What happens when consumers push back against rising food prices?

Several years of rising food prices have left Swedish consumers frustrated. Boycotts against the biggest retail chains have emerged, and last week, the Minister of Finance held a meeting with leading grocery retailers ICA, Coop, and Axfood to discuss the issue. The debate over whether Sweden’s grocery retail sector is too consolidated is gaining momentum.

While rising prices are largely driven by global politics and climate change, consumers are outraged to see major corporations making hundreds of millions of euros in profit while many struggle to afford basic groceries.

Our Informed Consumer study has shown that Swedish consumers are highly responsive to trends and public discourse. When a debate gains traction, it doesn’t just influence short-term consumer behaviour—it can trigger long-lasting shifts. What happens when more consumers view their local ICA as an opportunistic company profiting from people’s distress? Could the dominance of the big players be affected?

We see people turning to discount retailers and ethnic grocery stores. Perhaps we will see a revival of specialty stores —both online and offline—as well as markets. Established retailers must find ways to deliver added value: through product selection, services, customer experience and empathy for their customer. Ideally, this could foster healthier competition by introducing novel approaches, better options, and a broader range of quality services at different price points.

As the effects of climate change on food production intensify, it’s evident that we are witnessing long-term transformations in consumer behaviour and market dynamics. The question is: how will retailers adapt?

One thing is clear: understanding your target audience and responding to evolving needs across price segments is crucial.

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Text by:
Saara Järvinen
Senior Insight Strategist
saara.jarvinen@kuudes.com
+46 70 278 4669