After Brexit, the Netherlands became the leading trading hub for US confectionery and chocolate products (also growing from $16 million to a record high $31 million from 2018-2024).
According to a new report by the US Department of Agriculture (USDA), Foreign Agricultural Service (FAS), while most confectionery and chocolate products on the market are manufactured in Europe, there are opportunities for US manufacturers—in particular, for products that are popular on social media platforms ‘and those that are extreme in taste, color, size, and product name’.
Themed confectionery is gaining popularity, and sugar-free candy, vegan, halal certified, and socially responsible products are appearing on the market.
Trump ups the ante on tariffs
The bad news is that President Donald Trump announced a 25% tariff on goods imported from the European Union last month, citing the need to address trade imbalances and protect domestic industries.
In response, the European Commission declared its intention to impose counter-tariffs on €26 billion ($28 billion) worth of US goods, effective 1 April, 2025. Notably, the tariffs also encompass confectionery items like chewing gum and chocolate, which are significant exports for the US confectionery industry.
President Trump responded with a renewed threat of a 200% tariff on wine and champagne from European Union countries this week.
The implications of tariffs for the US Confectionery Industry mean that reduced exports and potential loss of market share can negatively impact the revenues and profitability of US confectionery firms, especially those heavily reliant on the European market.
Increased spending on confectionery
FAS, which published its report at the beginning of this month before the escalation of a tariff war, has an office in The Hague. It says that the Dutch increased their spending on confectionery and chocolate products in recent years, ‘making the Netherlands an interesting market, with its small, but affluent population’.
Although US market share is approximately 3%, the Netherlands is now the fifth largest single export market for US confectionery.
Moreover, it is the largest export market within the EU, valued at $38 million. During the same period, chocolate and cocoa product exports to the Netherlands grew from $16 million to a record high of $31 million. This makes the Netherlands the ninth largest single export market for US chocolate and cocoa products and the largest export market within the EU, valued at $51 million.
Anthony Myers
‘It is fair to say that the Netherlands with its 18 million affluent consumers is not only an interesting consumer market, but also the leading trading hub for US confectionery and chocolate products within the EU,’ the report states.
As in the US domestic market, themed confectionery is hot and popular at events like Valentine's Day, Easter, Mother’s Day, Halloween, and Christmas. All distribution outlets, both online and offline, use themes to boost sales of confectionery and chocolate products.
FAS recommends that the first step for US manufacturers of confectionery and chocolate products that would like to start exporting to the Netherlands is to ensure the product is eligible to be imported into the EU, followed by whether there is a potential market for their product.
‘Understanding who the buyers, distributors, and end-users will be is important.’
Sweets & Snacks Expo
FAS also advises manufacturers to consider exhibiting at the US Trade fair Sweets and Snacks Expo to break into the market.
Dutch buyers regularly travel to the United States to see new products and make new contacts. US manufacturers should also consider visiting or exhibiting at Europe’s most significant sweets and snacks trade show, ISM in Cologne, Germany, and more extensive but more general food and beverages trade shows including SIAL in Paris, France, and Anuga in Cologne.
While it's clear the ongoing tariff dispute between the United States and the European Union presents substantial challenges for the US confectionery industry, ultimately, a negotiated resolution between the US and the EU would be the most favourable outcome to ensure the stability and prosperity of industries on both sides of the Atlantic.
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