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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 21.5% in 2021, followed by Nestle SA and and Hipp GmbH & Co Vertrileb KG with value shares of 2.8% and 2.7% respectively.
  • 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, around the 3.0% mark for the period 2021-2026.

 

  • Organic products in Sweden represent 1.9% of global demand, with market size of US$1,137.8 million and a per capita expenditure of US$109.62 in 2021.
  • Organic products in Sweden are expected to witness a 3.1% CAGR 2021-26, which is significantly lower than that of neighbouring countries Norway (5.0%) and Finland (6.7%), though it must be noted these markets are much less mature than Sweden.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Sweden recorded an increase of 4.8% in 2021, registering a market size of US$1,137.8 million.
  • Organic dairy is the largest category within organic packaged food, accounting for a value share of 41.2% in 2021.
  • Organic beverages recorded a 4.7% expansion over 2020-21, registering a market size of US$232.8 million.
Market Trends
  • Organic packaged food in Sweden recorded an increase of 4.8% over 2020-21, registering a market size of US$905.0 million. Organic packaged food witnessed a boost in sales during the Covid-19 pandemic as health awareness and consciousness rose among consumers. However, growth remained fairly modest. There has been rising demand for “natural” products in Sweden, as consumers strive to be more environmentally friendly. There has been debate surrounding how “green” organic produce is. Organic products that are imported are often considered to be inferior to ones that are locally sourced (even non-organic products) by Swedish consumers, as they regard the negative environmental impact of locally sourced products to be less than that of imported organic products, limiting organic packaged food sales.
  • Organic beverage sales have also witness slowed retail value growth over the pandemic period of 2019-21, as the economic impact of Covid-19 has led to a decline in the demand for organic beverages. Organic beverages are premium products in Sweden and are usually expensive, as there is limited availability of ingredients. As disposable incomes shrunk as a result the pandemic, demand was negatively impacted. However, organic beverages which position themselves as sustainable, via labelling/certification or brand marketing, have witnessed a rise in demand from consumers as sustainability is an ongoing and accelerating trend in Sweden. As organic beverages also offer health benefits and are a healthy alternative to standard beverages, high-income consumers continued to purchase them, which allowed value sales to continue rising in 2021.
Competitive Landscape
  • Organic packaged food in Sweden is led by Arla Foods AB, with a value share of 26.8% in 2021. During the pandemic consumers became more price sensitive as the economy was negatively impacted. This led to a rise in demand for private label organic packaged food, which is more price competitive. Leading grocery retailers such as Coop, ICA and Axfood all offer a wide range of private label organic packaged food. With growing in-store visibility and lower unit prices, this is likely to continue driving sales of the category. Änglamark is the private label brand of Coop and captured a 13.7% retail value brand share within organic packaged food in 2021, followed by ICA’s private label brand I Love eco, which captured a 9.7% share. Axfood’s private label brand Garant accounted for a 3.7% share in 2021.
  • Eckes-Granini Sverige AB was the leading player within organic beverages in 2021, capturing a retail value share of 12.6%. Within organic hot drinks, organic fresh coffee was the largest category in 2021. This category is led by domestic players, including Löfbergs Lila and Arvid Nordquist, as well as global players such as Nestlé and Jacobs Douwe Egberts. Local players are able to compete with these giants as there is a strong “shop local” movement in Sweden, and because domestic players have a better understanding of Swedish preferences. Their sales are usually limited to Sweden and neighbouring countries which allows them to import enough organically grown coffee beans to meet demand. In 2021, Löfbergs Lila held a small lead in value terms over Jacobs Douwe Egberts.
Prospects And Growth Opportunity
  • Organic packaged food and beverages is forecast to exhibit a 3.3% CAGR over the period 2022-25, which represents slowed growth when compared to the 5.6% CAGR recorded over 2018-21. Similarly, organic packaged food is also expected to witness slowed growth and is forecast to record a CAGR of 3.6% over 2022-25, against the 5.5% CAGR recorded over 2018-21. Retailers are placing less focus on organic packaged food. Big retailers such as Coop and ICA majorly invested in organic products at the beginning of the review period, however sales of their organic produce are now moderating. Organic is no longer ranked as the most important feature for health and wellness or labels and is being promoted less in-store now, though there is still possibility for greater promotion online. E-commerce sites such as MatHem.se and Mat.se for example, have registered dynamic growth in recent years and are increasingly becoming popular among younger, urban consumers, including those with young children, who are more inclined to buy organic products. However, vegetarian, vegan, and plant-based alternatives in free from food are increasingly taking the place of organic packaged food as the most advertised categories, due to environmental concerns and growing awareness that reducing meat consumption is a major step consumers can take in reducing their impact on the environment. Further, it is possible that more companies will attempt to add the Swedish KRAV label as an additional selling point. The KRAV label has more strict rules to achieve certification, specifically regarding animal welfare, climate, and social responsibility. It is expensive to add the label and there are more administrative requirements, however, KRAV is well known and trusted in Sweden and as manufacturers increasingly try to get their brands to stand out, investments in the KRAV label is expected to increase. 
  • Organic beverages are forecast to exhibit a 1.7% CAGR over the period 2022-25, which represents significant slowed growth when compared to the 6.2% CAGR recorded over 2018-21. A key reason for this is increasing competition from other health and wellness categories that are marketed and represented better. Further, there are limitations on availability of organic commodities, which may be exacerbated in the future. These commodities include berries, fruits, coffee beans, and tea leaves – all popular ingredients in organic beverages, which will continue to lead to raised prices of category items. However, momentum is expected to grow towards the end of the forecast period as the effects of Covid-19 fade and the economy stabilizes, which will in turn lead to consumers becoming more willing to spend on organic beverages. Organic coffee and organic tea are expected to lead sales of organic hot drinks over the forecast period, with organic tea sales being dominated by global brands with purely organic offerings, such as Pukka and Yogi Tea, and local brands, such as Kung Markatta. Global giants such as Lipton and Twinings cannot compete in organic tea, as they generate their revenue by selling great volumes of their products, which cannot be sustained in organic hot drinks due to shortage of organic plantations.
General Health And Wellness Trends
  • Health and wellness is forecast to exhibit a robust CAGR of 4.0% over 2022-25, as consumers remain aware and conscious of their health, following the Covid-19 pandemic. The fastest growth is likely to occur as the economy recovers and consumers return to their pre-pandemic lives, which will lead to a rise in disposable incomes as well as demand for on-the go organic products. However, while price sensitivity remains in the short-term, private label is expected to continue to perform well, with high-quality premium brands recovering later in the forecast period. Finding methods of reducing sugar content will remain a key factor that will drive success within health and wellness packaged food and beverages.
  • Categories such as naturally healthy beverages, organic packaged food and health and wellness hot drinks are close to maturity and are expected to see slowing growth and stiff competition from up-and-coming health and wellness categories. For example, in soft drinks, there will be increased competition from iced tea, iced coffee, and energy drinks which are highly suitable for on-the-go consumption. The rise of e-commerce will also aid new, innovative product launches. The health and wellness trend has been ongoing in Sweden and consumers are increasingly demanding more from their packaged food and beverages, leading to an increasing number of products overlapping categories through having multiple benefits (for example, being fortified with vitamins as well as being organic). It is likely that within these categories, smaller or new brands will see high growth as they can market themselves as entirely health-focused and ethically sourced, rather than an existing brand with only health-focused or ethically sourced extensions. This helps these brands establish trust with their consumers and is expected to lead to the category seeing larger companies withdrawing their organic and other lines.
General Economics And Demographic Landscape

Economy: 

  • Real GDP growth rebounded to 4.8% in 2021, with Sweden’s economy expected to expand by an average annual real rate of 1.7% over 2022-2040.
  • Inflation in Sweden is forecast to stand at 2.1% in 2022, down slightly from 2.2% in 2021.
  • Public debt in Sweden rose to 39.3% of GDP in 2021 from 37.3% in 2020.

 

Population demographics: 

  • The population of Sweden rose to 10.4 million in 2021 but is expected to rise to 10.6 million by 2025.
  • The low population growth is the result of a substantial drop in immigration and a higher number of deaths during the coronavirus pandemic. At the same time, the number of both births and emigrants fell marginally compared with the first six months of 2019. This led to a halving of both immigration and birth surplus.
  • The median age in 2021 was recorded at an all-time high 41.1 years in Sweden. This is further expected to increase to 42.2 years by 2030 and 43.8 years by 2050.

 

Income & expenditure: 

  • Per capita gross income in Sweden is forecast to increase by 33.5% in real terms over 2021-2040.
  • The major Cities region is anticipated to remain the largest consumer market in Sweden by 2040, accounting for 29.2% of total consumer expenditure. Housing is forecast to be the largest consumer spending category in 2040, while hotels and catering will record the fastest growth over 2021-2040.
  • Over the period 2020-2030, Sweden is projected to retain its position and rank 25th out of 84 countries in Euromonitor International’s Wealth Index.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

5,213.6

5,568.9

5,955.5

6,279.2

6,501.6

6,758.9

7,033.6

7,305.7

6.4%

4.0%

Organic packaged food and beverages consumption

USD million

965.0

1,010.3

1,086.0

1,137.8

1,169.2

1,202.0

1,246.1

1,286.9

5.6%

3.3%

Organic packaged food consumption

USD million

770.7

798.0

863.6

905.0

930.8

958.9

999.2

1,036.2

5.5%

3.6%

Organic beverages consumption

USD million

194.2

212.3

222.4

232.8

238.4

243.0

247.0

250.7

6.2%

1.7%

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

%

18.5

18.1

18.2

18.1

18.0

17.8

17.7

17.6

-0.7%

-0.8%

 

[1] Health and Wellness Definition: 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. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

10.1

10.2

10.3

10.4

10.4

10.5

10.5

10.6

% Middle and upper class of total population

%

26.3

26.3

26.3

26.2

26.2

26.2

26.2

26.2

% Population aged 65+

%

11.0

11.1

11.2

11.3

11.5

11.6

11.7

11.9

% Population aged 0-14

%

9.5

9.4

9.2

9.1

9.0

9.0

8.9

8.8

% Population with higher education degrees

%

29.2

29.8

30.4

30.9

31.4

31.8

32.2

32.5

Average number of children per household

children

0.5

0.5

0.5

0.5

0.5

0.5

0.4

0.4

GDP per capita

USD per capita

55,642.2

57,567.3

56,292.4

59,982.3

61,673.5

62,736.6

63,556.6

64,355.9

Consumer expenditure per capita (US$)

USD per capita

24,344.9

24,888.4

23,971.4

25,314.5

26,212.1

26,831.3

27,203.3

27,581.4

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

USD per capita

3,038.8

3,108.5

3,134.0

3,203.5

3,308.7

3,400.7

3,441.7

3,477.6

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Stockholm

2.4

Top cities by population (2021)

2

Gothenburg

1.1

Top cities by population (2021)

3

Malmö

0.7

Top cities by population (2021)

4

Uppsala

0.3

Top cities by population (2021)

5

Helsingborg

0.3

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

ICA Gruppen AB

Top grocery retailers by sales (2021)

2

Kooperativa Förbundet (KF Group)

Top grocery retailers by sales (2021)

3

Axel Johnson AB

Top grocery retailers by sales (2021)

4

Systembolaget AB

Top grocery retailers by sales (2021)

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$)

2021

Sweden

Total

Total Organics*

-

2020

Sweden

1

Organic Vinegar and Substitutes

138,104

2020

Sweden

2

Organic Asparagus Fr/Ch

16,500

2020

Sweden

3

Organic Onion Sets Fr/Ch

9,315

2020

Sweden

Total

Total Organics*

163,919

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

 

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 2018 – 2021 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 2018-2021 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.

Agency Contact Information
Swedish Board of Agriculture
https://jordbruksverket.se/for-dig-som/ar-eller-vill-bli-ekologisk-producent

National Food Agency
https://www.livsmedelsverket.se/livsmedel-och-innehall/ekologisk-mat1
E-mail: livsmedelsverket@slv.se
Telephone: 018-17 55 00

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

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

This consolidated version repeals and replaces previous organic regulations and contains the basic legislative act plus amendments and corrections that set the rules on organic production and labeling of organic products: EU 2018/848 (pdf in English) 

Key secondary acts not included in consolidated EU 2018/848 include: 

  • Retroactive recognition for the purpose of conversion, the production of organic products and information to be provided by EU countries: EU 2020/464 (pdf in English)
  • Conditions for authorization and lists of authorized products and substances for use in organic production: EU 2021/1165 (pdf in English)
  • Supplemental rules on the official control, traceability and mass balance checks for operators and groups of operators: EU 2021/771 (pdf in English)

A full list of basic legislative act and secondary acts are available here.

Date of Implementation: 1992

Regulation and/or Standard Scope:

EU standards cover crop, livestock, processing, and certification of groups of operators. 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, sprouted seeds, chicory heads, wine, mushrooms, and salt. 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. EU requires that imported products must be from countries that have been recognized by the EU (third-countries) and certified by recognized control bodies (certifiers); or countries with bilateral equivalency arrangements (Canada, Japan, Korea, New Zealand, U.S.); or countries with equivalency agreements (Chile, Switzerland, UK).

List of third countries and the list of control authorities and control bodies recognized for the purpose of importing organic products into the EU: EU 2021/2325 (pdf in English)

Requirements have been established for importers, operators responsible for the consignments, first consignees and consignees for the import of organic and in-conversion products into the EU.

Documents and notification required EU 2021/2307 (pdf in English)

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.

Exports from the U.S. to EU must adhere to the EU procedures and require an EU Certificate of Inspection (COI). A USDA-accredited certifying agent must complete an electronic COI through the European Union's Trade Control and Expert System (TRACES) link before the product leaves the U.S. Certain edits to the COI may only be made within 10 days of issuing the original COI.

EU Trade in Organics

Certification and Accreditation

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

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

The EU has unified the control systems that Member States and control bodies implement for investigations, non-compliance, mediation, testing, reporting, exclusion from organic sale, emergency treatments and appeals.  Required reports, records and certificates are submitted in electronic format through the use of the Organic Farming Information System.  

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

Requirements for recognition of control authorities and control bodies: EU 2021/1698 (pdf in English)

Use of Organic Farming Information System and templates for annual reports: EU 2021/1935 (pdf in English)

Record keeping and declaration requirements from operators and groups of operators EU 2021/2119 (pdf in English)

List of control authorities and control bodies for equivalence 

Control bodies in the European Union

Additional Information

FiBL Country reports
U.S. International Trade Administration

USDA’s GAIN Report Sweden Exporter Guide (2021)

USDA’S GAIN Report Update on Changing EU Import Conditions for Composite Products (2022)
USDA’S GAIN Report COVID-19 Boosts Organic Food Sales in the EU (2022)
USDA’S GAIN Report European Commission Launches Public Consultation on the Revision of EU Food Labeling Requirements (2022)
USDA’S GAIN Report New EU Labeling Rules for Wines (2022)
USDA’S GAIN Report Continuing Good Prospects for US Organic Exports to the EU (2021)
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 Good Prospects for US Organic Exports in the EU (2020)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2021)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report Annual (2021)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)