What are the business opportunities for companies in the Danish market?
Thanks to its considerable development, the Scandinavian nation is an attractive destination for investment and export activities.
But in which sectors? How is the market structured and what are the latest growth trends?
The Danish economy: a stable and developed market
High purchasing power of the population and strongly developed key sectors: this and much more make Denmark a market to focus on.
Despite a population of just under 6 million, the country has long been an economy open to international trade.
The industrial development following the Second World War has made it an exporting power, with chemical, pharmaceutical, biotechnological and agri-food products representing the main exported goods.
According to Italy’s Ministry of Foreign Affairs’ Economic Observatory, industry contributes more than 20.9% of GDP, and stands out in areas such as renewable energy technologies: Denmark is the world’s leading country in the production of wind turbines.
Livestock farming, on the other hand, is the leading item in agricultural production, contributing around 90% of total agricultural income. Still in the agri-food sector, a special mention goes to the market for organic products, which has been strongly developed for years, testifying to the growing attention of Danish consumers to quality food and sustainability.
It is no coincidence that 12% of retail sales in the food sector are now represented by organic products.
As far as services are concerned, the banking sector and transport play a leading role, with the country being the fifth-largest maritime operator in the world.
Finally, tourism is also a very important item for the Danish economy, with the capital Copenhagen attracting the majority of visitors from abroad.
What to sell in the Danish market
The inevitable economic downturn in 2020 undoubtedly compromised the vitality of the Danish economy.
For Italy too, this situation has meant a reduction in trade, with the decline partially offset by the first half of 2021.
In fact, as the latest available data shows, Italian exports to the country exceeded €1,971 million between January and July, still below 2019 levels but recovering.
Indeed, there is no shortage of opportunities for companies in many sectors. Such as?
Certainly, the high purchasing power of consumers and companies translates into a business opportunity for those who trade in high quality and technologically advanced products.
This principle can be applied to different areas, from industrial machinery to furniture and food products.
It is precisely the world of machinery and equipment that represents the first item of Italian exports to the area, for a total of just over 393 million Euros, followed by food products (about 16% of exports).
The long list of food and wine excellence that has always distinguished Italy has in fact found its place in the Scandinavian nation. Among the most popular products, it is impossible not to mention wine.
According to Unione Italiana Vini, Denmark is the seventh destination for bottled wine exports. This data proves the great appreciation for the products of our wineries and translates into new business opportunities.
There is no shortage of room for improvement throughout the Scandinavian area, where the presence of Italian products could be further consolidated: a fact that applies to wines but also to other food products, with the already mentioned organic products in high demand in Denmark.
Italian companies specialising in this field should continue to monitor the area, seeking new customers and distributors with whom to achieve their growth goals abroad.
Similar considerations also apply to other sectors such as furniture, especially given Danish consumers’ preference for products that combine design and sustainability.
So there is no shortage of opportunities in the Danish market: it is up to companies to seize them now, carefully studying the main trade trends and identifying the right interlocutors.