Dairy products and alternatives in 2025: The big picture
In 2025, value sales of dairy products and alternatives in Sweden are projected to grow, despite the maturity of many categories and the associated challenges in generating volume growth. The increase in value sales will primarily be driven by rising unit prices and a heightened consumer interest in premium and value-added dairy offerings, which continue to attract demand even amid broader economic pressures.
Key trends in 2025
Swedish dairy products and alternatives is being shaped by a number of key trends in 2025, notably the growing influence of health-conscious and environmentally aware consumer behaviours. Demand is rising for low-fat, lactose-free, and fortified dairy formats, particularly those high in protein, as well as for plant-based alternatives. Oat-based products continue to lead plant-based dairy, supported by concerns over sustainability, evolving dietary preferences, and a broader aspiration towards healthier lifestyles. There is also a pronounced shift towards premium, all-natural, and clean label offerings, with an emphasis on locally sourced and climate-labelled products. Increasingly, domestic origin and sustainability are being positioned as benefits in marketing communications, highlighting the value of locally manufactured products made with Swedish ingredients.
Competitive Landscape
Arla Foods AB continues to retain its lead of the competitive landscape in 2025, improving its share. The company produces the brands Arla, Bregott, Kvibille and Kelda, present in cheese, butter and spreads, drinking milk, yoghurt and sour milk products. Arla, the flagship brand, continues to enjoy a high level of consumer trust in Sweden. The company uses Swedish dairy and, where possible, other domestic ingredients. To reinforce its local origin, Arla’s packaging prominently features the Swedish flag, an effective tool in appealing to consumers and supporting domestic sourcing narratives.
Channel developments
In 2025, supermarkets continue to be the preferred distribution channel for dairy products and alternatives in Sweden. As the largest and most established retail grocery format, supermarkets benefit from strategic city-centre locations, offering greater convenience compared to hypermarkets and discounters, which are typically situated on the outskirts. This central positioning makes supermarkets the go-to destination for Swedish consumers purchasing dairy items. However, despite its leading status, supermarkets is expected to experience a slight decline in market share in 2025. In contrast, discounters is set to gain ground, driven by its wide selection of competitively priced products, which appeals strongly in an environment of heightened price sensitivity.
What next for dairy products and alternatives?
Value sales of dairy products and alternatives in Sweden are set to rise modestly over the forecast period. However, retail volume growth will remain challenged in many areas due to the market’s maturity. Despite this, internal category shifts are anticipated, particularly as plant-based alternatives are expected to continue capturing share from traditional dairy products.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Sweden with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Sweden, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Sweden report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Sweden?
- Which are the leading brands in Dairy Products and Alternatives in Sweden?
- How are products distributed in Dairy Products and Alternatives in Sweden?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Sweden?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Sweden
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Sweden
KEY DATA FINDINGS
High-quality, locally sourced baby food drives value growth in 2025
Semper AB retains its lead while Conaxess Trade Sweden AB is the most dynamic player
Supermarkets retain the lead while Costco Sweden impacts the distribution landscape
Premiumisation is set to drive value growth in baby food over the forecast period
Health and wellness trends will shape new product developments in baby food
Sustainability is set to remain a central concern over the forecast period
Butter and Spreads in Sweden
KEY DATA FINDINGS
Value sales of butter and spreads rise, driven by premiumisation and domestic preference
Arla Foods AB maintains its lead while private label products from Axfood AB record growth
Warehouse clubs records the strongest value growth, led by Costco’s market entry
Sales of butter and spreads are projected to rise, driven by value-added products
Innovation is set to focus on health, wellness while providing convenience
Sustainability is set to be key to innovation and marketing across the forecast period
Cheese in Sweden
KEY DATA FINDINGS
Premiumisation and local origin support growth for cheese in Sweden
Arla Foods AB maintains its leadership while ICA Sverige AB improves its share
Supermarkets remain the dominant cheese distribution channel in 2025
Local origin, artisanal and value-added cheese are expected to support value growth
Reduced fat content and high protein claims will drive product innovation in cheese
Sustainability and animal welfare will remain key concerns for Swedish consumers
Drinking Milk Products in Sweden
KEY DATA FINDINGS
Value sales of drinking milk products rise amid supply constraints and health trends
Arla Foods AB maintains its leadership in drinking milk products
Supermarkets retain its lead while warehouse clubs see the strongest value growth
Locally sourced milk and wellness innovations are set to drive growth across the forecast period
Health and wellness innovations are expected to support growth amidst rising plant-based competition
Sustainability is set to remain central throughout production, transport, and packaging
Yoghurt and Sour Milk Products in Sweden
KEY DATA FINDINGS
Yoghurt drives growth while maturity challenges sour milk products in 2025
Arla Foods AB maintains its leadership in yoghurt and sour milk while O Kavli AS records strong growth
Supermarkets lead yoghurt and sour milk distribution, while warehouse clubs record growth
Value sales are set to grow amidst intense competition and maturity
Flavour innovation and functional health benefits will shape product development
Sustainability and climate efficiency are expected to be key over the forecast period
Other Dairy in Sweden
KEY DATA FINDINGS
Value growth in other dairy is driven by cream and high-protein products
Arla Food AB leads sales while Norrmejerier AB lead growth in other dairy
Supermarkets remain the key channel for other dairy, although share is lost to retail e-commerce
Value sales of other dairy are set to grow through premiumisation and added benefits
Health-focused innovation and convenience will drive growth in other dairy
Strategic marketing and sustainability may drive brand resilience against private label
Plant-Based Dairy in Sweden
KEY DATA FINDINGS
Rising demand for plant-based dairy reflects health, environmental and lifestyle trends
Oatly AB leads plant-based dairy in Sweden amid growing competition
Supermarkets lead distribution of plant-based dairy, while warehouse clubs record growth
Demand for plant-based dairy will be driven by health and sustainability trends
Ongoing innovation will see plant-based options expand across dairy categories
Fortified and low-fat options are expected to gain traction over the forecast period
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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