Analysis of Challenges and Trends in the Finnish Yacht Manufacturing Industry in 2025

The Finnish Marine Industry Association Finnboat has released the latest data, showing that the number of new yacht registrations in 2024 decreased by 19.6% compared to the previous year, but the second-hand boat market remains very active. The Finnish yacht industry employs around 3,500 people, and the estimated turnover of Finnboat's member companies is close to 800 million euros.

Finnboat CEO Jarkko Pajusalo commented, "2024 is still a challenging year for the yacht manufacturing industry, but a survey conducted at the end of the year predicts that the situation will improve. Another encouraging sign is that the number of yachts to be exhibited at the upcoming Helsinki Vene Bat boat show will be significantly higher than last year, marking the beginning of the yacht season."

Despite the cautious consumer behavior and weakened purchasing power, especially for the best-selling small outboard motor boats, recovery in purchasing power is expected to improve this situation gradually. Pajusalo stated, "Leisure boating is an almost universal activity in Finland, and the recovery of demand for small and medium-sized outboard motor boats depends on consumer purchasing power and confidence in the national economy. The recovery of purchasing power in Finland and neighboring markets started to accelerate in the second half of last year, but the pace is clearly slower than expected."

The Helsinki Boat Show in Finland is expected to feature more yachts, with over 90% of the new yachts sold being less than 7 meters long. Last year, 1,161 new yachts under 7 meters were registered, compared to just 41 more than 10 meters.

Key indicators of the Finnish yacht industry, such as the number of yacht registrations, have been rising since the post-financial crisis period in 2013, reaching a peak in 2021, during the pandemic. All yachts longer than 5.5 meters or with an engine power greater than 15 kW (20 horsepower) are recorded in the ship registry.

In 2024, the total number of newly registered watercraft was 2,631 (down from 3,272 in 2023). Among these, 1,895 were powerboats (down from 2,359 in 2023), 31 were rigid inflatable boats (RIBs) (down from 51 in 2023), and 653 were jet skis (down from 785 in 2023).

Finnboat noted that Finns trust well-known domestic brands, with the top ten registered powerboat brands being dominated by Finnish manufacturers. Buster remained first with 350 registrations, followed by Suvi (184) and Faster (180). Other brands like Silver, Yamarin, and Terhi also had over 100 registrations.

As for sailboats, the number of new registrations remained stable at 17, with the French brand Beneteau being the most popular, registering four yachts. The largest sailboat registered in Finland was a 16-meter Beneteau Oceanis 51.1, followed by a 15-meter Swan 48 built in Finland at the Nautor shipyard in Pietarsaari.

Although new yacht registrations are down, second-hand yacht sales are still much more active than before the pandemic. According to the Finnish Transport and Communications Agency (Traficom), 23,506 yachts changed ownership, just 100 fewer than the previous year.

Yacht exports from Finland have also declined. From January to November 2024, Finland’s yacht export value decreased by approximately 24% compared to the same period last year. Over 3,000 yachts were exported to 45 different countries, with the number of yachts exported falling by 39%. The United States remains the largest export destination, accounting for 45 million euros worth of yachts.

The biggest yacht import country remains Mexico, which imported 997 yachts, mostly motorboats, followed by Poland, with 107 yachts imported.

The most active yacht regions in Finland are Uusimaa and southwestern Finland, which account for 40% of all new yacht registrations. The busiest yacht cities are Helsinki, Kuopio, Espoo, and Turku.

Despite some challenges, the outlook for the Finnish yacht industry is optimistic, with 44% of companies predicting increased turnover for 2025, and 23% expecting workforce growth.

1. Industry Status and Challenges

• Sharp Decline in New Yacht Registrations: The number of new yacht registrations in 2024 decreased by 19.6% year-on-year (2,631 yachts). Registrations of motorboats, rigid inflatable boats (RIBs), and jet skis fell by 20%, 39%, and 17%, respectively. The primary reasons include weak consumer purchasing power and lack of economic confidence, particularly a downturn in demand for small outboard motorboats (which account for 90% of new registrations).
• Active Second-hand Market: The number of second-hand yachts changing ownership reached 23,506, nearly matching the previous year's level, indicating that consumers are turning to more cost-effective second-hand options amid economic pressure.
• Export Setbacks: From January to November 2024, yacht export value dropped by 24% (with a 39% decrease in quantity). Key markets such as Norway (-44%) and Sweden (-58%) saw a sharp decline in demand. The U.S. remained the largest export destination (45 million euros), but global demand weakness impacted overall performance.
• Decreased Imports: Imports from countries such as Mexico (-46%) and Poland (-34%) fell, reflecting reduced domestic demand for imported yachts or supply chain adjustments.

2. Structural Features

• Small Yachts Dominate the Market: 90% of new yachts are less than 7 meters long. In 2023, 1,161 yachts under 7 meters were registered, compared to only 41 yachts over 10 meters, highlighting Finland's preference for leisure and short-distance boating.
• Domestic Brand Advantage: The top ten registered powerboat brands are all Finnish, such as Buster and Suvi, demonstrating the competitive strength of local manufacturing in terms of cost-effectiveness, quality, or brand trust.
• Sailboat Market is Niche but High-End: A total of 17 new sailboats were registered, with high-value brands like France's Beneteau and Finland's Swan 48 supporting the premium market. The average export value of sailboats was as high as 2.98 million euros (1.25 billion euros for 42 boats).

3. Recovery Signals and Industry Confidence

• Exhibitions and Production Expansion: The number of yachts exhibited at the Helsinki Vene B?t Boat Show has increased, and Saxdor Yachts is expanding its shipyard, signaling an expectation of future demand recovery.
• Optimistic Business Outlook: 44% of companies expect an increase in turnover in 2025, and 23% plan to increase their workforce. Despite 15% of companies laying off employees in 2024, overall employment expectations remain stable (68% of companies plan to maintain their current workforce).

4. Key Drivers and Outlook

• Restoration of Purchasing Power: Purchasing power in Finland and surrounding markets began to recover slowly in the second half of 2023. If this recovery accelerates, it will boost demand for small and medium-sized boats.
• Economic Confidence: Consumer expectations regarding the economic outlook directly impact boat purchasing decisions, especially in leisure boating activities, which are widely popular across Finland.
• International Market Fluctuations: The recovery process in the U.S. and Europe, as well as exchange rate changes, will affect exports. Companies need to focus on expanding into emerging markets.

5. Regional and City Distribution

• Uusimaa and Southwestern Finland as Core Regions: These areas account for 40% of all new yacht registrations in Finland. Active cities include Helsinki (206 yachts), Kuopio (114 yachts), and others, reflecting concentrated consumer demand in economically developed areas.
• Prevalence of Small Boats in Lake Regions: There are hundreds of thousands of unregistered small boats (under 5.5 meters or low-powered), highlighting the leisure culture in Finland's inland waters.

Summary

The Finnish yacht manufacturing industry is currently facing dual pressure from declining demand for new yachts and a drop in exports. However, the active second-hand market and rising industry confidence (evidenced by boat shows and investments in production capacity) provide a foundation for recovery. Future growth will depend on the speed of domestic purchasing power recovery, improvements in the global economic environment, and the continued competitiveness of local brands in the small boat sector. Companies should focus on cost control, export diversification (such as expanding into the Asian market), and international promotion of high-end sailboats and other high-value products.