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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • The organic segment in Sweden is led by Arla Foods with a value share of 21.0%, followed by Lactalis Groupe with a share of 2.7% and Hipp GmbH & Co Vertrileb KG with a value share of 2.4%.
  • Despite ranking 10th globally in market size, Sweden ranks 2nd in terms of Per Capita spending on organic products, indicating again, that organic products are reaching a saturation level. Furthermore, with other health and wellness labels seeing increasing demand, Year on Year growth for organic products is expected to remain low, well below the 5.0% mark for the period 2019-2024.

  • Organic products in Sweden represent roughly 2.0% of global demand, with market size of US$958.6 mn and a per capita expenditure of US$93.7.
  • With some categories such as organic coffee expected to continue to show strong growth, organic products in Sweden are expected to continue to see positive performance, with a CAGR of 3.3% for the forecast period 2019-2024, recording a market size of US$1.1 bn by 2024. Furthermore, growth in packaged food is expected to be led by organic ice cream, with the highest value CAGR of 14.1% for the forecast period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Sweden recorded current value growth of 5.3% in 2019, registering a value of US$958 mn.
  • Growth in organic packaged food was led by organic ice cream, recording a current value increase of 18.0% in 2019.
  • Organic juice nectars 25-99% witnessed the highest value growth within organic beverages in 2019 of 23.0%; with a part of this increase attributed to a 5% increase in average unit price.
Market Trends
  • Consumers in Sweden are increasingly concerned about the environment, with the environmental impact of the production process being one of the critical factors in product purchase decisions. Some claims state that organic products have a bigger carbon footprint compared to conventional agriculture. As a result, consumers are choosing their products based on environmental sustainability labels rather than whether they are organic or not. Additionally, this information could change the positive perception of organic products among Swedish consumers and limit its growth over the long term.
  • Organic juice was one of the fastest-growing organic beverage categories in 2019, supported by the launch of the Honest Organic Lemonade in organic juice drinks (up to 24% juice) and Honest Organic Kids in organic nectars (25-99% juice). However, organic fruit/vegetable juice is not expected to remain the most dynamic category as Swedes are expected to value smoothies and not from concentrate 100% juice more than organic beverages.
  • Due to studies claiming organic products are more harmful to the environment, sales of organic beverages have witnessed a slowdown recording a value increase of about 10.5% in 2019, post gains of 15.5% in 2018. Organic drinks are expected to lose out in sales over the forecast period 2019-2024 to products that have added value such as not from concentrate 100% juice, functional bottled water and low sugar energy drinks.
Competitive Landscape
  • The leading position in organic beverages is in close competition between Eckes-Granini Sverige, a leading German player in organic juice and Löfbergs Lila, a prominent local company in organic coffee. Eckes-Granini managed to marginally beat Löfbergs in 2019, reversing their positions from a year ago. Eckes-Granini Sverige markets and sells organic varieties of the God Morgon and Pago fruit/vegetable juice brands.
  • An increasing number of companies are opting to carry only the EU certification for organic products, rather than adding the additional Swedish KRAV label. This is mainly due to the more stringent rules to qualify for the KRAV certification, particularly concerning animal welfare, climate and social responsibility. Additionally, a KRAV certification also costs more and has more administrative requirements. However, the KRAV certification is trusted in Sweden and is used by manufacturers to promote the quality of their products. With several manufacturers choosing to only opt for the EU certification, there is an opportunity for KRAV certified brands to develop the accreditation as a symbol of their consistent quality measures, helping them gain consumer confidence.
  • While retailers like Coop and ICA made a severe push for organic products in recent years, they are witnessing stagnant sales to an extent. Currently, organic is no longer ranked as an essential feature for HW or labels and is promoted less in stores. With organic products increasingly becoming the norm, they are also increasingly competing directly with other products of the same types leading to a more intense level of competition, which is concerning as organic products are already witnessing a level of saturation in 2019.
Prospects And Growth Opportunity
  • Organic coffee, which represents about two-thirds of organic beverage sales, is expected to be one of the categories recording positive performance over the forecast period 2019-2024, with an above-average CAGR of 6.5% for the same period. Key players continue to promote their organic coffee extensions, while new players enter the category. For instance, Johan & Nyström Kafferostare & Tehandlare is one of the first-born players in organic coffee, with its Johan & Nyström line, which comes as fresh coffee beans and standard fresh ground coffee, with some organic variants.
  • Organic products are beginning to witness saturation in Sweden, with no significant reductions in prices to drive demand. The rising popularity of other labels presents an opportunity to market organic products in conjunction with other qualities such as local production or sustainability, which can help improve sales for organic products over the forecast period 2019-2024.
General Health And Wellness Trends
  • BFY (Better For You) packaged food has witnessed a marginal increase in sales over the historical period 2014-2019. Within packaged food, Swedish consumers are increasingly changing their consumption patterns to avoid BFY products, which is due to BFY food products often being seen as artificial due to the alternatives used in place of the sugar or fat. Swedes are therefore more often opting for natural products, especially when it comes to products typically containing a lot of sugar. However, with BFY beverages being the most dynamic category in Health and Wellness beverages, BFY packaged food and beverages are expected to record a value CAGR of 5.7% for the period 2019-2024.
  • Within carbonates, products such as Coca-Cola Zero Sugar, Coca-Cola Light and Pepsi Max continue to be very popular with Swedish consumers, ranking among the top 10 brands in the overall HW food and beverages market. This popularity is also boosted by new variants and entrants, including peach, lemon and vanilla versions of Coca-Cola Zero Sugar and a lime version of Pepsi Max in 2019. Another strong performer in Health and Wellness beverages is reduced-sugar energy drinks, which continue to enjoy growing popularity among gym-goers, runners and people practicing sports who want optimum rehydration and a boost to their results in the shortest time possible.
General Economics And Demographic Landscape

Economy:

  • The economy of Sweden is expected to slow down in 2020, with real GDP growth of 1.0%, declining from 1.2% in 2019. Weak global demand and uncertainty are expected to continue to weigh on exports and business investment.
  • Private final consumption grew by 0.8% in 2019. This growth is expected to reach 1.4% by 2020, driven by low interest rates and reduced taxes.
  • GDP growth is expected to reach 1.5% by 2021, before reaching 2.0% in 2022 and dipping to an average of 1.7% per year between 2023-2027, which is roughly equal to the potential rate of growth. 
     

 Population demographics:

  • The population in Sweden has grown slowly to reach a total of 10.2 million in 2019, with gradual growth expected to continue until 2030, with an expected total of 11.2 million by 2030
  • The population of Sweden is also witnessing a slow ageing process, with the median age in 2019 recorded at 40.6 years and expected to grow to 40.9 years by 2030. The number of elderly and retired people is witnessing a slow rise despite Sweden’s generous pension and medical systems. The slow rate of increase in the proportion of the elderly population members reflects the increasing number of immigrants in Sweden.
  • Fertility was recorded at 1.8 births per female in 2018, an increase from 1.6 births per female in 2016. As a result of immigration, this rate is expected to further increase to 1.9 births per female by 2030.
     

Income & expenditure:

  • Sweden’s savings ratio in 2019 was recorded at 11.0% of disposable income, with an increase to 11.2% expected in 2020. This increase is driven by declining levels of wealth, coupled with a slowdown in lending to households.
  • Consumer expenditure per capita was recorded at US$22,341 in 2019, with a growth of 0.6% expected in 2020. For the period 2020-2030, total consumer expenditure is expected to grow at an average annual rate of 1.8%, increasing by a cumulative value of 19.1%. Medical services and hotels and catering are expected to record the largest share of consumer expenditure over the forecast period.
  • Disposable income per capita totalled US$24,983 in 2019, with an increase of 0.7% expected in 2020. For the period 2020-2030, total disposable income is expected to witness a rise of 19.7% in real terms, recording an increase of 1.8% annually.
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

4,140.7

4,460.5

4,864.7

5,196.6

5,449.9

5,715.2

5,954.5

7.9%

4.5%

Organic packaged food and beverages consumption

USD million

803.1

862.7

909.5

958.6

992.8

1,025.6

1,055.8

6.1%

3.1%

Organic packaged food consumption

USD million

678.4

706.1

728.6

758.6

779.5

800.2

820.6

3.8%

2.6%

Organic beverages consumption

USD million

124.7

156.6

180.9

200.0

213.3

225.3

235.2

17.1%

5.0%

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

%

19.4%

19.3%

18.7%

18.4%

18.2%

17.9%

17.7%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

9.9

10.0

10.1

10.2

10.3

10.4

10.5

% Middle and upper class of total population

%

27.5

26.4

26.3

26.3

26.3

26.2

26.2

% Population aged 65+

%

19.8%

19.8%

19.8%

19.9%

20.0%

20.1%

20.2%

% Population aged 0-14

%

17.4%

17.6%

17.7%

17.8%

17.8%

17.7%

17.7%

% Population with higher education degrees

%

28.0

28.5

29.2

29.8

30.4

30.9

31.4

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

47,397.1

48,884.9

50,503.3

51,952.1

51,461.5

52,022.5

52,633.1

Consumer expenditure per capita (US$)

USD per capita

20,890.0

21,371.6

21,941.2

22,341.0

22,468.5

22,630.2

22,861.6

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

USD per capita

2,587.1

2,647.0

2,716.8

2,777.1

2,766.5

2,802.7

2,836.5

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Stockholm

2.4

Top cities by population (2019)

2

Gothenburg

1.0

Top cities by population (2019)

3

Malmö

0.7

Top cities by population (2019)

4

Uppsala

0.3

Top cities by population (2019)

5

Helsingborg

0.2

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

ICA Gruppen AB

Top grocery retailers by sales (2019)

2

Kooperativa Förbundet (KF Group)

Top grocery retailers by sales (2019)

3

Axel Johnson AB

Top grocery retailers by sales (2019)

4

Systembolaget AB

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 Sweden

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Sweden

1

Organic Vinegar and Substitutes

35,959

2019

Sweden

Total

Total Organics*

35,959

2018

Sweden

1

Organic Carrots Fr/Ch

21,000

2018

Sweden

Total

Total Organics*

21,000

2017

Sweden

1

Organic Lettuce Not Head Fr/Ch

59,850

2017

Sweden

Total

Total Organics*

59,850

2016

Sweden

1

Organic Grapefruit Fresh

16,380

2016

Sweden

Total

Total Organics*

16,380


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 Sweden Exporter Guide (2017)

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