Executive Summary

Aug 2018
Prospects
Convenience is affecting the packaging of products

Convenience has been an important trend in cheese for a while – one example is that pre-sliced cheese has increased a lot recently. Producers have noticed this trend and their packaging is starting to increasingly adjust towards this.

“Swedish milk” claim to compete with cheaper imported cheese

Swedes care a lot about animal rights and welfare. Sweden has some of the world’s strictest animal welfare rules and it is therefore easy for producers to appeal to Swedish consumers by emphasising that their milk is Swedish.

Organic in general decline in dairy, but increasing in cheese

Organic products have been popular in Sweden for many years – Swedes care a lot about their products being organic, both for health and environmental reasons. However, in the cheese category, there were not a lot of organic options until a few years ago.

Competitive Landscape
Local micro-dairies meet demand for locally produced premium products

Small, local dairies, which have been very popular in Sweden for some time now, benefit from the premium trend and Swedish consumers' concerns about animal rights. Eating products from a local dairy gives consumers a sense of luxury and at the same time a feeling of doing something that is good for the environment as well as the Swedish economy.

Fluctuating prices demand strong deals from Swedish producers

As there is currently more milk in the world than before, there is also more cheese, since cheese is a very good way of storing milk. This means that there will be some pressure on cheese and the prices of imported products will go down.

Private label continues to grow

Private label has been growing in many packaged food categories, and cheese is no exception. All of the main food chains in Sweden now offer different varieties of cheese under private label.

Prospects
Increasing availability of vegan alternatives

Although the vegan trend has been around for a few years now, it began to show significant growth in 2017 and 2018. Politicians and celebrities are becoming vegan, influencing Swedes to choose vegan alternatives.

Fat-free milk in steady decline

Fat-free milk is decreasing, whilst full fat milk is increasing. This is partly an expression of Swedes’ newfound lack of fear of fat, but it is mostly a result of the assortment of fat-free milks being so reduced.

Strong and steady increase for free from lactose milk

Sweden is one of the countries with lowest share of lactose intolerance in the world, but, despite this, lactose free milk continues to register strong growth. Free from lactose milk is popular as it is considered healthier than regular milk, but its consumers are usually self-diagnosed.

Competitive Landscape
Many producers increase their lactose free assortment in 2017 and 2018

For a long time, Valio has been the leader in the lactose free category, but in 2017 and 2018, it has been facing more competition in this area since dairies are adjusting their product processes as well as their assortments to meet the strong lactose trend that has hit Sweden in the past few years. In 2017, Grådö Dairy invested in a machine that produces 200,000 litres of lactose free milk per day and, in 2018, Skånemejerier as well as Falköpings Dairy launched new lactose free product lines.

Small and local dairies are popular due to aim for self-sufficiency

In the early 1980s, there were approximately 40,000 dairy farmers in Sweden, today the number is 4,000. Technological developments and high price pressure have caused many small farmers to shut down their business, and dairies today have significantly higher production.

Arla launches “Summer Milk”, appealing to Swedes’ concern for animal welfare

Arla, the largest milk producer in Sweden, has a new product line called “Summer Products”, which contains both cream and sour cream products, as well as regular milk products. In Sweden, there are regulations on how many hours per day milking cows have to be outdoors during the summer.

Prospects
Strong vegan trend drives the extension of dairy free alternatives

As in other dairy categories, the vegan trend is also strong in yoghurt. Sour milk is hard to imitate, so in this category, there are still no good vegan substitutes, but in the yoghurt category the expanding supply of vegan yoghurt, such as “soygurt” and “havregurt”, speaks for itself.

Home cooking benefits Greek yoghurt

Because of Greek yoghurt's special character – thick yet not fat, and with a sour flavour – it is perfect for making sauces and condiments for dinner. Greek yoghurt has been on the market for several decades, but during the last few years the assortment has widened a lot and shops now offer similar alternatives, such as Russian yoghurt and Turkish yoghurt.

Products still being positioned as healthy because of rich bacteria

In 2012, there was an EU regulation that banned all marketing related to probiotic health claims. In spite of this regulation, Swedish brands keep positioning their products around digestive health.

Competitive Landscape
Valio introducing vegan product line Oddlygood

Valio launched a new product line during 2018 called Oddlygood. This is a vegan brand, with plant-based yoghurt-like products.

Private label increasing

As in many other dairy categories, private label is increasing in yoghurt and sour milk products. All the main grocery chains, ICA, Coop and Axfood, have their own lines represented in this category and they all offer drinking yoghurts as well as sour milk products.

Prospects
A widening of the protein-enriched assortment hits the popularity of quark

Quark has been very popular in Sweden and reached its peak in 2016. Since then the trend has stagnated and in 2018 it even saw a decrease.

Condensed milk grows due to increased use in baking

The trend of using more condensed milk started to grow a few years ago when bloggers and food influencers started using it more frequently in their home baking. This trend is persisting and is set to continue in the forecast period.

More coffee whiteners available

Traditionally, the most popular kind of coffee whitening product has been coffee cream and it has been a fairly small category, since most Swedes are happy with a drop of regular milk or cream in their coffee. Coffee whitening products usually last longer, come in smaller sizes and the fat content is somewhere between regular milk and cream.

Competitive Landscape
Arla remains the clear leader despite competition from small dairies

Arla Foods remains the leader in other dairy, even though it is being challenged both by other big players, such as Skånemejerier and Norrmejerier, and smaller local dairies that have been enjoying strong demand from Swedish consumers who value locally produced and high-quality products. Arla Foods has many strong, well-established brands that most Swedes have known since they were young.

Protein trend invites innovative start-ups

The strong demand for protein-enriched products has created an opportunity for new and smaller businesses. Other dairy has seen strong growth, especially in quark and fromage frais and chilled desserts, mostly thanks to the protein and fitness trend.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Sweden with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Sweden, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Sweden market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Sweden?
  • What are the major brands in Sweden?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Butter and Spreads

Cheese

Drinking Milk Products

Other Dairy

Yoghurt and Sour Milk Products

Packaged Food in Sweden - Industry Overview

EXECUTIVE SUMMARY

Expect the unexpected
Drought and wildfires to help private label?
Harsher competition than normal
Online retail and fears of a property crisis
Forecast period impacted by veganism, migration and dedication to personal health

FOODSERVICE

Sales to Foodservice
Vegan to foodservice
Alternative proteins and “superfoods”
Origin matters
Consumer Foodservice
Online retail
More of the same
Experimental disruption

CATEGORY DATA

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources