Profitability across Sweden’s food supply chain has declined in recent years, though performance varies between sectors, according to a new report from Jordbruksverket.
The agency’s latest annual review tracks developments from 2016 to 2024 across four key segments: primary production, food manufacturing, retail, and restaurants and catering. While overall profitability has weakened, some areas show signs of resilience.
External shocks—including the COVID-19 pandemic in 2020 and Russia’s full-scale invasion of Ukraine in 2022—have significantly affected businesses’ profitability, competitiveness, and output. The report highlights a downward trend in both net margins and operating margins across the food chain as a whole.
However, the picture is mixed. Primary production stands out as a relative bright spot, with operating margins improving and reaching their highest level in 2024. According to a Elice Fällström, an environmental economist at Jordbruksverket, this is likely due to lower inflation, reduced input costs, and stabilizing interest rates—factors that have particularly benefited younger producers who recently invested in their operations. She explains in a press release.
In contrast, the restaurant sector has been hardest hit by recent economic pressures. Despite this, the number of restaurant businesses has grown over the period, suggesting optimism about future profitability. A similar trend is seen in the food manufacturing sector.
Across the entire food chain, access to skilled labor remains a persistent challenge, limiting growth potential. At the same time, progress toward environmental targets linked to Sweden’s food strategy is uneven. While some indicators are moving in the right direction, the pace of change is considered too slow.
The report also highlights the potential of “Swedish added value”—such as quality and sustainability—to drive demand. The government’s updated food strategy, launched in 2025, places greater emphasis on resilience, exports, and gastronomy. Increasing awareness of the unique qualities of Swedish food could boost both domestic and international consumption, helping to meet long-term production and sustainability goals.