Industry insight: Palma 2025 is a ‘buyers’ market’ given current geopolitical uncertainty
Palma International Boat Show (PIBS) 2024
Palma International Boat Show (PIBS) 2025 opens on 30 April and will have around 250 boats on display in Mallorca. As the industry navigates the tumultuous geopolitical situation brought about by the USA’s changing policies, Marine Industry News gathers an exclusive cohort of exhibitors to discuss how they’re reacting to market uncertainty and more. Today, the attendees offer insight into the effects of political change.
The summer season is almost upon the European boating industry, but is it all sunshine with the Trump tariff debacle causing unease through global supply chains, and consumers cautiously eyeing the yo-yoing stock market? As Ione Astondoa, COO of Astondoa (which builds luxury motor yachts in Spain), points out: “A boat is not a basic necessity.
“Although the buyer/owner of certain types of yacht — those over 24 metres in length – has a high purchasing power, there is a real possibility of instability in the short term, which will probably affect certain purchase decisions.
“The global instability will undoubtedly have an impact that is still being assessed.”
This means the company is rethinking its strategies and strengthening certain markets, such as with international clients who sail in the Balearic Islands and value boats as a solid, high-quality investment.
Time to open up new markets
Astondoa believes the challenges are also an incentive. “We are well aware that opening up new markets is key to our business strategy. In this sense, in recent months we have strengthened our international presence in the Middle East, in Dubai, and the Eastern Mediterranean, in Cyprus and Lebanon.”
The US tariff war will be on everyone’s lips at the show, says Astondoa. “But there will also be talk of sailing, as we are on the verge of the summer season and all visitors to the Palma Boat Show will be thinking about preparing their boats for sailing and enjoying the sea.”
Local relevance takes over from borderless mindset, in new geopolitical landscape
Gianni Paladino, commercial director for Lusben (one of the leading refit centres in the Northern Mediterranean and a brand of the Azimut-Benetti group), says the global landscape is shifting — from a borderless mindset to a renewed appreciation for local relevance.
“This year’s show will likely reflect that evolution: less about broad, standardised offerings, and more about bespoke, market-specific solutions. We anticipate a stronger focus on value-driven specialisation in this current context, where deep expertise is the real competitive advantage.
“We’re navigating an increasingly complex global scenario where local developments often have a global impact,” Paladino continues. “While our strategy is not directly influenced by recent geopolitical events, we remain mindful of their potential effects on the industry.”
Rethinking future strategies
Silvio Pupino, director of marine sales, Hertz Marine (which makes audio products specifically for marine environments), states that all companies will be reconsidering their plans for the future.
“The USA tariffs are affecting the North American business, forcing everyone to rethink their strategies and look for business elsewhere.”
And as a consequence, Pupino (pictured) predicts that this year’s PIBS will be “flat or slightly better than 2024, but down from 2022 and 2023.”
“Sales of smaller boats/yachts will probably be affected by the political trends; we see many yacht builders focusing on bigger size vessels,” he says.
Market belongs to buyers, but high-performance to retain price point
Competition is increasing for mainstream products, while high-performance should be able to retain their appeal and price point, believes Carlos Vassallo, global head of sales at SAY Carbon Yachts Gmbh, a German manufacturer.
“The current economic climate is in favour of the buyer, meaning it will become a buyers’ market, where decision-makers will have a wider range of choices and more favourable conditions.”
Vassallo’s confident that the company’s new product pipeline is on the right track to serve its select buyers.
“The current geopolitical environment has added a layer of caution to every decision — a trend that began in Q4 2024.
“Nevertheless, our business model is based on limited-series, high-performance vessels for select buyers. We’ve received strong feedback from the market and our long-standing customers that our new product pipeline is on the right track, and we are planning for a strong Q3 and Q4 in 2025 despite the fluctuating geopolitical environment.”
Buyers likely to ‘seize the day’
Expecting some yacht buyers to take advantage of keener pricing in the brokerage market, and take a ‘seize the day’ approach, is Toby Maclaurin, CCO of Ocean Independence (which offers brokerage, charter and management), although he notes these will be balanced by others taking a ‘wait and see approach’.
Maclaurin (pictured) says: “The sales market had picked up in recent months. Our charter results in Q1 are equal to those of the record year of last year, and enquiry levels from both new and existing clients are high.”
Putting the focus on client needs, consistency and service
This time last year, the UK was not too far off the general election. Nick Hatfield, managing director at Sanlorenzo Yachts UK (which represents Sanlorenzo and Bluegame, in the UK and Ireland, offering sales, after-sales support, and brokerage services), suspects that it will have had a larger effect [than current tariffs] on the UK marine businesses exhibiting at Palma. He says elections can create uncertainty and can delay buying.
“It will be interesting to see if the current trade climate influences the success of the show,” he notes. “From what we’ve been experiencing so far this year, there are buyers out there looking to purchase their new/next yacht, ready to get onboard and enjoy the associated lifestyle.”
As such, Hatfield continues, “There is no change in our strategy for Palma – we are looking forward to meeting our current clients and welcoming new ones at the event to show them the Sanlorenzo and Bluegame yachts we’ll have on display.”
“Like all boat shows, we’ll go into Palma with as much preparation completed as possible with the mindset of focusing on each client’s individual needs and making the most of the opportunities that arise.”
Optimism, trust, and well-established technical partners on the ground
Optimism is essential, believes Valentina Gandini (pictured), CEO of Mylius Yachts (an Italian builder of carbon fibre cruising and racing yachts).
“The economic and political climate certainly influences the decision to buy a boat, but we can say that the typical Mylius customer values quality, customisation, and high-tech solutions and is willing to invest more to avoid compromises.”
Similarly, Rafal Skronski, managing partner Marineworks (the Polish company offering custom engineering and system integration solutions) is feeling buoyant.
“While the global landscape remains uncertain, our focus is on consistency and service. The fact that we’ve chosen to launch Marineworks Balear during these times reflects our confidence in the Balearic market.
“Geopolitical shifts have only reinforced the importance of having trusted, well-established technical partners on the ground — and that’s a message we’re bringing to Palma loud and clear.”
Paladino (Lusben) is also upbeat. He says his company’s optimism “stems from our solid market positioning and the depth of experience we bring to this evolving landscape.”
He notes that the growing level of competition keeps the company focused. That’s largely driven by rising demand in the refit sector. “This dynamic pushes us to stay true to our strategy: differentiating ourselves through operational excellence and by targeting a specific segment— megayachts over 40 metres and gigayachts.”
Home advantage for Med builders in geopolitical turmoil
According to Marc Forné, sales manager for Maxim Yachts, the motor yacht manufacturer from Barcelona, the current climate will not affect the company’s strategy for Palma. “There’s no major change,” he says.
“The Mediterranean is our home, and that definitely plays in our favour. It continues to be a strong, stable market for us, and we’re optimistic about what’s ahead.
“We’re navigating through a post-pandemic market, which has brought significant internal changes to many companies. Despite this, our brand remains strong, and we continue to see a high volume of potential clients coming through boat shows and showrooms.”
“Palma has always been a great success for Pearl, and we expect this year to be the same,” says Iain Smallridge (pictured below), MD Pearl Yachts (its series can be explored on its website).
“I expect there will be a similar display as usual, and although the market is generally slower than we have experienced in the last couple of years, Mallorca is the hub of yachting in the Mediterranean, and we expect it to be a busy and productive show.”
Marine market’s ‘ups and downs’ are nothing new
The industry has always been affected by market ups and downs, says Gianni Zucco, co-founder of HP Watermakers (which makes desalination systems in Milan, Italy). But, as he points out: “Yachting for many is a source of wellbeing and it will keep growing, even though conditions may sometimes be unfavourable.
“Palma is truly a centre of attraction for sailing and everything that revolves around it.”
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