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Country Commercial Guides
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CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
Best Prospects for Non-Agricultural Goods and Services:
Data in the following tables is in US$ millions and ranked by next year's expected growth rate for U.S. Imports.
1. Aircraft and Parts (AIR) 1999 est. total market size 521 1999 est. imports from the U.S. 236 2. Security Equipment (SEC) 1999 est. total market size 213 1999 est. imports from the U.S. 23 3. Telecommunication Services (TES) 1999 est. total market size 6,016 1999 est. Sales by U.S.-owned firms 668 4. Franchising (FRA) 1999 est. total market size 637 1999 est. sales by U.S.-owned franchises 268 5. Computer Services (CSV) 1999 est. total market size 2,129 1999 est. imports from the U.S. 493 6. Automotive Parts and Services Equipment (APS) 1999 est. total market size 16,195 1999 est. imports from the U.S. 967 7. Seafood (MFI) 1999 est. total market size 610 1999 est. imports from the U.S. 42 8. Computer Software (CSF) 1999 est. total market size 1,757 1999 est. imports from the U.S. 795 9. Electric Power Systems (EPS) 1999 est. total market size 2,191 1999 est. imports from the U.S. 776 10. Travel and Tourism Services (TRA) 1999 est. total market size 10,410 1999 est. Total Spending by Belgians 936 Visiting the U.S. 11. Pollution Control Equipment (POL) 1999 est. total market size 2,824 1999 est. imports from the U.S. 257 12. Telecommunication Equipment (TEL) 1999 est. total market size 1,323 1999 est. imports from the U.S. 169 13. Printing and Graphic Art Equipment (PGA) 1999 est. total market size 517 1999 est. imports from U.S. 195 14. Building Products (BLD) 1999 est. total market size 9,934 1999 est. imports from the U.S. 30 15. Computer and Peripherals (CPT) 1999 est. total market size 3,205 1999 est. imports from the U.S. 76 16. Textile Fabrics (TXF) 1999 est. total market size 1,959 1999 est. imports from the U.S. 82 17. Sporting Goods and Recreational Equipment (SPT) 1999 est. total market size 749 1999 est. Sales by U.S.-owned firms 11 18. Medical Equipment (MED) 1999 est. total market size 634 1999 est. imports from the U.S. 144 19. Plastic Materials and Resins (PMR) 1999 est. total market size 235 1999 est. imports from the U.S. 133 20. Apparel (APP) 1999 est. total market size 3,098 1999 est. imports from the U.S. 85 21. Laboratory Scientific Instruments (LAB) 1999 est. total market size 2,677 1999 est. imports from the U.S. 165Rank of sector: 1
Name of Sector: Aircraft and Parts
ITA industry code: AIR
Belgium's two major carriers are Sabena, with its subsidiaries Dat and Sobelair, and Citybird. By the year 2002, Sabena will have gradually replaced its fleet of Boeings with Airbuses. Its total fleet will then include 34 Airbuses of the A-320 family, 8 A-330, and 4 A-340. Sobelair will continue to fly its B-767 and B-737. Expotts from the United States are forecast to increase from 1999 until 2003 due to Sabena's decision to power their new Airbus A320's with GE's CFM 56 engines. Sabena has ordered 80 of these engines. Sabena, now 49.5 percent owned by Swissair, has become profitable after years of losses.
Sabena Technics, a third party repair and maintenance stations, will keep it Boeing maintenance activities. In addition, the company has recently formed a joint venture with SNECMA that will significantly increase it's maintenance and repair activities on GE engines.
Citybird is a fast-growing outsider that thrives on no-frills/low cost fares. The only significant general aviation company is Abelag. It imports, maintains and operates several brands of general aviation planes and also provides ground handling for heads of state planes. There are approximately 120 Belgian companies involved in manufacturing and supplying aircraft parts. The best way to contact them is via their trade associations FLAG and GEBECOMA. To enter the military market, American suppliers should contact the Office of Defense Cooperation (ODC) via the U.S. Embassy. Zaventem, Brussels international airport, handled 18.5 million passengers in 1998 and is continually expanding, with a new concourse currently in the design stage.
The Belgian Government as well as the local aerospace industry are poised to participate in two major projects: the JSF (Joint Strike fighter), to replace the aging F16 and the FLA (Future Large Aircraft), or Airbus A-400M to replace the C-130. The government is considering not only procuring of these two aircraft, but also participation in the manufacturing process. Participation may include mechanical as well as structural parts. Statistics below do not reflect these projects slated for two or more years in the future.
DATA TABLE
1997 1998 1999 A. Total Market Size 316 460 521 B. Total Local Production 85 114 142 C. Total Exports 157 175 189 D. Total Imports 388 521 568 E. Total Imports from U.S. 176 174 236 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of Sector: 2
Name of Sector: Security Equipment
ITA Industry Code: SECDuring the past few years, the number of reported crimes, particularly in regards to stolen property and vehicles, has increased significantly in Belgium. The growing feeling of insecurity has resulted in an increased demand for security products from private companies, the public sector and private citizens.
Security companies are currently focusing on the residential market which is expected to grow twice as fast as the corporate market.
Local production is relatively small compared to imports. However, substantial amounts of security equipment are being imported, assembled and then re-exported.
DATA TABLE
1997 1998 1999 A. Total Market Size 163 183 213 B. Total Local Production 142 160 185 C. Total Exports 56 65 76 D. Total Imports 77 88 104 E. Total Imports from U.S. 18 20 23 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 3
Name of Sector: Telecommunication Services
ITA industry code: TESThe deregulation of the telecommunications market has contributed to the 9.5 percent growth rate of the telecommunications services market in Belgium in 1998. Eighteen months after deregulation more than twenty carriers are active in Belgium including BT, MCI-Worldcom, Versatel, Colt, and Axxon. The fastest growing segment is the mobile telephone market. In April 1999, the total number of mobile phone users in Belgium has reached 1.92 million representing 20 percent of the total population. Currently, there are three mobile telephone networks in Belgium: Proximus, Mobistar, and Orange (the DCS1800-network that became operational in May of 1999).
IDC predicts that by 2002, the business telecom market in Belgium will surpass the consumer telecom market. In 1997, the two markets still had an equal share of the total Belgian telecom services market. ISDN, ATM, and high speed data-communication services are among the fastest growing sectors of the Belgian telecom services market.
Another major source of growth is the Internet. According to the electronic market research bureau Grid, at the end of 1998, the total number of Internet users in Belgium amounted to 680,000 and by the end of 1999 Belgium will have one million Internet users representing 10 percent of the population. At the beginning of 1999, there were 11,571 web-sites in Belgium. At the end of 1998, there were 13,000 Belgian domain names and this figure is expected to double by the end of 1999.
DATA TABLE
1997 1998 1999 A. Total Market Size 5,109 5,593 6,016 B. Sales by Local Firms 4,342 4,698 4,938 C. Exports by Local Firms N/A N/A N/A D. Sales by Foreign-owned Firms 767 895 1,078 E. Sales by U.S.-owned Firms 421 574 668 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank: 4
Name of Sector: Franchising
ITA Industry Code: FRAThe franchise market in Belgium has shown great strength over the past five years and the outlook for further growth is optimistic. The market is expected to grow at an average of about 8 percent per year for at least the next three years. By 2001, the number of foreign controlled franchise units operating in Belgium should increase to about 800 from 546 in 1997, and corresponding sales to about $750 million from $546 million in 1997.
There are 170 franchise companies in Belgium with over 3,500 independent franchisees. These businesses generated a turnover of more than $4.13 billion in 1998. The franchise industry represents approximately 6 percent of sales in the retail trade and provides over 28,000 jobs. French franchising systems lead the Belgian franchise market with a 20 percent share, while U.S. franchising systems account for 4.5 percent and U.K. systems for 3.2 percent.
American franchisers seeking to develop in Belgium should concentrate on the following most promising sectors: hairdressing, training services, home maintenance, services for the elderly, and private postal services.
DATA TABLE
1997 1998 1999 A. Total Market Size 3,800 4,130 4,450 B. Sales by Local Franchises 2,090 2,270 2,450 C. Total Exports by Local Franchises N/A N/A N/A D. Sales by Foreign-owned Franchises 1,710 1,860 2,000 E. Sales by U.S.-owned Franchises 118 129 142 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 5
Name of Sector: Computer Services
ITA industry code: CSVDuring 1999-2000, growth in the Belgian IT sector is expected to reach 8.2 percent. This increase comes mainly from the software and services market, which is growing at an average rate of 14.2 percent in 1999, and is expected to reach 11.1 percent by the end of 2000. Computer services in Belgium are distributed among the following sectors: manufacturing (40 percent); banking and insurance (20 percent); the public sector (13 percent); wholesale/ distribution (10 percent); and others (17 percent).
During 1998, two market stimulants were crucial for the growth in the software services sector: the adaptation of computer systems to the Year 2000 and the implementation of the Euro, the European currency. Most large companies are addressing Y2K implementation and compliance testing; the majority of the companies will finish the process during 1999. Moreover, many SME's have yet to focus on the Y2K problem.
There are some 3,684 computer service companies active in the Belgian market, of which 3,209 have less than five employees, 189 have between five and ten, 114 between ten and twenty, 56 have between 50 and 100, and 119 have more than 100 employees. While most of these companies are small to medium sized businesses, the larger companies control 40 percent of the market share.
The Belgian market has entered the age of the Internet and there has been spectacular growth in sales of Intranet, Internet, WWW, Groupware and e-commerce software applications. Market sources expect that in 2001, e-commerce in Belgium will represent approximately $1 billion in sales.
DATA TABLE
1997 1998 1999 A. Total Market Size 1,762 1,915 2,129 B. Sales by Local Firms 1,067 1,149 1,255 C. Exports by Local Firms N/A N/A N/A D. Sales by Foreign-owned Firms 695 766 874 E. Sales by U.S.-owned Firms 388 454 493 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 6
Name of Sector: Automotive Parts and Service Equipment
ITA industry code: APSThere are 4 million cars registered in Belgium and 13,000 maintenance and repair outlets. Belgium has a very strong assembly industry (GM, Ford, VW, and Volvo) that assembles 1.1 million vehicles annually. Chrysler, Ford, and GM are all successful with the models they assemble in Europe. Both Ford and GM are making substantial investments to increase their production capacity. However, the market for "American" models is still lagging. Among Belgian owned cars, 60 percent are European, 30 percent Japanese, 1.5 percent American and 9.5 percent are either Korean, Russian, Polish, or Czech.
Europeans in general, and Belgians in particular, tend to keep their cars longer than Americans. In Belgium, 54 percent of cars are over five years old. While American garage and test equipment have always been highly respected, American-made automobiles are now also experiencing some resurgence in popularity. Best subsectors include anti-theft devices, fast-rotating replacement parts, gadgets for in-car entertainment, and car maintenance products. In the repair and service equipment market, the most promising items are air-conditioning, air-conditioning maintenance equipment, electric diagnostic equipment, and emission testing equipment.
DATA TABLE
1997 1998 1999 A. Total Market Size 14,425 15,451 16,205 B. Total Local Production 18,993 20,344 21,344 C. Total Exports 21,774 23,322 24,469 D. Total Imports 17,206 18,429 19,330 E. Total Imports from U.S. 860 921 967 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 7
Name of Sector: Seafood
ITA industry code: MFIBelgium is an excellent distribution center for much of Europe's seafood industry. In 1998, the per capita consumption of seafood in Belgium reached a high of 23 kilos compared to an average of 12-15 kilos for the rest of Europe. This figure has been increasing steadily at an annual rate of four percent over the last ten years. Although the traditional fish business remains strong, there is also a trend towards high profile, high quality value-added products. The most promising subsectors for these products are lobsters, fresh/frozen salmon and frozen value-added seafood.
Since 1993, Brussels is host to the annual European Seafood Exposition held in April. This international event is known in seafood circles as Europe's premier seafood fair and attracts exhibitors and visitors from all around the world. The 1999 event included 850 exhibitors and was visited by over 13,000 professionals, of which eighty percent were non-Belgians.
DATA TABLE
1997 1998 1999 A. Total Market Size 582 590 610 B. Total Local Production 45 44 42 C. Total Exports 155 164 170 D. Total Imports 692 710 738 E. Total Imports from U.S. 38 40 42 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 8
Name of Sector: Computer Software
ITA industry code: CSFThe computer software market in Belgium is expected to grow at an average rate of 15.2 percent in 1999 and by 13 percent in 2000. During 1998, two major market stimulants were crucial for the growth in the software sector: the adaptation of the computer systems to the year 2000 and the implementation of the Euro. While most large companies have initiated Y2K implementation and compliance testing, most companies will finish the process during 1999. These factors have stimulated a large increase in software product sales. In addition, there has been an ongoing price decline in the software products market. As a result, an increasing number of users benchmark their internal software against independent providers. There is currently a shift away from custom-made software towards packaged software products.
Best prospects in Belgium range from standard applications to high-end business applications including Internet, WWW, Intranet, and e-commerce software; networking software and network security products; development tools; Windows NT and UNIX-based products, data warehousing software, ERP systems, statutory and analytical consolidation software, and marketing applications software. Games for the consumer market are also popular. Windows-based programs and applications dominate the market.
Belgium has an excellent network of highly qualified packaged computer product distributors, ranging from the very large broadliners and those with a large dealer network, to small highly specialized Value Added Resellers. Most American origin packaged software products are sold in the Belgian market by this channel. In addition, many American computer software companies have their own subsidiary in Belgium and a well-established distribution network throughout the country. A multitude of other channels are also available including specialized computer shops, department stores, and mail-order houses.
DATA TABLE
1997 1998 1999 A. Total Market Size 1,374 1,555 1,757 B. Total Local Production 567 638 721 C. Total Exports 312 344 397 D. Total Imports 1,119 1,261 1,433 E. Total Imports from U.S. 653 758 795 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 9
Name of Sector: Computer and Peripherals
ITA industry code: CPTThe Belgian computer hardware market continues to grow although at a slower pace than in recent years. The bulk of the growth will come from the sale of PCs, mass storage devices, and networking products. The driving factors are the rapid growth of the use of the Internet and the introduction of E-business. The growth rates have been declining in dollar terms from 12 percent in 1997 to 7.3 percent in 1998 and to 6 by 2000. One of the principal reasons is the drop in prices.
In 1998, 636,000 PCs were sold in Belgium representing a growth of 21.3 percent, or just above the European average of 21.2 percent. Classified by brand, the top positions in the Belgian market are held by Compaq (24.2 percent), followed by Dell (8.8 percent), IBM (6.2 percent), Vobis (5.9 percent), SNI (5.8 percent), Olivetti (4.9 percent), Stein (4.9 percent), HP (4.5 percent), and Apple (4.4 percent). At the end of 1998, the number of PC users in Belgium was estimated at 2.5 million, or 27 percent of the population. The home professional users represent 80.2 percent of the PC market. The sale of PCs for home use is expected to continue growing in volume as prices come down further, greater bundle offerings are made, and use of the Internet becomes popular. On the other end of the computer hardware scale, the mainframe and mid range computer markets are also performing well mainly due to decreasing prices and the need for large networks. Y2K fears and the implementation of the Euro have driven growth on the business side.
More than 500,000 printers were sold in the Belgian market in 1998 by indirect and direct sales channels. Inkjet printers hold the lion's share of the market with 70 percent compared to 25 percent for the laser printers. The market grew by 24 percent in units and 12 percent in value. HP is undeniably the market leader with a market share of more than 60 percent, followed by Epson (20 percent), and Canon (10 percent).
DATA TABLE
1997 1998 1999 A. Total Market Size 2,008 2,119 2,191 B. Total Local Production 723 765 744 C. Total Exports 385 405 395 D. Total Imports 1,670 1,759 1,842 E. Total Imports from U.S. 704 749 776 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 10
Name of Sector: Travel and Tourism Services
ITA industry code: TRADespite the strong dollar, travel to the United States remains buoyant due to intense competition between the airlines and their subsequently low airfares. Sabena, United, American, Delta Air Lines, Continental and City Bird provide direct service to the United States. An estimated 230,000 Belgians traveled to the United States in 1998 and the forecast for 1999 is estimated to be over 240,000. Major growth sectors include fly-and-drive packages, mobile home vacations and youth travel. The Midwest and West Coast have become popular vacation destinations, while New York and Washington DC are still popular destinations. An increasing number of visitors from Belgium are choosing to rent cars to visit smaller towns and cities which has in turn, led to an increase in motor tourism.
The Visit USA Travel and Tourism Center is a very useful source of information for both the travel trade and general public. It handles over 48,000 requests annually for information, and organizes travel promotion events. Their major event is the Visit USA Workshop (next event: March 2000), where some ninety exhibitors meet with over five hundred travel trade professionals from Belgium and Luxembourg to discuss business opportunities. The Visit USA Center coordinates are: Boulevard General Jacques, 20, 1050 Brussels Tel: 32/2/648-4342 Fax: 32/2/648-4022, Ms. Brigit Lambrechts, Office Manager. Internet: http://www.visitusa.org
DATA TABLE
1997 1998 1999 A. Total Market Size 9,786 10,105 10,410 B. Total Spending on Foreign Travel 5,546 5,727 5,900 C. Total Spending on Domestic Travel 4,240 4,378 4,510 D. Total Spending by Belgians 880 908 936 Visiting the U.S. Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 11
Name of Sector: Pollution Control Equipment and Services
ITA industry code: POLBelgium is one of the most densely industrialized and populated areas in the world. As a result, it faces numerous pollution and waste management problems. The three regional governments of Belgium, each responsible for environmental issues and implementation of EU directives in its area, have set up specific long-term environmental management plans, for waste (including soil remediation), water and air pollution. The success of the Greens party in the June 1999 federal and regional elections ensures that more attention will be given to ecological issues and consumer protection in general. Growing opposition to new landfills and incinerators will force a reduction of wastes at the source. Belgium will strengthen implementation of the polluter-pays principle through ecotaxes and increase pollution taxes to finance environmental infrastructure.
Belgium has had some serious cases of site contamination. Flanders has a plan to remediate all contaminated historical sites by 2036. Industrial site owners are now liable for their lifetime for any pollution generated on site. By 2003, soil of all gas stations will need to be sampled and potentially de-polluted from hydrocarbons. Wallonia has a similar plan to remediate old sites by 2010. Creation of public wastewater treatment plants is developing in all three regions. Air pollution control will need to concentrate on reducing emissions of particulate matters in urban areas.
The total environmental expenditure in Belgium (public and private sectors) is about 1.1 percent of GDP and amounts to approximately 2.5 million dollars with priorities on waste management (46 percent), used water treatment (38 percent) and air pollution control (16 percent). Belgium still needs to increase expenditures on environment if it is to meet its domestic objectives as well as its EU and other international environment commitments. Best prospects include measurement and analysis instruments, monitoring equipment, process controls, emission filters, recycling (old tires and green waste), and waste water and soil remediation technologies.
DATA TABLE
1997 1998 1999 A. Total Market Size 2,666 2,747 2,824 B. Total Local Production 292 301 307 C. Total Exports 58 58 60 D. Total Imports 2,432 2,504 2,575 E. Total Imports from U.S. 242 250 257 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 12
Name of Sector: Telecommunications Equipment
ITA industry code: TELIn 1998, the telecommunications equipment market in Belgium grew by 8 percent and is expected to grow by 9 percent during 1999 and 2000. Belgacom, the former telecom monopoly, continues to be under great pressure to become more competitive and to modernize its telecom networks. As a result, it continues to aggressively invest in upgrading its infrastructure. However, its new price conscious purchasing policy has actually reduced the total dollars spent on each new network program. Increases in equipment expenditures for infrastructure now come predominantly from alternative networks. One year after the deregulation and liberalization of the telephony infrastructure and fixed-voice services, the Belgian telecommunications market has changed drastically. More than 20 carriers are currently active in Belgium. The infrastructure investments by the new operators such as BT, France Telecom/Telinfo's Starnet, GTS-Esprit Telecom, Mobistar, Orange, Telenet, Versatel, MCI-Worldcom, will continue to compensate for the decline in purchases from Belgacom. MCI-Worldcom alone invested $42 million in Belgium during 1997 and 1998, and has budgeted another $42 million of investments for 1999 and 2000. Growth areas for end user equipment include mobile terminal equipment for GSM (dual standard for both 900 and 1800 networks), wireless phones with DECT standard, ISDN terminal equipment, mobile radio equipment, broadcasting equipment, and CTI equipment. As far as infrastructure equipment is concerned SDH, ATM, ADSL and other equipment for broadband optic fiber networks are in high demand. In 2000, the Belgian local loop market is expected to open up to competition resulting in market opportunities for American businesses.
DATA TABLE
1997 1998 1999 A. Total Market Size 1,210 1,289 1,323 B. Total Local Production 1,004 993 1,015 C. Total Exports 683 688 703 D. Total Imports 889 984 1,011 E. Total Imports from U.S. 133 164 169 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 13
Name of Sector: Printing and Graphic Art Equipment
ITA industry code: PGAThe Belgian printing and graphic art equipment industry is divided into two distinct subsectors:
-Electronic publishing equipment: This subsector has had rapid growth over the last few years. The United States market share is 60 percent. American companies offering the latest technology are likely to find strong interest for their products in this subsector.
-"Mechanical" equipment: Presses and bookbinding equipment lead in this subsector. German equipment dominates the Belgian mechanical equipment market. At present, the United States only has 2 percent market share due to strong European competition.
DATA TABLE
1997 1998 1999 A. Total Market Size 505 512 517 B. Total Local Production 13 14 14 C. Total Exports 131 134 134 D. Total Imports 623 632 637 E. Total Imports from U.S. 190 192 195 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 14
Name of Sector: Building Products
ITA industry code: BLDAmerican industry supplies 50 percent of softwood and plywood market. Out of the $19 million of U.S. exports to Belgium in 1998, $15 million remained in the Belgian market, and $4 million was re-exported. There is good potential for innovative American building products. Every year, around forty thousand new homes are built in Belgium and even more are being remodeled. However, building patterns are very different from those in the United States. For instance, only ten percent of Belgian homes are prefabricated, and nearly 90 percent of all homes are custom built out of brick. This reflects the notion that homes are constructed to last for two or more generations. For commercial buildings, concrete is preferred over all other materials. Best sub-sectors include plywood, particleboard, medium density fiberboard, innovative roofing products and building sealants, do-it-yourself building sub-components and intrusion alarm systems. The number of housing starts is expected to grow slightly as the economy slowly recovers and consumer confidence rises. The current low mortgage rates as well as a temporary reduction of VAT (sales tax) from 21 percent to 6 percent for renovating homes that are more than 20 years old, has strengthened this market sector.
DATA TABLE
1997 1998 1999 A. Total Market Size 9,900 10,161 9,934 B. Total Local Production 7,900 8,108 7,927 C. Total Exports 790 811 793 D. Total Imports 2,790 2,864 2,800 E. Total Imports from U.S. 30 30 30 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 15
Name of Sector: Electric Power Systems
ITA industry code: EPSBelgium's electric power is provided largely by nuclear energy (55 percent), followed by, coal generating plants (23 percent), and natural gas from Algeria, the Netherlands and the North Sea (mainly Norway) (17 percent). In 1997, Belgium's electricity production was 75,071 Gwh, an increase of 4.5 percent over 1996. Total electricity consumption was 73,217 Gwh, an increase of 2.5 percent over 1996. The continued improvement in the country's economic performance increased energy consumption by 2.7 percent in 1998.
Under the National Equipment Plan for Electricity and Transmission Facilities 1995-2005, a well-coordinated program of investment provides for the steady modernization and maintenance of the system. The $9 billion program offers good opportunities for U.S. manufacturers despite strong competition from manufacturers in the EU. The current trend is for new generation equipment to be installed with combined cycle capability. Coal fired generators will also be steadily converted to combined cycle capability. Renewable energy is in its infancy in Belgium. Only 1.7 percent of the energy consumption in Belgium is renewable.
The Belgian law addressing the EU energy directives on electricity and gas was passed in April 1999. The law confirms the implementation date for the first stages of electricity deregulation to be February 19, 2000 and gas deregulation to be August 10, 2000. New entrants into Belgium's electric power market will face stiff competitions from Electracabel, which currently controls 84 percent of the market. In addition, there will be new competition from neighboring countries, such as France, which produce low cost electricity from nuclear power plants. However, there will still be excellent opportunities for American companies providing support services and equipment to the power generation market.
The following table gives an estimate of the market for electric power generating, transmission, and distribution equipment.
DATA TABLE
1997 1998 1999 A. Total Market Size 3,075 3,141 3,205 B. Total Local Production 2,057 2,102 2,145 C. Total Exports 197 201 205 D. Total Imports 1,215 1,241 1,265 E. Total Imports from U.S. 73 74 76 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 16
Name of Sector: Textile Fabrics
ITA industry code: TXFWhile the first half of 1998 showed strong growth, starting in the third quarter, the rate of growth slowed. Instability in South America, as well as the economic crises in Southeast Asia and Russia, unfavorably impacted the sector. Demand, which remained high in the EU, had a positive impact on growth. If the growth trends in European markets and the improvement in the international economic situation continue to improve, it is likely that the market will rebound in the second half of 1999. The annual Decosit trade show in Belgium has become the major international event in the Upholstery Textile sector. In cooperation with the U.S. Department of Commerce's Office of Textiles and Apparel (OTEXA), the U.S. Embassy organizes a U.S. Pavilion at Decosit. Companies interested in exhibiting should contact: OTEXA, U.S. Department of Commerce, Washington DC 20230; tel: (202) 482-5153; fax: (202) 482-2859.
DATA TABLE
1997 1998 1999 A. Total Market Size 1,971 1,994 1,959 B. Total Local Production 3,962 4,008 3,937 C. Total Exports 3,724 3,767 3,700 D. Total Imports 1,733 1,753 1,722 E. Total Imports from U.S. 82 83 82 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 17
Name of Sector: Sporting Goods and Recreational Equipment
ITA industry code: SPTDespite an increase in consumer health consciousness and leisure time, the Belgian sporting goods market is witnessing a period of stagnation. When the sporting goods market was booming during recent years, many small dealers have entered the field. As a result, the market is now saturated and the competition has led to lower prices. Small dealers are finding it difficult to compete.
At the same time Belgium remains highly receptive to American sporting goods products which are innovative, of high quality and not yet widely distributed on the Belgian market. The new sport in fashion in Belgium is badminton, which can be played indoors and in schools. Badminton equipment is mainly supplied by the U.K. and the Far East. Interest for basketball is increasing as well and the market is mainly supplied by the U.S. The U.S. is still the market leader in roller skates, although sales volumes are decreasing in favor of high-quality and upper-priced equipment geared at a small segment of demanding consumers. In-line skating accessories and related equipment are on the rise. In contrast, the footwear market is stagnating, although the American giant Nike has increased its market share to 35 percent. Interest for fitness equipment is decreasing. The market for tennis and soccer equipment remains stable. The U.S. is still the leader for golf equipment which is becoming a leading sport in Belgium as golf clubs decrease their membership fees to attract new younger members. There is a steady interest for all types of bicycles. Lastly, the outdoor sports market is booming and the following articles are increasing in demand: summer mountaineering and climbing equipment, canoes, backpacks, tents, boats, protection sunglasses. In this field, there is a growing demand for top-quality goods of well-known brands.
DATA TABLE
1997 1998 1999 A. Total Market Size 730 732 749 B. Sales by Local Firms 666 670 670 C. Exports by Local Firms 30 31 30.2 D. Sales By Foreign-owned Firms 93 93 94 E. Sales by U.S.-owned Firms 10 10 11 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 18
Name of Sector: Medical Equipment
ITA industry code: MEDBelgians enjoy sophisticated and high quality medical services. Likewise, Belgium has a well-developed national medical insurance system, which covers almost the entire population. Annual payments to providers in 1998 reached $12.85 billion. Belgium ranks 13th among the 24 OECD nations in terms of health care spending as a percentage of GDP, and fifth among the twelve EU member states.
U.S.-produced medical equipment is very popular, especially with FDA pre-marketing approval. Only 15 percent of Belgium's medical equipment requirements are manufactured locally. Most promising sub-sectors include infant care and intensive care equipment, home health care equipment, all medical systems and equipment facilitating shorter hospital stays, non-invasive techniques reducing the need for surgery, advanced medical imagery and electro-diagnostic systems. In the field of electrical medical equipment, the United States is Belgium's top supplier. As of June 1998, it has been crucial for companies marketing any medical equipment in EU countries to affix the CE mark to their products (See Chapter VI, re: CE marks)
DATA TABLE
1997 1998 1999 A. Total Market Size 617 638 634 B. Total Local Production 77 82 81 C. Total Exports 11 12 11 D. Total Imports 551 568 564 E. Total Imports from U.S. 119 145 144 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 19
Name of Sector: Laboratory Scientific Instruments
ITA industry code: LABTwo major consumers of laboratory scientific instruments are the chemical and pharmaceuticals industries, both of which play an important role in Belgium's economy. In addition, Belgium's seven universities support significant research programs which has also created a high demand for laboratory instruments.
Other factors influencing this sector include the increasing importance of quality control mechanisms (as defined by ISO 9000 certification requirements) and recent pollution control legislation. The market is also heavily influenced by the need for equipment renewal to keep up with constant upgrades in computer software for advanced applications. The most promising sub-sectors are instruments and apparatus for physical or chemical analysis such as polarimeters, refractometers and spectrometers. The United States is Belgium's leading supplier of modern laboratory equipment. U.S. multinationals in the chemical industry as well as in the instruments industry play an equally important role in providing a showcase for U.S. made instruments.
Although sales are on the rise in the chemical industry and particularly in the pharmaceutical industry (the latter reports a 30 percent increase in sales over the last 12 months), the scientific instrument trade forecasts only a 3 percent increase in 1999.
DATA TABLE
1997 1998 1999 A. Total Market Size 218 232 235 B. Total Local Production 0 0 0 C. Total Exports 24 25 25 D. Total Imports 242 257 260 E. Total Imports from U.S. 120 128 133 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.The above statistics are unofficial estimates provided by the industry association. Please note that in this sector, goods are imported into Belgium and then re-exported into other European markets. For this reason, the export figures exist although there is no local production. Local production is entirely done in-house by end-users, and therefore are not quantifiable.
Rank of sector: 20
Name of Sector: Apparel
ITA industry code: APPConsumer spending in Belgium is picking up after over five years of flat, and even depressed, consumer demand levels. Consumption grew 3.6 percent in 1998, due to increases in real income per household and consumer confidence. Economic forecasts are pointing to steady growth of about 3 percent for 1999 and 2000. Belgian sales of clothing apparel traditionally follow retail sales trends, unless unseasonable weather adversely affects buying patterns. A mild 1998-99 winter deflated sales of heavy clothing, especially coats, but an early 1999 spring is expected to provide good mid-year sales prospects. There is continued strong market interest for American sporting and leisure apparel, as American styles are popular and designer and branded products are less price sensitive. The main competition comes from manufacturers and designers in France, Germany and Italy. For budget clothing and mass distribution items, low cost producers in ,the Far East, such as China, Thailand and Indonesia continue to provide the bulk of imports. Low exchange rates from the Asian "crisis" countries accentuate the trend.
DATA TABLE
1997 1998 1999 A. Total Market Size 2,890 2,952 3,098 B. Total Local Production 1,824 1,863 1,956 C. Total Exports 986 1,008 2,200 D. Total Imports 2,052 2,097 1,058 E. Total Imports from U.S. 81 82 85 Exchange Rate: $ = BEF 35.7 36.3 37The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Rank of sector: 21
Name of Sector: Plastic Materials and Resins
ITA industry code: PMRFollowing the low levels of 1995/96, the market is in a growth phase in line with the general improvement in the European industrial environment. Growth at 2 percent per annum was achieved for 1998 and is expected for the next two to three years. Price levels, however, continue to be very competitive as over-capacity led to price-cutting marketing tactics. Restructuring and re-grouping will continue on the industry attempts to achieve cost savings from volume production and more efficient marketing and distribution.
The outlook for the Belgian plastic industry remains good because of its proximity to international shipping and distribution networks. Inexpensive prime materials from Asia and Eastern Europe, in addition to creating strong competition in the market, increased the dollar's value. However, due to its strong market position and good product innovation record, U.S. manufacturers are expected to be able to increase supplies to the Belgian market at least in line with forecast market growth of 2 percent per annum.
DATA TABLE
1997 1998 1999 A. Total Market Size 2,595 2,625 2,677 B. Total Local Production 23,757 24,032 24,512 C. Total Exports 23,229 23,497 23,970 D. Total Imports 2,067 2,091 2,135 E. Total Imports from U.S. 159 161 165 Exchange Rate: BF per $ 35.7 36.3 37.0The above market values are in millions of U.S. dollars.
The above statistics are unofficial estimates.
Note: differences in the average annual exchange rates can distort change in market size between 1997 and 1999.Best Prospects for Agricultural Products to Belgium and Luxembourg:
WINE:
Belgium imports of wine jumped 18 percent in 1998 to 19,377 million Belgian Francs (approximately US$ 554 million) according to the Belgian Office of Foreign Trade. Although France continues to be the major supplier of wine to the Belgian market with an 80 percent market share, France is gradually losing market share to wines from the "New World" countries, such as South Africa, Chile and the United States. In Belgium, wine from the United States jumped from 94 million BF (approximately US$ 3 million) in 1997 to 223 million BF (approximately US$ 6.1) in 1998. On a volume basis, Belgian imports from the United States increased from 1,092,000 liters to 1,553,000 liters during the same time period. Although the Belgian market is relatively small, interest in U.S. wines is growing. Varieties popular in Belgium include Cabernet Sauvignon, Chardonnay, Zinfandel, and Pinot Noir. Because the average price for wines retailed through Belgian supermarkets is approximately $5, specialty wine shops and the hotel/restaurant sector offer the most opportunity for U.S. wines. Belgian consumers value quality and are willing to pay higher prices for high quality wines. Promotional support and consumer education efforts are important tools to stimulate U.S. wine sales in the Belgian market.
DATA TABLE 1997 1998 1999 A. Total Market Size -in 1,000 liters- 186,966 214,879 218,000 B. Total Local Production (Bel & Lux) 9,978 15,900 16,000 C. Total Exports 16,390 18,765 18,000 D. Total Imports 195,378 217,744 220,000 E. Total Imports from U.S. 1,092 1,553 1,600Data for 1999 included in this chart are estimates.
Source of trade data: Belgian Office for Foreign Trade/National Bank of Belgium.TREE NUTS:
Compared to other countries in the European Union, Belgian per capita consumption of tree nuts is relatively small. However, nut consumption has been increasing in the past five years and potential exists for continued increases in consumption, particularly for walnuts and almonds. Although a significant amount of Belgian nut imports are sold through specialty stores, retail sales through supermarkets are becoming increasingly important. Nuts are often imported in-shell and then roasted and salted in Belgium. In addition, there are a number of Belgian food-processing firms that use imported nuts in bakery products, confection and ice cream. Likewise, nuts are an important input for snack foods, a market estimated at 3 billion Belgian Francs.
DATA TABLE 1997 1998 1999 B. Total Market Size -in Metric tons- 25,597 29,312 30,600 F. Total Local Production 600 600 600 G. Total Exports 7,535 12,872 13,000 H. Total Imports 32,532 41,584 43,000 I. Total Imports from U.S. 1,696 5,864 6,500COMMENTS:
F. Mainly almonds and walnuts
Data for 1999 included in this chart are estimates.
Source of trade data: Belgian Office for Foreign Trade/National Bank of Belgium.FRUIT JUICES:
Belgium is a major importer, processor, and exporter of fruit juices. A substantial volume of concentrated juice is imported and then processed and packaged for re-export or domestic consumption. Although Belgian consumption of fruit juice is growing slowly, approximately 2 percent per year, the market for not-from concentrate (NFC) juice is increasing. Still a niche market, sales of NFC juices account for less than five percent of total juice sales. However, there is strong potential for growth in this sector. Citrus (orange and grapefruit) account for the majority (60 to 80 percent) of NFC juice sales, however, juice blends are growing in popularity. NFC juices have a high quality image in Belgium and, at retail, sell for three to four times the price of juices made from concentrate.
DATA TABLE 1997 1998 1999 A. Total Market Size -in Metric tons- 161,512 198,496 200,000 C. Total Local Production 105,000 105,000 105,000 D. Total Exports 386,304 519,844 520,000 E. Total Imports 442,816 613,340 615,000 F. Total Imports from U.S. 118,379 119,139 125,000COMMENTS:
B. Market size is derived from trade data and production data.
C. Since official production figures are unavailable, the figures found below have been calculated by the Office of Agricultural Affairs based on the average per capita consumption of all juices. F. Mainly citrus juicesData for 1999 included in this chart are estimates.
Source of trade data: Belgian Office for Foreign Trade/National Bank of Belgium.
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