Growing in emerging markets

Essity is growing in emerging markets where market penetration of hygiene and health solutions is significantly lower than in mature markets. Growth is prioritized in markets where the company already holds strong market positions, such as Asia, Latin America and Eastern Europe.

Increased value creation

In 2021, emerging markets accounted for 38% of net sales and the adjusted EBITA margin for emerging markets was 10.5%, which is an improvement of 4.0 percentage points compared with 2015. Essity’s ambition is to grow this share over time and in parallel continue to improve profitability supported by favorable market trends, a higher share of premium products, strong brands and a broadening of the company’s offering. We have a clear priority for which geographic markets the company wants to operate in, and which product categories it will offer in these markets.

Asia

Essity is market leader in China and Asia in Consumer Tissue through its majority shareholding in Vinda and also has a strong presence in Personal Care and Professional Hygiene. Over several years, Vinda has increased its net sales and profitability as a result of greater market penetration, more premium products and efficiency improvements. In 2019, Libresse V-Comfort was relaunched in Feminine Care in China. Libresse has since grown strongly and is a leading brand in the premium segment in Feminine Care in China.

Latin America

Essity has strong brands and market positions in Latin America. The aim is to be the fastest growing hygiene and health company in the region, through innovation and more premium products, leading brands and digitalization, with increased e-commerce sales and “Direct to Consumer”. In 2021, Essity strengthened its presence in Latin America by increasing ownership in the Colombian hygiene company Productos Familia S.A. by 45.8% to 95.8%.