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The market for personal care comprises the market for the Essity’s Business Area Personal Care and the market for tissue comprises the market for the Essity’s Business Areas Consumer Tissue and Professional Hygiene.
In 2016, the global hygiene and health market amounted to approximately EUR 112bn of which the global market for personal care amounted to approximately EUR 56.5bn and the global market for tissue amounted to approximately EUR 55.5bn. The global market for personal care is divided into baby diapers (approximately EUR 23.0bn), feminine care (approximately EUR 12.8bn), incontinence products (approximately EUR 9.1bn) and medical solutions (approximately EUR 11.6bn). The global market for tissue is divided into consumer tissue (approximately EUR 41.6bn) and professional hygiene (approximately EUR 13.8bn).
Growth in consumption of personal care products is supported by favorable demographic trends in emerging and mature markets. The growth potential for personal care products 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 baby diapers and incontinence products per capita per year in Asia are only about one-fifth and one-sixth, respectively, of those in Western Europe. In mature markets, baby diapers and feminine care products have attained high market penetration. However, market penetration for incontinence products in mature markets is still low for certain product segments, particularly among men, which the Company believes may be due to lack of awareness and taboo associated with incontinence.
The growth potential for tissue products is considered the 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.
The consumption of hygiene and health products and solutions is supported by favorable demographic trends. Essity believes the following factors to be the key market trends and drivers for the hygiene and health market’s development:
Shifts in global demographics such as population growth – primarily due to a lower infant mortality rate and increased longevity – and higher disposable income point to continued favorable growth for the personal care and tissue markets.
The effect of higher disposable income is that more people prioritize hygiene and health when food and housing needs have been, or are in the process of being, satisfied. Consequently, demand for Essity’s products is rising in emerging markets. Growth is also occurring in mature markets owing to lifestyle changes and innovations that lead to increased use of hygiene and health products.