Well equipped in a turbulent market

During the first half of 2021, the pandemic and government restrictions continued to have a significant negative impact on the Group’s main target market, the HoReCa sector. However, as in 2020, the food and drink take-away sector performed strongly as customers and consumers changed their behaviors. The third quarter saw an easing of restrictions and a recovery in food and drink sales, while the fourth quarter was again characterized by restrictions.

Target groups

Both Group brands – Duni and BioPak – primarily target different professional customer segments within the sector of HoReCa+:

  • Hotels
  • Fast casual, such as cafés, bars, food trucks
  • Full service restaurants
  • Catering, such as services for companies and health care but also for special occasions

The Duni business area also targets end-customers with its tableware range:

  • HMR (Home Meal Replacement), such as delis, grocery stores and online suppliers.

Competitors

With two supplementary product ranges, we have few similar competitors. Business area Duni is the market leader in Europe and with its global presence has relatively little competition in terms of the world market. The competitors that exist, for example in tissue, cannot compete with Duni’s premium range and design. Many of them are smaller, local or regional companies.

The BioPak business area is the market leader in the Asia-Pacific region and is continuously strengthening its position in Europe. There are a number of competitors for the existing range. With the increasing climate focus, more and more start-ups are coming up with eco-adapted and circular solutions. They can be both competitors and valuable partners.

Business intelligence

External threats

The pandemic continued in 2021 to have a strong negative impact on the travel and experience industries and the HoReCa sector. It is difficult at this stage to predict how the pandemic will develop or what restrictions will continue to apply.

In 2021, several external factors have affected the global industry. The lack of transport containers has led to deliverydifficulties as well as increased delivery times and transport costs. Electricity shortages have closed factories in Asia, creating capacity shortages in several industries. Raw material prices, like inflation, have risen during the year, driving up costs in the market.

New laws and political decisions

On July 3, 2021, the EU’s single-use plastic directive (SUPD) entered into force. The phase-out of plastics and the ban on expanded polystyrene (EPS) and the accompanying product labeling will have a major impact on the market, although much is still unclear.

The EU is pursuing a circular economy as part of its European Green Deal to make the Union climate neutral by 2050. This means that material selection and circular end-of-life solutions will be crucial. These issues are best solved through various collaborations on new businessmodels and reuse of products.

Trends, attitudes, values

The three most important macrotrends:

  • Sustainability and circular models
  • Hygiene
  • Digitalization

The trend towards sustainable solutions and circular models is driven by new laws and regulations, but also by an increasingly strong and broad social awareness of the climate changes. This trend threatens the relevance of disposable articles, but at the same time there is a strong desire to meet, eat and socialize, which drives the sale of take-away products.

In 2021, there was continued strong demand for hygienic meal solutions. This signals new customer needs and this demand is likely to be sustained for many years.

Digitalization made a major breakthrough in the HoReCa industry in the pandemic year 2020 and now covers the entire value chain, from new solutions and products to purchasing, customer interaction and delivery, to evaluations and service.

Customer-specific, brand-building solutions continue to be important. When building their concepts, many restaurants not only transform their menu, but also table settings and food packaging.

Technical development

The phasing out of plastics is driving the development of alternative, mostly fiber-based solutions. Replacing the product benefits of plastic will require several different materials to meet different needs, such as for fatty foods or soups.

In 2021, as the first company, the Group has introduced renewable binders in several of our fiber-based products with the Duni brand, such as napkins and table coverings.

Growth opportunities

We have highly competitive products for the growing take-away sector, but also hygienic solutions such as cutlery bags and sealing systems. The strong environmental trend means that many customers are willing to pay more for these types of solutions, especially if they are easy to use.

Following the digital breakthrough in 2020, we continue to strengthen our offering in e-commerce and other digital services. With our strong focus on innovation and new collaborations, as well as the acquisition of minority stakes in exciting new companies, we are well positioned to expand our take-away offering.

The unraveling of traditional demand from different customer segments during the pandemic means synergy potential to offer Duni and BioPak products to one and the same customer. Through this we can create more sales.

Geographically, Asia is a growing market where the interest and need for sustainable packaging solutions is steadily increasing. Asia is also the world’s largest full-service market, with rising demand for products such as table covers and napkins.

The three most important macrotrends:

Sustainability and circular models

Hygiene

Digitalization