.01 9.79 16.04 51.46 33.24

2007-2015 5.75 2.73 -3.53 22.09 2.76 22.40 11.93 25.92 8.61 5.72 0.56 17.82 13.20

13.03 3.34 6.46 21.39 7.07 4.13 11.47 2.22 11.08 0.64 5.64 13.53 100.00

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 71 EUR million

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

1995 Durable goods Semi-durable goods Non-durable goods Services TOTAL


Source: Note:

2000 34,782.3 7,940.7 68,835.7 131,385.5 242,944.3

2005 30,069.5 8,310.5 72,664.8 142,704.3 253,749.1

2007 28,950.9 8,048.3 74,055.2 149,255.8 260,310.3

2010 27,109.4 7,890.5 75,618.2 156,592.6 267,210.7

2015 24,958.0 7,623.1 82,198.4 179,888.6 294,668.0

25,898.1 6,806.0 58,079.4 104,584.0 195,367.5

National statistics, OECD, Eurostat, Euromonitor International 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 expenditure 1995 Durable goods Semi-durable goods Non-durable goods Services TOTAL
Source: Note:

2007 11.12 3.09 28.45 57.34 100.00

2015 8.47 2.59 27.90 61.05 100.00

1995-2007 11.79 18.25 27.51 42.71 33.24

2007-2015 -13.79 -5.28 11.00 20.52 13.20

13.26 3.48 29.73 53.53 100.00

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 73 1995 = 100

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

1995 Index of consumer prices (1995 = 100) 100.0

2000 111.4

2002 119.8

2004 123.9

2006 127.4

2007 129.5

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Average of CLIFE countries


Source:

100.0

326.2

475.7

605.1

706.0

760.9

National statistics, OECD, Eurostat, Euromonitor International

Table 74

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

Percentage points 1995-2007 Index of consumer prices (1995 = 100) Average of CLIFE countries
Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 18.08 434.67

29.45 660.89

EATING HABITS
Spending on Food
Over the review period expenditure on food remained fairly stable. In 1995, total expenditure on food was 23 billion, which increased to 25.6 billion in 2002. This then dropped slightly, to 24.6 billion in 2007. As food is an essential commodity, expenditure is unlikely to change dramatically over the short-term. Per capita expenditure on food, however, has risen, in particular between 2000 (US$1,200 per capita) and 2007 (US$2,100 per capita). In the years 2002-2004, when this rise was most pronounced, food prices rose significantly, after which 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 in spending 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, animal suffering 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 is undoubtedly due to the growing interest in and publicity for healthy, low-fat products. As elsewhere, Dutch consumer concerns about the health-value of the food products they consume have increased seriously in the 2000s, and products that are marketed as healthy are generally quite successful. Such products include low-fat and 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 has received positive publicity for being a healthy alternative to meat, increased by 20% between 1995 and 2007. So did the consumption of fruit, by 21.1%, which seems to have benefited from the general healthy food trend, as well 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 contribution to 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 travelling abroad. These items include a wide variety of pastas and rice, Asian spice mixes and sauces, Mexican cuisine ingredients, and so on. This popularity of international food products, and correspondingly changing diets, is one 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 are an 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 meat and 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

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vegetables, such as cabbage, carrots and turnips, have been partly replaced by more exotic vegetables such as aubergine, 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. Dutch consumers are open to new offerings in these areas. Ethnic minorities mainly purchase products imported from their country of origin, from local grocery stores and small markets. Only the biggest supermarkets in the main cities have small sections of halal meat, and sell some basic ingredients, but even here the choice is limited. Nonetheless, this is potentially a large market. It seems as if thus far most nutrition companies have avoided producing food products catering to ethnic minorities, perhaps because they consider this market unpredictable. However, bearing in mind demographic developments, there will continue to be demand for such products in years to come. This demand will come not only from members of ethnic minorities themselves, but also increasingly from the wider population, considering the general trend towards 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 major supermarkets. 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 when choosing a product. On the other hand, products such as candy, crisps, alcohol and sodas continue to be consumed in large quantities, health trends or not. There is a growing preoccupation with authenticity and nostalgia for local foods. The resurgence of popular and political nationalism in the Netherlands in the 2000s has led to a growing interest in products that are perceived as authentically Dutch. One major brand of soup, sauces, sausages and the like has based its entire publicity campaign on this notion of nostalgia, as have beer, liquorice and peanut butter brands. These brands invoke images 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 has few enormous supermarkets and/or malls outside city centres or villages. Most people buy food in their neighbourhood supermarket. There is strong competition amongst supermarkets, although one is by far the largest, with shops varying from small convenience stores in train stations to large supermarkets in the main cities, 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, vegetable stores, 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 are known for their cheap products, but they are not as widespread as in neighbouring countries, and generally have few fresh or high-quality products. Accordingly, their popularity is limited, as consumers prefer supermarkets where they can buy all the food products they need. However, large supermarkets selling goods such as clothing, books and CDs are very rare; generally, their products are limited to food and household goods such as cleaning 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 more common 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 and bread. However, as many people do not spend much time cooking, especially on weekdays, chopped and mixed vegetables 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.

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Internet shopping is not very widespread, especially not when it comes to food. The possibility does exist, but in general 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 food that 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. This demand has stimulated the market for the plethora of ready-prepared meals that have appeared on the shelves of Dutch supermarkets, appealing to an increasingly cash-rich, time-poor society. It is clear that this trend is set to continue. In the past, supermarkets have tried to diversify into larger, out-of-town concerns, which sold a diverse range of food and non-food products alike. But this strategy did not work in the Netherlands as well as it has in neighbouring countries, such as France and Germany, since the Dutch prefer to shop for food in a more localised, 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 ape the 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 selling convenience food, and has extended opening hours to take advantage of longer consumer working hours. Some of these convenience stores have already begun to spring up, however this trend for convenience is one that is set to continue. Internet shopping, though still in its early stages, is also set to continue, another trend which fits in with the modern concept of prioritising shopping convenience. As the supermarkets continue to erode market share traditionally inhabited by the independent stores, more of the independents will be disappearing in their wake. To date there has been little activity in the Netherlands by the 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 the reputations of these retailers spread, then discounters will continue to gain market share at the expense of other food retailers motivating consumers to trade down from their regular supermarkets to shop here, as well as cannibalising 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 of 11.7% 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 hot peanut sauce, 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. Another favourite 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 replaced by an influx of more cosmopolitan cuisine, stimulated by immigration, consumer demand for more varied dishes, and supermarkets increasingly diverse purchasing patterns. 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 as tacos, enchiladas and pizzas are also increasingly popular.

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The most popular foreign cuisine has always been, and still is, Italian, with an increasing variety of ingredients available, including specialised olive oils and breads, as well as organically produced pastas. This has developed a demand for specialist Italian kitchenware and spices a trend that is likely to continue, with similar interest predicted to follow in other cuisines. A 2003 study by TNS indicated that 81% of those interviewed thought eating habits would change in the next 25 years, with 70% of these believing the biggest change would be in the types of foods eaten, with more foreign dishes and ready-meals being consumed. More than half believed that the microwave would play an increasingly important role in the kitchen, indicating the expected growth in ready-meal consumption due to more hectic lifestyles and less time for cooking, particularly as women, who prepare the vast majority of meals in Dutch households, are working more. Other important factors behind this growth are the increase in disposable income, allowing people greater variation in their shopping habits, and the decline in food prices overall as a result of the price wars in Dutch supermarkets. The Dutch government has also subsidised fresh foods in an effort to encourage people to eat more healthily. This has contributed to the popular market culture in the Netherlands, with fruit, vegetable and fish 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 more diverse and exotic styles being eaten both at home and out as Dutch eating habits continue to develop. At the same time, the more traditional Dutch dishes will continue to become less popular as these are increasingly overtaken by global influences. Health is also set to stay high on the Dutch food industry's agenda, as the nation becomes more educated about health concerns. This too will have a further impact on the types of food being consumed, with traditional Dutch foods 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 industry as 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-hit consumers in the recession, who will trade down from dining at foodservice cafs and restaurants to eating more in-home, ready-prepared, packaged meals.

Cooking Habits
As in other Western European countries, there has been a significant rise in the number of single-person households in the Netherlands, driven by young people putting off marriage and the number of older people living longer than before. The number of single-person households, for example, increased by 12%, to reach 254,000, between 2000 and 2007. This increase in single-person households is driving a considerable rise in the consumption of ready-prepared foods total value sales, for example, increased by 2% in 2007, compared with 1% in 2006. The cooking habits of Dutch families are also incorporating more convenience and packaged foods as the population 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 and naturally healthy packaged foods, driven by health concerns about increased obesity levels. This is inspiring packaged food companies to undertake new product development programmes to find ever more healthy food solutions, such as lower sugar or lower fat products. Impact The increasing trend towards packaged foods, and the increased awareness of obesity which drives the market for value-added healthy food, will continue as Dutch consumers become more accustomed to the convenience of these 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 clear product benefits which have a marked influence on the consumers day-to-day life. They offer either

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quantifiable health benefits or time-savings to the user in some cases both at the same time. For these reasons this dietary trend is now so entrenched as to be regarded as an essential part of the modern Dutch lifestyle.
Table 75 EUR million 1995 - Bread and cereals - Meat - Fish and seafood - Milk, cheese and eggs - Oils and fats - Fruit - Vegetables - Sugar and confectionery - Other food TOTAL
Source: Note:

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

2000 4,601.3 6,562.0 1,465.3 3,620.8 738.6 1,788.8 2,496.9 2,248.6 1,154.3 24,676.6

2002 4,723.4 6,651.4 1,472.6 3,801.3 739.8 1,970.8 2,618.2 2,343.0 1,249.9 25,570.4

2004 4,693.6 6,583.4 1,470.1 3,645.0 678.6 2,008.7 2,514.9 2,310.0 1,288.0 25,192.4

2006 4,597.8 6,459.4 1,464.0 3,402.1 613.5 2,011.3 2,409.5 2,201.1 1,295.4 24,454.2

2007 4,636.6 6,466.1 1,485.8 3,426.0 607.3 2,028.9 2,427.1 2,220.1 1,336.3 24,634.3

4,120.3 6,601.7 1,238.4 3,313.9 695.6 1,674.4 2,319.3 2,094.9 974.6 23,033.1

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 76

Consumer Expenditure on Food (% Analysis and % growth): 1995/2000/2007/19952007/2000-2007

% analysis/% growth 1995 - Bread and cereals - Meat - Fish and seafood - Milk, cheese and eggs - Oils and fats - Fruit - Vegetables - Sugar and confectionery - Other food TOTAL
Source: Note:

2000 18.6 26.6 5.9 14.7 3.0 7.2 10.1 9.1 4.7 100.0

2007 18.8 26.2 6.0 13.9 2.5 8.2 9.9 9.0 5.4 100.0

1995-2007 12.5 -2.1 20.0 3.4 -12.7 21.2 4.6 6.0 37.1 7.0

2000-2007 0.8 -1.5 1.4 -5.4 -17.8 13.4 -2.8 -1.3 15.8 -0.2

17.9 28.7 5.4 14.4 3.0 7.3 10.1 9.1 4.2 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 77 US$ per capita

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

1995 Food Average of CLIFE countries


Source:

2000 1,234.36 796.18

2002 1,385.06 832.76

2004 1,842.35 1,080.08

2006 1,848.74 1,230.38

2007 2,064.11 1,398.25

1,576.94 920.63

National statistics, OECD, Eurostat, Euromonitor International

Table 78 % growth

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

1995-2007 Food Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 67.22 75.62

30.89 51.88

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DRINKING AND SMOKING


Spending on Alcoholic Drinks
The Dutch alcoholic drinks sector has been declining since 2002, reaching 3 billion in 2007. The biggest decline has been seen in spending on wine, which fell by 13.8% between 2000 and 2007. Sales of beer bucked the 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 older consumers who drink less than younger consumers. The market for wine is declining because older consumers are becoming more aware of health and wellness concerns and are reducing their alcohol consumption. At the same time, these consumers are prioritising quality over quantity. Dutch wine brands have been hit particularly hard, 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 in 2007. 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 received significant 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 health concerns, and with consumers increasingly prioritising quality over quantity. Impact Population ageing will adversely affect the areas of the Dutch drinks industry which targets an older demographic (such as wine and spirits). The increasing importance of health and wellness issues for this demographic will continue to affect the sales of these drinks. Also, as the recession bites, this demographic will be 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 alcohol companies 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; by 2007, this figure was a mere 407.2 million. Coffee and tea consumption has traditionally always been very popular in the Netherlands, but traditional consumption patterns undermined by the tidal wave of innovation in the soft drinks sector over the review period. Innovation in the soft drinks sector has been driven mainly by health and wellness considerations, with the soft drinks sector seeing the introduction of a plethora of exotic juices, smoothies, still waters and carbonated drinks making health claims. As consumers, particularly older consumers, become increasingly concerned about health, 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 be attributed to the health and wellness trend, with consumers seeking out non-caffeinated drinks and teas which are 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 increasingly shifted their purchases towards healthy and better-for-you drinks. This increase was driven predominantly by sales 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.

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Impact As wellness trends are driving down the consumption of normal black tea, premiumisation is being entering into the tea category as consumers prioritise the quality of the tea they drink over the quantity. This has seen an increase in the unit price in the overall tea category, and soaring value performance in the other tea subcategory. There has also been an increase in unit price within the coffee and hot chocolate beverages categories, but with lower volume consumption, again attributable to consumers seeking out quality products. The launch of coffee and chocolate pods has contributed to this trend, as consumers increasingly make coffee by the single cup, rather than 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 in expenditure since 1995. Spending on tobacco is driving growth in the alcohol and tobacco sector, having grown from 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 taxation on tobacco products. The government has made a concentrated effort to improve the health of the population by spreading awareness of the dangers of smoking. The decline in smoking from 2006 was not as much as it has been in previous years though. Impact Legislation aimed to reduce smoking amongst Dutch consumers has been implemented. As of January 2007, tar levels in cigarettes were legally required to be reduced, and tobacco products could no longer be labelled with the terms light and ultra light so that consumers do not perceive these products to be less harmful to their health than other cigarettes. In place of these terms, many cigarette companies have introduced lighter coloured packaging 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-tar brands. As with other unhealthy products that have experienced a decline in the Dutch market, there has been an increase in demand for premium tobacco products. Demand for cigarillos and cigars increased for the same reason during 2007. The 2008 smoking ban in hotels, restaurants, bars and nightclubs was the subject of media coverage and government awareness campaigns. As a result, by 2007 it was already regarded as socially unacceptable to smoke in these environments, despite the ban not being enforced until 2008, and could be part of the reason that smoking slightly declined during 2007.
Table 79 EUR million 1995 - Coffee, tea and cocoa - Other soft drinks TOTAL
Source: Note:

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

2000 784.6 1,618.0 2,402.6

2002 720.2 1,661.8 2,382.0

2004 553.3 1,647.2 2,200.5

2006 436.8 1,630.9 2,067.7

2007 407.2 1,644.7 2,051.9

850.3 1,576.4 2,426.7

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 80

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

% analysis/% growth 1995 2000 2007 1995-2007 2000-2007

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- Coffee, tea and cocoa - Other soft drinks TOTAL


Source: Note:

35.0 65.0 100.0

32.7 67.3 100.0

19.8 80.2 100.0

-52.1 4.3 -15.4

-48.1 1.6 -14.6

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 81 US$ per capita

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

1995 Non-alcoholic beverages Average of CLIFE countries


Source:

2000 120.18 76.40

2002 129.02 79.71

2004 160.93 101.97

2006 156.32 115.35

2007 171.93 131.05

166.14 84.78

National statistical offices, OECD, Eurostat, Euromonitor International

Table 82 % growth

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

1995-2007 Non-alcoholic beverages Average of CLIFE countries


Source:

2000-2007 43.06 71.53

3.49 54.57

National statistical offices, OECD, Eurostat, Euromonitor International

Table 83

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

EUR million 1995 Alcoholic drinks - Spirits - Wine - Beer Tobacco TOTAL
Source: Note:

2000 3,189.4 1,285.4 754.4 1,149.6 3,777.1 6,966.5

2002 3,226.7 1,315.8 709.9 1,200.9 4,190.6 7,417.3

2004 3,164.1 1,267.7 705.4 1,191.1 4,381.9 7,546.1

2006 3,080.5 1,217.3 670.0 1,193.2 4,524.0 7,604.4

2007 3,042.2 1,198.0 650.0 1,194.2 4,625.4 7,667.6

3,171.0 1,336.2 849.6 985.3 3,353.8 6,524.9

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 84

Consumer Expenditure on Alcoholic Beverages and Tobacco (% Analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Alcoholic drinks - Spirits - Wine - Beer Tobacco TOTAL
Source: Note:

2000 45.8 18.5 10.8 16.5 54.2 100.0

2007 39.7 15.6 8.5 15.6 60.3 100.0

1995-2007 -4.1 -10.3 -23.5 21.2 37.9 17.5

2000-2007 -4.6 -6.8 -13.8 3.9 22.5 10.1

48.6 20.5 13.0 15.1 51.4 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

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Table 85

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

US$ per capita 1995 Alcoholic beverages and tobacco Average of CLIFE countries
Source:

2000 348.47 205.47

2002 401.77 223.04

2004 551.85 296.71

2006 574.90 327.73

2007 642.47 375.10

446.72 224.48

National statistics, OECD, Eurostat, Euromonitor International

Table 86

Per Capita Expenditure on Alcoholic Beverages and Tobacco (% Growth): 19952007/2000-2007

% growth 1995-2007 Alcoholic beverages and tobacco Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 84.37 82.56

43.82 67.10

Buying Alcohol and Tobacco


Specialist shops traditionally held the core Dutch market for alcohol purchases. However, in the 2000s, their market share was eroded by supermarkets running aggressive price promotions to attract customers. To counteract this, specialist shops have begun to concentrate more on wine than on beer and spirits. They are also increasing 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 past years). This included launching drinks that are sweeter in taste and lower in alcohol, with trendy, colourful labels. The result was that sales of ros 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 by consumer interest in health and wellness issues. This has resulted in the sales of spirits tailing off, especially as the government has promoted the benefits of healthier lifestyles and the dangers of consuming too much alcohol and calories. Advertising tobacco products and sponsorship by tobacco companies are already banned in the Dutch market and all packs must carry warnings which take up at least half the pack. Smoking is already banned in all work places. Clearly, after the smoking ban in the horeca channel introduced in January 2008, fewer cigarettes have been sold through the on-trade channel than previously. This could have the effect of increasing sales through other channels. However it will most likely have the effect of decreasing overall sales as people will not smoke as much in public places as before. Impact As more alcoholic drink business goes to the major supermarkets, specialists are increasingly forced to find a market niche for themselves or face closure. This will result in more specialists opting to concentrate on wine sales, where they are able to specialise in premium, niche products that the larger supermarket chains are not able 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 eventually feel they cannot afford to purchase these premium items.

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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 brand cigarettes will see their sales increasingly cannibalised. Second, consumers will increasingly move away from shopping in more expensive channels, which will see an increase in the rise of shopping on-line for cigarettes in cheaper 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 currently 16 years old, to 18 years old, which should have the effect of still further reducing the consumption cigarettes amongst Dutch youth.

Buying Soft and Hot Drinks


Increasingly consumers are prioritising quality and health concerns when purchasing soft and hot drinks. This is particularly true amongst older female consumers, who have had the most significant alteration in consumption patterns, 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 to tea, coffee and sugary carbonated beverages. Senseo coffee pods are the most innovative coffee product to hit the Dutch retail market, which is in line with the new trend towards Italian premium coffees such as espressos, lattes and cappuccinos. This trend comes at the 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 category premiumisation and only represent a niche but growing sector of the market at present. However, this still offers interesting 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 over that period, and meant that there was little product innovation being launched in many categories (soft drinks included). 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 at retaining 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 Zero tackles head-on the perception amongst young men that it is uncool to consume Coca-Cola Light, which is predominantly 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 or 1.25 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 20062007 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 to sales of other drinks through vending machines. The trend for consuming coffee on the go has gained currency with the Dutch. Although this is coming under increasing pressure from the rise of US-style specialist coffee outlets, coffee on the go has become more popular.

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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 are low in caffeine are particularly suitable to drink at the beginning of the day or in the evening (ie, at home). So growth 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, particularly based around premium or healthy identifiers, than in volume terms. Soft drinks which are best placed to take advantage 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, for example, are common ingredients in drinks, and even ingredients as exotic as cactus juice have entered the marketplace all of which command premium prices. Super-fruits and healthy herbs are also areas which have significant growth potential.

Drinking Habits
Dutch people have a strong alcohol drinking culture, with most socialising done in cafs and bars. Although socialising out of home is particularly popular amongst young men, women are also drinking more frequently and are therefore becoming a growth market for alcohol producers, who are producing more female-oriented drinks. Hence a strong increase in the popularity of wines during 2007, both for household and away-from-home consumption. The drink of choice for young men is normally beer, with many older drinkers opting for a Dutch gin-like liqueur known as Jenever. Drinking out in bars and cafs is far more popular than drinking at home with an estimated 11,500 pubs providing 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 worlds 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 even served alcohol in bars, due to a lax attitude towards drinking. However the government is tightening up on youth drinking and passed a law in 2000 banning the sale of alcoholic drinks to those under the age of 16, with stiff penalties for any establishment found to be in breach of the regulations. This does not seem to have been effective in altering young peoples drinking tendencies yet. Impact The main trend affecting Dutch drinking habits going forward will be that of health and wellness. The increased awareness 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 instead to 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 choose to stay in and drink, where it is cheaper (and they will be able to smoke). As well as forcing many pubs out of business, this will also see the supermarkets take an increased market share of the alcohol trade, and a lot of promotions and offers will be instigated through this channel in order for the brewers and alcoholic beverage companies 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 rate at 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 heavy smokers.

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The CBS estimates that in 2007 figures show 40% of the Dutch population have never smoked and 30% have stopped smoking. Smokers and ex-smokers typically began the habit between the ages of 16-25. Between the genders there is no observable difference in terms of starting age. Men stop smoking around age 36 after having smoked 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 men smoking than women. Though 13% of smokers are not considering quitting, for 64% health is would be the main reason that would make them quit. There have been several high-profile government campaigns which have caused these dips in figures, although they tend to be more effective at dissuading people from beginning smoking, rather than influencing hardened smokers to quit or reduce their consumption hence the reason why it is the younger age group which has seen the 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-smoking campaigns, the figures for smoking in 2008 will probably be much lower than in 2007. This could pose problems for some of the cigarette brands, which may find that it is no longer viable for them to import some of their products, especially their high-tar or premium cigarettes. This has already happened in some other western European markets.

FASHION
Spending on Clothing and Footwear
Consumer spending on fashion increased in 2007 to 11.1 billion, following six years of decline following the peak 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 Western Europe, to China and Eastern Europe where production prices are cheaper. Spending on garments also dropped by -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 the Dutch are buying new clothing more often rather than servicing older ones. Reduced spending on clothing indicates that more cheap clothing is being purchased than expensive clothing. Spending on footwear similarly decreased 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 less of their overall consumer spending on clothing and footwear. Traditionally the fashion and footwear spending patterns of Dutch consumers were rigidly dictated by the seasons. There were very distinct summer and winter collections, and Dutch consumers would buy their fashion at these times accordingly. However, with the entry into the market of the fast fashion brands, such as H&M and Zara, which typically have six week buying seasons, the market has been shaken up completely. Now Dutch consumers 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 and footwear market. Consumers are demanding more up-to-the-minute fashion which is constantly evolving, and they are becoming used to paying cheaper prices for their fashion items than before. Their expectations are no longer that an item must cost a lot of money and last a long time they are satisfied if it is cheap, fashionable and even relatively disposable. This will have the largest impact on smaller independent fashion chains, which may not be able to keep up with the evolving six week fashion cycles, and will not be able to compete with the prices of the new chains such as H&M and Zara.

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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 under increasing pressure. Combined with the soaring price of precious metals, expensive jewellery is an out-of-reach luxury item for many Dutch consumers. Impact Dutch consumers and Dutch women in particular are very interested in looking good, so are increasingly switching 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 fashion products in general, as more of this spend is directed through the cheaper fast fashion brands that have entered the 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 wear and cocktail rings showed strong growth. Precious metal jewellery is increasingly combined with stones and (pav 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, green beryls and white, brown and yellow diamonds. In addition, white gold or dark green pearls and coloured enamel were often featured in rings, neckwear, bracelets or pendants. Pendants have gone through a trend of being adorned 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 the pressure that the Dutch economic slump has put on the economy. This was combined with the arrival and success of cheap, disposable fashion brands which have taken high streets by storm across the whole of Western Europe, the Netherlands included. The entrance and success of fast fashion brands into the Dutch market has irrevocably changed the retail environment. Clothing and shoes are now purchased more often, and purchase triggers are more occasionoriented rather than seasonal. The internet is also becoming a more important sales channel than before, with Dutch consumers migrating away from merely browsing and researching clothing on-line, to actually making purchases. The fact that during 2007 the internet was the most popular form of home shopping channel in the Netherlands proves how strong an influence 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 have had to alter the way that that they do business to survive and compete in the current climate. This could significantly affect the way that they manage their supply chains as they try to compete with the cheaper, fast fashion brands and the internet sites. Many more traditional high street bricks and mortar stores will set up an internet shop window, and in order to keep costs down and keep up with the evolving purchasing patterns of the fast fashion houses, they will need to increasingly join wholesale groups and source fashion items from the Far East, 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

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From fast fashion brands women can buy reasonably-priced costume jewellery to match their outfits and young people 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 as birthdays, Valentines Day, Christmas and engagements. In traditional jewellery, silver is the most popular metal, 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 promotion actively sought to appeal to fashion-conscious consumers, as well as to older consumers, who traditionally spend 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 will move 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 be some 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 brightly coloured. 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 similarly dressed in plain unbranded tops and khaki trousers. They will not be extravagant when it comes to shopping for fashion 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 of a sailing jacket in the winter. Impact Sales of suits and formal clothing are more buoyant in the Netherlands than in other countries. However, 2007 saw 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 becoming more 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 and Adidas. 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 in the Dutch high street. This will bring a greater awareness of fashion to the populace in general, and to young people in particular. The brands that will initially benefit the most from the upsurge of interest in fashion will be the more reasonably-priced international brands, as these will appeal recession-squeezed Dutch consumers.
Table 87 EUR million 1995 Clothing - Clothing materials - Garments - Other clothing 10,591.4 122.1 9,371.8 812.2 2000 12,228.8 124.5 10,819.8 957.3 2002 12,183.4 113.3 10,734.0 1,014.2 2004 11,133.8 99.1 9,793.5 939.8 2006 11,093.4 92.9 9,746.1 941.2 2007 11,111.6 90.2 9,752.4 954.3 Consumer Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007

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- Clothing cleaning, repair and hire Footwear TOTAL


Source: Note:

285.3 2,027.9 12,619.3

327.1 2,485.1 14,713.9

321.9 2,473.9 14,657.3

301.4 2,265.1 13,398.9

313.2 2,302.6 13,396.0

314.8 2,324.6 13,436.2

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 88

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

% analysis/% growth 1995 Clothing - Clothing materials - Garments - Other clothing - Clothing cleaning, repair and hire Footwear TOTAL
Source: Note:

2000 83.1 0.8 73.5 6.5 2.2 16.9 100.0

2007 82.7 0.7 72.6 7.1 2.3 17.3 100.0

1995-2007 4.9 -26.1 4.1 17.5 10.3 14.6 6.5

2000-2007 -9.1 -27.6 -9.9 -0.3 -3.8 -6.5 -8.7

83.9 1.0 74.3 6.4 2.3 16.1 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 89 US$ per capita

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

1995 Clothing and footwear Average of CLIFE countries


Source:

2000 736.01 340.34

2002 793.93 347.89

2004 979.88 444.02

2006 1,012.74 499.05

2007 1,125.82 561.89

863.97 404.74

National statistics, OECD, Eurostat, Euromonitor International

Table 90 % growth

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

1995-2007 Clothing and footwear Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 52.96 65.10

30.31 38.83

Table 91

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

EUR million 1995 TOTAL


Source: Note:

2000 2,199.1

2002 2,093.9

2004 2,012.9

2006 1,915.5

2007 1,921.8

1,579.1

National statistics, OECD, Eurostat, Euromonitor International 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

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1995-2007 TOTAL
Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 -12.6

21.7

Table 93

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

US$ per capita 1995 Jewellery/silverware/ watches/clocks/travel goods Average of CLIFE countries
Source:

2000 110.00 51.69

2002 113.42 52.82

2004 147.21 65.88

2006 144.81 74.22

2007 161.03 83.53

108.11 53.56

National statistics, OECD, Eurostat, Euromonitor International

Table 94

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

% growth 1995-2007 Jewellery/silverware/watches/clocks/travel goods Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 46.39 61.59

48.95 55.96

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 spending experienced strong growth of 22% 2000-2007. The second largest share is directed at rental spending but this grew 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 in 2009. 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 driven by a buoyant economy and the related increase in purchasing power. Between 1996 and 2001, prices rose by 13.2% 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 sectors directly linked to the housing market. Dutch consumers are more likely to shy away from investing in expensive durables 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. This will have a negative impact on spending overall, but particularly on luxuries which some households would finance through re-mortgaging.

Renting Versus Buying

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The rate of homeownership in the Netherlands is high, with more than half of Dutch households owning their own property in 2007. What is more, the number of owner-occupiers with mortgages increased by 15% between 2000 and 2007 a faster rate than the number of owners without mortgages. Renters still make up 44% of all households, but renting is declining in popularity and is expected to account for only 40% of all households by 2015. The Dutch mortgage market expanded rapidly over the 2000s, with residential mortgage debt rising to 98.6% of GDP in 2007, up from only 49.3% of GDP in 1997. The liberalisation of the mortgage market increased market competition, resulting in cheaper mortgages as well as an increase in the loan-to-value ratio with many households 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 basic Dutch rental contract is one of unlimited duration. Landlords can only give notice in strictly defined cases, and it is extremely difficult for owners to evict tenants. This puts off some investors from entering the buy-to-let market. Tenure in the Netherlands is very much correlated with social standing because the country has a long history of social 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 more Dutch 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 to economic growth and overall consumer confidence. The uncertainty generated by the global economic crisis is likely 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 of discretionary income available. With many mortgages over 100% LTV (loan-to-value), the end of the house price boom will leave consumers feeling increasingly uncertain about their economic prospects. This will lead them 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 are more 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 increased by 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, the Netherlands had the sixth highest prices (0.14 per kWh) in the European Union. Gas prices meanwhile, are closer 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 has three elements. The water company charges a price for the drinking water supplied, the water boards charge for wastewater treatment and the municipalities impose sewerage charges (a sum for the construction and maintenance of the sewers). Drinking water charges account for the lions share of spending on water and sewerage. 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 interest in low-energy products, including consumer electronics.

Maintenance and Repair

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Spending on maintenance and repair is declining in the Netherlands. In 2007 it stood at 3.9 billion, or 6.6% of total spending on housing. In 2000, it contributed 8.3%. Spending is expected to be squeezed further over the forecast period. Impact Many Dutch householders are adept at DIY and avoid spending on maintenance. Spending on maintenance and repair has decreased in tandem with the decrease in the proportion of rental properties. Social landlords are tied to expensive repairs and maintenance. Home-owners also have the option of paying tradesmen in cash and avoiding 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 EUR million 1995 Actual rentals for housing Imputed rentals for housing Maintenance and repair Water and sewerage Electricity, gas and other fuels - Electricity - Gas - Liquid fuels - Solid fuels - Heat energy TOTAL
Source: Note:

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

2000 13,383.0 20,561.5 4,091.6 3,190.6 8,194.9 3,907.1 1,859.8 1,785.1 229.8 413.2 49,421.5

2002 12,839.9 21,144.5 4,267.2 3,377.7 9,527.9 4,593.9 2,475.0 1,714.2 262.5 482.3 51,157.1

2004 13,497.3 22,688.0 3,991.2 3,532.6 10,313.1 5,042.2 2,680.4 1,871.3 228.9 490.4 54,022.2

2006 14,024.8 24,448.8 3,835.4 3,692.0 12,034.4 5,565.5 3,066.3 2,630.3 227.9 544.4 58,035.4

2007 14,149.9 25,087.0 3,893.0 3,804.9 12,456.6 5,659.2 3,225.8 2,788.5 222.5 560.7 59,391.4

12,731.8 16,219.5 3,111.5 2,800.1 6,923.6 3,779.2 1,474.5 1,073.4 245.9 350.7 41,786.5

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 96

Consumer Expenditure on Housing (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007

% analysis/% growth 1995 Actual rentals for housing Imputed rentals for housing Maintenance and repair Water and sewerage Electricity, gas and other fuels - Electricity - Gas - Liquid fuels - Solid fuels - Heat energy TOTAL
Source: Note:

2000 27.1 41.6 8.3 6.5 16.6 7.9 3.8 3.6 0.5 0.8 100.0

2007 23.8 42.2 6.6 6.4 21.0 9.5 5.4 4.7 0.4 0.9 100.0

1995-2007 11.1 54.7 25.1 35.9 79.9 49.7 118.8 159.8 -9.5 59.9 42.1

2000-2007 5.7 22.0 -4.9 19.3 52.0 44.8 73.5 56.2 -3.2 35.7 20.2

30.5 38.8 7.4 6.7 16.6 9.0 3.5 2.6 0.6 0.8 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 97 US$ per capita

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

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1995 Housing Average of CLIFE countries


Source:

2000 2,472.14 1,176.09

2002 2,771.00 1,265.74

2004 3,950.72 1,678.54

2006 4,387.48 1,910.86

2007 4,976.41 2,175.19

2,860.89 1,249.90

National statistics, OECD, Eurostat, Euromonitor International

Table 98 % growth

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

1995-2007 Housing Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 101.30 84.95

73.95 74.03

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. In 2007, the category had dropped to 15.4 billion, a 13.6% reduction. In 2000 this category represented 7.3% of overall Dutch consumer spending, whilst by 2007 this dropped to 5.9%. The furniture, furnishings and floor coverings subcategory showed the sharpest decline between 2000 and 2007 at -21.8%. This was closely followed 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 eating and 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, consumers like the low-priced goods from retailers such as IKEA or HEMA. These two retailers offer superior value for money home in furnishings and housewares ranges, and this is definitely a recipe for success in the Dutch market. However, on the other hand, the Dutch market is rare in Europe as specialist retailers still dominate. An important 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 are also 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 and prices, 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, increasingly squeezed 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 of traditional specialist retailers.

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Internet retailing is expected to increase in popularity. Consumers use the internet to research prices and information and increasingly to make purchases. Specialist retailers, who rely on their unique selling position of being 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 housing market was strong to 2007 the performance of DIY and hardware outperformed the overall household goods sector. 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 are becoming more important. The kitchen has become more of a status symbol and the idea of the kitchen as the heart of the home has also caught on in the Netherlands. The growth of bathroom-related products was also fuelled by the health and wellness trend that is impacting this particular room in the house. These two rooms are seen as spaces that define a house and therefore they are fitted with products of increasingly higher specifications. 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 landscape gardening businesses increased by nearly 80% over the period 1995-2005. In 1995, there were more than 2,900 landscape gardening businesses in the Netherlands; a decade later their number had grown to 5,600. The boom in landscape gardening is partly due to the readiness of owners of private gardens to spend more money on design and layout. According to the Social and Cultural Planning Office, Dutch 50-64-year-olds are most likely to participate in odd jobs and gardening. In 2000, 82% of Dutch in this age took part in gardening each week for an average of 4.4 hours. However across all age groups, both the number of people participating and the amount of time spent on 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 seen as a chore rather than a hobby. With busy lifestyles dominating and the demand for convenience strong, this trend is set to continue. However, with the advent of economic uncertainty, in the short term the trend will probably 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: 1995/2000/2002/2004/20062007

EUR million 1995 Furniture, furnishings, floor coverings Household textiles Household appliances Glassware, tableware and household utensils Hardware and DIY goods Household and domestic services TOTAL
Source: Note:

2000 8,112.5 1,414.5 2,269.6 1,720.7 902.2 3,426.1 17,845.6

2002 7,677.7 1,368.8 2,169.7 1,745.2 983.6 3,709.2 17,654.2

2004 6,680.9 1,236.9 2,032.1 1,621.2 905.4 3,625.8 16,102.4

2006 6,273.4 1,146.4 1,962.1 1,476.1 831.0 3,530.7 15,219.8

2007 6,340.0 1,154.2 1,998.9 1,503.8 843.3 3,571.8 15,412.1

6,058.7 1,129.9 1,906.0 1,327.2 614.6 2,775.0 13,811.4

National statistics, OECD, Eurostat, Euromonitor International 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

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1995 Furniture, furnishings, floor coverings Household textiles Household appliances Glassware, tableware and household utensils Hardware and DIY goods Household and domestic services TOTAL
Source: Note:

2000 45.5 7.9 12.7 9.6 5.1 19.2 100.0

2007 41.1 7.5 13.0 9.8 5.5 23.2 100.0

1995-2007 4.6 2.2 4.9 13.3 37.2 28.7 11.6

2000-2007 -21.8 -18.4 -11.9 -12.6 -6.5 4.3 -13.6

43.9 8.2 13.8 9.6 4.5 20.1 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 101

Per Capita Expenditure on Household Goods and Services: 1995/2000/2002/2004/20062007

US$ per capita 1995 Household goods and services Average of CLIFE countries
Source:

2000 892.66 365.26

2002 956.26 377.72

2004 1,177.59 497.29

2006 1,150.62 565.08

2007 1,291.38 642.22

945.59 402.97

National statistics, OECD, Eurostat, Euromonitor International

Table 102

Per Capita Expenditure on Household Goods and Services (% Growth): 1995-2007/20002007

% growth 1995-2007 Household goods and services Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 44.67 75.83

36.57 59.37

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 begun altering their lifestyles accordingly. Tied in with this growing promotion of the cause and effect of health issues, the government is aiming to reduce its expenditure on health goods and medical services, instead shifting more 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 figure of 3.2 billion. This represents a rise of 39.2%. In 2000 health goods and medical services represented 4.2% of overall 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), followed by hospital services (43.3%). Pharmaceuticals, medical appliances and equipment saw the smallest growth over the 2000-2007 period, though even this increased by 11.0% from 3.2 billion to 3.5 billion.

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Over-the-counter (OTC) medications in the Netherlands are mainly purchased in drugstores, and this applies especially to traditional OTC medicines, such as paracetamol and cold and flu remedies. As of 2007, there are three 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 areas may distribute them. Reimbursable non-prescription medicines that are not advertised to consumers are generally only available in pharmacies. However so far, any increase in the supermarket share of OTC healthcare sales seems to be mainly the result of add-ons coming from improved vitamins and dietary supplements displays, with the bulk of standard OTC healthcare 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 internet drugstores and pharmacies that offer OTC healthcare products on-line. A pharmacist or druggist must be involved. Since May 2003, however, companies that sell OTC healthcare on the internet are no longer obliged to operate from a drugstore or pharmacy that is accessible to the public. OTC healthcare must, by law, be presented separately 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 are often 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 which the consumer has to pay the difference if the actual price is higher. The aim of this policy is to make prescription costs more transparent and encourage GPs to prescribe cheaper generic drugs to their patients instead of branded drugs. Impact The large increases in consumer expenditure on health and medical services over the review period can be explained partly by the increased reliance on medical services as the population grows and ages. This means a rise in more serious and complex diseases which are costly to treat, such as cancer. Expenditure is further driven up by the governments 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 is greater 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 associated with long-term care or high-cost treatment. This covers everyone living in the Netherlands, with very few exceptions, and represents about 40% of health expenditure. It is financed by payroll deductions, as well as from additional government funds. Second, there are compulsory sickness funds which cover normal and necessary medical care. Sickness funds insure everyone (including all social security recipients) whose salary is below 30,700, or about 65% of the population. Those who earn more generally have private health insurance; this equals about 28% of the population. The health insurance schemes for public servants cover another 5% of the total population. Sickness funds account for 38% of health expenditure. Finally, the main complementary sources of health care financing are private health insurance (15%) and out-ofpocket payments (6%). Voluntary supplementary health insurance covers forms of care regarded as less necessary, such as dental care, prosthetics or hearing aids. Supplementary private medical insurance largely covers 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

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system. This is combined with the need to renew and reform the medical infrastructure, which includes the provision of new hospitals. The Dutch government faces the challenge of finding extra financial resources, which they are not able to provide from increased government spending. As a result, they are encouraging people to increase contributions to private voluntary health insurance schemes. This has been combined with spending reduction exercises, such as de-listing brands from the government's reimbursement list and cutting the number of Social Security subsidised medications and treatments. These changes all contributed to increased consumer expenditure on health services over the review period. The recent shift in the emphasis of spending in the Dutch healthcare system, from government spending to the private sector, has also been reflected in the shift of control and influence from central to provincial and local governments. More than 90% of hospitals are private non-profit facilities. The remainder are mainly public university hospitals. 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 an ageing population, improving the technical complexity of treatment and level of care offered, and the growing demands of treating more serious diseases, such as cancer. This has seen the number of dentists rise from 7,258 in 2000 to 8,812 in 2007, the number of doctors rise from 50,856 in 2000 to 65,686 in 2008, midwives rise from 1,576 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 attract workers from abroad. These came first from the former Dutch colonies of Indonesia and Suriname, and later from the Philippines, South Africa, Ireland, Germany, Russia, Poland and Latvia. International migration to work 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 little shortage in Dutch health care in 2005 and 2006. The ageing population caused a growing shortage of health workers 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 pay for Dutch language courses and refresher courses. However, foreign staff often work in positions below their status, as care workers, for example, and not as nursing staff. This is because staff shortages are most urgent in elder care, and because foreign nursing degrees are not always recognised in the Netherlands. This applies in particular to degrees obtained in Eastern Europe. Foreigners who want to work in the Netherlands need a residence permit. From January 2007 nationals of non-EU member states and new EU member states also need a valid work permit. Impact The rising expense of the Dutch healthcare system, combined with the reluctance of the government to continue shouldering the total cost has driven consumers to increase spending contributions to the system by increasing contributions to their private health insurance. Because many brands have been de-listed and some drugs removed from social service reimbursement lists in cost-saving exercises, consumers have to find other ways to pay. This situation is likely to continue in the future, which could result in only the rich, or those with sufficient private 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 additional medical support services going forward, and for even more spending on medical staff, treatments and infrastructure. Again, this will have a significant impact on future consumer expenditure as more personal wealth will need to be earmarked for health treatment in ones old age.

Major Causes of Death

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According to the World Health Organisations (WHO) 2002 figures, the major causes of death in the Netherlands are malignant neoplasms (cancer), which killed 242.8 people per 100,000 in 2007, and diseases of the circulatory system, which killed 255.3 people per 100,000 in 2007. The next deadliest are diseases of the respiratory 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 their campaign to inspire the population to lead healthier lifestyles, including encouraging healthier eating patterns, more exercise and quitting smoking. There are some signs that the governments campaigns are beginning to work as deaths by diseases of the circulatory system have plummeted by 17.3% since 2000, and incidences of respiratory diseases decreased by 3.9% over the same time period. However deaths from cancer have shown a 2.5% increase over the period; there may 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 getting through 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 provide complex and expensive treatments for these diseases. However, there will be the increased burden on the care sector as the population ages and potentially develops other diseases, such as Alzheimers.

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 incidence of smoking amongst women has also decreased from its 2005 peak of 31.5% of the population, by 1.2% to the 2007 figure of 30.5%. The government is making concerted efforts to discourage smoking. Their plans for 2008 are to increase tobacco taxes, ban smoking in all hotels, restaurants, bars and clubs (horeca), and to increase the minimum legal purchase 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 increased legal purchase age to 18 years should discourage young people from taking up smoking. It might also drive hardened smokers to cut down on their smoking, or even give up altogether. This could reduce health spending on 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 534 reported 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 mortality is 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 and Cameroon. However, the number of actual deaths is low because the communities living in the Netherlands are small.

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Impact The impact of the significant reduction in cases of HIV over the review period has meant that more funding is freed up to be spent on other serious medical conditions such as cancer. However due to the fact that more expensive anti-retrovirals are now available to treat those who are suffering from the AIDS, their treatment is also 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 of interference from the government. This belief forms the central core of a free-minded attitude towards many issues, encouraging an experimental approach which other states might find shocking. This standpoint is very evident in Dutch drugs policy. Harm reduction is at the centre of drug policy in the Netherlands, giving priority to minimizing many of the risks and hazards of drug use, rather than the suppression of all drugs. Healthcare and support is given to drug addicts, and resources are devoted to combating organised crime. A wide range of harm reduction interventions are in use in the Netherlands. Methadone maintenance is available on demand. In 1998, a number of Dutch cities started experimenting with prescribing heroin, in combination with methadone, on medical grounds. Approximately 750 addicts are involved in the comparison of treatment with methadone and treatment with methadone and heroin. The experiment is ongoing and a comprehensive evaluation has yet to be published. To prevent HIV/AIDS and hepatitis B and C, syringe exchange programmes were 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 classified according to the risks they pose and policies relative to each are devised. The theory is that in separating the system, users of soft drugs (eg, cannabis), are less likely to come into contact with users of hard drugs, and are therefore less likely to try hard drugs, like heroin, cocaine and methamphetamine. Possession of small amounts of cannabis for personal use has been decriminalized in the Netherlands, although the sale of cannabis is technically 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 controlled circumstances has not resulted in worryingly high levels of consumption amongst young people. The extent and nature of soft drug use does not differ from the pattern in other Western countries. As for hard drugs, the number of addicts in the Netherlands is low compared with the rest of Europe, and considerably lower than that in France, the United Kingdom, Italy, Spain and Switzerland. Dutch rates of drug use are lower than US rates in every category. This means that there is a small, sanctioned sector of the soft drugs economy which has developed in the Netherlands with its own sales channels the coffee shops and its own target demographic of predominantly urban young people. It will be interesting to see how the smoking ban in the horeca channel will affect the operations of the Dutch coffee shops. Technically as of July 2008, patrons are not permitted to smoke any tobacco products on their premises. Yet presumably this is entirely the reason that most of their customers patronise those establishments to smoke tobacco and cannabis together. Whether coffee shops will be strict about imposing the tobacco smoking ban and force their clients to smoke pure cannabis, or turn a blind eye to tobacco smoking, remains to be seen.

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Health and Wellness


The Dutch are becoming a nation more interested in health and wellness. This is the result partly of the governments national health campaigns, but also of the growing trend for taking greater care of ones 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 physical appearance 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 remedies over 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 more traditional products such as vitamins and multivitamins were under pressure, dietary supplements such as fish oils, garlic and glucosamine appeal to a larger consumer base seeking to prevent diseases rather than curing them after the fact. During the review period, there have been significant entrants into the private label OTC drug market. In order to 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 which have attracted customers back to their brands by promising better results, such as faster or more effective treatments. 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 disabled people in product development, have also been growing considerations for drug companies involved in the preparation of OTC products. There has been a campaign by the Dutch government to promote healthy eating and exercise, particularly aimed at encouraging the population to consume vegetables. This has seen some dividends, as fresh foods are becoming more popular and gym attendance increasing. Consumption patterns for fresh food in the Netherlands demonstrate an increasing awareness of healthy eating patterns 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 during the same period. However, these foodstuffs are all still quite common in typical Dutch dishes, as demonstrated by the large quantities consumed per capita. The rate of Dutch people attending health clubs and fitness centres has never been higher, and the influence of health factors in the national diet becomes more pronounced every year. Cycling is particularly popular in the Netherlands, 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, particularly amongst 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 with circulatory 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 more interested in health and wellness, and that the propensity to purchase preventative treatments is becoming more prevalent. 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. Herbal remedies 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

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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 probiotics and ginko biloba, aimed at reducing Alzheimers. The future will see more new product development aimed 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, and will fuel demand for slimming-related health products.
Table 103 Consumer Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007

EUR million 1995 Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services TOTAL
Source: Note:

2000 3,209.4 3,560.4 3,519.2 10,289.0

2002 3,469.6 4,156.7 4,367.9 11,994.1

2004 3,500.9 5,093.5 4,817.2 13,411.6

2006 3,471.2 5,516.1 4,970.7 13,958.1

2007 3,563.6 5,711.8 5,043.4 14,318.8

1,590.8 3,169.7 3,312.8 8,073.3

National statistics, OECD, Eurostat, Euromonitor International 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/% growth 1995 Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services TOTAL
Source: Note:

2000 31.2 34.6 34.2 100.0

2007 24.9 39.9 35.2 100.0

1995-2007 124.0 80.2 52.2 77.4

2000-2007 11.0 60.4 43.3 39.2

19.7 39.3 41.0 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 105

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

US$ per capita 1995 Health goods and medical services Average of CLIFE countries
Source:

2000 514.67 283.64

2002 649.68 320.98

2004 980.81 424.47

2006 1,055.23 490.78

2007 1,199.77 554.97

552.73 277.70

National statistics, OECD, Eurostat, Euromonitor International

Table 106

Per Capita Expenditure on Health Goods and Medical Services (% Growth): 19952007/2000-2007

% growth 1995-2007 Health Goods and Medical Services 117.06 2000-2007 133.12

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Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

99.85

95.66

Table 107 % of total GDP

Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006

1995 Share of total health expenditure in GDP (% of total GDP) Average of CLIFE countries
Source:

2000 8.0 6.4

2002 8.9 6.7

2004 9.2 6.8

2006 9.4 6.9

8.3 6.2

National statistics, OECD, Eurostat, Euromonitor International

Table 108 years

Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006

1995 Healthy life expectancy at birth Average of CLIFE countries


Source:

2000 60.8 64.0

2002 60.5 62.5

2004 60.5 63.4

2006 61.0 64.3

61.6 63.5

National statistics, OECD, Eurostat, Euromonitor International

Table 109

Healthy Life Expectancy at Birth (Actual Growth): 1995-2006/2000-2006

Percentage points 1995-2006 Healthy life expectancy at birth (years) Average of CLIFE countries
Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2006 0.17 0.32

-0.63 0.79

Table 110 number

Healthcare Workers: 1995/2000/2002/2004/2006-2007

1995 Dentists Doctors Midwives Nurses


Source:

2000 7,397 50,856 1,576 213,100

2002 7,623 54,624 1,725 219,773

2004 7,950 58,675 1,907 231,863

2006 8,470 63,220 2,119 241,298

2007 8,812 65,686 2,226 244,909

7,258 1,276

National statistics, OECD, Eurostat, Euromonitor International

Table 111 % change

Healthcare Workers (% Growth): 1995-2007/2000-2007

1995-2007 Dentists Doctors Midwives Nurses


Source: National statistics, OECD, Euromonitor International

2000-2007 19.13 29.16 41.24 14.93

21.41 74.45

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Table 112

Major Causes of Death by Disease: 1995/2000/2002/2004/2006-2007

per 100,000 inhabitants 1995 Certain infectious and parasitic diseases Malignant neoplasms Diabetes mellitus Mental and behavioural disorders Diseases of circulatory system Diseases of respiratory system Diseases of digestive system Certain conditions originating in the perinatal period Congenital malformations, deformations and chromosomal abnormalities
Source:

2000 10.3 237.0 21.0 32.2 308.8 92.1 33.5 3.3 3.8

2002 10.8 235.8 25.3 40.0 297.2 83.7 34.5 3.3 3.3

2004 11.5 238.5 23.1 40.0 274.2 78.3 34.4 2.7 3.3

2006 11.1 241.8 22.6 39.3 260.2 88.3 32.7 3.2 3.2

2007 11.1 242.8 22.4 39.1 255.3 88.6 32.1 3.3 3.2

7.6 236.0 19.3 26.6 337.0 81.9 32.6 3.3 4.1

OECD, WHO, Euromonitor International

Table 113 % change

Major Causes of Death by Disease (% Growth): 1995-2007/2000-2007

1995-2007 Certain infectious and parasitic diseases Malignant neoplasms Diabetes mellitus Mental and behavioural disorders Diseases of circulatory system Diseases of respiratory system Diseases of digestive system Certain conditions originating in the perinatal period Congenital malformations, deformations and chromosomal abnormalities
Source: OECD, WHO, Euromonitor International

2000-2007 7.80 2.45 6.74 21.37 -17.34 -3.88 -4.18 -2.01 -16.59

46.21 2.89 15.88 46.96 -24.24 8.14 -1.43 -0.38 -22.65

Table 114

Obese Population: 1995/2000/2002/2004/2006-2007

% of Population aged 15+ 1995 Obese Population (BMI 30kg/sq m or more) Average of CLIFE countries
Source: Note:

2000 9.4 13.1

2002 9.7 13.6

2004 10.9 14.4

2006 11.0 15.2

2007 11.2 15.5

6.9 11.5

OECD, International Obesity Taskforce, Euromonitor International Data are for Population aged over 15 years

Table 115

Obese Population (Actual Growth): 1995-2007/2000-2007

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Percentage points 1995-2007 Obese Population (BMI 30kg/sq m or more) (% of Population aged 15+) Average of CLIFE countries
Source: Note:

2000-2007 1.82 2.42

4.32 4.05

OECD, International Obesity Taskforce, Euromonitor International Data are for Population aged over 15 years

Table 116

Smoking Prevalence: 1995/2000/2002/2004/2006-2007

% of Population aged 15+ 1995 Smoking prevalence in Population aged 15+ (% of Population aged 15+) Average of CLIFE countries
Source: Euromonitor International

2000 32.4 30.7

2002 33.5 30.7

2004 32.8 30.7

2006 32.2 30.9

2007 32.0 31.0

35.7 30.6

Table 117

Smoking Prevalence (Actual Growth): 1995-2007/2000-2007

Percentage points 1995-2007 Smoking prevalence in Population aged 15+ (% of Population aged 15+) Average of CLIFE countries
Source: Euromonitor International

2000-2007 -0.44 0.21

-3.74 0.37

Table 118 number

Reported AIDS Cases: 1995/2000/2002/2004/2006-2007

1995 AIDS incidence


Source: UNAIDS, WHO

2000 250

2002 295

2004 281

2006 189

2007 164

534

Table 119 % change

Reported AIDS Cases (% Growth): 1995-2007/2000-2007

1995-2007 AIDS incidence


Source: UNAIDS, WHO

2000-2007 -34.40

-69.29

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 in 2006. This was caused by pressures in the Dutch economy which dented consumer confidence. This seriously affected high street sales of many non-essential products as consumers prioritised spending on essential items.

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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 5.32 billion. The overall trend is still down 1.3% on 2000 figures though. Per capita, US$445.86 was spent on personal 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 in the Dutch market, which had been keeping prices in the cosmetics and toiletries sector down. The resulting increase in consumer confidence has inspired companies once more to invest in NPD for the cosmetics and toiletries sector, which had been held back as retailers were reluctant to invest in releasing new products into a depressed market. The sector saw certain new trends emerging during 2007. There was a rapid increase in the market for products that contained a tanning factor, as more companies began to include this as a value-added extra in their moisturising and nourishing products. Another sector which saw healthy growth during 2007 was the market for mens skincare products, both smaller independent companies and Nivea skincare, which launched their Nivea Face 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 about environmental issues, skin allergies and other medical concerns which might be caused by chemicals such as parabens, aluminium, phthalates, petroleum, paraffin, dyes, mineral oil and the chemical sunscreen PABA. It is estimated 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 retail sector. The economic slowdown that started after the introduction of the euro and rising concerns over employment and future economic prospects dented consumer confidence, encouraging Dutch consumers to pursue 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 industry position. This measure was followed by drug store formulas such as Etos and Kruidvate and discounters pressuring 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 from downward unit prices driven by intense volume promotion or little new product development. At the end of 2006, Albert Heijn announced that it had once again achieved its desired industry share and that it was no longer necessary to pursue a price war. This brought relief as an improved economy changed the focus towards product rather 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 offered to manufacturers. They will be able to work harder on devising branded products with value-added formulations which can command premium prices, rather than being tied down to focusing on merely providing cheap supermarket private-label generic me-too products. This will be good for producers and retailers as they will have new products bringing in larger revenue streams, as well as for customers, who will receive the benefit of exciting new product launches.

Attitudes Towards Personal Grooming


In addition to health and prevention attracting increased interest from Dutch consumers in 2007, image and the desire to look good reached an unprecedented level in a country that has traditionally placed more importance on 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 fashion magazines, international films, television commercials and the influence of foreign travel.

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A survey undertaken by the magazine Margreet in 2006 found that 50% of Dutch women do not feel attractive enough, and are willing to do almost anything to improve their personal image. In late 2007, image once again became one of the most mentioned factors that people want to improve. Not surprisingly, it featured strongly in New Year resolutions, manifesting itself in resolutions ranging from losing weight to maintaining a healthier lifestyle. Mens personal grooming products are experiencing a particular boom period, as the Dutch male is more open to 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 the rapid growth rates registered in cosmetics and toiletries ranges earmarked within this trend. Recent new product introductions recognise the trend towards prevention and increased health awareness, particularly in terms of obesity and disease prevention. For example, the introduction of Nivea Summer Sunshine, a body skin care product that provides a tanning effect, is a successful product that promises to not only care for the skin but also to make it more attractive. More recently introduced skin care products also aim to help improve the skins appearance such as Nivea DNAge, a facial care product with anti-ageing properties. Within sun care, sun protection formulas with firming ingredients 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 in the forecast period. Manufacturers are expected to keep injecting value growth via further innovations and product extensions that focus on the concept of health. Products that also improve image, and which combat obesity 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 and colour cosmetics will remain high in the coming years. Sales will grow from consumer education and the introduction 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 consumer base and provide value. It is expected that more products that focus on health and wellness as well as image will expand within cosmetics and toiletries over 2009-2012. Dutch people will also be more willing to pay for such products as long as the added value is palpable.
Table 120 EUR million 1995 TOTAL
Source: Note:

Consumer Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007

2000 5,393.1

2002 5,730.3

2004 5,505.8

2006 5,272.3

2007 5,321.2

4,612.6

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 121

Consumer Expenditure on Personal Care (% Analysis and % Growth): 1995-2007/20002007

% analysis/% growth 1995-2007 TOTAL


Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 -1.3

15.4

Table 122

Per Capita Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007

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US$ per capita 1995 Personal care Average of CLIFE countries


Source:

2000 269.77 119.68

2002 310.39 130.12

2004 402.65 175.85

2006 398.59 200.19

2007 445.86 229.75

315.80 123.29

National statistics, OECD, Eurostat, Euromonitor International

Table 123 % growth

Per Capita Expenditure on Personal Care (% Growth): 1995-2007/2000-2007

1995-2007 Personal care Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 65.27 91.97

41.19 86.35

EDUCATION
Spending on Education
Consumer spending on education increased only slightly over the years 2000-2007 from 1.36 billion to 1.37 billion an increase of just .6%. The education system in the Netherlands provides primary and secondary schooling free of charge to all Dutch children until age 16, as well as significant student support, loans and transport subsidies to university students. Those over age 16 must pay, but the government can compensate households below a given income. Education costs have become increasingly pronounced, a problem that was exacerbated by the recent economic slowdown. Despite endemic staff shortages and under-funding, the standard of Dutch education is generally fairly high, but continuing staff shortages could damage this quality. The university system, which contains a number of respected research institutes for sciences, political studies, business and engineering, will also suffer from a reduction in funding. Impact Class sizes are growing due to limits on the number of teachers available, particularly at primary school level and in urban areas. This is an especially acute problem as class sizes tend to be fairly large as it is; more than 25 students per class not uncommon. This situation is due to the ageing population, with large numbers of teachers coming up for retirement and the prospect of 10,000 empty teaching vacancies. This has led to extra money being allocated to teachers, as well as investments into new teaching methods. This has meant the Dutch education system is becoming more expensive to administer. The fact that schoolchildren over 16 have to pay for their education means that there is less money to be spent in the economy by well-off families who are having to pay for their childrens education, whilst the less well-off receive some subsidies, meaning that they have more money to spend in the economy.

Pre-primary Education
Frequently, children begin their education in a crche or day-care facility before attending primary school. This can be attributed to higher levels of female employment, but it is also increasingly seen as a positive developmental step for the child, bridging the transition from home to primary school. The child care sector has been 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 must adhere to the rules and regulations of the official Childcare Act. In the Netherlands, all parents using formal child care are entitled to the child care allowance. Day-care centres and home daycares are both considered

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formal child care. However home daycares require the involvement of a day-care bureau in order to qualify for the 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 of 0-12. There is no upper income limit, although lower-income families will receive more than higher-income families. The allowance is determined by an annually adjusted maximum hourly rate. The 2009 rate is 6.10 per hour. In certain circumstances this fee can cover as much as 80% of child care costs, depending on family income 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 nurseries provide child care for children from 6-8 weeks of age until their fourth birthday and are open Monday to Friday from 08.00hrs to 18.00hrs. Increasing childcare availability and improving its quality are high on the political agenda, based on the idea that an extensive network of high-quality child care facilities enables parents to combine work or study and care. Impact The impact of the 2005 Childcare Act has been to give increased flexibility to women juggling work, study and child care commitments. This is good for the women concerned who are able to earn more money, and is good for the Dutch economy which is able to take advantage of both the increased productivity from more women being in the workforce, as well as reaping the rewards of their increase in purchasing power, not to mention the income 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 preschooling, 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 secondary education until age 16 after which they are free to leave, although most full secondary school programmes continue 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, particularly for primary school pupils, and finishes at 12:30hrs. There are a number of days off, including Easter, Ascension and Queens Day, in addition to a week in October, the period between Christmas Eve and 8 January, a week in late February, a week in May, and July until late August. The exact dates vary between the north, south and centre 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 it into one sum was to give primary schools and special schools more freedom in terms of spending. They can now spend this money however they wish. The money is allocated according the number of pupils in each school on the 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 attainment test for language and arithmetic be introduced for all pupils in the last year of primary school. This would enable a comparison between schools of basic performance. Until this happens schools will be free to choose the type of test (i.e. CITO or other). The Dutch secondary education system is based on multiple tiers into which pupils are divided, based on achievement and area of interest, dictating whether the student enters university, another form of higher education, 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 for the higher level. At the end of school, students can opt to take the VWO exams, or the Advanced Scientific Education, 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.

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University pass-rates demonstrate that VWO students are the most successful, although in science-related disciplines there was little difference between HBO and VWO students. According to a CBS study, women continue to outperform men with 88% pass rates in comparison to the 76% achieved by men. Block grant funding is also in operation in Dutch secondary schools. A unique personal identification number (PGN, sometimes referred to as the education number) is assigned by the Information Management Group (IBG) to all pupils receiving government-funded education, who are too young to have a tax and social insurance (SoFi) number. For older pupils, their PGN is the same as their SoFi number. Schools pass on the PGN, together with certain other data on pupils, to the IBG. This data is used to determine each schools funding and for policy development and supervision purposes, the latter by the Education Inspectorate. The data kept by the IBG is increasingly used for purposes such as monitoring pupils school careers, school attendance and early leaving. PGNs have been introduced in secondary, vocational and adult education, and are being introduced in primary education. Impact In the Netherlands in 2004, 71% of citizens aged 25-64 earned a diploma at upper secondary level or higher. The education level of the Dutch population is higher than the overall average level of education among all the OECD and EU countries (both OECD and EU were at 67%). Of the surrounding countries, however, only Belgium, the United Kingdom and France have a lower proportion of 25-to-64-year-olds with a diploma at the secondary level or higher. At 65%, these countries score just below the OECD and EU average. Of the total population, it is the younger age group that has the best education. In 2004, 80% of 25-to-34-yearolds earned a diploma at upper secondary level the basic qualification level or higher. This percentage puts the Netherlands some two percentage points above the OECD and EU averages. The fact that Dutch citizens have above-average rates of educational achievement in Europe means that they enjoy a comparatively high standard of living overall, and their skills are in demand throughout Europe. As the young population is highly skilled in particular this bodes well for the Dutch economy in the future. Europe is predominantly a knowledge economy, and a high percentage of Dutch students will be entering professional occupations. This will strengthen a buoyant market for products associated with professional services in the Dutch economy, such as IT and telecoms hardware and infrastructure, and commercial property.

Higher Education
Although the Netherlands still has extremely high levels of tertiary education attainment, figures suggest that this is starting to fall. Between 2000 and 2003, a reasonable decline was seen, with the number of higher education students falling from 491,000 to 477,000. However, the effect of this will not be felt in the labour market for at least four years due to the time required to complete a degree. Parallel to this, there has been a steady increase in the number of part-time students, up from 18.8% in 2000 to 19.9% in 2003, in comparison to the more than 1% decline in full-time student numbers. Impact This turn-around, and the overall decline in student numbers, is reflective of a tougher economic climate leading many to reconsider studying, and forcing others to work part-time during their studies. Although the economy has since recovered, increases in basic university fees may result in this trend continuing for quite some time. This is partially due to the fact that Dutch students tend to remain students for a fairly long time, with quite a high number of older students found in many universities. In order to encourage higher education in the Netherlands over the coming years, the government has put into operation several innovative schemes. The most effective of these is the fact that the government has introduced a scheme of performance-related loans, which turn into grants if the requisite number of credits are attained. This loan/grant entitlement is index-linked, and for the year 2006-2007 was 796.31 a month. In addition to this, students in higher education quality for a free transport pass.

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Students in higher education pay tuition fees to the institution. As long as they are under age 30, they are charged the statutory rate for tuition fees. The annual statutory tuition fees for all full-time courses during the 2006/2007 academic year are 1,519. Statutory fees are fixed by law and adjusted every year in line with the family 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 and can therefore vary. However, the government has introduced study entitlements in order to encourage uptake of higher education study. A study entitlement is an individuals right to higher education for a maximum number of six-monthly periods for which statutory tuition fees are paid. In the 2007 coalition agreement, the new Dutch government pledged to promptly introduce a new integrated bill on funding and management of higher education and research. This would focus on improving the quality and position of vulnerable courses and would include uniform, simple and enforceable funding rules that help students and prevent inappropriate funding. There are several other ways in which the government is seeking to encourage study. Studielink is an on-line interface, from which students will be able to apply and register for all higher education courses, making the process easier for students to apply and institutions to administrate. University admissions policies are being relaxed 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, despite not holding the requisite educational grades. A pilot scheme for associate degree programmes was launched in order to address the shortage in the Dutch labour market of workers educated to between MBO Level 4 and bachelors degree standard. These are intended for MBO certificate holders who want to pursue further study and working people who want to go back to higher education. From September 2007, students resident in the Netherlands who want to pursue full-time or part-time studies abroad can apply for financial assistance. Plans are also under way to allow privately-funded institutions 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 to take examinations at school at the age of 18. However they can also be assessed using other relevant subjects in which they may have taken optional examinations. In comparison to the OECD and EU averages, the Netherlands has few short study programmes. Among its neighbouring countries, Belgium in particular has the greatest variety of short programmes compared to the Netherlands. At 29%, the Netherlands has a higher proportion of 25-to-64-year-olds with qualifications at tertiary level than the OECD and EU averages (25% and 23% respectively). This makes the Netherlands the second best performing country in the OECD area. The surrounding countries have similar proportions of 25-to64-year-olds with qualifications at tertiary level. Germany, the only country lagging behind the Netherlands, still scores 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 a diploma at the tertiary level by 2020. In the Netherlands, 34% of 25-to-34-year-olds have completed either a higher 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 falls below the EU and OECD averages.

Adult Education
Social trends and the need for lifelong learning have made adult and vocational education crucially important for individuals, the labour market and society as a whole. As well as a socioeconomic function (matching supply to demand, and greater employability), the Act also has the sociocultural function of promoting integration and greater participation of disadvantaged groups. The aim of secondary vocational education, as defined in the Adult and Vocational Education Act, is to provide both theoretical instruction and practical training in preparation for the practice of a wide range of occupations for 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.

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Adult education is geared towards furthering the personal development of adults and their participation in society. The Adult and Vocational Education Act (WEB) identifies four types of course: adult general secondary education (VAVO), leading to a pre-vocational secondary education (VMBO theoretical programme), senior general secondary education (HAVO) or pre-university education (VWO) certificate (Levels 4, 5 and 6) or part of one; courses providing a broad basic education (BMF); courses in Dutch as a second language (NT2); and courses 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 1 August who are in full-time vocational training (BOL) in secondary vocational education (MBO) or taking fulltime adult general secondary education (VAVO) courses have to enrol with an education card and therefore have 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 pay course fees instead of school fees. The amount depends on the level of the course. In 2006/2007 the course fees were 199.71 for assistant-level or basic vocational training and 485.60 for middle management or specialist training. The costs of adult education courses consist of statutory fees and learner costs (ie, all expenditure, other than fees, directly related to the course of study, such as travel expenses and the purchase of textbooks and study materials). Adult learners age 18 or over on 1 August who are taking full-time or part-time adult general secondary education courses (VAVO) or courses in Dutch as a second language at levels B1 or B2 have to pay course fees. In the 2006/2007 school year, these amounted to 9,463 for full-time courses (more than 850 teaching 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. Adult education 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 who no longer have to pay fees. However, MBO students under the age of 18 can still get financial assistance to help with educational expenses under the Fees and Educational Expenses (Allowances) Act (WTOS). Parents of MBO 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 brought into 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. For MBO students doing Levels 1 and 2, no conditions are attached to the basic and supplementary grants. Students doing Levels 3 and 4 receive performance-related grants. This means that the grant is initially awarded in the form 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 loan for another three years. The standard duration of the course determines the number of months grant for which it can be converted. Successful MBO candidates who decide to go on to higher professional education (HBO) are entitled to a new grant, depending on the length of their course. In certain circumstances these grants may be used to take study abroad. Impact Encouraging adult education will lead to greater levels of employment and higher levels of productivity amongst the lower-income groups. This will be a positive step for the economy in general, decreasing the burden of social payments on the government and injecting more spending into the Dutch economy, particularly on relatively 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

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EUR million 1995 TOTAL


Source: Note:

2000 1,367.4

2002 1,421.3

2004 1,595.8

2006 1,361.9

2007 1,375.7

1,253.1

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 125 % growth

Consumer Expenditure on Education (% Growth): 1995-2007/2000-2007

1995-2007 TOTAL
Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 0.6

9.8

Table 126 US$ per capita

Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007

1995 Education Average of CLIFE countries


Source:

2000 68.40 106.84

2002 76.99 114.25

2004 116.71 148.97

2006 102.96 175.94

2007 115.27 202.90

85.79 98.36

National statistics, OECD, Eurostat, Euromonitor International

Table 127 % growth

Per Capita Expenditure on Education (% Growth): 1995-2007/2000-2007

1995-2007 Education Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 68.53 89.91

34.36 106.29

TRANSPORT
Spending on Transport
Consumer expenditure on transport in the Netherlands increased from 27.9 billion in 2000 to 29.5 billion in 2007, an increase of 5.8%. Within the sector the largest proportion of the overall figure was operation of transport 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 period however, 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 between 2000 and 2006 translated into poor sales in retail environments such as car sales rooms. Spending recovered slightly 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 travel sector, 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, this period saw a significant expansion in the number of operators, routes and flights in this sector. As prices have

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fallen, air travel has become more accessible, and consumer expenditure has risen. Budget operators have also forced 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 the public transport and road networks are of an extremely high quality. Public transport is widespread with good connectivity and comparatively high reliability. High-speed trains provide the predominant intercity links, and bus services dominate inner-city transport. In addition, larger cities like Amsterdam and Rotterdam have tram and metro networks. Despite the high number of cycling and public transport facilities available in the Netherlands, the use of cars as a means of transport has risen considerably and plays a dominant role in commuting patterns. This has led to increasing levels of congestion on Dutch roads, with the average distance covered by a car in 2004 rising to 42kms per day, a sharp increase over previous years. This is directly related to a sharp decline in the popularity of trains, which increasingly came under attack for delays, bad planning and poor response to changing commuting needs. In 2005, Dutch commuters travelling by car spent a total of 65 million hours in congested traffic, despite a decline in traffic jams. Traffic jams are also spreading over the nation, making them harder to tackle, and are indicative 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 advertising campaign by the Dutch train-operator, the NS.

Air Transport
The Netherlands and aviation are inextricably linked. The Netherlands international position is considerably more important than it might initially appear, based on the size of the population. This position is due to Amsterdam's Schiphol Airport. Schipol, with 188 loading slots, is the main international airport in the Netherlands, 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 busiest airport in Europe (the leaders were London, Paris, Frankfurt and Madrid). About 68% of the passenger flights were to Europe, almost 21% of its passengers travelled on intercontinental flights and 11% to Asia. Cargo goes mainly to Asia (44%) and North America (20%). In addition to Schiphol, the Netherlands also has a large number of other airports and airfields, including military airfields. Some military airfields are also used by non-military aircraft. Regional airports, such as Lelystad, Rotterdam and Maastricht are oriented towards business air traffic and offer direct low-cost carrier connections to regional European airports. Small airfields are used by pleasure craft, helicopters and other smaller, 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 was runner-up. Most passengers on intercontinental flights travelled between Europe and the United States (4.8 million). According to the Dutch statistics bureau CBS the number of passengers arriving at or taking off from Dutch airports grew by 18% to nearly 49 million over the period 2003-2006. In particular, budget operators increased their 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. The number 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 airports declined by 42% to 0.5 million. In total, regional airports handled 2.6 million passengers in 2006, an increase of 80% 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.

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In 2006, Amsterdam Schiphol Airport handled 46 million passengers, an increase of 6 million over 2003. In 2007, 78% of budget airline passengers (7.6 million persons) going through Dutch airports arrived at or took off from Amsterdam Schiphol Airport, an increase by 31% compared to 2003. The number of traditional airline passengers increased by 13% in this period. Impact As the Netherlands enters recession, foreign travel will be one of the first sectors affected. Business travellers whose companies may have lost foreign accounts (or are looking to cut costs) will travel less. Leisure travellers will cut back on either the frequency or distance of their foreign travel, opting instead for holidays within the Netherlands, or for cheaper short-haul flights. The trends for 2009 will be fewer flights overall. Full-price operators will suffer most from the recession as travellers trade down from first or business class, or decide that the mild inconvenience this would represent does not outweigh the savings in cost offered by budget airlines. There will also be the substitution of expensive long-haul holidays with cheaper short-haul destinations, or even staycations (holidaying at home, rather than abroad).

Road Transport
The 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 of congestion on Dutch roads, with the average distance covered by a car in 2004 rising to 42kms per day, a sharp increase over previous years. This is directly related to a sharp decline in the popularity of trains, which increasingly 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 total of 65 million hours in congested traffic, despite a decline in traffic jams. Traffic jams are creeping across the nation, making them harder to tackle, and are indicative of a sharp increase in the number of cars on Dutch roads. Unlike in other countries, Dutch motorways usually have only 2x2 lanes. Exits are generally only about 3000 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 local roads 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 on some motorways. Another problem is the limited number of river crossings, which are usually only via motorways. Nearly all major river crossings are congested during rush hours. A usual rush hour accumulates between 200 and 300 kilometres of congested traffic, but can be as high as 100 discrete sections of congested traffic totalling 500 kilometres. Outside of rush hours, the motorways are usually free-flowing, but can still be very busy. Morning rush hour usually lasts from 06.00hrs until 10.00hrs. Evening rush hour generally lasts from 15.30hrs to 19.00hrs. Fridays are exceptions, when the morning rush hour is lighter and shorter; the evening rush 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 be felt very strongly as consumers find ways to curb their spending. Increasingly, small cars will begin to take market-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 environmental reasons. 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 advertising campaign by the Dutch train-operator, the NS.

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Passenger trains account for 93% of all train kilometres in the Netherlands. Goods transport makes up the remaining 7%. The averages for Europe are 79% and 21%, respectively. The intensive use of the Dutch railway system is reflected in the large volume of passenger transport per kilometre of track. In the Netherlands this is 5 million 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 to pass 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 and resulting lack of consumer confidence will drive increased use of the rail system as consumers rely on the rail system rather than purchasing cars.

Transport Infrastructure
The Netherlands has one of the densest highway networks in the world. There are 135,470 kilometres of public roads, 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 km, the densest motorway network in the European Union. The Netherlands has one of the most advanced motorway networks in the world, with Variable Message Signs and 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 with concrete or other pavement types. The Netherlands is the only country which uses PAC this extensively. The government'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 is especially 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 also result in fewer places to safely move vehicles after accidents, which can lead to more congestion. It has been suggested 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 the rail network and encourage more people to use it. This plan is scheduled to be finished in 2009 and includes high-speed trains from Amsterdam via Rotterdam to Brussels. A high-speed link crossing from Amsterdam to Groningen in the North of the country is under construction. There has also been a series of measures to reduce car use, including fuel tax and increasing parking costs. These have so far failed to persuade commuters to switch, however, leading to increasing inner-city congestion in particular. A number of large parking facilities near 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 substantially more bicycles than people. Cycling is extremely popular within cities and towns, and most Dutch people cycle for 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 to use public transport. In some cases, the improved rail system could persuade people to decide against purchasing a car at all, and it will certainly see a rise in the number of rail tickets sold. As congestion increases in towns and cities, the Dutch will continue to use bicycles to get around. The bicycle market is relatively recession-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 users fitness levels as well as providing a means of transport.

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Improvements in rail transport and number of journeys will be particularly evident after the new lines are completed.
Table 128 EUR million 1995 Purchase of cars, motorcycles and other vehicles Operation of personal transport equipment Transport services - Rail travel - Buses, coaches and taxis - Air travel - Other travel TOTAL
Source: Note:

Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007

2000 9,476.3 14,471.2 3,936.1 832.5 957.0 1,305.9 840.6 27,883.7

2002 9,427.2 14,634.3 4,127.1 882.5 1,037.8 1,328.6 878.3 28,188.7

2004 9,032.8 15,192.7 4,107.7 857.8 1,031.2 1,360.3 858.4 28,333.2

2006 8,191.8 16,199.1 4,564.9 941.2 1,147.2 1,549.4 927.1 28,955.8

2007 8,313.5 16,520.6 4,673.3 954.4 1,168.3 1,611.4 939.3 29,507.4

7,495.8 11,982.2 2,922.0 629.5 787.1 872.8 632.5 22,400.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 129

Consumer Expenditure on Transport (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007

% analysis/% growth 1995 Purchase of cars, motorcycles and other vehicles Operation of personal transport equipment Transport services - Rail travel - Buses, coaches and taxis - Air travel - Other travel TOTAL
Source: Note:

2000 34.0 51.9 14.1 3.0 3.4 4.7 3.0 100.0

2007 28.2 56.0 15.8 3.2 4.0 5.5 3.2 100.0

1995-2007 10.9 37.9 59.9 51.6 48.4 84.6 48.5 31.7

2000-2007 -12.3 14.2 18.7 14.6 22.1 23.4 11.7 5.8

33.5 53.5 13.0 2.8 3.5 3.9 2.8 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 130 US$ per capita

Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007

1995 Transport Average of CLIFE countries


Source:

2000 1,394.78 700.55

2002 1,526.88 720.23

2004 2,072.05 973.73

2006 2,189.06 1,121.98

2007 2,472.43 1,279.97

1,533.60 707.90

National statistics, OECD, Eurostat, Euromonitor International

Table 131 % growth

Per Capita Expenditure on Transport (% Growth): 1995-2007/2000-2007

1995-2007

2000-2007

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Transport Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

61.22 80.81

77.26 82.71

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 of electronic communications, such as mobile phones, the internet and email. This has resulted in spending on communications growing exponentially over the period 1995 to 2007 by 180.9% in 1995 the communications revolution 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 many of 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 the internet. These communication methods have come to be regarded as such an integral part of life, that in some cases they have dominated and begun to threaten traditional means of interaction. For instance traditional phone calls from fixed lines have been threatened by mobile phone calls, which in turn have been threatened by the younger generation 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, particularly electronics 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 market squeezed prices. In fact, handsets are often now given away for free, or bundled with line rental contracts to entice customers. 3G phone services are the latest technology and have proved to be extremely popular, as has mobile internet services. These are becoming the latest killer applications for mobile technology, such as mobile phones and laptops, to have. They allow the user to check emails, use the internet and check social networking sites whilst on the move. Meanwhile cameras (whether audio or video) are no longer regarded as nice extras on mobile phones, 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 the introduction of a wide range of technology, hardware and services. As the world and the Netherlands enters a recessionary phase, it will see a slow-down in the pace of the launch of new technology as innovators become more 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 reached its full penetration in the market, will still have the potential to grow sales. This includes such technologies as 3G telecoms and satellite TV. Nevertheless these operators will need to work very hard in a competitive marketplace, 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 the limited 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

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publicly-funded to the commercial, as well as a number of international channels from the UK, France and Belgium. Almost every household in the Netherlands (98%) owned a colour TV set in 2007, a figure that has remained pretty constant over the review period, pointing to the fact that the TV market is a replacement market. There are currently three Dutch national TV channels. Household penetration of cable TV has declined since its peak of 95.2% in 2002 to 83.2% in 2007. Conversely over the review period satellite TV has showed extremely strong 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 increasingly tending 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 that exploit this new technology could mean another shift in the coming years. The biggest change was seen with the introduction of wide-screen televisions. These are slowly becoming the norm, accounting for 50% of all sales after 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 televisions tend 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 to turning the television on for one specific programme. Around a quarter of those who watch television every day leave 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 small number, primarily students and teenagers, watch alone. The vast majority of those interviewed expressed dissatisfaction at being disturbed during watching, with 50% citing the telephone as the main culprit. This suggests 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 to make 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 and airs around 30 channels, with prices starting from 15 per month for a subscription, which is only 5 more than the analogue price. UPC will also offer packages with a high number of Turkish TV stations to attract a Turkish audience. The relatively high price of these new technologies wide-screen televisions are generally twice as expensive as normal and flat-screens up to nine times as pricey has kept sales revenues high despite sluggish overall growth. This has been boosted by the growing popularity of home-cinema systems which retail at between 300 and 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 those who 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 to drop and satellite TV achieving over 12% household penetration by 2015. This would represent 52% growth in the 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, and specialist 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 equipment that is able to make use of services offered by satellite, such as HDTV. As HD offers higher definition picturequality, 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.

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However, this needs to be put into the context of the looming recession, which will increasingly see the market turning 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 newspapers dropped from 5.0 million in 2003 to 4.7 million in 2007. Non-daily newspapers dropped from 19.0 million to 16.3 million over the same period. This is due to the rise of two trends in the marketplace which have significantly 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 hard copy newspapers in order to rely on news websites instead. The other trend is the rise in publications distributed with no cover charge. Daily newspapers such as Metro are given away for free and their business model relies solely 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), De Telegraaf 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), De Volskrant (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 tabloid issues, such as celebrity gossip with more serious business issues. De Telegraaf has gained circulation in the late 2000s due to its being given away for free to boost its circulation numbers. Left-wing newspapers, such as Der Volkskrant and NRC Handelsblad (which is evening newspaper), continued to lose circulation figures during De Telegraafs 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 Tijden Slechte Tijde, Idols and a political satire show called Kopspijkers are just some of the other most frequently watched television programmes. Music channels like MTV and TMF are extremely popular with the younger generation of viewers. Impact The future looks uncertain for printed media as the Netherlands once again enters a period defined by a challenging 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 their advertising campaigns completely, or prioritising those publications with high circulations. This will result in many 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 as give-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 were more than 14 million mobile users in the Netherlands, a country with a population of just over 16 million. The biggest growth was seen between 1995 and 2000, when the technology began to become affordable and connectivity 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 in use increasing by more than 44% between 1990 and 2005 to more than 10 million. This growth precipitated a continuing rise in the number of national and international calls being made, which both grew substantially in the period under review. International calls, in particular, rose by more than 270% between 1990 and 2005 to 3,355 million minutes in 2005. This substantial increase is largely due to the declining costs of international phone 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 of Dutch ex-patriots.

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The next generation of mobile phones in the Netherlands is expected to be extremely popular, challenging the audio and MP3 player market in particular. New phones that offer internet access, an MP3 player and digital camera in a single unit could increasingly replace purchases of these items separately, a process referred to in the Dutch market as digital convergence. Digital convergence is already starting to be reflected in profits, with the 4.5 million mobile phones sold in 2005 creating a market turnover of 370 million. This is aided by the fact that consumers increasingly tend to own more than one mobile phone, with a recent survey indicating 30% of mobile phone users owned two phones, with 12% even owning five or more. Additionally, 96% of those with internet at home owned a mobile phone. GfK surveys also indicated that, of the families with mobile phones, 29% had given one to a child 10 years old or younger. Impact However, the increasing penetration rates of mobile phone ownership means only a small rise, just over 4%, is expected in the number of mobile phone users between 2005 and 2015, meaning the market will migrate to a replacement 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 technology such 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 more subscribers to use 3G services. To date, handsets have been expensive, whilst most GSM phones are provided free of charge. Costs to use 3G services have similarly been expensive. Thus far, uptake has remained relatively low, despite steady increases. As the Netherlands enters a period of economic uncertainty and low consumer confidence, the need to encourage more subscribers to take 3G services should see the introduction of more affordable contract offers which 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 in the 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%. This indicates the increasing necessity of computers to the average Dutch household. From the parents completing their office work or downloading digital photos, to the children keeping in touch with friends and completing homework, 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 to 15.2 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. In 2000 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 used dial-up to connect to the internet. Although there has been a sharp increase in on-line shopping, this only accounts for a small percentage of internet usage. Most use the internet for communication, including e-mail and on-line chatting, as well as the increasingly popular audio-chatting facilities like Skype. A high number use the internet as a quick source of information and for entertainment, with an increasing number also turning to the internet for more practical activities like e-banking. According to the TNS survey, laptop computers are gaining in popularity at the expense of the traditional desktop computers, with laptops accounting for 38% of total PC market sales in 2004. With laptops increasing

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by 20% every year from 2004-2007 and PC sales remaining stable, this represents a strong switch in consumer habits. Increased spending has been fuelled by lower prices, however, which has meant that the increase in revenues is far lower than the increase in units sold, with only 4% growth in 2004 due to the average retail price of 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 market including printers, scanners and copiers experiencing an overall drop in sales. This is indicative of the increasing importance 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 service providers experimenting with the idea of public hotspots. A company called HubHop began offering a network of hotspots in public locations such as public transit points, libraries and restaurants. The popularity of these has led to plans to rapidly increase their number, particularly in airport terminals and the like where travellers are more 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 to expand, however, and new releases on the market which force consumers to update their software for compatibility reasons will drive this market forward. The increased popularity of laptop computers will continue to rise as consumers become used to the idea of computing on-the-go, rather than viewing their terminal as a fixed 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 the Netherlands, but has also impacted consumer spending with the rising popularity of on-line shopping. Ease and practicality, 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 sports gear and tickets for events by frequent on-line shoppers rose spectacularly 2005-2007. In 2007 over a third of frequent on-line shoppers reported that they had bought or ordered these products on-line, compared to a fifth in 2005. Such spectacular increases were not seen for all purchases. There was very little grocery shopping or spending in the category of lottery or gambling in 2007 by frequent on-line shoppers. However, a 2006 study conducted by the Netherlands Institute for Spatial Research pointed out the rapid increase in the on-line trade in secondhand 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 also bought 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, a survey conducted by TNS suggests people still find in-store shopping easier and more fun than on-line shopping, and highlights lingering doubts as to the safety of buying on-line. The strongest growth was seen in on-line shopping for clothing, although CDs, books and holidays led the market, with the Netherlands second only 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 are particularly attracted by its lower prices and the product comparisons that it enables. Current value growth in 2007 was even higher than the review period CAGR as a whole, with almost all categories showing higher levels of growth in 2007.

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According to Thuiswinkel.org, the trade association for homeshopping companies in the Netherlands, there were only around 3,000 internet retailing sites in the Netherlands in 2000. It estimates that this figure grew to around 10,000 in 2005, when internet sales expanded rapidly. Virtually all consumer goods retailers now at least advertise 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%. Consumers particularly like the ability to compare such products, as well as the convenience of delivery, rather than having to collect such products themselves from a retail outlet. However, retailers are coming under pressure to collect old 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 the importance 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 seen in 2002. Although growth rates will still be high, they will be lower than those seen in the review period. Internet usage had wide penetration by the end of the review period, and while it continues to increase, it is at lower levels than previously. According to the Dutch Chamber of Commerce, the number of websites offering on-line sales in the Netherlands 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 for touching and feeling products prior to purchase and high delivery charges. Because of this, the trend towards free 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 generation of digital mobile phones. The first development was the launch of Wireless Access Protocol (WAP) enabled handsets which could access a slow, specially-adapted version of the internet. This was used to access on-line multimedia applications using the mobile phone handset as an access tool, with the users monthly telephone bill as a payment method. Initially these phones were typically used for multimedia messaging, downloading ring tones, 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 previous GSM 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 more advanced consumer handsets such as Apples iPhone, to conduct far more sophisticated transactions. These include accessing email and the internet, downloading music via iTunes and paying for small-ticket items such as coffee or parking tickets. However, the percentage of all phone calls made using 3G technology remains a relatively small proportion of the mobile telecoms market, having grown from 2% in 2005 to 7% in 2007. This is because 3G services are currently aimed at the premium end of the market, with expensive handsets and contracts. 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 mobile equipment, in 2007, with 13% of all users employing a laptop with a wireless modem. Another 8% percent of internet users used a mobile phone to access the internet, and only 3% used a palmtop. Men and young people with higher education levels are more likely to use a mobile connection, .

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Among male internet users, 24% accessed the internet via mobile equipment, versus only 14% of female internet 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% of these users under age 45 accessing the internet with the aid of mobile equipment in 2007. Amongst older internet users and those with lower education levels, this was only 7%. The distribution pattern of mobile internet access in Dutch society largely resembles that of all internet access at the end of the 1990s, when the early 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 become popular regardless of economic conditions. There is a clear interest in and need for the services, especially for applications such as mobile internet access and mobile email.
Table 132 EUR million 1995 Postal services Telecommunications equipment Telecommunications services TOTAL
Source: Note:

Consumer Expenditure on Communications: 1995/2000/2002/2004/2006-2007

2000 820.6 968.8 7,629.3 9,418.6

2002 847.5 716.7 9,626.8 11,191.0

2004 821.1 686.0 10,149.8 11,656.9

2006 763.6 600.3 10,196.3 11,560.2

2007 771.8 621.0 10,811.7 12,204.6

550.2 265.4 3,529.0 4,344.6

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 133

Consumer Expenditure on Communications (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Postal services Telecommunications equipment Telecommunications services TOTAL
Source: Note:

2000 8.7 10.3 81.0 100.0

2007 6.3 5.1 88.6 100.0

1995-2007 40.3 134.0 206.4 180.9

2000-2007 -5.9 -35.9 41.7 29.6

12.7 6.1 81.2 100.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 134 US$ per capita

Per Capita Expenditure on Communications: 1995/2000/2002/2004/2006-2007

1995 Communications Average of CLIFE countries


Source:

2000 471.13 152.91

2002 606.18 174.87

2004 852.49 238.73

2006 873.95 276.22

2007 1,022.63 325.63

297.45 119.55

National statistics, OECD, Eurostat, Euromonitor International

Table 135 % growth

Per Capita Expenditure on Communications (% Growth) 1995-2007/2000-2007:

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1995-2007 Communications Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 117.06 112.96

243.80 172.38

Table 136

Penetration of Televisions and Number of TV Channels: 1995/2000/2002/2004/2006-2007

per 100 households 1995 Black and white TV set (% of households) Colour TV set (% of households) National TV channels (number)
Source:

2000 10 99 5

2002 7 98 5

2004 6 98 5

2006 4 98 3

2007 4 98 3

19 97 4

National statistics, European Audiovisual Observatory, Euromonitor International

Table 137

Penetration of Televisions and Number of TV Channels (% Growth): 1995-2007/20002007

% change 1995-2007 Black and white TV set Colour TV set National TV channels
Source:

2000-2007 -61.38 -0.55 -40.00

-79.67 1.50 -25.00

National statistics, European Audiovisual Observatory, Euromonitor International

Table 138 % of households

Penetration of Cable and Satellite Television: 1995/2000/2002/2004/2006-2007

1995 Cable TV Satellite TV system


Source:

2000 89.69 4.84

2002 95.18 7.50

2004 90.68 11.20

2006 85.48 13.17

2007 83.20 13.82

88.12 4.51

Euromonitor International from trade sources and national statistics

Table 139 % change

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

1995-2007 Cable TV Satellite TV system


Source:

2000-2007 -7.24 185.57

-5.58 206.30

Euromonitor International from trade sources and national statistics

Table 140

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

as stated 1995 National telephone calls (million minutes) 2000 34,400 2002 31,803 2004 30,143 2006 29,099

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International outgoing telephone calls (million minutes) Total Telephone lines in use ('000) Mobile telephone subscribers ('000)
Source:

1,459 1,459 8,124 539

2,550 36,950 9,889 10,755

2,220 34,023 8,026 12,100

2,055 32,198 7,861 14,800

2,157 31,256 7,688 16,557

National statistics, International Telecommunications Union, World Bank, Trade sources, Euromonitor International

Table 141

National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users(% Growth): 1995-2006/2000-2006

% change 1995-2006 National telephone calls International outgoing telephone calls TOTAL Telephone lines in use Mobile telephone subscribers
Source:

2000-2006 -15.41 -15.40 -15.41 -22.26 53.94

47.88 2,042.36 -5.37 2,971.74

National statistics, International Telecommunications Union, World Bank, Trade sources, Euromonitor International

Table 142 As stated

Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007

2000 Internet users ('000) ISDN subscribers ('000) PC penetration (% of households)


Source:

2002 8,200.0 1,536.0 69.0

2004 10,000.0 1,515.0 75.4

2006 14,544.4 1,480.0 84.7

2007 15,245.6 1,463.0 87.1

7,000.0 1,185.0 64.0

National statistics, International Telecommunications Union, World Bank, Trade Sources, Jupiter Research, Euromonitor International

Table 143 % change

Household PC Penetration and Internet Usage (% Growth): 2000-2007

2000-2007 Internet users ISDN subscribers PC penetration


Source:

117.79 23.46 36.05

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, a reduction 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 photographic media (ie, tapes, camera film and hard-copy photographs) almost disappeared over the review period. That said,

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there is still capture equipment selling in the marketplace. However, it has shifted from an analogue market which is captured on hard-copy material to a digital market (eg, digital cameras, computers and MP3 players). The most marked area of growth 2000-2007 was recreational and cultural services, which rose 19.3%. This may indicate that Dutch governments pleas for the Dutch population to become more active is being heard. Impact Overall spending on leisure and recreation will slow as the recession bites in the Netherlands and consumers are forced to reign in their non-essential spending. Luxuries will almost certainly be curtailed, although there may be some areas of the market that will benefit. The recession may see, for example, the rise of staycations (holidaying at home rather than abroad) to save money, which would benefit the leisure sector. Shopping for Leisure Goods In the leisure goods sector there was current value growth of 3% in 2007, bringing sales to 7.3 billion. Internet retailing mainly drove this category as a lot of the goods within the category can easily be purchased on-line, often at a significant discount. Toys and games stores saw the most dynamic growth with 11% current value growth in 2007. Though the market is highly fragmented, it is led by Blokker with 49% share of value in 2007. Only 1% constant value CAGR is expected for the forecast period. Whilst leisure and personal goods retailers that offer products on-line are experiencing sales declines, those that offer products that consumers prefer to buy in person are showing good levels of growth. This is the case for toys and games stores and sports goods stores, which had good performance levels, while booksellers and audiovisual stores saw current value decline. Growth in 2007 was higher than the review period CAGR in current value terms. This was owing to the upswing seen in sales in 2006 and 2007 for toys and games stores and sports goods stores, as the economic recession faded and consumer confidence returned. The number of leisure and personal goods outlets declined by 2% in 2007 over the previous year. Booksellers fared especially badly over the last couple of years of the review period, as internet sales continue to steal sales from this channel. This led to current value decline of almost 1% for booksellers in 2007. This decline is something that is expected to continue throughout the forecast period, as retailers struggle to compete with the lower prices available through convenient internet retailing channels. Booksellers in the Netherlands are responding by increasing the assortment of products that they stock. AKO announced in 2007 that it would take over all 16 Bruna shops located at rail stations in the Netherlands from Postkantoren Holding BV. Bruna stated that it will instead concentrate on shops that are of more strategic importance and further stated that more of its outlets will be franchised in the future. However, Bruna remains the clear leader in booksellers with a value share of 15% in 2007. Internet retailing is also stealing sales from audio-visual stores, which saw current value sales decline by 2% in 2007 to reach 351 million. Going forward, the situation does not look set to improve for store-based audiovisual stores, with average declines of 3% per year anticipated throughout the forecast period to 2012. Two large retailers dominate audio-visual stores in the Netherlands: Free Record Shop had a value share of 40% in 2007 and Music Store had a share of 23%. Both saw their share increase over 2004-2006 at the expense of smaller and mainly independent outlets, owing to the far greater assortment of products that these large chains offer. In addition to music media, both of the large chains also offer computer games, books and tickets to cultural and sporting events, helping them to expand consumer interest. Sales at toys and games stores picked up dramatically in 2006 after a steep decline during the years of economic downturn at the beginning of the review period, when toys and games were regarded as luxury items. In 2007, toys and games stores saw current value growth of 11% to reach 751 million. Sales of newer electronic toys and computer games and equipment, as well as new devices such as iPods, have helped to continue to drive up sales in toys and games stores, even though sales of toys and games via internet retailing also performed well. Two retailers dominate Dutch toys and games stores: Blokker Nederland BV and Otto Simon with Top 1 Toys. Blokker is the overall leader, with a value share of 49% in 2007. Of this, 27% was derived from its Intertoys fascia and 21% from its Bart Smit format. Top 1 Toys had a value share of 41% in 2007. These leading brands

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retained relatively stable value shares towards the end of the review period. These two retailers have had a strong 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 previous year to reach 1.9 billion. These stores sell relatively valuable equipment such as skis but are also important outlets 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, Unlimited Sports Group, which enjoys a value share of 13% for its Aktiesport and Perry Sports formats. This sport goods retailer 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 challenging economic times. This will be especially so for retailers selling products such as toys, games and electronic items, as well as expensive sporting goods stores, all of which were threatened during the previous economic downturn. Other channels will further face strong competition from internet retailing, including booksellers and audio-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 to socialising with friends and family, much emphasis is placed on the need to enjoy ones self. According to the Dutch statistics office (CBS), in 2007 46% of all Dutch adults attended clubs or activities at least once per month. 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 are about as many male as female voluntary workers, but they are active in different organisations. Men, for instance, are frequently active in sports clubs, churches or mosques, whereas women tend to opt for volunteer work 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 the countryside at least once per month. The Netherlands is also famous for its flat countryside and crowd of bicycles. Not surprisingly, 50% of adults indicate they went on cycling trips at least once per month. This also ties in with the governments campaigns to get the Dutch population to become more active in their spare time to 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 young people, who also like to meet up with friends at the numerous cafs and bars in the towns and cities. It is particularly popular to drink on the sun-filled outdoor terraces during the daytime. More men visit pubs at least once 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. Nonessential 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, are likely to witness an increase in popularity over the forecast period. For instance, there may be more families taking their children out on day trips to the countryside, or to local beaches, or Dutch hotels, rather than spending on more luxurious foreign travel.

Culture

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The Dutch have a rich cultural history, particularly with regard to artists, and the Netherlands boasts a wide variety of extremely popular museums. The most famous of these including the Van Gogh museum, the national Rijksmuseum and Anne Franks house are in Amsterdam and The Hague. Though less famous, most Dutch 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 the second 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 enjoyed wide-spread popularity. Originally a Dutch company, the brand has spread to Germany, France, Belgium and the 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, which frequently use fairy tales as the main theme, with Land van Ooit being another such attraction. Theme parks have enjoyed widespread popularity, but attendance has fallen as a result of the declining number of children in the 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 theme parks 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 Arnhem attracting the most visitors. These two, together with the Van Gogh Museum in Amsterdam, attract the highest number 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 a desire to go but found it too expensive, with the average ticket costing 27.40. Musicals, operas and pop concerts are the most expensive at between 41-34 per ticket. Indeed, government figures seem to indicate the falling interest in the arts for many people: although the number of performances sponsored by the Ministry of Education, 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 performance ensembles, orchestras, ballet and dance, musical theatre and childrens theatre. Cinema attendance rates dipped from 23 million in 2004 to 20.5 million in 2005, but rose again to 22.6 million in 2006. Well over three quarters of the films showing in Dutch cinemas are American films, but the competitive position of Dutch films has improved. The market share of Dutch films increased from 4% in 1997 to 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 dwindling interest in the arts in general, but also because consumers will be less inclined to spend money on expensive theatre tickets, or on cinema tickets, when they could stay in and be entertained at home for less money. There may be a rise in visits to museums, however, as more Dutch people opt to spend their leisure time exploring their 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, football and field hockey, tennis and swimming. The sport demonstrating the fastest growth, however, is golf, which has

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grown substantially in popularity since the mid-1990s. Around 25% of the Dutch population over the age of 18 belong to a sports association. Sports participation is also inversely proportional to age, with younger Dutch people far more likely to do sport than older people, as well as to education, with higher educated people more likely than lower educated. In the Netherlands, people prefer active participation in sports rather than watching sports events or assisting in sports activities. Active participation is nearly seven times as popular as watching sports events. Participation in sportsrelated day trips was less popular in 2007 than in 2002. In 2007 walking and cycling were popular activities, followed at a distance by jogging, running, fitness, horseback riding and water sports. In 2006, more than 0.7 million people, or 14% of all sports club members, were active in tennis clubs. Altogether, there were 1,840 tennis clubs in the Netherlands in 2006, an increase of 40 since 2000. Actual membership numbers remained largely unchanged during this period. The average tennis club has twice as many members as sports clubs in general. In 2006, there were 1,050 water sports (sailing, surfing, canoeing, rowing and motorboat cruising) clubs in the Netherlands. Over the 2000s, the number of water sports clubs rose by 10%percent. The number of canoe and rowing clubs specifically rose by 40%, from 185 in 1997 to 265 in 2006, with membership climbing by 40% to 33,000. By the end of 2006, there were 725 public swimming pools, including beaches and natural swimming pools, 60 less than in 1988. Outdoor pools in particular declined substantially, whilst the number of combined swimming pools (indoor and outdoor) as well as beach and natural swimming pools also declined. Conversely indoor swimming pools increased by a fifth between 1988 and 2006. Municipal authorities operated 64% of swimming pools in 1988, as opposed to only 37% in 2006. Since 1988, between 82 and 93 million people have visited swimming pools annually. This peaked at 97 million visitors in 2003 due to the particularly warm summer. In 2006, public swimming pools in the Netherlands attracted 88 million visitors. Just over half of these went to indoor swimming pools. Combined indoor/outdoor swimming pools accounted for approximately one third of visitors. In 2007 9.5 million day trips were made to beaches, lakes and recreation waters, a decline on the 2002 figures. Equestrian sports enjoyed growing popularity in the years 2000-2006, and by 2006, there were nearly 1,500 businesses related to horse riding, with 219,000 customers. The number of equestrian businesses and customers rose by 27% and 6% respectively between 2000-2006. The number of equestrian clubs grew by more than 5% 2000-2006 and membership by more than 11%. In 2006, there were 1,700 equestrian sports clubs in the Netherlands, with membership totalling 126,000. Around 15% of the population does more than five hours of sport a week, indicative of the increasing numbers of people going to gyms, particularly after work. This figure is even higher for younger people, with roughly a quarter of those under age 25 doing more than five hours of sport weekly. This is primarily a result of the extensive facilities available in universities and high schools, which are generally of a high quality. Despite the fact that roughly half the population does not actively engage in sport, many people cycle and walk very frequently. With 18 million bikes and extensive bike lanes, as well as a generally very flat terrain, cycling is a common method of commuting. Walking is popular at weekends, particularly among the older generation. There is a slight gender gap in terms of the kinds of sports enjoyed, with hockey in particular being more popular amongst women. Football is far more popular amongst men. Most sports, like swimming and cycling, however, are enjoyed by both men and women in roughly equal numbers. Impact Sports will continue to increase in popularity as the government encourages more people to become more active in their spare time. They will also benefit from the recession, as many can be enjoyed relatively frugally, and

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make the participant feel good about themselves. This is particularly true about gyms and cycling. More expensive sports will suffer; however, as consumers struggle to afford the standard of life that they have become accustomed to. In particular, equestrian sports will see a decline, and possibly water sports such as sailing and windsurfing, as the cost involved are relatively high.

Going Out
Going 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 enjoy white beers like Hoegaarden. The economic contraction since 2003 saw declining growth rates, but there has since been a resurgence. Caf and terraces in the Netherlands are central to Dutch culture, with town centres packed with people sitting in the sun enjoying a beer in the summers. Increasingly, however, these cafs are becoming themed, with more exciting 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 Mongolian barbecues and African restaurants. Casinos experienced rising popularity in the 2000s. These have been heavily advertised and have increasingly gained a place in Dutch going-out culture. The most popular has been the large chain Holland Casino which is frequently 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 nonessential spending. Instead of meeting friends and family in expensive drinking establishments, it will be more common to entertain people at home in order to save money. The restaurant industry will be further hit, with more closures anticipated.

Travel and Tourism


The number of Dutch people travelling abroad recovered in 2007 from a bad year in 2006. Key reasons for the increase in numbers included the disappointing summer weather in 2007 and rise in consumer confidence generally (foreign travel is generally more expensive and less popular when consumer confidence falls). Many Dutch tourists were tired of the gloomy summer weather and selected destinations where beautiful weather was guaranteed. The absence of sunny weather for most of the summer of 2007 was a major factor in the decline in domestic tourists, 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 also proved 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 home and 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 taking more than one holiday per year. A growing trend is to seek out remote, exotic holiday destinations. Modern travellers are becoming more sophisticated and demanding when booking travel products since they are much better informed than in the past. The internet has played a vital role in this development. With household penetration of broadband internet connections approaching 80%, the Dutch are amongst the most internet-savvy consumers in the European Union. The internet has not only increased the transparency of the market in terms of pricing, 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 total number 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 of winter holidays. On average, domestic holidays last 9.9 days, foreign holidays 12.9 days.

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Between 1983 and 2007, the number of foreign holidays spent in Europe rose dramatically from 5.9 to 12.2 million. 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 has declined somewhat in recent years. Germany is gaining popularity. Turkeys increasing popularity as a holiday destination between 1999 and 2005 appears to have been short-lived. Since 2005, the number of Dutch going on holiday to Turkey has rapidly declined. Given that 2006 was the year of Rembrandt 400, it would have been no surprise if incoming tourism figures had declined in 2007. But this was not the case, and incoming tourism increased. There were several reasons for this impressive performance. The first major reason was the growing importance of low-cost airlines for Dutch tourism. 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 more attractive and accessible destination. One of the major new laws that will impact the airline sector is the vliegtaks (flight tax) that was imposed in July 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 environment was the main motivation for this new tax. This has been criticised in the press and by several groups as studies indicate that it will have little or no environment effect. Many organisations also argue that the revenue should be 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 to spend their money on travel and tourism. Dutch consumers are taking more short breaks in addition to their annual summer holidays, with city breaks becoming increasingly popular. For long vacations, taken both at home or abroad, July and August are the most important months for Dutch tourists. Increasingly though Dutch tourists are interested in taking more than one trip each year. Dutch workers have between 25-40 days holiday each year and this means that many have time to take several trips each year. Another trend related to this is that more 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 historical sites and cultural riches. Amsterdam in particular hopes to convince older, more affluent tourists that they should 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 other north-western European cities. Each year, Dutch Tourism Board decides on a different theme to promote the Netherlands abroad, and then organises special activities to support the theme. Every two years, there will be a major event. This new approach 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 more tourists, 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, these resorts 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 (flight tax). This new law was imposed in July 2008 and means that short-haul flights (of up to 2,500 kilometres) will cost 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 and France, 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 to build public-private partnerships.

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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 the long-haul destinations are cut back, this will see a rise in holidays to closer destinations which are cheaper, such as France, Germany and other places in western Europe, as well as more travel money spent at home. More of the 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 impact might 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 the number of budget airlines that will fly to the Netherlands and could increase the number of Dutch tourists choosing to fly from German or Belgian airports. The main Dutch airports have expressed their frustration about the flight tax as they expect that many Dutch consumers will now choose to fly from Belgian or German airports in order to avoid the flight tax. It is also likely 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 consumer lifestyles. Older consumers tend to be more concerned with comfort and luxury than younger tourists and on average 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 few major themed events have seen a significant increase in inbound tourism in particular, which will be very welcome in during the recession. Other policies such as upgrading the tourism infrastructure of the Wadden Islands are also starting to bear fruit. Additionally there will be an upturn in Dutch consumers opting for staycations, which should add to the money spent on accommodation within the Netherlands.
Table 144 EUR million 1995 A-V/photographic/ information processing equipment Other major recreational durables Other recreational items Recreational and cultural services Newspapers, magazines, books and stationery Package holidays TOTAL
Source: Note:

Consumer Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007

2000 6,324.6 1,394.1 5,585.0 5,756.4 5,563.7 3,940.7 28,564.4

2002 6,305.7 1,431.0 5,525.7 6,262.3 5,557.4 4,026.7 29,108.9

2004 5,636.0 1,270.3 5,264.6 6,410.7 5,043.6 3,995.4 27,620.5

2006 5,206.3 1,228.3 5,036.9 6,671.2 4,941.1 3,851.7 26,935.4

2007 5,281.8 1,264.0 5,089.2 6,866.8 5,003.7 3,987.1 27,492.5

4,579.2 942.2 4,333.0 4,625.4 4,466.3 2,700.2 21,646.3

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 145

Consumer Expenditure on Leisure and Recreation (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 A-V/photographic/ information processing 21.2 2000 22.1 2007 19.2 1995-2007 15.3 2000-2007 -16.5

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equipment Other major recreational durables Other recreational items Recreational and cultural services Newspapers, magazines, books and stationery Package holidays TOTAL
Source: Note:

4.4 20.0 21.4 20.6 12.5 100.0

4.9 19.6 20.2 19.5 13.8 100.0

4.6 18.5 25.0 18.2 14.5 100.0

34.1 17.5 48.5 12.0 47.7 27.0

-9.3 -8.9 19.3 -10.1 1.2 -3.8

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 146 US$ per capita

Per Capita Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007

1995 Leisure and recreation Average of CLIFE countries


Source:

2000 1,428.83 532.08

2002 1,576.72 554.98

2004 2,019.93 737.00

2006 2,036.32 829.46

2007 2,303.60 945.36

1,482.00 533.71

National statistics, OECD, Eurostat, Euromonitor International

Table 147 % growth

Per Capita Expenditure on Leisure and Recreation (% Growth): 1995-2007/2000-2007

1995-2007 Leisure and recreation Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 61.22 77.67

55.44 77.13

Table 148 EUR million

Consumer Expenditure on Accommodation: 1995/2000/2002/2004/2006-2007

1995 TOTAL
Source: Note:

2000 1,627.7

2002 1,767.1

2004 1,747.3

2006 1,733.3

2007 1,770.9

1,321.9

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 149

Consumer Expenditure on Accommodation (% Analysis and % Growth): 1995-2007/20002007

% analysis/% growth 1995-2007 TOTAL


Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 8.8

34.0

Table 150 US$ per capita

Per Capita Expenditure on Accommodation: 1995/2000/2002/2004/2006-2007

1995 Accommodation 90.50

2000 81.42

2002 95.72

2004 127.78

2006 131.04

2007 148.38

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Average of CLIFE countries


Source:

74.27

73.71

77.13

106.17

121.48

139.67

National statistics, OECD, Eurostat, Euromonitor International

Table 151 % growth

Per Capita Expenditure on Accommodation (% Growth): 1995-2007/2000-2007

1995-2007 Accommodation Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 82.24 89.47

63.95 88.05

EATING OUT
Spending on Catering
Consumer expenditure on eating out was affected significantly by the downturn in the Dutch economy between 2000 and 2006, when spending in this category went from 11.9 billion to just under 11 billion. With the 2007 upturn in the economy and returning consumer confidence, the eating out category recovered to just over 11 billion. These figures are fairly low by European standards, and have resulted in the closure of numerous restaurants and cafeterias. Snack bars, cafeterias and fast food outlets achieved a 5.8% higher turnover in 2007 compared to 2006. This is a higher-than-average figure and can be explained by the growth seen in convenience foods in every sector of the economy, particularly ready-meals. The strongest growth in eating-out expenditure was seen in foods that required the least amount of time and were available to people on the move. The fast-food area in particular grew by more than 11% between 2000 and 2005, to 155.3 per capita expenditure in 2005, and homedelivery/takeaway services which grew by almost 11% reaching 17.3 per capita in the same year. In order to compete, restaurants are increasingly offering takeaway services. This has diversified the takeaway market which is dominated by pizza deliveries. In common with other trends in the food industry, foodservice restaurants in the Netherlands are becoming more cosmopolitan in their offerings, as more Dutch people travel abroad and become more curious and open-minded about experiencing new cultures. Immigrants who have imported their own tastes in food also influence Dutch cuisine. As a result of these developments, there is a proliferation of diverse and exotic restaurants, including Thai, Brazilian, North African, Asian and Middle Eastern restaurants. Even those dining in more traditional restaurants 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 more indicative 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 in restaurants grew by 5.6% in 2007, which was above-average performance for the category. Traditional Dutch restaurants include those serving meat dishes with vegetables and potatoes, as well as the ever-popular pancake houses which target families in particular. Increasingly these institutions face growing competition from restaurants specialising in foreign cuisine, particularly Italian, Thai and Indonesian. Cafs and bars also showed strong growth in 2007, with the more traditional specialised Dutch coffee houses increasingly being usurped by a new appetite for international premium coffee shops, espresso bars and takeaway coffee establishments, such as Starbucks. Growth in the fast food sector was led by major chains like McDonald's and Burger King, which continue to strengthen their grip on the Dutch fast food market. These have adapted to demands for healthier eating styles with 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 their numbers in 1995. There are also wide regional discrepancies, with the coastal cities and the province of Zeeland

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in the southwest accounting for the highest numbers. The increasing popularity of burger chains is also replacing the 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 fast food offers improved convenience to consumers, they will find money for it, despite the recession. Full-service restaurants, however, will suffer from the recession, as meals eaten out are treated as a non-essential luxury which can be cut back. This will especially be the case for premium-priced restaurants, which will suffer the most. An increase in franchised chain restaurants, which also represents growth in the foodservice sector, gives entrepreneurs the opportunity to access the brand credibility and marketing muscle of well-known national brands, whilst offering the flexibility of being their own boss. This is providing a model which is increasingly replacing 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 per month and 31% of women. The reason for this is that single men are more likely to eat out rather than cook for themselves, 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, bread with cheese and ham, and tea. Lunch is almost exclusively a bread sandwich containing processed meats and cheeses, with a salad, although some larger companies are now offering their employees warm dishes in a canteen environment. Dinner is usually a hot meal of meat, potatoes and vegetables. One of the most popular Dutch 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. The most popular of these is French fries served with mayonnaise, although various toppings, including hot peanut sauce, 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. Another favourite 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 replaced by an influx of more cosmopolitan cuisine, stimulated by immigration and consumer demand for more varied dishes. 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 as tacos, 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 of restaurants impose formal dress requirements. There are very few that have a four or five star rating. This trend towards 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 become less of a requisite, as this will become more associated with affluent times, and premium-priced restaurants that take this type of approach will begin to see their profits suffer. At the upper end of the market, there will be many 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 next 25 years, with 70% of these believing the biggest change would be in the types of foods eaten, with more foreign dishes and ready-meals being consumed.
Table 152 Consumer Expenditure on Catering: 1995/2000/2002/2004/2006-2007

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EUR million 1995 TOTAL


Source: Note:

2000 11,936.7

2002 11,851.9

2004 11,018.3

2006 10,959.3

2007 11,014.5

9,696.0

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 153

Consumer Expenditure on Catering (% Growth): 1995-2007/2000-2007

% analysis/% growth 1995-2007 TOTAL


Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 -7.7

13.6

Table 154 US$ per capita

Per Capita Expenditure on Catering: 1995/2000/2002/2004/2006-2007

1995 Catering Average of CLIFE countries


Source:

2000 597.09 367.75

2002 641.97 392.79

2004 805.79 520.39

2006 828.53 590.16

2007 922.90 669.68

663.83 386.95

National statistics, OECD, Eurostat, Euromonitor International

Table 155 % growth

Per Capita Expenditure on Catering (% Growth): 1995-2007/2000-2007

1995-2007 Catering Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 54.57 82.10

39.03 73.07

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 2006-2007 however, spending began to improve as a renewed confidence entered the economy, taking spending in the sector from 7.9 billion in 2006 to 8.1 billion in 2007. This is still represents a fall of 11.3% over the period 2000-2007 though. Over the same period, consumer spending on insurance rose significantly, and apart from a dip 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 generous credit 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

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households. According to TNS, roughly 54% of those with an internet connection in the Netherlands use internet 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 and financing systems. The Dutch financial sector is extremely well developed for a country the size of the Netherlands, and reflects its mercantile history. It has the largest pensions fund in Europe in the form of ABP, which is also the second largest in the world with 1.1 million active members and 180 billion in invested funds. The country also has some of the largest bank and insurance companies in the world which, if combined, command far more capital than the Dutch GDP. The insurance industry saw a resurgence in profits after a post-2002 slowdown. Legal changes to the financial system known under the acronym nFTK have put tighter controls on the amount of interest offered to pension fund members, a system which could spread across Europe if the EU adopts it as part of a Europe-wide pension system. Debit card usage increased considerably during 2007. Payment by debit card accounts for the vast majority of electronic 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 transaction volume and value are expected to increase. The number and usage of credit and charge cards is relatively low, but growing. Consumers rely on their debit cards for daily payments. Credit card is synonymously used as a term for credit and charge cards and are viewed as back-up cards, which are predominantly used while travelling abroad. Dutch issuers aim to convince consumers of the benefits of credit cards and to overcome reservations about security and spending management. 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, with this 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 domestic transaction (average 147 per foreign transaction) and the number of transactions stagnated at around 60 million, up 1% over the previous year, including domestic transactions and transactions abroad made by cards issued in the Netherlands. Payment by debit card accounts for about 98% of electronic payments at POS terminals. The remainder is made up of e-purse (Chipknip) and credit card payments. Consumers used their bankcards with PIN more frequently in 2007. In total, almost 1.6 billion PIN payments were made in the review period. Supermarkets, petrol stations and 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) and Currence, created the SEPA NL Migration Steering Group. Its main task will be to prepare the way for the introduction of new EPC-developed pan-European payment products in the Netherlands. From 2008, three new payment products will be introduced: credit transfer, direct debit and card payments. These will replace the current Dutch products following a transition period. During the transition period, the non-SEPA-compliant product 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 already very efficient and characterised by low costs and prices compared to other European countries. Most other

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European countries will therefore find it easier than the Netherlands to demonstrate the short-term benefits of the SEPA migration to all stakeholders. The downside of the current level of efficiency in the Netherlands is that users 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 retail interest groups. Consequently, migration to EMV is taking place according to a migration path based on the economic lifecycle of POS terminals. This migration path implies that the EMV migration of POS terminals should be completed in 2013. Over the last thirty years, Dutch consumers have become more positive about putting money into savings accounts. Even though economic downturns often have a negative effect on expected consumers saving behaviour, in the second quarter of 2008, 81% of Dutch consumers thought it was worthwhile to put money away in savings accounts. On the other hand, 15% percent of consumers said that saving was not worthwhile at that point in time. While this is a difference of 66 percentage points, thirty years ago this difference was only 14. Consumers ages 18-35 are the most positive demographic about the use of savings, with this positive attitude diminishing as age rises. Internet savings however are waning. By the end of 2007, the aggregate amount deposited in internet savings accounts by Dutch households exceeded 66 billion, a decrease of nearly 8 billion compared to the end of 2006. According to figures published by Statistics Netherlands, this is the first time since 2002 that the aggregate 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 on forms of fixed-term saving. For the average saver, it is now more profitable to transfer their internet savings account to a fixed-term savings account. Impact The need for flexible consumer credit will fuel demand for credit cards in the Netherlands during the forecast period. 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 mainly driven 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 of specific economic circumstances are the underlying reasons. The combination of these factors is unique to and characteristic 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 interest rates. Capital market interest rates increased from as low as 3.2% in 2005 to 5% in 2007. This reduced the number of refinancing mortgages in particular. A large percentage of homeowners have already refinanced their mortgage. 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 new mortgage loans is much less volatile than refinancing and is in keeping with a decline in the number of transactions in housing sales. Home mortgages accounted for 80% of the total 14 billion increase in household debt. Household debt was meanwhile higher than the total monetary value of all goods and services produced in the Netherlands (GDP) in 2007. Two controversial trends can be observed in the Netherlands. The number of cash payments will decrease further during the forecast period as usage of card transactions increases. This will reduce demand for cash for everyday purchases. The number of ATM terminals is meanwhile expected to increase further, as retail banks compete 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 account numbers and migrating the card payment infrastructure to full EMV and SCF compliance.

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One of the requirements for SEPA Cards Framework (SCF) compatibility is that cards, POS terminals, ATMs and the underlying payment infrastructures are equipped with EMV chip technology. In the Netherlands migration to EMV technology began in 2005. EMV migration is ongoing for all formats. Debit cards started their roll-out for EMV migration in the final quarter of 2006, with completion expected in 2010. Credit cards are already 30% migrated. Completion of the roll-out is expected in 2008. ATM terminal migration is expected to be completed in 2007. POS terminal migration 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 opt for a co-branded card with PIN and an international card scheme or issue a card with an international card scheme 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 older employees 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 that employees have built up in the course of their careers. Low-income workers do not build up much work-related pension. For this group the AOW forms a relatively large part of their income after retirement, which helps compensates the reduction in wages. This effect is particularly marked amongst female pensioners. Women often earn less than men because they work part-time and in lower paid jobs. This makes the pension they can attain relatively high in relation to their wages, but lower overall than their male counterparts. The gap is even greater in the older age brackets, because women in those age brackets worked less. The pensions built up by women 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 younger workers. 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 a worse 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 pension contributions. Older workers who are approaching retirement who do not plan their finances effectively will be at risk of losing some or all of their personal pensions if they are invested in share schemes, rather than in cash plans. This will be particularly dangerous if they have a low wage. The dip in value of share plans will not be such a problem for younger workers as the schemes will recover their value in the long term; the risk they face is that of being made redundant.
Table 156 EUR million 1995 TOTAL
Source: Note:

Consumer Expenditure on Insurance: 1995/2000/2002/2004/2006-2007

2000 10,433.2

2002 10,240.7

2004 12,369.7

2006 14,400.8

2007 14,902.1

7,877.5

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 157

Consumer Expenditure on Insurance (% Analysis and % Growth): 1995-2007/2000-2007

% analysis/% growth 1995-2007 TOTAL


Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 42.8

89.2

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Table 158 US$ per capita

Per Capita Expenditure on Insurance: 1995/2000/2002/2004/2006-2007

1995 Insurance Average of CLIFE countries


Source:

2000 521.88 140.21

2002 554.70 148.65

2004 904.61 199.77

2006 1,088.70 221.66

2007 1,248.65 251.84

539.33 140.78

National statistics, OECD, Eurostat, Euromonitor International

Table 159 % growth

Per Capita Expenditure on Insurance (% Growth): 1995-2007/2000-2007

1995-2007 Insurance Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

2000-2007 139.26 79.61

131.52 78.90

Table 160 EUR million

Consumer Expenditure on Financial Services: 1995/2000/2002/2004/2006-2007

1995 TOTAL
Source: Note:

2000 9,111.6

2002 7,765.7

2004 7,475.7

2006 7,849.5

2007 8,078.1

5,493.4

National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 161

Consumer Expenditure on Financial Services (% Analysis and % Growth): 19952007/2000-2007

% analysis/% growth 1995-2007 TOTAL


Source: Note: National statistics, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

2000-2007 -11.3

47.1

Table 162 US$ per capita

Per Capita Expenditure on Financial Services: 1995/2000/2002/2004/2006-2007

1995 Financial services Average of CLIFE countries


Source:

2000 455.78 149.09

2002 420.64 146.44

2004 546.71 190.80

2006 593.43 219.71

2007 676.86 250.21

376.10 144.87

National statistics, OECD, Eurostat, Euromonitor International

Table 163 % growth

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

1995-2007

2000-2007

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Financial services Average of CLIFE countries


Source: National statistics, OECD, Eurostat, Euromonitor International

79.97 72.72

48.51 67.82

STRUCTURE OF THE REPORT


This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. Each country profile is structured under the following sub-headings: Consumer trends Population Consumer segmentation Household profiles Household segmentation Labour Income Consumer expenditure Eating habits Drinking and smoking Fashion Housing and associated costs Household goods and services Health Personal grooming Education Transport Communications and the internet Leisure and recreation Eating out Banking and financial services

The information in this report was gathered from a wide range of sources, starting with national statistics offices. This information was cross-checked for consistency, probability and mathematical accuracy. Secondly, we sought to fill in the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore, Euromonitor International has carried out an extensive amount of modelling in order to come up with interesting datasets to complement the national standards available. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data, which we were not able to reconcile in every instance. Even when the data is produced by the same national statistical office on a specific parameter, like the total Population in a particular year, discrepancies can occur depending on whether it was derived from a survey, a national census or a projection and whether the data is based on mid-year or January figures.

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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.

DEFINITIONS
CLIFE: Consumer Lifestyles Countries (as listed below) Euromonitor Internationals Consumer Lifestyle series covers the following countries:
Summary 1 Eastern Europe Country Coverage Belarus - Bulgaria - Croatia - Czech Republic - Estonia - Hungary - Latvia - Lithuania - Macedonia -Poland Romania - Russia - Serbia and Montenegro - Slovakia -Ukraine - Slovenia Austria - Belgium - Denmark - Finland - France Germany - Greece - Ireland - Italy - Netherlands Norway - Portugal - Spain - Sweden - Switzerland Turkey - United Kingdom Australia - New Zealand Azerbaijan - China - Hong Kong, China - India Indonesia - Japan - Kazakhstan - Malaysia - Pakistan - Philippines - Singapore - South Korea - Taiwan Thailand - Turkmenistn - Uzbekistn - Vietnam Canada - United States Argentina - Bolivia - Brazil - Chile - Colombia - Costa Rica - Dominican Republic - Ecuador - Guatemala Mexico - Peru - Uruguay -Venezuela Algeria - Cameroon - Egypt - Iran - Israel - Kenya Kuwait - Morocco - Nigeria - Saudi Arabia - South Africa - Tunisia - United Arab Emirates

Western Europe

Australasia Asia Pacific

North America Latin America

Middle East and Africa

Source:

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