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MARKET ANALYSIS of ORGANIC FOODS in the Nordic and Baltic Countries Market Analysis of Organic Foods in the Nordic and Baltic Countries

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MARKET ANALYSIS of ORGANIC FOODS in the Nordic and Baltic Countries Market Analysis of Organic Foods in the Nordic and Baltic Countries MARKET ANALYSIS OF ORGANIC FOODS in the Nordic and Baltic countries Market analysis of organic foods in the Nordic and Baltic countries Anna Pekala, Rambøll Management Consulting TemaNord 2019:540 Market analysis of organic foods in the Nordic and Baltic countries Anna Pekala, Rambøll Management Consulting ISBN 978-92-893-6245-0 (PDF) ISBN 978-92-893-6246-7 (EPUB) http://dx.doi.org/10.6027/TN2019-540 TemaNord 2019:540 ISSN 0908-6692 Standard: PDF/UA-1 ISO 14289-1 © Nordic Council of Ministers 2020 Cover photo: Unsplash.com Disclaimer This publication was funded by the Nordic Council of Ministers. However, the content does not necessarily reflect the Nordic Council of Ministers’ views, opinions, attitudes or recommendations. Rights and permissions This work is made available under the Creative Commons Attribution 4.0 International license (CC BY 4.0) https://creativecommons.org/licenses/by/4.0 Translations: If you translate this work, please include the following disclaimer: This translation was not pro- duced by the Nordic Council of Ministers and should not be construed as official. The Nordic Council of Ministers cannot be held responsible for the translation or any errors in it. Adaptations: If you adapt this work, please include the following disclaimer along with the attribution: This is an adaptation of an original work by the Nordic Council of Ministers. Responsibility for the views and opinions expressed in the adaptation rests solely with its author(s). The views and opinions in this adaptation have not been approved by the Nordic Council of Ministers. Third-party content: The Nordic Council of Ministers does not necessarily own every single part of this work. The Nordic Council of Ministers cannot, therefore, guarantee that the reuse of third-party content does not in- fringe the copyright of the third party. If you wish to reuse any third-party content, you bear the risks associ- ated with any such rights violations. You are responsible for determining whether there is a need to obtain per- mission for the use of third-party content, and if so, for obtaining the relevant permission from the copyright holder. Examples of third-party content may include, but are not limited to, tables, figures or images. Photo rights (further permission required for reuse): Any queries regarding rights and licences should be addressed to: Nordic Council of Ministers/Publication Unit Ved Stranden 18 DK-1061 Copenhagen Denmark [email protected] Nordic co-operation Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland and Åland. Nordic co-operation has firm traditions in politics, economics and culture and plays an important role in European and international forums. The Nordic community strives for a strong Nordic Region in a strong Europe. Nordic co-operation promotes regional interests and values in a global world. The values shared by the Nordic countries help make the region one of the most innovative and competitive in the world. The Nordic Council of Ministers Nordens Hus Ved Stranden 18 DK-1061 Copenhagen [email protected] Download Nordic publications from www.norden.org/nordpub Contents Summary ................................................................................................................................. 6 Nordic countries ................................................................................................................. 6 Autonomous areas ............................................................................................................ 10 Baltic countries.................................................................................................................. 11 1. Introduction and background for this report ...................................................................... 13 2. Organic market in the Nordic and Baltic countries ............................................................. 14 2.1 Introduction and methodology ............................................................................... 14 2.2 Denmark ................................................................................................................ 15 2.3 Finland ................................................................................................................... 32 2.4 Iceland ....................................................................................................................44 2.5 Norway .................................................................................................................. 49 2.6 Sweden .................................................................................................................. 61 2.7 Faroe Islands........................................................................................................... 78 2.8 Åland Islands .......................................................................................................... 83 2.9 Greenland .............................................................................................................. 89 2.10 Estonia ................................................................................................................... 93 2.11 Latvia ................................................................................................................... 103 2.12 Lithuania .............................................................................................................. 110 3. Organic market outlook .................................................................................................. 117 4. Nordic organic food market ............................................................................................. 118 4.1 Organic farmland .................................................................................................. 118 4.2 Overall organic food sales ..................................................................................... 119 4.3 Organic within the retail channel .......................................................................... 120 4.4 Organic within the foodservice channel ................................................................ 121 5. Global organic food market ............................................................................................. 122 5.1 Organic farmland .................................................................................................. 122 5.2 Organic food sales within the retail channel .......................................................... 125 6. Global sustainable development goals and organic food .................................................. 128 6.1 The Sustainable Development Goals ..................................................................... 128 6.2 Different interpretation of the SDGs’ link to organic .............................................. 129 6.3 Research on the link between organic farming and sustainability .......................... 130 References ............................................................................................................................ 131 Sammenfatning .................................................................................................................... 133 De nordiske lande ............................................................................................................ 133 Selvstyrende områder ..................................................................................................... 137 De baltiske lande ............................................................................................................. 138 Market analysis of organic foods in the Nordic and Baltic countries 5 Summary The size of organic farmland, the value of the organic food market and the corresponding organic shares vary across the Nordic and Baltic countries. Although we observe many of the similar drivers across all analysed countries, they have all been impacted by different factors and the organic markets have developed differently accordingly. In general, consumers have become increasingly focused on a healthy lifestyle and aware of the added value provided by organic food and beverages. This, together with production subsidies and political agendas, has contributed to the substantial growth in organic production and sales in the recent years across both the Nordic and Baltic countries. Nordic countries, including Denmark, Sweden, Norway, Finland and Iceland are evidently the most developed markets for organic food sales and production, with Denmark and Sweden clearly at the lead. Developments in Norway and Finland have been more moderate. Iceland is significantly behind, and organic food has not yet had a major break-through, challenged by the limited demand and unfavourable climatic conditions for organic production. Baltic countries, i.e. Estonia, Latvia and Lithuania are still emerging markets for organic food but have seen rapid growth over the past ten years. The organic market in these countries is mostly focused on exports, but also domestic demand is increasing. Autonomous areas, including the Faroe Islands, Åland Islands and Greenland are very different from their Nordic neighbours, and the organic markets here are still in the maturation phase, especially in terms of production (with the exception for Åland Islands). Consumers here are very fond of the local production, and as they view their countries’ production as “almost”
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