Scandinavia: Opportunities for organic and processed food

A large-scale restructuring of Scandinavian retail may yield some interesting opportunities for suppliers. In particular to producers of nuts, dried fruits, processed and organic produce, prospects are good.

In both countries a handful of wholesalers own over 80% of the market. Due to an uncertain domestic market, Swedish and Finnish retailers didn’t perform well in the preceding years. Also, existing retailers had to contend with the arrival of several discounters. A big overhaul was deemed necessary and now the sector is striving for greater efficiency in the hope of competing against other European players.

Health food is getting increasingly important in both countries, as high demands are being laid on quality, origin and the environment. Stores are now tapping into this demand by retailing an increased assortment of organic foods, top labels and Fairtrade products. Consumers, it seems, are willing to pay extra for quality items with labels guaranteeing fair trade.

This is good news for the Fresh Produce sector. Both producers of organic crops and those of processed foods are expected to benefit greatly from the new developments.