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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Arla Foods Amba, leads the organic segment in Denmark with a value share of 18.0% in 2019, followed by Thise Mejeri Amba with a value share of 12.6%, and Midsona AB with a share of 5.6%.
  • The decline in YoY growth is in line with the market scenario as organic products in Denmark have entered into the maturity stage with consumption already becoming the norm in several packaged food and beverage subcategories.

  • With a value of US$1.0 bn, organic products in Denmark contribute to roughly 2.2% of the global market value.
  • Despite demand saturating in Denmark, organic packaged food and beverages are still expected to witness a CAGR of 4.2% for the period 2019-2024, reaching a value of US$1.2 bn by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Denmark witnessed strong value growth to reach US$1.0 bn in 2019, registering a YoY growth of 6.1% for the period 2018-2019. Denmark's position as the global leader in terms of per capita consumption is the primary driver of the local demand growth, leading to organic products becoming the norm amongst most consumers.
  • Within organic packaged food, organic ready meals is the fastest-growing category, followed by organic sauces, dressings and condiments having witnessed a value growth of 8.3% and 7.7% respectively in 2019.
  • In organic beverages, organic concentrates lead with value growth of 18.0% for the period 2018-2019. The rapidly increasing health and wellness trend as a result of significant government support for local production is a crucial driver helping growth for organic concentrates, and organic beverages overall.
Market Trends
  • Organic sauces, condiments and dressings, and organic dairy products are some of the key subcategories that have gained significant value in recent years, with organic dairy contributing approx. 52.0% of the value share of organic packaged food in 2019.
  • An increasingly socially conscious consumer base drives the organic boom in Denmark. Additionally, increased purchasing power allows people to prioritize their health and choose healthy products. Danish consumers aim to buy themselves into “an organic universe”, where products are healthier, and sustainability is not overlooked in the production process, which has helped the story behind organic products improve in popularity, and consequently, boost overall demand.
Competitive Landscape
  • The rising popularity of organic products has led to organic offerings becoming a “must-have” in a brand’s portfolio. With Danish consumers prioritizing sustainable practices and preferring organic choices, several categories such as dairy and hot cereals see primary sales for organic products, as is the case of organic agricultural co-operative, Coop and Lantmannen, which is mainly present in the category of hot cereals.
  • Organic dairy player Arla, which recorded a value share of 21.7% in 2019, saw an increase in sales within organic packaged food in 2019 and remained the most significant domestic player. The company is closer to its goal of 50.0% of revenue coming from organic sales. Additionally, 15 new organic product launches of novel products such as oat-based drinks in 2019, which are available in 3 flavours, are expected to help increase its organic sales ratio to meet its target next year.
  • Strict Danish control systems used in organic product production provides a layer of trust in local organic products. While Denmark still imports more organic products than it exports, in 2020 exports are expected to equal imports due to increasing domestic production. Additionally, the general view of private label organic products in Denmark has improved year on year with the most successful example of Änglamark by Coop Danmark A/S.
Prospects And Growth Opportunity
  • Currently, consistent demand for organic products is already witnessed among the Danish food industry’s first movers (younger generations from big cities with higher education) and is already spilling over into segments of the more traditional shoppers. Yet, there is still potential to increase the consumer base for organic products, particularly, people from the Danish countryside, as well as the potential for current organic shoppers to increase their organic budgets. Consequently, growth for organic products is expected to remain strong in the coming years.
  • Organic hot drinks and soft drinks are expected to record growth over the coming years, registering a value CAGR of 41.5% for the period 2019-2024 as Danish consumers continue to seek more natural products. Considering sales of organic beverages are expected to mature, growth is expected to be moderate, but still very solid in most categories. With the strong demand for organic beverages, product availability is likely to continue to increase over the forecast period 2019-2024 as manufacturers seek to leverage the growing consumer interest in categories gaining prominence such as organic concentrates.
  • Organic beverages are slowly becoming the standard in specific categories, while other categories are still in the stage of infancy. For a significant and growing number of consumers, organic coffee and juice have now become the norm. However, in categories such as carbonates, organic products are still relatively new, and therefore have the potential for growth over the forecast period. Key factors contributing to the success of organic products in Denmark are their broad availability and the comparatively small price difference between organic and non-organic variants of products.
General Health And Wellness Trends
  • An initiative between supermarket chain Irma, Greater Copenhagen Food Start-up and Coop Crowdfunding that began in January 2019 aims to bring locally-produced organic products to customers to help even more local Danish food start-ups to succeed while offering locally-and sustainably-produced food products to consumers. However, the disparity in price within specific categories such as organic carrots and oats is an impediment for current manufacturers, which could also continue to hurt local producers if price disparity remains an issue.
  • Organic beverages are expected to continue to witness demand owing to an increasing rate of new products launched. Furthermore, increasing competition is likely to push manufacturers to invest more in marketing their organic offerings in order to create a competitive advantage and help grow their value share. This could also result in heavy price competition among organic players, reducing the price of organic products to be below that of non-organic variants, for the short term.
General Economics And Demographic Landscape

Economy:

  • Denmark’s economic growth is expected to weaken in 2020, primarily due to weaker exports and an economic slowdown among trading partners. However, private consumption is expected to remain strong due to a dynamic labour market and the reimbursement of excessively collected property tax.
  • The deteriorating outlook of Denmark’s trade partners and frictions in world trade are expected to be the primary factors of the decline in investment and exports. Real GDP is expected to rise marginally, growing by 1.5% for the period 2021-2027.
  • The real value of private consumption witnessed an increase of 1.1% in 2019, with a growth of 1.7% expected for 2020. Domestic demand, a key driver of consumption, remains strong owing to the increase in employment and the pace of wage growth, caused by later retirement and the influx of foreign investments.
     

Population demographics:

  • The population of Denmark has been rising slowly, with the trend expected to continue over the coming years. The population stood at 5.8 million in 2019 and is expected to reach 6.1 million by 2030. Pressure on the labour market is further relieved by an influx of immigrant labour.
  • The median age in 2019 reached 41.9 years, above the regional average and 3.7 years higher than the figure for 2000. Additionally, the fertility rate was 1.8 births per female in 2019. This indicator is expected to increase to 1.9 births per female by 2030. The average number of children born to women under 27 years has been declining, but this downward trend is almost completely offset by an increase in the number of births among women between 30 and 40 years.
     

Income & expenditure:

  • In 2019, savings in Denmark were recorded at 4.6% of disposable income. This indicator is expected to fall to 4.5% in 2020. Tax cuts and lower interest rates support consumer spending in the country.
  • Consumer expenditure is expected to represent 45.3% of GDP in 2020. Per capita consumer expenditure was recorded at US$26,975 in 2019 with an increase of 1.3% forecast for 2020 in real terms. The sector with maximum consumer expenditure is education, which is expected to see further improvements for the period 2020-2030. In the period 2020-2030, total consumer expenditure will grow at an average annual rate of 1.5%, increasing by a cumulative value of 15.8%.
  • Disposable income per capita totalled US$28,035 in 2019, with a rise of 1.2% expected in real terms for 2020. For the period 2020-2030, total disposable income is expected to increase by a cumulative value of 14.5% in real terms, with an average annual rate of 1.4%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

3,388.2

3,588.8

3,769.0

3,925.0

4,040.8

4,155.8

4,273.6

5.0%

2.8%

Organic packaged food and beverages consumption

USD million

787.4

905.1

990.8

1,052.2

1,106.5

1,153.5

1,201.4

10.1%

4.2%

Organic packaged food consumption

USD million

661.2

758.9

825.0

864.5

891.7

915.2

938.8

9.3%

2.6%

Organic beverages consumption

USD million

126.2

146.1

165.7

187.7

214.8

238.3

262.5

14.1%

10.5%

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

%

23.2%

25.2%

26.3%

26.8%

27.4%

27.8%

28.1%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

5.7

5.7

5.8

5.8

5.8

5.9

5.9

% Middle and upper class of total population

%

32.7

32.6

32.5

32.5

32.5

32.4

32.4

% Population aged 65+

%

18.8%

19.1%

19.3%

19.6%

19.8%

20.1%

20.3%

% Population aged 0-14

%

16.8%

16.7%

16.6%

16.5%

16.4%

16.3%

16.2%

% Population with higher education degrees

%

25.4

26.1

26.6

27.1

27.7

28.2

28.6

Average number of children per household

children

0.4

0.4

0.4

0.4

0.4

0.4

0.4

GDP per capita

USD per capita

55,375.1

56,730.4

58,249.7

59,880.9

60,514.7

61,168.6

61,863.3

Consumer expenditure per capita (US$)

USD per capita

25,252.6

25,786.0

26,569.4

26,977.3

27,276.4

27,576.8

27,887.6

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

USD per capita

2,888.9

2,958.5

3,048.3

3,120.5

3,158.4

3,197.1

3,228.5

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Copenhagen

2.1

Top cities by population (2019)

2

Arhus

0.5

Top cities by population (2019)

3

Odense

0.4

Top cities by population (2019)

4

Aalborg

0.3

Top cities by population (2019)

5

Esbjerg

0.1

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Salling Group A/S

Top grocery retailers by sales (2019)

2

FDB Group

Top grocery retailers by sales (2019)

3

Reitangruppen AS

Top grocery retailers by sales (2019)

4

Dagrofa ApS

Top grocery retailers by sales (2019)

5

Schwarz Beteiligungs GmbH

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Denmark

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Denmark

1

Organic Coffee Roast Not Decaf

3,195

2019

Denmark

2

Organic Milk

2,501

2019

Denmark

Total

Total Organics*

5,696

2018

Denmark

1

Organic Carrots Fr/Ch

6,930

2018

Denmark

Total

Total Organics*

6,930

2017

Denmark

1

Organic Tomato Sauce Ex Ketchp

7,608

2017

Denmark

Total

Total Organics*

7,608

2016

Denmark

1

Organic Tomato Sauce Ex Ketchp

2,861

2016

Denmark

2

Organic Coffee Roast Not Decaf

2,697

2016

Denmark

Total

Total Organics*

5,558

Note : Total organics is the sum of all exports in a particular year   
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

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).
Regulation (EU) 2019/2164, which amends Regulation (CE) 889/2008, changed some of the lists of inputs allowed in organic agriculture and processing.

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

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.

Beginning February 3, 2020, port of entry health authorities will only endorse a certificate of inspection if the certifier issued it prior to export. Certain sections of the certificates (boxes 13, 16, and 17) may be filled in with provisional information, since certifiers can not verify all of the data before the product is exported. The provisional information must be confirmed/updated within 10 days, and before the certificate can be endorsed at the port of entry.

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 for equivalence 

Control bodies in the European Union

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.

Additional Information

http://www.organic-europe.net/country-info.html

USDA’s GAIN Report Denmark Exporter Guide (2020)
USDA’s GAIN Report The Organic Food Market in Denmark (2020)

USDA’S GAIN Report New EU Organic Regulation Entering Into Force in 2021 Regulatory Update (2020)
USDA’S GAIN Report EU Launches Consultation on Future Organics Action Plan (Sept. 2020)
USDA’S GAIN Report Food Labeling Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report Pesticides Initiatives in the EU Farm to Fork Strategy (2020)
USDA’S GAIN Report New EU Organic Regulations for Early 2018 (2017)
USDA’S GAIN Report Electronic Certificate of Inspection Required for EU Organics Trade (2017)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’S GAIN Report U.S. Organic Food Exporters Set to Double Sales to EU (2019)
USDA’s GAIN Report Plenty of opportunities for U.S. organics in the EU market (2015)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’S GAIN Report EU-28 Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report EU-28 EU-U.S. Organic Trade Update - January 2014