Why you should enter the danish market:
The green market potential
According to an in-depth online consumer survey conducted by the danish technological institute. Up to 80% of the danish consumers are unsatisfied and unimpressed by the plant based and vegan food options on the danish market. Especially the plant based food solutions don’t seem to impress the old school danish consumers. The dissatisfaction seems to occur from the specific subcategories. Especially meat, cheese and plant drink alternatives. Which is mainly due to taste and consistency. With that said, the selection and assortment within the danish in-store retail market isn’t impressingly wide. The problem isn’t that the intention for greater consumption of plant-based products isn’t there. But things as old habits, lack of inspiration and taste seem to dominate the restraining behavior from the consumers. Whereas more and more aspire to cut don’t their meat consumption in the future. But to do that, the danish market needs new suppliers who can accommodate the consumers demands. And shake things up!
Plant-based market fragmentation
The market fragmentation within the plant based and vegan food options on the danish market could also use some competition. The fragmentation is dominated by a few big players such as Naturli and the big retailers private labels. In addition to the unsatisfied consumers, the low competition and private labels within the big supermarket don’t seem to challenge each other enough to optimize and compete on ingredients, texture and taste enough to impress the consumers. Naturli has a market share of almost 90% and a 100% consumer recognition. This might seem intimidating to new suppliers entering the danish market. While this shouldn’t really be the case. Many smaller shops, kiosks, caterings and meal box subscriptions also demand new suppliers to the market! They experience low bargaining power in negotiating with the few big suppliers. Also when competing against the few but big retail companies about the good deals. The narrow range of vegan and plant based products on the danish market also makes it hard for the small and medium sized companies to compete with the 2 big retailers on both price and product. Whereas, the small and medium sized companies, demand new suppliers. With innovative vegan brands to differentiate themselves from the big retailers.
The flexitarian movement
The popularity of plant-based food alternatives is primarely driven by the flexitarians. The average consumer who likes and eats meat. And mix both animal – and plant-based diets. But intent to reduce meat consumption due to health and environmental benefits. As much as, 70% of danish meat eating consumers between 18-34 years, intend to cut down their meat consumption in the future. Whereas 57% of all danish consumers, intentionally want to cut down their meat consumption in the future. All in all, new paths need to be thought of to make it easier to eat plant-based on the danish market; improvement of taste and more variety through new protein sources, convenience, new ways of producing and completely new categories. So what consumers are really demanding is products that suits their flexitarian lifestyle. By accommodating this, both suppliers and retailers could achieve competitive market growth. Therefore, Analyzing and identifying the consumer behavior and preferences is key! Read more about the overall tendencies on the vegan food market here.
Small and competitive!
Germany, The Netherlands, UK and Italy are some of the leading countries within the number of new launches with a vegan claim rising each year. Denmark aspire too, but can’t really seem to keep up with the growth from the above mentioned countries. Even though Denmark consider itself, as innovative, green minded and modern. And thus, Denmark often times would compare itself. market and culture wise, to some of these countries. Where these aren’t alike, would be on country size and market price! Which is beneficial for the many small vegan and plant-based incubators on the German, NL, UK and italian market! Regarding startups, production-capacity can be one of many obstacles. Especially when entering a big market size. The risk of not being able to produce what you sell is there. Therefore, it can be a competitive advantage to enter a smaller market size like Denmark! And guess what! The Danish consumers are actually really hungry for you!
Are you a qualified green food supplier?
Want to enter the danish market as a green food supplier? Then you found the right ones!
As a smaller producer or niche food trader it takes a lot of time and effort to establish yourself on new markets, but we are here to help. We specialize in connecting cross-border vegan, plant based and green buyers and suppliers.
You can alway book a non-binding call to hear more about who we are, and what we can do for you