Swedish organic food sales face decline amid industry challenges

The organic food sector in Sweden is experiencing a significant downturn, described by industry experts as a failure of the retail sector. According to Organic Sweden, the share of organic products in the grocery trade fell from 6.9 percent in 2021 to 3.7 percent in 2025. Axfood, which previously aimed for a 10 percent organic share by 2020, reported an organic sales figure of only 3.9 percent in its latest interim report.

This decline has direct consequences for Swedish agriculture, with organic farmland decreasing by 4.5 percent last year and the number of organic animals continuing to shrink. To reverse this trend, experts suggest that retailers implement clear central organic targets, utilize consumer nudging, and collaborate more closely with producers to offer more affordable organic options rather than treating them exclusively as premium goods.

In a separate debate regarding municipal food procurement, critics argue that prioritizing organic labels over other climate-focused strategies, such as reducing food waste or increasing legume consumption, may not yield the highest climate benefits. They suggest that shifting toward plant-based systems can significantly reduce land use and greenhouse gas emissions more effectively than organic certification alone.