Sweden; brighter economic picture and U.S. sales outlook result from declines in oil prices and the dollar - Business Outlook Abroad

Business America, July 7, 1986

Swedish consumers are spending more on food. Increasing real income and changes in life style are altering patterns of food consumption. This is expressed in the growing popularity of frozen foods, processed and prepared foods, gourmet food products, and institutional catering. Total expenditures on food approached $13.7 billion in 1985.

In 1985, the Swedish food industry spent over $225 million on processing, packaging and related equipment, up sharply from the previous year. Capital investment by the food industry will level off this year, but trade sources predict that the market will again pick up in 1988. Many firms plan to replace outdated equipment to increase production efficiency to conserve energy and to improve product quality.

Although the Swedish market for food processing and packaging equipment is highly competitive, with some well-established domestic companies in the field, Sweden imports over 30 percent of its needs for these products. U.S. suppliers having equipment with unique applications or laborsaving features will find sales opportunities in the Swedish market.