Organic Food Sales Drop Threatens Denmark’s Green Goals

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Edward Walgwe

Organic Food Sales Drop Threatens Denmark’s Green Goals

Danes bought 1.8 percent fewer organic groceries in 2025 compared to the previous year, according to new data from the Danish Organic Food Federation. The decline makes it increasingly difficult for the government to reach its goal of doubling organic consumption by 2030. 

Danes Want Organic — But Buy Less

The decrease in organic food purchases marks a setback for Denmark’s ambitious sustainability targets. Despite Danes expressing a desire to buy more organic products, the actual volume of organic goods sold last year fell short of expectations.

Rasmus Prehn, director of the Danish Organic Food Federation, calls the trend deeply unfortunate. He points out that while consumers want to choose organic, purchasing behavior tells a different story. The drop primarily affected organic eggs, vegetables, and milk.

Rising Food Prices Hit Organic Sales

Minister for Green Tripartite Affairs Jeppe Bruus acknowledges the stagnation and slight decline in organic consumption. He attributes the trend mainly to rising food prices, which have made organic products less affordable for many households.

In fact, the price gap between conventional and organic products has widened as general food inflation pressures household budgets. Organic production costs are inherently higher, and the addition of VAT on these products creates what Prehn describes as a penalty for consumers choosing sustainable options.

Danish food shopping habits have shifted as families prioritize budget constraints over environmental concerns. The economic pressure has forced many consumers to make difficult choices at the checkout counter.

Government’s Ambitious 2030 Target Under Pressure

In 2023, the Danish government launched an organic strategy aimed at doubling organic farmland, consumption, and exports between 2018 and 2030. The recent sales figures suggest this goal will be extremely challenging to achieve without significant policy intervention.

Denmark previously led the way in promoting organic food consumption. However, the momentum has clearly stalled. Prehn emphasizes that politicians on Christiansborg need to wake up and take concrete action to reverse the declining trend.

Statistics Denmark has not yet released complete revenue figures for organic food sales in 2025. However, available data shows that organic food sales have plateaued since 2020, with little growth in recent years.

Proposed Solutions to Boost Organic Consumption

The Organic Food Federation advocates for reducing or eliminating VAT on organic products. This policy change would help narrow the price gap between conventional and organic options, making sustainable choices more accessible to average consumers.

Prehn argues that current tax policy essentially punishes consumers for making environmentally responsible choices. Beyond the naturally higher production costs, the government has chosen to impose the same VAT on organic products as conventional ones, creating an additional financial barrier.

Production Capacity Remains Key Challenge

Minister Jeppe Bruus responds that funding has been allocated to explore VAT reduction possibilities. He looks forward to examining this option more closely in the coming months.

Nevertheless, Bruus stresses that increasing production capacity remains fundamental to success. Regardless of whether VAT is reduced, Denmark needs significantly more organic farmland and production to meet demand and improve price competitiveness.

The government is actively working to double organic agricultural land. This expansion would increase the supply of organic products and help make them more price competitive with conventional alternatives. Without adequate production capacity, even reduced VAT may not be enough to drive consumption growth.

Interestingly, the challenge extends beyond domestic consumption. Denmark’s organic export market and international reputation as an organic food leader also depend on maintaining strong domestic production and consumption levels.

Consumer Behavior and Economic Realities

The tension between consumer intentions and actual purchasing behavior highlights the economic realities facing Danish households. While surveys consistently show that Danes value organic products and want to support sustainable agriculture, price sensitivity ultimately drives decisions at the grocery store.

Surprisingly, even dedicated organic consumers have reduced their purchases in response to broader economic pressures. This suggests the issue goes beyond converting new customers to organic products, it also involves retaining existing supporters who are struggling with higher living costs.

Meanwhile, conventional food producers benefit from economies of scale and lower production costs. This structural advantage makes it difficult for organic products to compete on price alone, especially during periods of economic uncertainty.

Looking Ahead to 2030

The path to doubling organic consumption by 2030 now appears steeper than when the government first announced its strategy. With consumption declining rather than growing, policymakers face mounting pressure to implement meaningful interventions quickly.

As a result, discussions about VAT reform and production subsidies are likely to intensify. The Organic Food Federation will continue pushing for tax changes while the government focuses on expanding farmland dedicated to organic production.

Eventually, Denmark must decide how much priority to give organic food within its broader agricultural and environmental policies. The coming years will reveal whether political will and financial resources align sufficiently to reverse the current downward trend and put the country back on track toward its 2030 targets.

Sources and References

The Danish Dream: Danish Food Overview

The Danish Dream: Best Grocery Stores in Denmark for Foreigners

DR: Vi købte færre økologiske fødevarer i 2025

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Edward Walgwe Content Strategist

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