Consumers in Sweden

Swedes are highly inclined to seek out and buy products, services and brands that provide something new to the market. Swedish consumers are trend-sensitive early adopters who love to try new products, and to test them against their own high standards.

Swedes have a thirst for the outside world, exposing themselves to many different cultures, and cultivating a taste for new brands as well as for innovative restaurants and retail experiences. The tech-savvy Swedes are known not only for rapidly adopting new trends from abroad, but also for setting them.

Swedes are discerning in how they consume, valuing function and quality as much as design and branding in their purchasing decisions. At the same time, they are ardent and well-travelled shoppers who embrace new international brands and shopping concepts, especially ones they may have already encountered (and learned to love) on trips abroad.

Exhibiting a general willingness to pay a premium for well-known brands, Swedish consumers are likely to return to brands that they trust, preferring high-quality solutions over cheap or convenient options. Building trust among consumers is key to the Swedish market – and the good news is, once that trust is established, consumer loyalty tends to be strong and persistent. The openness of Swedes to the wider world paves the way for international brands to be embraced by consumers just as wholeheartedly as domestic ones.

Swedes are increasingly putting their money where their hearts are. They are highly informed consumers, expecting transparency and to know more about companies than perhaps ever before. This extends not only to the products themselves, but also to the overarching values of a company.

Sweden is a highly individualised country, making consumption an important identity marker. As a result, Swedes pay great attention to, and prefer to buy from brands that they feel reflect their values and lifestyles.

For companies, this means being open and honest about values and beliefs, and not being afraid to take a stand on social issues that matter. Committing to building a transparent brand is key to building consumer trust, engagement, and loyalty, and is quickly becoming a business imperative. This is especially important in Sweden, which is a society shaped by a long tradition of openness. Brands that can provide an emotional benefit are likely to have the competitive edge, as Swedish consumers are incentivised by moral attachments to brands and products, generally not hesitating to pay more for those that are good for the environment.

Swedish outdoor brand RevolutionRace has built an incredibly successful e-commerce company by ignoring the middlemen and creating a community for their customers.

As in other parts of the world affected by the coronavirus pandemic, the Swedish restaurant sector has struggled. Fast food and takeaway services have managed relatively well, while sales in restaurants, pubs and sports bars have decreased significantly. On a more positive note, however, despite quite a few actors going out of business in the process, the market is in a recovery phase.

The restaurant and food segment in Sweden still offers high potential in terms of purchasing power, consumer interest, as well as favourable conditions for foreign companies seeking to enter the market. Swedes are notable for their great interest in eating out, compared to other countries in the Nordics, as well as for their appreciation of healthy food concepts. This has helped Sweden emerge as a foodie nation, and with its modern food scene and world-recognised Swedish chefs, it has transformed itself into one of Europe’s haute cuisine hot spots.

While it is not necessarily always cheap to eat out in Sweden, it is a popular form of social interaction both for residents and for the millions of tourists that visit each year. Swedes have long spent more and more of their disposable income in restaurants and they value concepts that offer inventive menus, unique flavours, and trendy experiences.

In 2019, on average 18% ate out for dinner at least once a week. When it comes to lunch, before the pandemic, on average one third of the Swedish population ate out at least once a week, and the percentages were higher in the larger cities. Consequently, property owners and mall owners are devoting more retail space to restaurants.

The modern Swedish consumer is looking to “buy more time”, creating a shift from traditional grocery consumption towards meals for immediate consumption. As a result, restaurants and cafés are increasing their market shares. Moreover, restaurant turnover 2008-2019 increased tremendously, especially in the larger cities.

Swedes are interested in healthy food and beverage concepts and despite the establishment of several such chains in the past few years, the market is still unsaturated and there is a high untapped potential for various healthy food concepts. Green alternatives are undoubtedly popular among Swedes and 23% are either flexitarians, vegetarians or vegans (Food & Friends, 2019).

Swedes also love when innovative and international concepts expand to Sweden, including examples such as the successful establishment of the British concept Wagamama and the Danish concept Joe & The Juice.

The line between food service and retail is blurring, as popular food blogs and creative new concepts are increasing Swedish consumers’ interest in innovative food experiences. This enables retailers to offer restaurant services, along with drinks and ready-to-eat meals, and creating a relaxing atmosphere where customers can stop and rest. For example, several H&M and Arket stores in Sweden have opened in-store cafés, a concept that the H&M group has also expanded to London and other European cities. Several book stores have also embraced the concept.

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