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Denmark’s organic sector is still growing

29.09.2011 by Redaktion (comments: 0)

Organic food sales from Danish discount stores, supermarkets and department stores totalled DKK 5.1 billion in 2010 (EUR 685 million), an increase of 4 % on 2009. The past year also saw sales via wholesalers / catering to public kitchens, school meal schemes, private canteens and restaurants of approx. DKK 500 million, via sales channels like box schemes, farm shops and farm gate sales of DKK 600 million, as well as via other sales channels like convenience stores and petrol stations of DKK 200 million. (Source: Statistics Denmark)

(Picture: Gårdbutikken in Aarhus, the first organic supermarket in Denmark)

In spite of the financial crisis and the overall economic slowdown, the organic market in Denmark also saw a positive trend in 2010. Organic Denmark expects an annual growth rate of between 6 % and 10 % in 2011, and for 2012, a growth rate of between 12 % - 18 % is expected (measured in value). (Graph: Development of the market share of organic products in Denmark 1990 - 2010. Source: 1990-2002 calculated on the basis of numbers of GfK, 2003 - 2010 calculated on the basis of numbers of Statistics Denmark)

The majority of organic food products are, according to the market research company GfK, sold to Danish consumers via discount stores and supermarkets. In 2010, 11 % of total organic sales took place through farm shops, box schemes, farmers’ markets and health food shops. (Table: Organic sales by sales channel, Source: GfK Consumer Scan)

Sales channel	2010
Discount stores (Netto, Fakta, Kiwi, Rema 1000, Aldi, Lidl, Alta…)	34 %
Supermarkets (SuperBrugsen, SuperBest, Irma, Løvbjerg …)	27 %
Department stores (Kvickly, Føtex…)	18 %
Discount department stores (Bilka…)	3 %
Convenience stores (Dagli’Brugsen, Spar ...)	4 %
Alternative sales channels (Markets, farm gates sales, box schemes …)	11 %
Other channels (Internet, specialty shops like butchers, bakeries, cheese shops ...)	3 %

According to GfK, Netto was the retail chain enjoying the largest share of organic sales in 2010. The chain accounted for 16 % of total organic sales in 2010, followed by the COOP chains SuperBrugsen and Kvickly with market shares of 13 % and 11 % respectively. When looking instead at how large a share of their total food sales is accounted for by organic sales, the picture is somewhat different. Irma, with organic sales accounting for 24 % of the retail chain’s food sales within product groups offering organic varieties, is the chain enjoying the by far largest organic share in 2010. Irma is followed by Kvickly, Netto and SuperBrugsen with organic shares of about 10 % each.

The difference may be explained by large variations from chain to chain in terms of number of stores, store sizes and location. In addition, the number of organic items offered also varies from chain to chain. With its selection of approx. 1,100 organic items, Irma tops the list. By comparison, Netto’s permanent organic product range includes approx. 100 items.

The share of organic products (measured in value) differs from product group to product group. Whereas basic products such as oats, milk, flour, eggs and fruit juice enjoyed market shares of 20 % and above in 2010, cold cuts and pork still only held market shares of less than 2 %. The variation in market shares may be explained by differences in price premiums for the products, the perceived added value, quality and supply in its broadest sense. (Graph: Organic share of 23 product groups in % - Denmark 2010 (Source: GfK Consumer Scan))

Organic sales increased from 2009 to 2010 within several food product groups. Vegetable sales saw the largest increase of DKK 95.8 million, followed by the increase in fruit sales of DKK 42.3 million. Organic milk is often called the locomotive of organic foods (see graph. Source: Statistics Denmark). Sales of organic dairy products totalled DKK 1.7 billion, corresponding to 32 % of all organic sales in the country.

There is a clear trend that households in Copenhagen buy relatively more organic products than households in other areas of Denmark. The organic share of total household grocery purchases in the capital area accounted for 13 % in 2010. The largest growth in this share was, however, seen in northern Jutland. The typical consumer of organic products belongs to a family with one child, is between 30 and 39 years of age and has a higher education.

Tip: More information is available at Organic Denmark.

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