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Introduction ............................................................................................................ 3 Market indicators ................................................................................................... 3 Market trends .......................................................................................................... 4 Market evaluation ................................................................................................... 4 Contact ..................................................................................................................... 5

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Export has been growing at a steady pace since Sweden entered the European Union (EU) in 1995. As a consequence global food chains came to Sweden and used it as a platform for production and sales to the Nordic countries as well as the Baltics. Today the Swedish food sector is the fourth largest industry. There are about 3000 food companies in Sweden, whereof 1300 are one-man operations. Small companies are dominating and only 650 companies have more than 10 employees. The four largest food chains are ICA Group, COOP, Axfood, and Bergendahls. ICA Group, COOP and Axfood are dominating 75 % of the market, which implies that their negotiation position is favourable with regards to the supply chain. New establishments such as Netto and Lidl have increased competition but insofar the impact is minimal. Total sales of organic and KRAV-marked products have increased by as much as 38 % during 2014. Increased interest of healthy food not being sprayed with chemical pesticides, healthy life styles, and interest in the country of origin are all reasons for the sales boom. The government has now presented the objective that 20 % of food consumption should be organic in 2020. The turnover in the restaurant sector has increased from SEK 70 billion to SEK 105 billion during the years 2009-2013. A restaurant visit is nowadays considered an everyday quality of life heavily inspired by e.g. TV-shows and cooking–fairs. Sweden is an important export market for Danish food. The value of food export corresponded to more than DKK 10 billion in 2014. In total, Sweden imported food for more than SEK 110 billion and exported for approximately SEK 63 billion.

In 2014 the food sector grew considerably and the interest in premium products, organic products, and health was evident. The Swedish consumers expect food producers to deliver food and beverages of high standard. In order to increase the Swedish consumers trust in one’s product it is therefore important to label the products in a clear, honest and transparent way – both in terms of production but also when it comes to the content. Trust is also built on the basis of a company’s cooperate social responsibility – i.e. sustainable transport, animal treatment, and work conditions. Increasingly, food producers as well as consumers value social responsibility and care for the environment and as high as taste and quality. 86 % of the Swedish population is positive towards organic food, and eight out of ten declares that they think it is fine to pay more for organic food. The demand on

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organic food - frozen vegetables as well as organic pig meat - is even higher than the supply. Organic food is not only for the well-educated people in the larger cities of Sweden. A wide range of Swedish people are buying organic food. In general, young people buy organic food in order to protect the environment and give animals a better life, whereas elderly people buy organic food in order to avoid pesticides and additives. Moreover, the Swedish people are in general becoming more and more conscious about their food consumption and are increasingly asking for better information about organic products. Even a number school kitchens are now serving organic food.

Organic and healthy food is important to Swedish people – partly because they are influenced by a number of different published reports and new research, but also because they are conscious about their health in general. This means e.g. that lactose and gluten free products are proactively purchased by people even though they are more expensive. The high demand and interest in organic food has also started a trend in new store concepts. Two of the largest food chains, recently launched their organic food corner. Another noticeable trend is that more and more people are buying groceries online due to its convenience and the home delivery service. During the first quarter of 2015 e-commerce grew by 48 % and is expected to grow even more when the larger food chains will be able offer online purchases of groceries. In addition, there is also a trend that fast food needs to be healthier.

The Swedish demand for organic food is hard to meet as the access to organic products is restricted. Furthermore, the redirection and adjustment of cultivated lands are set out to be a long process. Danish companies with a strong focus on organic products, sustainability, and good story-telling will therefore have a great opportunity to enter the Swedish market in this period of transition. Moreover, because of the increased focus on e-commerce new innovative solutions within packaging, storing, and delivery services will be required in the near future. Lastly, the trend of organic and environmentally friendly thinking is not limited to food products, but is also valid for the industry as a whole.

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Charlotte Falk Johansson, Senior Commercial Advisor Direct phone: +46 (0)8-406 7511 Mobile: + 46(0)708 268558 Email: [email protected]

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The Trade Council is a part of the Ministry of Foreign Affairs and is the official export and investment promotion agency of Denmark. The Trade Council benefits from around ninety Danish Embassies, Consulates General and Trade Commissions abroad. The Trade Council advises and assists Danish companies in their export activities and internationalisation process according to the vision: Creating Value All the Way. The work in the Trade Council follows specific procedures and quality guidelines. In this way our customers are secured the best possible quality under the varying working and market conditions at any given point of time.

Ministry of Foreign Affairs of Denmark Embassy of Denmark, Stockholm Jakobs Torg 1 Postadr.: Jakobsgatan 3 S-111 52 Stockholm Tel: + 46 8 406 7500 Fax: + 46 8 791 7220 [email protected] http://sverige.um.dk/

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