Megatrends
Global changes shape our operating environment in the long term. We pay attention to the challenges and opportunities arising from megatrends that affect Olvi Group. Through our strategy and sustainable operating method, we create the future with the choices we make today. Megatrends are also taken into account in our focus areas of corporate responsibility.
Sustainable development and responsible operating methods
Impacts
- There will be increasing expectations and a heavier focus placed on sustainability
- Our stakeholders expect transparency, reliability and safety throughout the value chain; a sustainable business model is a prerequisite for future success
- Consumers are particularly interested in the carbon footprint of products
- Regulation and reporting obligations will increase, the significance of sustainability reviews will grow
- The scarcity of natural resources will require resource efficiency and climate change adaptation; the circular economy will become a necessity
- Impacts of the climate change will become increasingly evident; the climate will grow warmer, biodiversity loss will accelerate, and extreme weather conditions will become more common
- The development of sustainable technologies is progressing
Our answer
- We engage in impactful sustainability work and develop our operations and the entire value chain in line with sustainable development, in cooperation with our partners
- We consider expectations in our products, operations and communications
- We assess the environmental impacts of our operations and reduce our climate emissions
- We ensure that the materials we use are recyclable and increase the utilisation of the circular economy
- We invest in environmentally friendly production technology and the transparency of our operations
- We review the impact of the climate change on our operations in light of risks and opportunities. We contribute to the alleviation of the environmental crisis and participate in ecological reconstruction.
- We promote local vitality
Digitalisation
Impacts
- The amount of information and data is growing, resulting in a data economy
- Automation, robotics and artificial intelligence challenge our ways of working and increase efficiency
- Digitalisation accelerates the technology transformation and challenges operating models
- Technology and data blend into our everyday operations
- Digitalisation and social media are reflected in consumer and customer behaviour: ease, transparency and speed are highlighted
- The boundaries between the physical and virtual worlds are blurring and digital platforms are increasing throughout the value chain
- The need for continuous competence development is emphasised
Our answer
- Digitalisation is part of our strategy aimed at ensuring our competitiveness and ability to change in the future
- We invest in data management and utilisation, and proactive management by information
- We use multiple channels and interaction for consumer communication and better customer experiences
- We ensure our employees’ competences and integrate digital solutions in our work
Globalisation and changes in the global economy
Impacts
- Rapid global changes are affecting local operating conditions
- Geopolitical tension is increasing
- Long subcontracting chains are vulnerable
- Trends and product ideas spread rapidly; markets are becoming integrated
- Major international companies are becoming stronger, and local operators are challenging them
- Pandemics and epidemics become more common
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
- We develop risk management and measures to ensure operational continuity, based on what we have learned during the coronavirus pandemic and the war in Ukraine
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 certain regions, population is decreasing
- People’s life expectancy is increasing, the proportion of the old-age population is growing and the dependency rate is deteriorating
- Mental health issues are increasing
- Prerequisites for increasing wealth are deteriorating, inequality will increase
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 fair management
- Increasing attention is drawn to comprehensive well-being
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 is increasing, meaning that the relationship between physical and digital purchasing is changing, and the ease and speed of shopping are being highlighted
- Purchasing decisions are increasingly based on peer reviews and recommendations
- Consumers’ purchasing power and behaviour are affected by the decrease of available funds caused by inflation
Our answer
- We increase consumer insight and strengthen 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
- We improve the recognisability and desirability of our brands to increase purchasing recommendations