Major price differences in the public sector – new report reveals inefficiencies in food procurement

May 6, 2026

A new report from Matilda FoodTech shows that Swedish municipalities and regions pay significantly different prices for the same food products. In some cases, the price difference reaches as much as 62 percent – despite the products being identical.

The report, Procurement Index 2025: Food in the Public Sector, is based on data from 270 municipalities and a majority of Sweden’s regions. It provides a unique insight into how public sector food budgets are used, highlights key trends in procurement behavior, and identifies where savings can be made.

The findings reveal clear challenges. The share of organic food has stagnated at 33 percent over the past three years, while the share of locally produced food has decreased to 10 percent – despite increasing ambitions and political goals in both areas.

“The differences we see are not about the conditions – they are about how organizations work. Those who take a structured, data-driven approach can both reduce costs and achieve their sustainability targets,” says Stefan Persson.

The report also points to structural challenges in the market. Two large suppliers dominate 76 percent of the public food market, making it difficult for smaller, local producers to compete. At the same time, digital procurement processes create barriers for suppliers that lack the required product data in digital systems.

However, the data also shows significant opportunities. Organizations that work in a structured and data-driven way – for example by increasing contract compliance and continuously analyzing purchasing data – can achieve substantial savings without compromising quality.

Food procurement is one of the largest cost areas in public meal operations. With rising prices and increased uncertainty in supply chains, the need for better control and smarter purchasing decisions has never been greater.

The Procurement Index 2025 is intended as a practical tool for producers, wholesalers, and public sector buyers. It enables organizations to compare their own performance with national averages and best-in-class municipalities – and to identify concrete actions for improvement.

Key findings from the report:

• 33% organic on average, unchanged over the past three years. At the same time, leading municipalities exceed 60%.
• 10% locally sourced, down from 15% – despite increasing ambitions.
• 72% of the market is dominated by two suppliers. Small, local producers struggle to overcome the digital barrier.
• 62% price difference for organic bananas, the product with the greatest variation.