Open to Imports

OTA estimates total organic market consumer sales of Sweden at about $1.4 billion USD per year.

  • The total market size for organic packaged food and beverages in Sweden in 2015 is US$666.0mn, making it the 10th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Sweden is US$68.4, which ranks as the 3rd largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Arla Foods Amba, which maintains 34.7% of total sales, followed by Lactalis Groupe and Jacobs Douwe Egberts.
  • Organic packaged food and beverages in Sweden will see moderate year-on-year growth of close to 8% in 2015. This is higher than the rest of the Western Europe region, which will experience more than 4% year-on-year growth in 2015.
  • Sweden maintains a market size for organic packaged food and beverages of US$666.0mn in 2015, which is 1.9% of global category sales.
  • Within the Western Europe region, only Germany, France, the UK, Italy, Denmark, and the Netherlands surpass Sweden in total value sales of organic packaged food and beverages.
  • Despite the large market size, Sweden will experience slow forecast growth of sales of organic packaged food and beverages, at 3.8% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Sweden in 2015 is US$666.0mn, making it the 10th largest market in the world by value.
  • Demand for organic packaged food and beverages continues to increase as Swedish consumers prefer products that are processed as little as possible, healthy for the body as a whole, and produced in an environmentally friendly way.
  • Mid-priced and private-label brands, mostly from Swedish companies, dominate the landscape.

Market Trends

Competitive Landscape

  • Large multinational players such as Unilever and Mondelez are far behind national and regional players such as Arla Foods and Skånemejerier when it comes to the launch of organic products. 
  • The landscape is dominated by mid-priced and private-label brands, such as Änglamark from Coop Sverige, and I Love Eco from ICA Sverige.
  • The organic beverage category is more consolidated than the organic packaged food category, although both have a relatively well-defined list of key players and a small share of “Other” competitors. 
  • Arla Foods maintains the dominant share of organic packaged food; Mondelez Sverige, Coop Sverige, and Olle Svenssons compete for the top spot in organic beverages. 

Prospects and Growth Opportunity

  • The organic market is maturing in Sweden, which, in combination with some remaining uncertainty in the Swedish economy, is causing a slowdown in growth. 
  • A potential shortage of organic products due to constrained production capaurban area could prove to be problematic for the industry.
  • Leading domestic brands and large multinationals will see a larger increase in their value share over the forecast period given their ability to gain shelf space and invest in new product development initiatives. 
  • Intensified competition is expected across the board for organics, given the marketing efforts of bigger companies and the KRAV (Association for Organic Products in Sweden). 
  • Swedish consumers in urban areas like Stockholm, Gothenburg, and Malmo have grown accustomed to purchasing food online; this trend could boost sales of organic products. 

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy: 

  • Sweden’s economy is among the most global in the world, bolstered by a very strong banking sector. 
  • Despite a very large services sector, which makes up 73.7% of the economy, Sweden was able to quickly recover from the recession and the sovereign debt crisis in the Eurozone. 
  • Sweden is a leader in mobile phone usage and mobile internet development. Biotechnology has become another important emerging industry in recent years. 
  • Modest gains are projected for Sweden’s GDP in coming years, with a slight decline in growth rate from 2015 (3.4%) to 2016 (3.1%). 
  • Increasing employment rates and rising disposable incomes continue to drive growing consumer spending across industries. 

Population demographics: 

  • Sweden’s population reached 9.7 million in 2015 and is projected to increase to 10.6 million by 2030, with immigration inflows and moderate birth rates adding to the current population size. 
  • With the median age projected to increase from 41.0 years in 2015 to 41.8 years in 2030, Sweden’s population is slowly aging. 
  • The numbers of people entering retirement in coming years will put pressure on the country’s generous pension and medical systems. 

Income & expenditure: 

  • Declining levels of wealth, coupled with a slowdown in lending to households, are resulting in a gradual rise in savings rates. 
  • Sweden’s savings ratio was 10.4% of disposable income in 2015, and will remain unchanged in 2016. 
  • Consumer expenditure per capita hit US$22,185 in 2015, with growth of 2.4% expected on an annual basis through 2030. Hotels and catering will see the steepest increase over this period, with household goods and services also promising to post solid performance.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

                   

Health & wellness products consumption

4,221.1

4,400.9

4,582.1

4,735.0

4,850.6

4,956.7

5,051.1

3.9%

2.2%

Organic packaged food and beverages consumption

509.3

546.8

610.0

666.0

698.8

727.7

752.3

9.4%

4.1%

Organic packaged food consumption

438.2

475.5

527.1

574.9

602.3

627.1

649.4

9.5%

4.1%

Organic beverages consumption

71.1

71.3

82.9

91.1

96.5

100.6

102.9

8.6%

4.1%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

12.1%

12.4%

13.3%

14.1%

14.4%

14.7%

14.9%

-

-

Economic & demographic data

Data type

2012

2013

2014

2015

2016

2017

2018

               

Total population

9.5

9.6

9.6

9.7

9.8

9.9

10.0

% Middle and upper class of total population

40.1%

40.0%

39.9%

39.8%

39.8%

39.7%

39.7%

% Population aged 65+

18.8%

19.1%

19.4%

19.7%

19.8%

20.0%

20.1%

% Population aged 0-14

16.7%

16.9%

17.0%

17.2%

17.4%

17.6%

17.7%

% Population with higher education degrees

26.8%

27.4%

27.9%

28.4%

28.9%

29.4%

29.8%

Average number of children per household

0.5

0.5

0.5

0.5

0.5

0.5

0.5

GDP per capita

46,075.8

46,779.7

48,173.7

50,569.4

51,671.1

52,597.1

53,379.4

Consumer expenditure per capita (US$)

20,712.7

21,044.8

21,525.0

22,179.5

22,799.8

23,244.6

23,688.2

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

2,565.7

2,619.7

2,684.3

2,756.5

2,824.2

2,867.2

2,902.3

Retailer & urban area data

Data category

Rank

Urban Area/retailer

Population
(mns)

       

Top urban areas by population (2015)

1

Stockholm

2.2

Top urban areas by population (2015)

2

Gothenburg

1.0

Top urban areas by population (2015)

3

Malmö

0.7

Top urban areas by population (2015)

4

Uppsala

0.2

Top urban areas by population (2015)

5

Helsingborg

0.2

Top grocery retailers by sales (2015)

1

ICA Supermarket

-

Top grocery retailers by sales (2015)

2

ICA Maxi

-

Top grocery retailers by sales (2015)

3

Systembolaget

-

Top grocery retailers by sales (2015)

4

Willys

-

Top grocery retailers by sales (2015)

5

Coop Forum

-

USDA GATS data

Rank

2015

2014

2013

2012

1

 

 

 

Apples

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

European Union (EU) Member States retain the authority to determine additional requirements for production within their country. They can also determine exceptions due to catastrophic circumstances, but cannot restrict access to products in compliance with EU regulations. In addition, the EC delegates most authority for the administration of organic programs to the Member States.

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

The European Union has an Equivalency Agreement with the United States.

General requirements; repeal of previous organic regulations: EC 834/2007 (.pdf in English)

Detailed rules on production, labeling and control including its first amendment on production rules for organic yeast: EC 889/2008 (.pdf in English)amended by (EU) No 1358/2014 (see below).

Rules concerning imported products: EC1235/2008 (.pdf in English)
Feburary 2013 amendment concerning imported products: (EU) No 125/2013 (.pdf in English)

Rules on organic aquaculture and seaweed production - Amendment in 2009 - implemented in 2010: EC 710/2009 (.pdf in English) 
Organic aquaculture and seaweed production updates (EU) No 1358/2014 effective January 1, 2015.

Detailed rules on organic wine: Regulation No 203/2012 (web; in English)

Date of Implementation: 

1992

Regulation and/or Standard Scope: 

EU standards cover crop, livestock and processing. Farm and handling plans are required, as well as detailed record keeping and detailed livestock feed standards. Specific standards are included for aquaculture, seaweed, yeast, bees, and mushrooms. Criteria for determining allowed materials include consistency with the objectives and principles of organic farming, and materials must be of plant, animal, microbial or mineral origin. Synthetic substances, however, may be used when they replicate the natural sources and when they are approved for organic production in the EU.

Imported Products Requirements

Imported Products: 

EU requires that imported organic products meet EU standards. Non-EU organic products must include country of origin labeling if they wish to use the EU organic logo. Use of the EU organic logo is not required for products from outside the EU.

Certification and Accreditation

Certification: 

The EC requires organic certification for all those involved in production and handling, including importers. EC requires ALL processing operations to be certified, even if those products are below the 95% threshold for the "Organic" label.

EC delegates the authority for investigations, non compliance, mediation, and testing, as well as reporting, exclusion from organic sale, emergency treatments and appeals to the Member States in accordance with their respective control system plans.

The EC allows private sector standards for the product categories, such as cosmetics and textiles, which are not fully regulated by the EC. In the EU certifiers (control bodies) can require additional organic crop, livestock and processing standards in association with the use of their certification seal.

List of control authorities and control bodies operating in third countries 

Other control bodies

Accreditation: 

Each EU Member State accredits certification bodies.

Additionally, the EU vests the authority for exchanging information on "infringements and irregularities" (enforcement) to certifiers through the Member State control systems as the vehicle to remove non-compliant product from the marketplace. However, it is not clear how, or when, an organic certificate can or will be revoked.

In addition to the EC organic regulations for certification and accreditation procedures, the requirements of EN 45011 and ISO Guide 65 for accreditation must be met.

Definitions

Review definitions of terminology included in this website.