Organic Beverages in Finland

PROSPECTS

Polarising trends within organic hot and soft drinks

Organic beverages continued to record the strongest performance within health and wellness beverages in 2019 due to its small size and strong growth opportunities, particularly in value terms due to its highest average unit price. However, with an improving economy, Finns are becoming increasingly interested in, and are willing to pay for, products that they perceive can offer them the greatest specific value in terms of clean ingredients, although the majority of the population will continue to compare prices and opt for more affordable standard products.

Fashionable kombucha expands into organic soft drinks

Combining organic with other fashionable drinks that offer specific value is likely to gain strong consumer attention. Although its higher than average unit price is a barrier to stronger growth for organic tea, the increasing interest in other types of healthy tea beverages, particularly within the RTD area, could offer further development and growth potential.

Finns expect transparency and strong ethics linked to organic beverages

Sales of organic beverages will continue to be driven by ethical values and company transparency, both of which appeal to Finnish consumers. Offering a story behind the manufacturing process, particularly if they support Fairtrade farming for their ingredients, is a strong marketing factor for many companies.

COMPETITIVE LANDSCAPE

Intensifying competition from both local players and private label

Organic beverages continued to be led by organic coffee players Gustav Paulig Oy Ab and Meira Oy in 2019, due to the higher value that this category holds overall. However, both players lost value share due to intensifying competition, most notably from the likes of leading organic soft drinks player Valio Oy, and private label lines such as Pirkka, as retailers continued to expand their presence in this category.

New launches from Eckes-Granini in attempt to regain value share in organic 100% juice

Organic 100% juice continued to see a number of new launches, with players keen to capitalise on the strengthening demand for clean, pure fruit juice. Eckes-Granini Finland attempted to halt the loss of share to leader Valio with the launch of God Morgon Organic 100% squeezed orange juice in the summer of 2019, with an emphasis on breakfast juice, although it was also introduced in 250ml bottles for on-the-go consumption.

Valio continues to perform strongly, capitalising on its domestic origins

Domestic manufacturers continued to emphasise the local origins of their products, as this is an extremely important aspect for Finns when they come to make a purchasing decision. Valio continued to gain strong share in organic beverages in 2019, supported by the impressive performance of its new organic 100% juice Valio Luomu smoothie, and its Valio Orchard Organic Blueberry Juice.

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