Apetit’s market position

Apetit is the largest Finnish operator in Finland, its principal market area, and the leading developer of a unique vegetable-based value chain from field to table in its product groups.

Frozen foods product group

Market

Frozen vegetables and ready meals are sold to retailers, the food service sector, the food industry and exports.

The grocery trade is highly concentrated in Finland. The largest players are the S Group, the K Group and Lidl. The value of the grocery trade in Finland is approximately EUR 18.6 billion. In 2019, the value of sales in the grocery trade increased by 2.6 per cent. The frozen foods category (excluding ice-cream) grew by 7.0 per cent in Finland in 2019. 

As a whole, the proportion of the frozen foods groups produced by Apetit of total grocery sales is not recorded. In Apetit’s management’s estimate, the annual growth in sales of frozen vegetables and frozen ready meals is faster than that of the grocery trade in general.

In the professional food service sector, sales are distributed more evenly, both directly to restaurant chains and through various public service clusters and food service wholesalers. In 2019, the wholesale food service sector grew by 6.7 per cent.

The sales performance of the professional food service sector is affected by changes in demand in staff restaurants, fast-food restaurants, general restaurants and service station restaurants, and in public services such as schools and health care.

Market share

Apetit is the market leader in frozen vegetables and frozen ready meals in Finland.

Competitive position

Apetit’s main competitors in the frozen foods group are Findus, Orkla and retailers’ private labels.

Competitive advantages:
  • Unique raw material procurement model based on contract growing
  • Strong market position and a respected brand
  • Product development and production know-how
  • Cultivation development based on a sustainable food chain
  • High domestic content

 

Vegetable oils

Market

The main customer segments for vegetable oils in Finland are the food industry, the professional food service sector and the grocery trade.

The structure and trends of the grocery trade and the professional food service sector are similar to those of the frozen foods group (see above). 

Almost all of Finland’s leading food industry companies use Apetit’s vegetable oils as raw materials in their products.

Market share

Apetit is the market leader in vegetable oils in the food industry and the professional food service sector and a significant operator in the grocery trade. 

Its strongest market position is with Finnish food industry customers who appreciate domestic vegetable oil raw materials.

Competitive position

The biggest operators in the vegetable oils market are Apetit, Scanola Baltic, which is a part of the Danish Agro group, other foreign companies that import oils into different customer channels, and Bunge in retail products.

In Finland, Apetit controls an overwhelming share of domestic vegetable oil as the only industrial-scale vegetable oil refiner in the country.

Competitive advantages:
  • Economies of scale in production and procurement
  • Very high production efficiency and security of supply
  • High-quality products for a wide customer base
  • Environmentally friendly and chemical-free production process
  • High domestic content

Oilseed-based feed raw materials (rapeseed expellers)

Market

The main customer segment for oilseed raw materials is the feed industry in Finland and the other Nordic countries.

Market share

Apetit is Finland’s only industrial-scale operator and its share of the sales of oilseed-based feed components is significant in Finland.

Competitive position

The largest operators in the market for vegetable-based raw materials for feeds are Apetit and the oil milling plants of other operators in the Baltic countries, Germany and Scandinavia.

Competitive advantages:
  • No salmonella
  • Alternative as soy replacement

 

Grain Trade

Market

The grain trade market operates in Finland and internationally.

The global markets for grains, oilseeds and feed raw materials are growing. The Finnish market is stable, but varying weather conditions have a significant impact on crops. In the Baltic countries, the production of grains and oilseeds has grown significantly.

Established laws of supply and demand in commodities guide price trends on the markets. In the Grain Trade, volumes alone do not determine profitability which is also substantially influenced by the success of individual trades in prevailing market conditions. 

Market share

Apetit is a significant operator in the Finnish grain market and its market share in the Finnish grain trade varies from year to year. Apetit is one of the three major grain traders in Finland. In Grain Trade, Apetit operates under the name Farmer’s Avena Berner. Apetit’s role is especially important in Finnish grain exports.

In the Baltic grain markets, Apetit’s market share is slightly smaller than in Finland, and the market shares vary from country to country. Lithuania’s large grain market, in particular, is very fragmented. A large part of the grain obtained in the Baltic region is sold to the international market.

Competitive position

Apetit’s has a strong competitive position in Finland, especially thanks to long-lasting relations with growers. In addition, it has substantially strengthened is market position in the Baltic countries in recent years.

The main competitors in Finland are Lantmännen and Hankkija, which is part of Danish Agro. In the Baltic procurement area, the most significant competitors include Baltic Agro, a part of the Danish Agro group, Scandagra and several local companies.

Competitive advantages:
  • The sole Finnish operator
  • Expertise and personal service