Organic Packaged Food in Sweden

PROSPECTS

Natural and healthy features will help drive organic products

There is continued consumer interest in “natural” products, closely related to the generally strong consumer interest in environmental issues, which will remain a growth driver in organic packaged food. Increasingly, these products are becoming the new standard offering, even among budget brands, with product lines such as ICA’s I Love eco and Coop’s Änglamark to the fore.

Could organic produce be less environmentally friendly?

There are now ongoing debates as to how “green” organic produce actually is. It is claimed that some organic production has a bigger environmental footprint than conventional agriculture.

Organic ranges expanding in discounters and e-commerce

Organic products are enjoying an increasing presence in both online stores and discounters. Discounters are using organic products as a key leverage tool in their general attempts to gain sales share.

COMPETITIVE LANDSCAPE

Players increasingly opting just for EU organic certification and foregoing the Swedish KRAV label

More companies are opting for only carrying the EU certification for organic products, rather than adding the additional Swedish KRAV label. The reason behind this is believed to be the more stringent rules to qualify for the KRAV certification, specifically with regard to animal welfare, climate and social responsibility.

Budget, standard and premium organic products available

Organic products are present as budget, standard and premium options. Examples of budget products are the private label lines, although such lines also offer retailers a way of easily upgrading their products.

Organic packaged food growth has slowed in recent years as retailers place less focus on these products

The main retailers like Coop and ICA made a serious push for organic products in the recent past, and now their sales are stagnating to an extent. Organic is no longer ranked as the most important feature for HW or labels and is being promoted less in stores now.

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