Consumer confidence has strengthened in Finland, and expectations for economic development are now somewhat more optimistic. However, consumers are still keeping a tight grip on their grocery spending. At the same time, the food industry is cautiously hopeful about positive developments ahead.
According to Finnish Food and Drink Industries Federation’s (ETL) economic review published in May, consumer spending in Finland remains cautious despite a slight improvement in confidence during the spring. Shoppers continue to opt for more affordable products, take advantage of store promotions, and reduce food waste with careful planning.
Retail chains are now competing for the euros of budget-conscious consumers by offering substantial price discounts.
Consumer confidence and economic expectations have a significant impact on the entire food sector. A rebound in domestic demand would boost growth in the food industry, as insufficient demand remains the biggest barrier to growth.
The purchasing power of Finnish consumers is now supported by moderate inflation, declining interest rates, and agreed wage increases. In 2026, additional relief will come from reductions in personal income tax and the value-added tax on food.
Production recovering, profitability lagging
Food industry production in Finland began to recover in 2024, and companies expect this positive trend to continue. However, output still remains below the 2021 peak.
Nearly half of the companies responding to ETL’s spring member survey expect production to increase during the current year. Expectations for production and employment levels in March 2025 were on par with those reported in September 2024.
Employment in the food industry has remained stable in recent years, even as production volumes have declined. According to the survey, 60 percent of respondents expect staffing levels to remain unchanged.
However, expectations for profitability have declined. In March 2025, companies had a more pessimistic outlook than in September 2024. Last autumn, nearly half of respondents anticipated improved profitability over the next six months, but this spring only one in four shared that view, and a slightly higher share expected profitability to deteriorate.
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