Globally, Denmark has the highest organic share and a well-developed organic market. In 2016, every Dane spent about USD 300 on organic food, making Danish consumers the most ecological in the world. The market share of organic food and beverages has reached 14.4% in 2018 of the total Danish food sale. A natural and organic food store offers meals with fewer preservatives, hormones and artificial ingredients, and is quickly becoming mainstream in the Danish Market. The Denmark Organic Food Market is expected to reach USD 8.28 Billion by 2025.
Demand Drivers
The majority of retail chains in Denmark have increased their selection of organic products. Due to the growing concern of consumers towards animal welfare along with growing demand for clean and healthy food products, the extended range of organic products has contributed to the growth of organic products in Denmark. Organic product claims are heavily regulated, with specific rules about what chemicals organic products can and cannot contain, which give organic products an edge over natural products for consumers who are concerned about not just ingredients, but exposure to “unnatural” chemicals or additives.
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Organic Food, By Type
Fruit and vegetable makeup one-third of the organic sales in the retail sector and thereby constitutes the most extensive organic product category. This is accompanied by cereal & pulses, meat & poultry, and other organic products. Generally, majority of the organic food categories have a high organic market share.
End-User Segment
In the end-user segment, public institutions, including hospitals, kindergarten, and educational institutions, contribute maximum revenue towards the organic food market in Denmark, followed by hotels, restaurants & cafes.
Sales Channel
Most organic foods are sold through mainstream retail channels, followed by health food stores and mini markets.
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Key Trends
Some of the trends witnessed in the retail industry are the rising consumer’s interest who wants to know the product origins they are going to buy. As a result, supermarkets are now open to provide shelf space for smaller producers’ products from the local area. Organic production has grown strongly in recent years, and its popularity is because organic production has a positive influence on several essential consumer wishes. For example, the demand for food to be “pure,” “frees from,” and “environmentally correct”.
Moreover, there is a growing awareness regarding the need for greater sustainability, such as efficient use of resources, renewable energy, and better animal welfare, as well as minimising waste, packaging and environmental impact. Consumers are looking for responsibility from producers and retailers, along with stories about how efforts are being made to improve sustainable food production through new developments and innovation.
Export Market
Apart from the domestic demand for organic food, Denmark exports of organic food are growing year on year. The biggest export markets are the neighbouring countries, with Germany being the largest export market, followed by Sweden and France.
Government Initiatives
The Danish government is working on drastically increasing the nation’s supply of organic food. The Ministry of Food, Agriculture and Fisheries has released an ambitious plan to double the area under organic cultivation by 2020. At present, approximately 1,000 Danish farmers are either cultivating organic crops, or they are about to convert to organic production. Meanwhile, the Danish organic manufactures and companies are regularly developing new and innovative organic products
Leading Players
Some of the leading companies in the Denmark organic food market include Arla Foods Amba, which the largest share in the revenue followed by Danish Crown, Thise Mejeri, Dava Foods, and Aarstiderne.
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