Organic Packaged Food in Denmark

PROSPECTS

Denmark is the organic world champion

Denmark is the organic world champion, meaning that the country has the highest share of organic food revenue on a global scale. The current situation is a consequence of a number of things, for instance the government’s strategic support of local organic production, which is ultimately resulting in a relatively close unit price to non-HW variants.

Future growth potential amongst more traditional shoppers

The organic market has not yet reached its full potential. It is clear that the organic trend has already reached beyond the Danish food industry’s first movers (younger generations from big cities with greater education) and it has already started to spill over into the segments of the more traditional shoppers.

Theory that organic farming is not that sustainable could restrict future growth

The only factor that potentially restricts growth in the category is the theory that organic production has a negative effect on sustainability. This is based on the fact that organic production requires a larger area to produce a certain amount of food than traditional production, so if there is further growth of organic production, forests will be replaced with agricultural areas.

COMPETITIVE LANDSCAPE

Organic increasingly a must in a brand’s portfolio

Organic becoming more like a must have in some categories, rather than an additional feature. Given the high organic presence in Denmark, consumers demanding an organic choice of their favourite brand – the demand being the strongest in dairy and hot cereals fading towards meat and snacks.

Arla Foods Pushes Forward with Organic Labeling

Arla increased its sales of organic packaged food in 2019 and thus remained the leading domestic player in the category. The dairy company is getting closer to its goal, namely that 50% of its revenue comes from organic sales.

Both domestic brands and private label enjoy customer trust

The origin of organic products is becoming a frequently discussed topic in Denmark, as Danes are increasingly worried about the additional pollution caused by products being transported over long distances. Moreover, the strict Danish organic control system provides an extra layer of trust that some organic products from abroad lack.

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