The BMA analyzed the prices of consumer goods in Belgium and three neighboring countries based on data from Euromonitor, a European data collection agency. 390 product types were divided into eight categories: alcoholic drinks, soft drinks, hot drinks, basic foods (pasta, rice, preserves, etc.), dairy products and alternatives, snacks, cooking ingredients and prepared meals, and beauty and personal care products.
The figures show that per category, prices in stores in Belgium are usually higher than in Germany and the Netherlands, but lower than in France. Belgium is the most expensive for the categories dairy products and alternatives, and cooking ingredients and prepared meals. Soft drinks are on average the most expensive in the Netherlands, ahead of Belgium.
The analysis also shows that the average sales price in stores in the period 2018-2022 for almost all product categories in Belgium increased less quickly, or fell faster, than in the three neighboring countries. This means that price differences have become smaller, or as the BMA puts it: “the average price differences between the different countries have generally evolved in recent years in favor of Belgian consumers of daily consumer goods”.
More competition
The Competition Authority suspects that this evolution has to do with increased competition in Belgium. “New players have entered the Belgian market (such as Albert Heijn and Jumbo, ed.), there have been shifts in the market position of existing players,” says Griet Jans, chief economist of the BMA. “A different dynamic has emerged on the Belgian market.” For example, supermarkets will then negotiate harder with manufacturers, or they will reduce their profit margin in the price of the products on the store shelves.
The hot drinks category is an exception. The average price has risen more strongly in Belgium than in the other countries. In the category of cooking ingredients and prepared meals, the differences have proven to be rather stable.
The BMA also concludes from the study that in certain product categories, in particular alcoholic drinks and soft drinks, “there are persistent differences in the sales prices of manufacturers to the disadvantage of Belgium”. These are categories where branded products (so-called A-brands) traditionally play an important role. The manufacturers of these products have a stronger negotiating position, especially in smaller markets such as Belgium. “Therefore, ‘territorial supply restrictions’ (i.e. multinational companies supplying identical or very similar products to retailers in different countries at different prices, usually to the detriment of relatively small countries such as Belgium) remain an important issue to put on the Belgian and European policy agenda to keep,” the BMA said.
The Competition Authority’s study comes a few weeks after a similar study by the Price Observatory. This had established that the prices of branded products (A brands) are higher in Belgian supermarkets than in neighboring countries, while private label products are cheaper on average in Belgium.
The BMA and the Price Observatory will jointly further investigate price levels and patterns. The results will also be compared with those of other EU member states conducting similar studies, said Griet Jans.