Sales of organics booming in Sweden

Ekoweb has been measuring sales of organics since 2008 and regularly publishes important numbers on the sector. Most of the increases were published in their interim report in September 2014. Their latest full report on the sector was launched in January this year. It revealed that after a weak start, the year 2013 ended with strong growth of organics in Sweden. Sales increased by 13% - SEK1.3bn (about €142m) - and reached SEK11.6bn (about €1.27bn). The growth of organics is the largest since Ekoweb started measuring sales. The total growth for all food in Sweden was about 1.5% in 2013.  (Picture: organics at ICA) 
 

The market share of organic food increased to 4.3 % of all food sold in Sweden in 2013, a plus of 0.5% compared with 2012. Cecilia Ryegård, editor at Ekoweb, explains that this increase is due to various factors. In 2013, the number of food alerts had a dramatic effect on sales. When there were warnings on toxins in conventional bananas, sales of organic bananas multiplied. The same thing happened when the media drew attention to pesticide residues in conventional wine: sales of organic wine from Systembolaget increased sharply. (Picture: customers turn to health food stores in times of food scandals)

Coop increased their organic sales by 37% in the first half of 2014. The company has 2,400 ecological and environmental-friendly products in its range. It's privat label brand Coop Änglamark consists of about 440 products. (Picture: Organic milk from Coop Änglamark). In the first quarter of 2014, the share of organic goods in Coop's total food sales was 7.6%  - up from 7.1% in the first quarter of 2014 and from 5.5% in 2013. The company's goal is to have a share of 8% for the full year 2014. Categories that increased in the second quarter of 2014 - besides fruit and vegetables - were and oil and vinegar. Baby food peaks the list of important food categories, followed by eggs (28%), oil / vinegar (23%), and fruits and berries (22%). 

One challenge remains: supply in the market sometimes does not cover demand, Louise König (see picture), sustainability manager at Coop, explains. Coop's campaign Veckans Eko was launched in 2013. Organic fruit and vegetables are offered at a lower price - up to 30% to 50% cheaper than the normal price - every week. Since the campaign for fruit and vegetables has been very successful, this year it was extended to other food categories like meat and dairy products. The positive effect on their organic sales was impressive: All organic fruit and vegetables that were promoted rose by a share of several hundred percent in volume compared with a normal week. One example is the recent price reduction of organic grapes as an offer during the campaign: sales rose by 2800%.

With a market share of just over a quarter of the total organic sales in Sweden, the development of ICA ‘s organic sales has had a major impact on the market. The publication of interim results is therefore an important signal for the entire organic food market. ICA’s half-yearly report has revealed that sales of organic food increased by 52% in the first half of 2014. Sales increased even more in the second quarter (62%) than in the first quarter (42%). ICA sold organics worth SEK1.6bn (€175m) in the first half of 2014. (Picture: ICA supermarket in Stockholm)
 

Axfood increased their organic sales by 44% in the same period, and Willys (an Axfood chain) even reported a record growth of their organic sales (57%) in the first six months of 2014 (compared with the same period in 2013). One of the goals of Willys is to offer organics at competitive prices. The share of organic food in total food sales amounted to 2.5% at the beginning of this year. Six months into the year, this share rose to almost 4%. The company reports that interest in organics is spreading outside the metropolitan areas. Organic sales increased significantly in Småland, Östergötland and Skåne. Even though there was a shortage of organic bananas, sales of this product at Axfood doubled in the first six months of 2014. Milk increased by 58% and eggs by 42%. Although starting from a low base the sales of organic meat also increased considerably. The chain will continue to focus on ecological awareness and is planning more organic launches for the future. Additionally, sales of organic fruit in bulk will be extended and the prices of organic meat will be lowered. (Picture: organics at Axfood)

Further positive results for organic sales come from Bergendahls, with a plus of 44% in the period of January to August 2014. The company has announced to increase their efforts with organic products. Lidl has revealed no figures, but also confirmes a positive sales trend. The company launched several new organic products in spring. Their new organic milk and ground beef are selling well as are their organic Fairtrade bananas. Lidl will also continue to invest in organic products and will have more launches in fall. 

Retail sales account for almost two thirds of the total organic sales in the food market in Sweden, according to assessments of Ekoweb.The remainder is sold in the restaurant and catering industry. (Picture: Ekoaffären - on 200m² - is the largestest specialised store for organics in Sweden. It was founded in December 2008)

Systembolaget is the only authorized store system for selling alcohol in Sweden. According to information from Ekoweb, Systembolaget increased their organic sales by 82%. Systembolaget has a nationwide retail network of 427 stores and over 500 agents serving smaller communities. Products are sourced from about 40 countries. Their products consists of about 2,200 items like beer, wine and spirits and an alcohol-free range. Their suppliers also stock a further 12,000 items that can be ordered from any store. The ordinary assortment in Systembolaget includes a range of 169 organic products, and a further range consisting of 684 organic products is available for delivery within a few days. Wine makes approximately 70% of the turnover and 80% of the volume of all organic products sold through Systembolaget. 
 

Several consumer surveys also revealed that there was great interest in organic food in Sweden, especially among young people. More and more Swedish consumers seem to choose organics mainly for health reasons, but there is also a rising awareness of environmental issues. Another factor that helps the sector to grow is that organic products are becoming more available. One possible threat to the continued positive development could be that organic raw materials as well as domestic products are not as widely available as necessary. More Swedish producers are needed, as well as new product launches. Sweden could then also make even more use of its great potential as an export market. (Picture: in spite of the rising interest for organics, there is hardly any organic offer in the popular market hall Saluhall)
 

Organic farming has been increasing for many years in Sweden and 2013 was no exception. In 2013, 501,500 hectares of land were cultivated organically, an increase of 5% on the previous year. In 2013, 16.5% of the cultivated area, replanted area and area under conversion was organic in Sweden, according to Jordbruksverket, the government agency in agriculture and rural development. About 64% of the organic land area in Sweden is dedicated to meadows and pastures. (Picture: Demeter production in Järna. In Sweden, there is also a movement against GMOs)

Grain acreage increased by 9% in 2013. In the same year, 77% of organic land was certified by Krav. Swedish organic vegetable cultivation is increasing steadily, according to recent statistics from the Department of Agriculture, and now has a 13 % share of total Swedish vegetable production. The area of land devoted to growing organic vegetables expanded by 19% to 1,025 hectares between the years 2012 and 2013. The development in most counties is positive, but Västra Götaland and Skåne saw the highest rise in organic vegetable cultivation. (Picture: oats grown organically in Sweden)