Essity's business model is focused on profitable growth and responsible value creation.
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 quality of life for people every day.
Essity has a global unit that works with brands, innovation and sustainability. There are also innovation centers in China, France, Germany, Mexico, Sweden, and the US. Research and development (R&D) costs during the year amounted to SEK 1,559m, corresponding to about 1.3% of consolidated net sales.
In 2020, Essity purchased raw materials and consumables for approximately SEK 41bn. The main raw materials are pulp, recovered fiber and oil-based materials. Essity has around 90 production facilities worldwide. Cost of goods sold amounted to SEK 82bn, of which transport and distribution costs were SEK 11bn.
Essity’s marketing costs in 2020 amounted to SEK 6,745m, corresponding to 5.5% of net sales. An increasing share of marketing is conducted through digital channels. We have sales in approximately 150 countries. In 2020, the retail trade accounted for 61% of Essity’s net sales, business-to-business for 21% and the healthcare sector for 18%.
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 within at least one product category in approximately 90 countries and has a well-developed and efficient “go-to-market” model.