Oboya is a manufacturer and supplier of complementary products for professional growers (89% of sales) and home growers (11% of sales) within the horticultural industry. The company operates within a traditional and fragmented market, offering a one-stop shop solution for its customers, which enables more flexible and cost-efficient procurement. In 2018, 52% of Oboya’s sales came from Europe, and 47% from Asia.
The markets Oboya operates in are fragmented and under consolidation, with producers seeking more efficient and flexible procurement (especially in Asia, where underlying growth of 7% until 2030 is expected). That could help Oboya gain additional market share in its existing markets. We also see several trends working in the company's favour, such as increased consumption and waste reduction.
Demand for Oboya’s products comes from end-market consumption. If market outlooks change, that could affect Oboya negatively. We expect demand for Oboya’s one-stop shop offering to attract customers, as we believe it could improve efficiency. If that trend is not realised, however, it could also affect the company negatively. Other risks include competition, market and macro environments, legislation, and currencies.