Organic boost in Sweden – 41 percent growth in retail

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The Swedish market for organic products had a remarkable growth in 2014.
ICA, Coop and Lidl all report new sales record.
According to a fresh report presented today, the retail sale of organic products increased 41 percent.

Ekoweb has for the seventh consecutive year, published its market report on Sweden organic food sales.
For the full year 2014 it is with a record number. Statistics show that sales in the second half of 2014 was even stronger than the start of the year and that the Swedish organic trend has increased in strength.

It is both the Swedish consumer demand and retail trade actively work in the store that drives sales growth. Total increase in the organic food sales by 38 percent in 2014.
“The Swedish produced food largely accounts for the increase. Consumers want to buy organic and Swedish. Periodically, the market is also characterized by a shortage. The increase in sales could thus have been even higher, “says Cecilia Ryegård, Ekoweb.

The value of the Swedish market for organic food has gone  from 11.2 billion SEK 2013 to 15.5 billion 2014. Meanwhile, the organic market share rise to 5.6 percent.

The increase is relatively spread over the entire segment. A large part of the increase is Swedish cultivated / Swedish-produced products, such as dairy, eggs and pork / beef / chicken meat. Within these groups were virtually all organic products that were on the Swedish market produced by Swedish farmers.
Periodically, the shortage has been apparent with regard to ecological and Swedish produced.

Seen only to retail the organic share has grown more than the total food market (which also includes the public sector and restaurant / foodservice, health food, farm sales, farmers’ markets, etc.). Swedish retail increased the organic food sales by 41 percent.

“All sales will increase two-digit, but the best you can in the retail and ICA (+ 55%) and systems company (+ 83%), which have large increases in value. There is demand from Swedish consumers that drive sales growth. Meanwhile, the trade also started to pay attention to the interest considerably and signs up the organic products better. Products have been more prime locations in the stores and it has done campaigns for organically, “says Cecilia Ryegård.

8 out of 10 Swedes is now regularly buy organic food. Ekowebs forecast for sales in 2015 is an increase of about 20 percent and the average value will increase by 2 billion per year. Which means almost a doubling of the market for 2025.

Increases in sales of organic food in Sweden in percentages:
• ICA + 55%
• Coop: + 40%
• Axfood: + 40%
• Systembolaget: + 83%
• Martin & Serve: + 24%
• Arla: + 36%

Some increases in sales of organic food in other countries as a percentage: (preliminary figures 2014)
• US: + 10% (organic share about 4%)
• Germany: + 8-10% (organic share about 5%)
• Denmark: + 8% (organic share 8.5%)
• Norway: + 20% (organic share 2%)

In recent days, several grocery chains reported strong sales increases.
At Lidl is now the overall eco-proportion 1.5 percent of sales. Within the category of fruit and veg is more than 10% of the range organic and organic sales accounts for just 5% of the total sales of fruit and vegetables.
“In 2014, we made several organic product launches, including organic milk, the A-fil and yogurt under our Swedish dairy brand. We have focused on basic goods that many of our customers demand and sales are increasing all the time, “says Catherine Rosenqvist, CSR Manager at Lidl Sweden.

90% of organic sales are found in Lidl’s own brands.

“We realize that our customers appreciate our organic products and we expect to increase sales significantly in coming years. We continue our eco efforts and more product launches are underway, “says Catherine Rosenqvist.

Ica accounts for the largest increase, 55 percent compared with 2013. The largest share of sales is within dairy products. The product category that increases the most is organic beef. ”
“The demand for organic products is growing steadily. We begin 2015 with the launch of a variety of organic products on the dairy shelf, “says Anders Svensson, country manager in Sweden.

Coop has reached 7.7 percent share organically and an increase of 40 percent over last year.
“Our high proportion of sales shows that Coop is the leader in ecology and we are very proud of that. I think the success is due to our history and our values, combined with a deliberate strategic efforts to make ecologically more accessible,” says Louise König, sustainability manager at Coop.
In Coop, the  baby food product category has the highest proportion of organic sales.