USA 
Russia 
Germany 
Mexico 
Netherlands 
France 
Sweden 
Italy 
Spain Our Business Model
Essity’s business model is aimed at achieving profitable growth and creating additional value for our stakeholders in line with our mission.
Essity’s business model is aimed at achieving profitable growth and creating additional value for our stakeholders in line with our mission.
The starting point for Essity’s operations is customer and consumer insights. Through knowledge about people’s daily needs and challenges, we create an offering that improves well-being and quality of life for people every day.
Continuous innovation is crucial to steadily improve people’s hygiene, health and well-being and to contribute to a sustainable and circular society. Essity has a global unit that works with brands, innovation and sustainability with the support of innovation centers in France, China, Mexico, Sweden, Germany and the USA. Research and development (R&D) costs during the year amounted to approximately SEK 1.6bn, corresponding to about 1.0% of net sales.
Essity’s main raw materials are pulp, recovered fiber and oil-based materials. The company strives to reduce the use of raw materials.
Essity has around 90 production facilities worldwide. Work to increase efficiency at the facilities is a continuous process that includes digitalization and automation, with the aim to achieve sustainable, efficient world-class production. The cost of goods sold amounted to approximately SEK 117bn. Of which raw materials and consumables approximately SEK 65.5bn, distribution costs approximately SEK 15.7bn and energy approximately SEK 9.6bn. Essity subjects its suppliers to stringent demands and works throughout the supply chain to guarantee responsible sourcing.
Essity actively strives to build awareness of the company’s brand, purpose and product brands, and pursues global and local initiatives to raise awareness and standards for hygiene and health. Essity’s marketing costs in 2022 amounted to approximately SEK 7.6bn, corresponding to 4.8% of net sales. An increasing share of marketing is conducted through digital channels.
Essity is the global market leader in incontinence products with the TENA brand and in professional hygiene with the Tork brand. Essity also has strong brands in other product categories. Essity holds the number one or number two position in 90% of the company’s branded sales.