Organic Packaged Food in Sweden

2020 IMPACT

Sales moderated by preference for non-organic domestic products

Organic packaged food experienced boosted demand in 2020 as consumers opted for healthier products to use for home cooking and stave off COVID-19. However, growth will rather modest compared given the lower share of organic in comparison with other categories.

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 health and wellness and is being promoted less in stores now.

Organic baby food attracts big players as consumers demand high-quality for their children

Organic baby food is one of the organic packaged food categories that continues to display strong year on year growth. As such, there are many strong players within the category.

RECOVERY AND OPPORTUNITIES

Organic ranges to expand in discounters and e-commerce

One factor expected to drive sales of organic packaged food is the increasing presence of products in discounters. Discounters, such as Lidl and Netto, are using organic products as a key leverage tool in their general attempts to gain sales share and are expected to continue broadening their organic product ranges until they catch up with other retailers.

Environmental debate around organic ‘greenness’ to negatively impact sales

In recent years, some consumers started debating how “green” organic produce truly is, with some now believing that some organic production has a bigger environmental footprint than conventional agriculture. Consumers are therefore beginning to consider choosing their products based on environmental sustainability labels rather than whether they are organic or not.

Swedish KRAV label provides potential for brands to stand out

Over the forecast period, manufacturers are likely to combine their organic certification with other characteristics, such as locally produced, ethically branded, and environmentally friendly, to appeal to increasingly picky Swedish consumers. Whilst in the past companies tended to carry only the EU certification for organic products, it is possible that more companies will attempt to add the Swedish KRAV label as an additional selling point.