Fair trade, organic outlay & quality product to change drinks’ preferences in Finland: Ken Research


In Finland, there was a constant growth of hot drinks market in 2016. World’s highest per capita coffee consumptions were accounted in Finland and it was very strange to see that there was no such high growth in 2016. Premium, organic and niche brands product are growing in interest in specialty and in retail volume but then also the overall growth in hot drinks industry was sluggish.

According to the market research report “Hot Drinks in Finland“, the promising channel in Finland is the on-trade sales of soft drinks. As favorable cafes were introducing product innovation and new trend to consumers. Especially in large cities, the number of cafes had increased as consumers are becoming more demanding regarding the product, services and the concept of outlet. However, there is a slow growth in cafes and restaurants because of high price and prolonged economic uncertainty. Finland is a country eating or drinking in public is not considered significant, therefore they prefer drinking hot drinks at home and café culture is not on rise like other countries. In addition, the Finns prefer to stay at home and in warmth during cold winter month.

The leading hot drinks in Finland continued to be Gustav Pauling. In 2016, there is growth in competition of smaller niche players and it acquired a major share of Gold and Green Foods. Nyhtokaura is an oat product produced by small producer gained large popularity among consumers. First, the private label producers use to offer only basic products but now they started offering sophisticated alternatives as well, which had led to an increase in value of share on the overall basis in the end of review period.

Single estate and cold brew coffees, witnessed an intensified trends of specifically coffees in 2016. However, it is predicted that these trends will not last long among the experienced coffee enthusiasts. Quality filter coffee was one of the varieties, which is considered as a significant launch in on-trade as well as off-trade. Gustav Pauling and Meira are the leading coffee players had invested in rebranding their product to classic product and they offered more specialty coffee as well. These specialty coffees include organic and dark-roast varieties.

In the forecast period, it is expected that the hot drink market in Finland will remain static over the years. No dramatic changes are expected because of high per-capita income. Fairtrade, organic and specialty beans are the product with quality and are likely to boost sales in the market for specific categories. The on-trade sales will witness a study growth and it is predicted that tea will continue with its slow growth but have a retail value growth in Finland.

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