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  • The total market size for organic packaged food and beverages in Sweden in 2017 is US$89.29mn, making it the 8th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Sweden is US$89.53, which ranks as the 2nd largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Arla Foods Amba, which maintains 25.6% of total sales, followed by Lactalis Groupe and Hipp GmbH & Co Vertrieb KG.
  • Organic packaged food and beverages in Sweden will see moderate year-on-year growth of 5%-6% in 2018, on par with the Western Europe region.
  • Sweden maintains a market size for organic packaged food and beverages of US$892.9mn in 2017, which is 2.2% of global category sales.
  • Within the Western Europe region, only Germany, France, the UK and Italy surpass Sweden in total value sales of organic packaged food and beverages.
  • Sweden will experience moderate forecast growth of sales of organic packaged food and beverages, at a 4.4% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Sweden in 2017 is US$892.9mn, making it the 8th 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

  • Organic packaged food and beverages are available in all price brands in Sweden.
  • The overall market leader in 2017 was Denmark-based Arla Foods Amba, with a 25.6% value share due to its dominance in the dairy space, followed by French company Groupe Lactalis with just a 3.2% value share.
  • Private label products accounted for 24.0% of total organic packaged food and beverages sales in 2017, down from 24.6% in 2016 and 24.7% in 2015. As Sweden’s economy continues to grow, consumers are increasingly willing to trade up to more premium products.

Prospects and Growth Opportunity

  • Swedish consumers’ increasing interest in sustainability and skepticism of chemicals and pesticides will continue to drive organic packaged food and beverages sales growth in coming years.
  • As the market matures, though, annual growth rates will be much lower than the impressive figures recorded in the 2013-2016 period.
  • Sales of organic bread, ice cream, herbal/fruit tea and chocolate-based flavored powder drinks are expected to continue to grow particularly robustly in coming years.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Sweden’s economy is growing but at a slower pace than in recent years.
  • Real GDP grew by 3.1% in 2017, and 2.5% growth is projected in 2018.
  • In 2017 inflation was 1.8%, and 2.0% is expected in 2018.
  • Sweden’s robust job market is supported by steady inflows of foreign workers, many of who find work in construction.
  • The unemployment rat was 6.7% in 2017 and will fall to 6.4% in 2018.

Population demographics:

  • Sweden’s population reached 10.0 million in 2017 and is projected to increase to 11.4 million by 2030.
  • The median age was 40.9 in 2017 and it will fall to 40.6 years by 2030 due to immigration.
  • Sweden is a popular destination for refugees and asylum seekers. Immigrant make up more than 10% of the population, and the share of immigrants is projected to increase in coming years.

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 11.5% of disposable income in 2017 and will rise to 11.7% in 2018.
  • Consumer expenditure per capita was US$22,632 in 2017, with growth of 0.5% in real terms expected in 2018.
  • Spending on education will see the largest increase in the 2018-2030 period, followed by communications.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

     4,324.1

     4,520.6

     4,733.4

     4,968.5

     5,134.9

     5,297.9

     5,461.7

4.7%

3.2%

Organic packaged food and beverages consumption

USD million

        638.5

        747.0

        828.4

        892.9

        942.7

        990.2

     1,034.0

11.8%

5.0%

Organic packaged food consumption

USD million

        563.4

        645.9

        697.0

        727.9

        752.5

        778.7

        805.1

8.9%

3.4%

Organic beverages consumption

USD million

          75.1

        101.1

        131.4

        165.0

        190.2

        211.5

        228.9

30.0%

11.5%

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

%

            0.1

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

            9.6

            9.7

            9.9

          10.0

          10.1

          10.3

          10.4

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population aged 0-14

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

Average number of children per household

children

            0.5

            0.5

            0.5

            0.5

            0.5

            0.5

            0.5

GDP per capita

USD per capita

   47,760.5

   50,415.6

   52,319.4

   54,196.8

   54,700.3

   55,027.8

   55,368.0

Consumer expenditure per capita (US$)

USD per capita

   21,294.4

   21,961.8

   22,427.8

   23,231.1

   23,453.9

   23,583.8

   23,755.7

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

USD per capita

     2,635.7

     2,747.4

     2,824.6

     2,917.2

     2,940.0

     2,950.6

     2,962.3

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Stockholm

             2.3

Top cities by population (2017)

2

Gothenburg

             1.0

Top cities by population (2017)

3

Malmö

             0.7

Top cities by population (2017)

4

Helsingborg

             0.3

Top cities by population (2017)

5

Uppsala

             0.3

Top grocery retailers by sales (2017)

1

ICA Supermarket

 -

Top grocery retailers by sales (2017)

2

ICA Maxi

 -

Top grocery retailers by sales (2017)

3

Systembolaget

 -

Top grocery retailers by sales (2017)

4

Willys

 -

Top grocery retailers by sales (2017)

5

ICA

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Apples

-

-

-

Total

60.0

16.0

-

-

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 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.

Definitions

Review definitions of terminology included in this website.