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CGR The Value Gap: Sweden

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Agrifood

Sweden imports roughly twice as much food as it exports, although exports are steadily increasing. At the same time, consumption patterns lean toward the unsustainable, with emissions-intensive meat, dairy, and processed foods making up a large share of diets. Just over half of the adult population is overweight, aligning with the EU average.[17]

The Agrifood sector encompasses a wide range of activities, including crop and animal production, fishing and aquaculture, food and beverage manufacturing, and services related to accommodation and food. These interconnected sectors form the backbone of Sweden’s national food system, generating economic value while also driving significant environmental and social impacts.

Overall, the Agrifood sector accounts for approximately 6% of the Swedish economy.

To fully assess the value created—or lost—within this system, it is essential to consider the entire food life cycle, from production to waste management. This analysis therefore includes waste generated not only from agriculture, forestry, and fishing, but also from food manufacturing and households, capturing the broader scope of the Agrifood system.

Where value is lost in agrifood

As shown in Figure six, Sweden’s Agrifood system generates approximately SEK 280 billion in consumption value, yet 14% of this is lost or never created due to linear and inefficient practices.

The largest share of this loss where households, restaurants, and canteens produce significant amounts of edible food waste. This represents not only a loss of nutrients but also of the economic resources invested in growing, transporting, and preparing the food. Of the estimated SEK 33 billion in food wasted annually throughout the entire value chain, only SEK 1.5 billion—just 5%—is recovered through waste management, highlighting a key point of value erosion that could be addressed through upstream interventions.

In addition to edible food waste, overconsumption represents another major form of value loss. Around 7% of food consumption, or SEK 20 billion, comes from eating beyond nutritional needs. Closely linked to rising rates of overweight and obesity among adults,[18] this ‘invisible waste’ often goes unmeasured in food system analyses. The economic value lost through overconsumption is comparable to that of edible food waste during the use phase. Both types of loss reflect avoidable use of resources that provide little or no meaningful social or economic benefit and place additional pressure on public health and the environment—for example, the societal costs of adult obesity in Sweden are estimated at SEK 125 billion per year (not included in the Value Gap calculation). [19]

Figure six shows yearly value creation and losses in the Agrifood sector.

Unlocking value through food waste prevention and healthier diets

The high percentage of value lost—whether through discarded food or unnecessary consumption—represents a major opportunity for circular solutions. Improving food waste prevention and promoting healthy, sufficient eating could substantially increase the efficiency, sustainability, and overall economic value of Sweden’s Agrifood sector.

Reducing edible food waste has been a national priority in Sweden for several years, supported by government strategies, research initiatives, and cross-sector collaboration. Targeted action plans focus on households, schools, healthcare, and retail, aiming to halve food waste by 2030. These efforts are reinforced by public awareness campaigns and educational resources designed to influence consumer behaviour and promote better food management practices.

While the early stages of the Agrifood system—crop and livestock production, processing, and distribution—account for a smaller share of economic value losses, they involve substantial losses by mass. Much of this comes in the form of inedible or lower-value materials, such as crop residues and by-products. These materials offer important opportunities for value retention through innovative reuse, upcycling, and valorisation strategies. Inedible food parts can often be repurposed as animal feed or other higher-value non-food products, with energy production only considered as a last option. [20]

The Circularity Gap Report is an initiative of Circle Economy, an impact organisation dedicated to accelerating the transition to the circular economy.

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