The global hygiene and health market

The markets for personal care and tissue are described below. The market for personal care comprises the market for Essity’s Personal Care business area and the market for tissue comprises the market for Essity’s Consumer Tissue and Professional Hygiene business areas.

In 2017, the global hygiene and health market amounted to approximately SEK 1,090bn, of which the global market for personal care accounted for approximately SEK 540bn and the global market for tissue accounted for approximately 550bn. The global market for personal care is divided into baby care (approximately SEK 230bn), feminine care (approximately SEK 125bn), incontinence products (approximately SEK 90bn) and medical solutions (approximately SEK 95bn). The global market for tissue is divided into consumer tissue (approximately SEK 405bn) and professional hygiene (approximately 145bn).

Market growth is positively impacted by global hygiene and health trends and increased awareness of the importance of hygiene to improve health and avoid diseases, especially in emerging markets.

The global market for hygiene and health products was challenging during 2017.

Tissue market

Shifts in global demographics such as population growth, due primarily to a lower infant mortality rate and increased longevity, and higher disposable income point to continued good growth for tissue. The effect of higher disposable income is that more people prioritize hygiene when food and housing needs have been, or are in the process of being, satisfied. The growth potential for tissue is considered greatest in emerging markets where market penetration is significantly lower than in mature markets and where urbanization, improved infrastructure and the retail trade are evolving rapidly. One example of the lower market penetration in emerging markets is that tissue consumption per capita per year in Eastern Europe is only about one-third of that in Western Europe. Growth is also occurring in mature markets owing to lifestyle changes and innovations that lead to increased use.

In 2017, the European market for consumer tissue showed low growth and increased competition. The Chinese consumer tissue market noted higher demand.

The European and North American markets for professional hygiene displayed low growth.

Essity’s competitors in tissue include Georgia-Pacific, Hengan, Kimberly-Clark and Sofidel.

Personal care market

Growth in consumption of personal care is supported by favorable demographic trends in emerging and mature markets. Shifts in global demographics such as population growth, due primarily to a lower infant mortality rate and increased longevity, and higher disposable income point to continued good growth for personal care. The effect of higher disposable income is that more people prioritize hygiene when food and housing needs have been, or are in the process of being, satisfied. The growth potential for personal care is greatest in emerging markets where market penetration is significantly lower than in mature markets and where urbanization, improved infrastructure and the retail trade are evolving rapidly. One example of the lower market penetration in emerging markets is that the consumption rates for incontinence products in Asia are only about one-sixth of those in Western Europe. In mature markets, baby care and feminine care have attained high market penetration. However, market penetration for incontinence products in mature markets is still relatively low for certain product segments, particularly among men, which Essity believes may be due to lack of awareness and the stigma associated with incontinence.

Incontinence, which is classified as a disease by the World Health Organization (WHO), affects 4–8% of the world’s population, corresponding to approximately 400 million people. Many indicators point to the proportion of people affected increasing on a global scale as a result of an aging population. By 2020, the population of the world over the age of 60 is expected to have increased to over one billion. The occurrence of incontinence among people over the age of 65 is expected to be between 15 and 20%.

An aging population and increased prevalence of chronic conditions are expected to increase demand for incontinence products and medical solutions.

In 2017, the European and North American markets for incontinence products in the healthcare sector displayed higher demand, although with continued price pressure as a result of fierce competition, while the retail markets showed good growth but with a continued high level of competition. Emerging markets showed higher demand. The global market for medical solutions demonstrated stable growth. In Europe, demand for baby care and feminine care was stable. In emerging markets, demand rose for baby care and feminine care. The global market for baby care and several markets for feminine care were characterized by increased competition and campaign activity.

Essity’s competitors in personal care include Kimberly-Clark, Procter & Gamble, Unicharm and 3M.

Hygiene and health market

Global market by region

Consumer Tissue and Professional Hygiene

Source: The information has been compiled by Essity for presentation purposes based on statistics taken from external market sources, including IRI, RISI, Price Hanna Consultants and National Macro Economics.

Personal Care

Source: The information has been compiled by Essity for presentation purposes based on statistics taken from external market sources, including IRI, Price Hanna Consultants and National Macro Economics.