Swedish food retail
The food retail industry, with over 3,100 food retail stores around Sweden, is an important part of Swedish industry and a large employer, providing a livelihood for approximately 110,000 people.
The sector is important for young people, who account for a third of the number of those employed. In the countryside, grocery stores often serve as a community hub, offering pharmaceutical products, postal services and parcel collection in addition to groceries.
The food retail market is relatively unaffected by economic fluctuations and growth is driven largely by population growth and inflation. The market is mature, and the three largest players – ICA, Axfood and Coop – together account for more than 90% of sales. With its distinctive concepts, Axfood has a presence in every segment in the market and its market share in 2025 is estimated at about 25%.
For some time now, growth in food retail has been strongest in the discount segment, where Willys is the leading player. The discount segment represents just over a fifth of the market and is divided into two sub-segments: hard discount and soft discount. The biggest differences between the segments consist of the offering and breadth of assortment as well as the peripheral services offered. During the years 2019–2024, average annual growth for the discount segment is estimated at around 10%. This is compared with the market’s average annual growth of approximately 5%. In recent years, hypermarkets represented the fastest-growing segment after discount, accounting for just over 25% of the market. Traditional grocery is the largest segment, accounting for just over a quarter of the market. During 2019–2024, average annual growth for hypermarkets and traditional grocery is estimated at 5% and 4%, respectively.
E-commerce accounts for a small share of the market, 4.2% in 2025. The home delivery option represents a somewhat larger share of sales than store pick-up. Axfood’s market share in e-commerce in 2025 is estimated at around 29% (28). Thanks to Willys’ strong position in this sales channel, Axfood has a significantly higher share of e-commerce than in the market as a whole.
Development during 2025
In 2025, the Swedish food retail market grew by 4.5%, and sales excluding VAT amounted to approximately SEK 315 billion (302). According to Statistics Sweden, food price inflation during the year amounted to 4.3%, with the change largely driven by higher prices for coffee, chocolate, dairy products and beef. Growth in e-commerce amounted to 6.6%, and sales excluding VAT amounted to just over SEK 13 billion (12).
Sources: Swedish Food Retail Index (Swedish Food Retailers Federation in cooperation with HUI Research) and Axfood’s estimates based on public information.
