Strong Growth of Organics in Sweden

In 2005, Sweden’s organic market exceeded all expectations. In the middle of last year the industry estimated that the growth rate would be the same as in the previous year, namely 6-7 %. In fact, Statistics Sweden reported recently that it turned out to be a massive 40 %. Thus the sale of organic products rose to four billion Krona, which in euros is 433 million. Moreover, a significantly higher rise was recorded in a number of product groups. With 94 % more turnover, the sale of organic meat almost doubled. 77 % more organic vegetables were sold than the year before.

Picture: a rich variety of organic goods

Every one of the nine million Swedes spent on average 2111 Euros over the year on food and drink.  15 % of the total was spent on alcoholic drinks and as much as 10 % on confectionary. Despite strong growth, organics’ share of the total was a mere 2.6 %. If we leave aside alcoholic drinks, organic goods account for a slightly higher 2.8 %.

Organic goods in the product group ‘milk products and eggs’ had the biggest share of the market (5.2 %). In 2005, sales in this category rose by a further 25 %. 4 % of all vegetables were organic, 3.7 % of fruit and, in the case of coffee, tea and drinking chocolate 3.5 %. Organic meat achieved a share of 2.7 % of the market and bread 1.9 %. Only 0.6 % of all juices sold bore an organic stamp and, according to Statistics Sweden, there was no appreciable organic turnover in the case of fish and confectionary.

The statistics are made up of figures that, for the most part, are based on information from the certifying organisation Krav. Since comprehensive data have only been collected since 2004, Statistics Sweden regards the data as  tentative and it is true there is a difference between their data and, for example, the estimates of the Association of Organic Farmers, whose figure for sales in 2004 was 421 million euros. If this figure is taken as a basis, turnover in 2005 would have risen by around 10 %.

Whatever the case, positive figures are being supplied by wholesalers, too. The biggest organic wholesaler, Kung Markatta, increased its turnover in 2005 by 27 % to almost 7.6 million Krona, according to the industry’s internet service Ecoweb. This year the  rate of increase is expected to stay just as high. The second most important wholesaler Biofood has reported a 20 % increase in turnover in the first half of this year.

About 70 % of organic turnover is achieved in the conventional food retail trade in Sweden. The dominant retail chain ICA increased its turnover of organics by 12 % to 71 million euros in 2005. Sales of organic bananas rose by 173 %, puréed tomatoes by 65 %, coffee by 48 %, muesli by 39 %, fruit by 28 % and juices by 15 %.

The biggest Nordic dairy concern, Arla, reports that the sale of organic milk has risen by 5 %. In response to Ecoweb, Anna Freudenthal, the manager responsible for the organic range, said that it is organic products that are currently creating growth in the company and the variety of products is to be extended even more. 80 % of all organic dairy products sold in Sweden come from the dairies of Arla.

A product that is becoming particularly popular is baby food in jars. According to Ecoweb, sales of this product rose by 53 % in 2005, whilst the sales of conventional baby foods stagnated. The firm Hipp profited most from this trend - it increased its turnover in Sweden by 72 %. The turnover of organic baby food grew by another 25 % from January to July this year.

Sweden’s Government wants to raise the proportion of certified organic agriculture from 7 % to 20 % by 2010. If all farmers who already farm organically had had their production certified, the government’s target would almost have been achieved already. The plan is for the proportion of food used in public kitchens to rise from the current roughly 2.5 % to 25 % by 2010. The Association of Organic Farmers estimates that the effect of this could be another doubling of the total organic market.