Impact of food retail market power on small food producers in Sweden: Challenges and opportunities

The increasing market concentration in the food retail industry poses challenges to sustainable development by amplifying power imbalances within the supply chain. This study examines the dynamics between small food producers and large retailers, investigating the constraints that market concentration may impose on equitable collaboration. Adopting a qualitative approach, the research analyzes three case companies in Sweden to explore the role of shared understanding and trust for fostering sustainable sourcing practices. Findings underscore the importance of flexible partnership models and political market regulation to address systemic barriers. Key conditions for success include collaborative frameworks prioritizing mutual benefits, improved marketing of local and value-added products, and government intervention to sustain domestic production amidst rising private-label competition. By highlighting strategies to balance power dynamics, this research offers actionable insights for fostering a more resilient food system. These findings offer globally relevant strategies for promoting fairness and sustainability in food supply chains.