I think the most popular souvenir from Sweden is something with a moose image. However, Swedes keep elks for foreigners, and within Sweden the Dala horse is very popular handicraft.
Since Viking Times, the horse has been considered as a holy animal in Sweden, and wooden horses served as children’s toys for many centuries. Dala Horses appeared in 1800s in the Central Sweden. The design comes from the Biblical story about Johan.
In the mid 19th century during the Swedish display at the exhibition in Paris, the Dala Horse gained international popularity. Traditional Dala Horses are reddish, but it’s possible to find them in other colors, as well.