Strong growth: The Swedish organic market 2015

The Swedish online portal Ekoweb Sverige has summarized the preliminary sales figures for 2015 for the Swedish organic food market.The summary shows that sales of organic food overall has increased by 39 percent to more than 21 billion SEK (>2 bn €). The total turnover of the Swedish market for food and drink is about 280 billion SEK (30.3 billion Euro) including retail, "Systembolaget" (specialized shops for wine, beer, spirits), hotels & restaurants and public markets. Ekoweb is gathering the data every year. Ekoweb (Cecilia Ryegård and team) is gathering the data every year and presenting the organic market figures at the event Eco Gala. There is also a market report from  KRAV the main certification organization of organic production in Sweden.

According Ekowebs calculations organic food was sold for 21.5 billion SEK (2.3 bn €) in 2015. That is an increase of 6.0 billion compared with 2014 when organic food was sold for 15.5 billion SEK. Ekowebs forecast in last year's report was an increase of 20 percent (see our earlier report for subscribers only).

7.7 percent organic market share

The proportion of organic selling of the total grocery sales value amounted 2015 to 7.7 percent organic market share. This is an increase of 2.1 percentage points, from 5.6 percent organic market share 2014. Sweden is now only 0.6 percentage points to Denmark's record high organic market share of 8.3 percent.

Something that may qualify as a true continuation joy for organic food businessens are sales at Systembolaget (wine, beer, spirits). After an already strong 2014 organic sales increased by another 68 percent in 2015. Sales are now approaching 3.4 billion according Ekowebs calculation. Systembolaget is now the second largest player in terms of organic food sales in Sweden.

Picture: Cecilia Ryegård from Ekoweb is gathering the data and presenting the organic market figures every year at the event Eco Gala. Photo Ecoweb

Retail increased by 40 %

The retail sales of organic food has been very good even in 2015 and this, sales have increased by 40 percent. Sales growth of 40 percent due mostly to higher sales volume and here it is primarily ICA (+50 percent), Axfood (+43 percent) and Coop (+19%) which draws up the sales figures. Looking at the different productsegments in the retail industry, it is a steady increase in all. Prices of organic food has remained constant during the year despite shortages in many segments.

The organic food sales have also continued to develop positively in the public market. Here, sales rose by over 20 percent during the year (26 percent ogranic market share). Organic has also continued to increase in the sector hotels and restaurants (6 percent ogranic market share), but this at a considerably lower rate of about 10 percent. However, the calculation is more uncertain for this sector, and an assessment based on regular contacts with actors in hotel & restaurant.

Catering and restaurants experienced a strong market growth. Photo Kai Kreuzer

Fast growing e-commerce

A strong growing trend is the trade of food made via the internet and has now taken a market share of 1.5 percent of the total food trade. As a comparison, the corresponding share in the UK accounts for 5 percent of total food sales. Online is the percentage organic food sales higher than in the physical retail, approximately 10-15 percent compared with 6.6 percent in retail. It involves the sale of the network of organic food in Sweden of just over SEK 0.5 billion in 2015. Sales of organic food in the e-commerce is currently growing over the year by 40 percent.

Imports of organic vegetables has accelerated during the year, which meant that the Swedish share of organic vegetables is reduced. The Swedish volume is still expected at the same time have grown by 10-20 percent.

Eco continues to increase in the public sector

For nine years, Organic Food Centre followed the development of organic food in the country's public sector and the political target of 25 percent set in 2010. That goal has now been met and 40 percent of the country's municipalities and county councils have set their own, higher ekomål and Organic Food Centre now sets a new objectives for organic food Gang of 30 percent in 2016 and a long term target of 50 percent by 2020. The public individual activities reached the furthest is Bys responsibility in Södra Sandby, Lund. Which now has an organic rate of 100 percent.

Record number of new KRAV-labelled products

KRAV’s yearly market report provides a thorough and unique picture of how the market for KRAV-labelled foods is evolving. In 2015 sales continued to increase at the same fast pace as during the record year of 2014.The number of KRAV-labelled products increased by 24% during 2015 - more than during any previous year. KRAV-labelled fresh herbs account for 51% of the total sales in their category.

In 2015, sales of organic food increased by a total of 39% and many new KRAV-labelled products reached customers. A total of 1,582 KRAV-labelled items were registered, which is a record increase of 24% from the previous year. Towards the end of the year, there were 8,186 KRAV-labelled items on the market.

KRAV labeled organic products increased by 24%. Source graphic KRAV

Johan Cejie, Sales Manager, KRAV stated: ”During 2015 product development gained momentum. Products have entered the market in all areas, and one category that we have been hoping would develop really took off: in the bread department, sales of KRAV-labelled bread increased 72%”

Sales increases are large in many other product categories as well. For example, slightly more than half of the fresh herbs sold in the retail sector are now KRAV-labelled.

Frozen KRAV-labelled fish is also a category that is strongly really ground - sales increased by 58% during 2015. Malena Nylin is in charge of the frozen fish category at Coop, where there is a substantial increase in all types of organic sales.

“What is especially interesting with fish is that demand has increased the most for the absolute best choice - KRAV-labelled fish. Families with children increasingly often choose KRAV-labelled products. For example, sales of breaded cod increased by 150% during 2015,” she said.

Some product categories that have shown a strong upward movement during 2015:

- frozen fish: + 58%

- fresh herbs: + 22%

- chips and snacks: + 60%

- flour: + 43%

- pasta: + 40%

- bread: + 72%

-  coffee: + 28%

- juice and nectar: + 55%

- tea: + 64%

- beer: + 152% (at Systembolaget)

Axfood organic range was very successful in 2015

Consumer demand for KRAV-labelled products is clearly reflected in organic sales in the retail sector. All chains increased their sales during 2015 and the only threat to continued growth during 2016 is poorer access to organic products. Lidl’s sales of organic food products increased the most, by 62%.

“Our consumer surveys show that eight of 10 Swedes currently buy KRAV-labelled products regularly. This broad demand has resulted in the speedy development of a good selection of sustainable food during 2014 and 2015 by all grocery store chains,” explained Johan Cejie.

Changes in sales of organic food in the retail sector:

- Axfood: + 44%

- Bergendahls: + 52%

- Coop: + 19%

-  Ica: + 47%*

- Lidl Sweden: + 60%

Download the complete market report Swedish version)

An english version of the report is expected in early April.