Megatrends

The global changes identified by us shape our operating environment over the long term. Through our strategy and responsible operations we create the future with the choices we make today, by responding to the challenges and opportunities the megatrends bring. Megatrends are also taken into account in our focus areas of corporate responsibility.

Sustainable development and responsible operating methods

Impacts

• Stakeholders expect transparency, reliability and safety throughout the value chain; a sustainable business model is a precondition for long-term success
• Consumers are interested in environmental footprint of the products
• Regulations and reporting obligations are increasing; the importance of thirdparty sustainability assessments is growing
• The scarcity of natural resources calls for resource efficiency and adaptation to climate change; the importance of the circular economy is growing
• The development of sustainable technologies is progressing

Our answer

• We engage in impactful sustainability work by developing operations and the entire value chain in line with sustainable development, in cooperation with our partners
• We consider expectations in our products, operations and communication
• We assess the environmental impacts of our operations and reduce our emissions
• We ensure that the materials we use are recyclable and in line with the principles of the circular economy
• We invest in environmentally friendly production technology and the transparency of our  operations
• We contribute to the vitality of local communities

Digitalisation

Impacts

• Automation, robotics and artificial intelligence increase efficiency
• Digitalisation is speeding up the pace of technological change, as well as challenging operating  models
• Digitalisation is reflected in consumer and customer behaviour: ease, transparency and speed are highlighted
• The amount of information and data is growing; meaning of ownership, control and utilisation are highlighted
• The division between products and services is becoming blurred; digital platforms are increasing throughout the value chain
• Social media drives consumption

Our answer

• Digitalisation is part of our strategy, ensuring future competitiveness and capacity for change
• We invest in data management and proactive management by information
• We use different channels and interaction for consumer communication and better customer experiences
• We improve the recognisability and desirability of our brands to increase purchasing recommendations
• To response to changes in the supply chain by developing new distribution paths and and response times

Globalisation and changes in the global economy

Impacts

• Rapid global changes in exchange rates, political and economic situations, raw material prices and availability are affecting local operating conditions
• Import restrictions and customs duties are increasing as a result of protectionism
• Global subcontracting chains are vulnerable
• Global trends and product ideas spread rapidly; markets are becoming integrated
• Population mobility between countries is increasing
• Major international companies are becoming stronger, and local operators are challenging them

Our answer

• We focus on selected markets and differentiate ourselves through a local approach while also strengthening our ability to act as an efficient and credible international operator
• We monitor global trends and changes and respond to them through agile product development
• We ensure the predictability of prices and availability of materials through long-term procurement  agreements, among other means
• We develop risk management and measures to ensure operational continuity, based on what we have learned during the coronavirus pandemic

Changes in population structure

Impacts

• Urbanisation continues
• The number of single-person households is increasing
• The population is growing globally; immigration and the number of refugees are increasing in some regions
• The population is decreasing in certain market areas
• People’s life expectancy is increasing, and the proportion of the old-age population is growing

Our answer

• We consider new opportunities created  by new consumer groups and packaging sizes
• We develop new product and service concepts
• The decreasing population and increasing diversity are challenging employers, highlighting the importance of labour availability and management

Changes in consumer behaviour

Impacts

• Choices are increasingly made based on naturalness, healthiness, individuality and product origin
• Consumer groups are becoming polarised, and consumption is becoming more personalised and value-based; quality and price awareness are also polarising consumers
• Hybrid shopping increases and the relationship between physical and digital purchasing changes, highlighting the ease and speed of shopping
• Purchasing decisions are increasingly based on peer reviews and recommendations

Our answer

• We increase consumer insight and develop marketing, sales and our brand identity to support purchasing behaviour
• We invest in innovative products and new product segments and consider trends in taste, raw materials and packaging
• With trends becoming global and spreading more rapidly, product lifespan is decreasing
• Product volumes are increasing through polarisation and individuality
• The importance of product and logistics process management is growing