Expert-Interview with Ulf Sjödin of Systembolaget: The changing Landscape of the Swedish Wine market

Generational Shifts
Younger Swedes are drinking less wine, but Sjödin cautions against overinterpreting the trend. “Young people have never drunk much wine in Sweden,” he says. “It’s something that comes later in life, when people settle down.” Generation Z is beginning to drink more, but at a later age, leading to a temporary dip in consumption. Social habits are also changing people eat together less often which shifts alcohol choices toward cider, beer, and lighter wines.

The Rise of Alcohol-Free and Low-Alcohol
Options Systembolaget plays an important role in the growing alcohol-free segment, particularly for premium products. Although these beverages still account for less than one percent of total sales. Sjödin points out, however, that Swedes are still reluctant to pay premium prices for alcohol-free wines. “Internationally, we see alcohol-free champagnes costing the same as regular ones, but here, demand for that doesn’t exist.” Low-alcohol wines - especially those below 9.5% - are gaining traction, driven largely by health concerns. German producers are natural leaders in this field, offering wines with lower alcohol levels without sacrificing character. Still, Sjödin warns that quality remains a challenge for many low-alcohol products.

Sustainability Beyond the Label
Organic wines remain an important focus but the market for organic wines has plateaued. Consumers are not willing to pay more just because a wine is labeled organic but as there are organic wines at most price points it still works. Systembolaget is now focusing on the total climate impact, fair labor conditions, and long-term sustainability. There is more potential in regenerative viticulture. It’s about improving the ecosystem rather than just avoiding chemicals. He believes that future certifications for regenerative farming will be key to ensuring transparency and measurable progress.

Lighter Bottles and Smarter Packaging
Consumer preferences for packaging are deeply ingrained - efforts to shift customers from boxes to bottles or vice versa have little effect. However, the packaging industry itself is evolving rapidly. Glass producers across Europe are reducing weight and switching to cleaner energy sources. Some bottles now have up to 80% lower climate impact. Sjödin expects glass to remain the dominant packaging type, though heavy bottles will fade away. Aluminum cans are becoming more accepted for smaller wine formats, particularly among younger drinkers.

A Premium Shift
Even as total wine volumes decline, consumers are spending the same—or more—on better wines. “People drink less often, but when they do, they drink better,” says Sjödin. The pattern is especially evident in Systembolaget’s temporary assortments, where sales continue to rise. Economic pressures have hurt the mid to high end-range, but demand for wines under 300 SEK remains strong. The most expensive wines, especially those above 500 SEK, are struggling as prices for regions like Barolo and Burgundy have soared.

Pandemic Habits and the Cocktail Boom
The pandemic reshaped drinking habits. Many Swedes learned to mix their own cocktails at home and became more selective when dining out. Spending in restaurants has decreased, while domestic beer and spirits sales have risen. Social media also plays a role - drinks that look good on Instagram are more appealing, which has helped fuel the cocktail trend. Some wine producers are adapting with more visually striking labels and packaging.

A Slow but Positive Evolution
Despite challenges, Sjödin remains optimistic. “The wine industry moves slowly, but it does evolve,” he says. “We’re seeing a shift toward quality, sustainability, and moderation. People drink less, but better—and that’s good for everyone.”

Interview by Jan Dworsky, Wines of Germany Sweden, 2025