Denmark - the world leading organic nation

The Danish organic market has grown by 17,8 % in the first six month of 2016 and the organic share is 9,9% of the total food sales in the Danish retail sector. That makes Denmark to the most well-developed organic market worldwide, says a report. Organic products worth almost DKK 1.7 billion (€ 228 Mio.) were sold to professional kitchens in Denmark in 2015, according to the latest statement from Statistics Denmark. This corresponds to an increase of 27% relative to 2014. More than a trebling within five years. And the positive development continues: OrganicDenmark expects that the organic sale to food service will increase by 25 percent in 2016.

In a recent report by OrganicDenmark the very dynamical development of the Danish organic market is decribed: „The Danish consumers are the most pro-organic consumers in the world. In fact Denmark has the world's highest organic share and the most well-developed organic market.“ Latest numbers are showing that in the first six month oft he 2016 organic sales has grown by 17,8 % and the organic share is 9,9% of the total food sales in the Danish retail sector. That makes Denmark to the world leading organic nation (#worldleadingorganicnation).

Organic sales in Denmark have been continuously growing for more than ten years. In the period 2005 till 2015, the Danish, organic market share rose with index 1263 from 3,2% till 8,4% (2015) indicating a great demand and development in the market, explains the report. The unique and governmentally certified Ø-label has been very important for the widespread success: it started 1989 and celebrates its 25th anniversary this year.

Source: Økologisk Landsforening/OrganicDenmark based on data from GfK ConsumerScan 2016 and Statistics Denmark 2016

The Danish market in general

Denmark is at the top of the ranking among the European organic market shares. From 2014 to 2015 it gains another 10 % and has grown from 7.6 % to 8.4% in 2015 - in the first six month of 2016 market share reaches 9.9% -  followed by Switzerland (7.1%) and Austria (6.5%) in 2014. (Source: OrganicDataNetwork survey 2014 based on national data sources and FiBL-AMI Survey 2016). The organic sales in 2015 were DKK 7 billion – or approximately € 939. In 2016, the overall turnover of organic food aggregated €1,3 billions. This corresponds to an average consumption of €223 pr. capita. The 10 most popular organic products of Danish consumers in 2015 were:

1. Oatmeal (40.1%)
2. Cooking/salad oil (30.7%)
3. Carrots (30.4%)
4. Milk (29.9%)
5. Eggs (29.8%)
6. Flour (25.8%)
7. Pasta (24.1%)
8. Bananas (22.0%)
9. Soured milk (18.9%)
10. Vegetables (14.0%)

The organic turnover in Denmark rose from 2014 till 2015 within several categories: the sale of fish and shellfish rose with index 1462, dairy and eggs with index 1117, wine and liquor with index 164, fruit with index 137 and vegetables with index 121. Wholesalers and caterers for the public sector, private canteens and restaurants sold organic products for approximately €228million which is an increase of 27 % compared to 2014. The organic sales at mini markets, farm stores, internet and health food stores amounted to €134 million.

Sales channels of Danish, organic food

The sales channels for organic food in Denmark is dominated by the traditional channels. In 2015, Danish discount stores, supermarkets and department stores sold organic food products for the value of about €940 million representing an increase of index 112 compared to 2014. With a market share of 44.1%, supermarkets are the leading sales channel of the total, organic sale. In comparison the specialised health food stores could only reach a market share of 2 % in 2015.

Source: GfK ConsumerScan 2016 

The catering sector contributes a lot

The organic food services makes an important part of the market. The numbers show a very dynamic development in the last five years from 2010 to 2015: the sales rose from DKK 509 million (€68 Mio) to DKK 1661 million (€223 Mio). For 2016 Organic Denmark organisation expects a growth of 25 % in the organic food service sector.

Development of the Danish catering sector

Graphics: Sales of organic food to food service 2010 - 2015 Source: Danish Statistics)Source: 2013 -2015 Danish Statistics

The sector includes public institutions – such as kindergardens, nursing homes, schools and hospitals, canteens in public and private workplaces, hotels, restaurants, cafées but also diner transportable and take-away. The most important products are dairy and dry goods with a percentage of 36% and 33%, followed by frozen food (20%), fruits and vegetables (8%). Meat poultry and fish has only a 3 % share.

The organic cuisine label

The organic catering sector is a success story in Denmark. That has a lot to do with the organic cuisine label. It was introduced already in 2009 in addition to the state-controlled red Ø label. The organic cuisine label in gold, silver and bronze – constituting state-controlled proof that a restaurant carrying the label has committed itself to using organic products. The label shows the proportion of organic food and beverages purchased at the restaurant and thus functions as a guideline for the consumers.

There are three organic cuisine labels:

Source: Organic Denmark

„Just as the red organic label, the organic eating label constitutes the Ministry of Environment and Food of Denmark's state-controlled organic logo for Danes eating out“, explains Rikke Thorøe Grønning, chief consultant of the Økologisk Landsforenings, Department Foodservice. And she continues: „Both public and private restaurants can get the organic cuisine label, for example restaurants, cafés and cafeterias, institutional kitchens (e.g. day care centres, nursing homes, schools, hospitals etc.), canteens and catering and take-away operations.Today, about 1.800 Danish kitchens have the organic cuisine label. In just one year, the number of kitchens with the label has doubled. And Organic Denmark has a goal of reaching 6.000 labels in 2020.“

The organic cuisine label is controlled by the Danish Veterinary and Food Administration, which also manages the rules in the area. The Danish Veterinary and Food Administration and Organic Denmark are collaborating on providing information about – and spreading the use of – the organic cuisine label.

Picture: International Marketing Director OrganicDenmark Helene Birk at the Danish pavilion at the BioFach 2016 in Nuremberg Source: OrganicDenmark

Exporting organic – almost 50 % to Germany  

Denmark exported €231 million in 2014. Germany is the most imporant partner with 48% of the total, The most popular, exported, organic product category is dairy, including eggs, with a total export rate of 51%. In general, most organic product categories have experienced an increase in export. Overall, Danish organic export is expected to grow minimum at a level of + 10% year per year.