Food - Iceland

Iceland

Revenue in the Food market amounts to US$1,703.00m in 2024. The market is expected to grow annually by 4.50% (CAGR 2024-2029).
The market's largest segment is the segment Meat with a market volume of US$368.20m in 2024.
In global comparison, most revenue is generated in China (US$1,601bn in 2024).
In relation to total population figures, per person revenues of US$4,330.00 are generated in 2024.
In the Food market, 8.9% of total revenue will be generated through online sales by 2024.
In the Food market, volume is expected to amount to 288.20m kg by 2029. The Food market is expected to show a volume growth of 2.0% in 2025.
The average volume per person in the Food market is expected to amount to 677.10kg in 2024.

Key regions: United States, Canada, China, India, South Korea

Definition:

The food market covers all edible products that are bought and consumed for nutrient-based purposes. The market includes both fresh and processed foods.

Structure:

The market consists of 13 different markets:

The Dairy products & Eggs market covers animal products, such as milk, eggs and products made from mammal’s milk and non-animal products, such as milk substitutes. This market is divided into six subsegments that include milk, milk substitutes, yogurt, cheese, eggs and other dairy products and eggs.
The Meat market covers animal products, such as pork, poultry, and free-from meat products, such as meat substitutes. This market is divided into three submarkets: fresh meat, processed meat, and meat substitutes.
The Fish & Seafood market covers products made from fish and seafood. This market is divided into three submarkets: fresh fish, fresh seafood, and processed fish & seafood.
Fruits & Nuts cover edible fruits and nuts. This market is divided into three submarkets: fresh fruits, processed & frozen fruits, and nuts.
The Vegetables market covers edible plants. This market is divided into two submarkets: fresh vegetables, processed & frozen vegetables.
The Bread & Cereal products market covers baked goods made from dough. Dough is made using flour, water, a leavening agent, and other optional ingredients. This market also covers products made from cereals that are usually used as part of a main meal. This market is divided into five submarkets: bread, pasta, rice, breakfast cereals and other cereal products.
The Oils and Fats market covers both edible oils and fats made from animals and plants. This market is divided into four submarkets: butter, margarine, edible oils, and other oils & fats.
The Sauces and Spices market covers additional ingredients used during the food preparation process and is divided into three submarkets: tomato ketchup, other sauces, and spices & culinary herbs.
The Convenience food market covers prepared food and meals that require little effort to prepare. This market is divided into two subsegments, soups and ready-to-eat meals.
The Spreads and Sweeteners market covers spreads and ingredients added to food or beverages to give it a sweet flavor. This market is divided into two subsegments, spreads and sweeteners.
The Confectionery & Snacks market covers sweet, savory, and salty food. This market is divided into two subsegments, confectionery and snacks.
The Baby food market covers food that is only meant to be consumed by babies and small children.
The Pet food market covers food that is intended for pet use only.

Additional Information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram), and sales channels. The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption; out-of-home consumption is not included. The out-of-home revenue data is only shown as a separate box at the market level.

For more information on the displayed data, click the info button on the right side of each box.

Market

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Analyst Opinion

The Icelandic Food market has seen slow growth due to various factors such as limited demand for convenience food and processed products, strict regulations on pet food, and a focus on locally sourced ingredients. However, increasing health consciousness and the popularity of traditional Icelandic cuisine may drive growth in sub-markets like seafood and dairy products. Overall, the market is expected to experience minimal growth in the coming years.

Customer preferences: The Food market in Iceland has seen a significant shift towards healthier and more sustainable food options, driven by consumer demand for transparency and ethical sourcing. This trend is reflected in the growing popularity of organic and locally-sourced products, as well as a rise in plant-based diets. Additionally, there has been a rise in the use of technology to track and improve dietary habits, with the rise of food tracking apps and online nutrition consultations. This shift towards conscious and tech-savvy consumption is influenced by the growing focus on personal health and well-being among Icelandic consumers.

Trends in the market: In Iceland, The Food market industry is experiencing a rise in demand for organic and locally sourced products. This trend is driven by a growing consumer awareness of sustainability and health concerns. Many businesses are responding by incorporating sustainable practices and offering a wider range of organic and locally produced options. This trajectory is significant as it reflects a shift towards more ethical and environmentally friendly consumption patterns. Industry stakeholders must adapt to these changing preferences by investing in sustainable sourcing and marketing strategies, as well as exploring partnerships with local producers. This trend is likely to continue, with potential implications for the industry including increased competition and the need for continued innovation in sustainable practices.

Local special circumstances: In Iceland, The Food market is heavily influenced by the country's unique geographical location and cultural traditions. The island's harsh climate and limited arable land have led to a reliance on fishing and farming for sustenance. This has shaped the local food scene, with an emphasis on fresh seafood and traditional Icelandic dishes. Additionally, the government's strict regulations on food imports and production have created a market dominated by locally sourced products. These factors contribute to a strong focus on sustainability and quality in the Icelandic Food Market.

Underlying macroeconomic factors: The Food market in Iceland is heavily influenced by macroeconomic factors, such as the country's economic stability and global economic trends. With Iceland's strong economy and healthy fiscal policies, The Food market has experienced steady growth in recent years. Additionally, government support for the food industry, along with investments in infrastructure and technology, have contributed to the market's success. The growing demand for healthier and more sustainable food options, both domestically and internationally, has also played a significant role in driving the market's growth. As the global population continues to age and become more health-conscious, the demand for innovative food products and services is expected to further boost The Food market in Iceland.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.