Falsterbo is a town located at the south-western tip of Sweden in Vellinge Municipality in Skåne County. Falsterbo is situated in the southern part of the Falsterbo peninsula. It is part of Skanör med Falsterbo, one of Sweden's historical cities.

Falsterbo historically enjoyed trading privileges with the Hanseatic League. During the Middle Ages, it was a rich and prestigious town because it was located in a center of trade and herring fishery. On the beach between Falsterbo and neighboring town Skanör was the Scania Market where merchants from various parts of Europe had fixed market places.

Scania Market was a major fish market which took place annually from around 1200. It became one of the more important events for trade within the Baltic Sea. Scania Market continued to be an important trade center for 250 years and was a cornerstone of the Hanseatic League's wealth. The basis for the market's popularity was the rich herring fishing around the Falsterbo Peninsula. Scania Market declined in importance during the 1400s, as the herring harvest in the area decreased. The cities were politically merged into a single city, Skanör med Falsterbo.

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