Fortified/Functional Packaged Food in Finland

PROSPECTS

Greater innovation needed to halt stagnating demand for fortified/functional packaged food

Fortified/functional packaged food experienced ongoing stagnation in terms of demand in Finland at the end of the review period due to maturity and increasing competition from other more dynamic health and wellness packaged food categories such as free from. While the addition of vitamins, probiotics or the use of xylitol were once considered to be fashionable, they are losing their appeal.

Strategy for combining number of functions gains in popularity

Combining a range of functionalities within one product to widen their consumer reach is becoming an increasingly popular strategy used by players within fortified/functional packaged food. For instance, the new Valio Gefilus Citrus Smoothie Yoghurt Drink includes probiotics, vitamin D and calcium.

Expanding flavour portfolios could help to attract consumers’ attention

With so many functional/fortified packaged food brands making health claims, players need to attract consumers’ attention through differentiation, including expanding and developing their flavour ranges to offer a more indulgent experience, in addition to functionality to help to inject some much-needed dynamism into the category. FF sugar confectionery brand Läkerol from Cloetta Suomi Oy, launched its new line of xylitol sweetened no added sugar product Läkerol Dents (chewy pastilles) in an exciting pink grapefruit flavour, accompanied by the health claim “Supports daily dental care” on its packaging.

COMPETITIVE LANDSCAPE

Fairly static competitive landscape in line with general performance of category

In line with the general performance by the category in 2019, the competitive landscape of fortified/functional packaged food remained fairly static with only marginal losses and gains in terms of value share noted. Valio retained its convincing lead, followed at some distance by Unilever Finland Oy, with the remaining players all holding single-digit value share.

Lacking true innovation, players continue to promote health benefits

In the absence of true innovation at the end of the review period, players continued to promote and benefits of their products, with health claims continuing to be the most popular strategy. The packaging of dominant FF gum brand, Jenkki Professional, tends to feature such claims as “stops the acid attack”, “researched effectiveness” and “protects gums”.

Online platforms help to support players’ promotional strategies

Many brands within fortified/functional packaged food support their sales and help promote their products’ benefits through online platforms and their own websites, which allows them to offer consumers a range of information. FF butter and spreads brand Benecol, which claims to lower cholesterol, operates a website for health professionals in addition to its own brand site, where it shares advice on how to lead healthier lifestyles in addition to recipes using its products.

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