Essity Bundle
What is Essity's Business History?
Essity is a global hygiene and health company with a rich history dating back to 1849. It officially became an independent entity in 2017 after spinning off from SCA. Its name, derived from 'essentials' and 'necessities,' reflects its mission to enhance well-being through essential hygiene and health solutions.
The company's journey began with an acquisition in 1975, setting the stage for its future specialization. Today, Essity operates in approximately 150 countries, serving over a billion people with its wide range of products.
Essity's history is a story of strategic growth and market leadership. From its origins within a larger forest products company, it has carved out a significant niche in the hygiene and health sector. A key aspect of its success lies in its strong brand portfolio, which includes well-known names in incontinence care and professional hygiene. For instance, its commitment to innovation is evident in products designed to meet fundamental human needs, contributing to its strong market positions. Understanding the broader context of its operations, including factors outlined in an Essity PESTEL Analysis, provides further insight into its strategic direction and market influence.
In 2024, the company achieved notable financial results, reporting net sales of approximately SEK 146 billion and a profit of SEK 20.3 billion. This performance underscores its robust market presence and operational efficiency.
What is the Essity Founding Story?
Essity's journey as an independent entity began on June 15, 2017, when it was established as a separate, publicly listed company. This marked a significant corporate restructuring, separating it from its former parent, Svenska Cellulosa Aktiebolaget (SCA). The company's origins in hygiene and health products trace back much further, however.
The Genesis of Essity
Essity was not founded by individuals but emerged from a strategic demerger of SCA in 2017. This move aimed to create two focused, independent companies to better serve their respective markets.
- Essity's official founding date as a separate entity is June 15, 2017.
- It was spun off from Svenska Cellulosa Aktiebolaget (SCA).
- The company's name reflects its focus on 'essentials' and 'necessities'.
- Essity's heritage in hygiene products stems from SCA's 1975 acquisition of Mölnlycke.
The strategic decision to split SCA into two distinct publicly traded companies was announced in August 2016. One entity would focus on forest products, retaining the SCA name, while the other, Essity, would concentrate on hygiene and health. This separation was intended to allow each business to concentrate on its core operations and unlock greater value. Essity's business model is built around providing essential hygiene and health products and solutions, a mission embedded in its name. While Essity itself didn't have traditional founders, its deep roots in the hygiene sector were established through SCA's acquisition of Mölnlycke in 1975. Mölnlycke's expertise in disposable hygiene products formed the foundation for Essity's current product portfolio, which includes personal care items like incontinence and baby care products, consumer tissue, and professional hygiene solutions. This spin-off facilitated a smooth transition, positioning Essity as an independent company with a clear strategic direction, impacting its Target Market of Essity.
Essity SWOT Analysis
- Complete SWOT Breakdown
- Fully Customizable
- Editable in Excel & Word
- Professional Formatting
- Investor-Ready Format
What Drove the Early Growth of Essity?
Essity's journey as a distinct entity began in June 2017 following its spin-off. This pivotal moment marked the start of its focused expansion in the hygiene and health sectors. The company's early strategy involved key acquisitions to bolster its market position.
Post-Spin-off Acquisition Strategy
In 2017, Essity acquired BSN medical, a significant move that strengthened its presence in medical solutions. This acquisition integrated specialized capabilities in wound care, compression therapy, and orthopedics.
Focus on High-Yielding Categories
Essity's early operational focus was on expanding within profitable categories. The company also prioritized driving efficiency through the implementation of digitalization initiatives.
Pre-Spin-off Growth through Acquisitions
Prior to becoming Essity, SCA's hygiene business experienced substantial growth via strategic acquisitions. Notable acquisitions included PWA in Germany in 1995 and the Wisconsin Tissue division in the US in 2001.
European Tissue Business Expansion
In 2007, SCA acquired Procter & Gamble's European tissue operations for €512 million. By 2015, SCA had become the world's largest producer of tissue paper, demonstrating significant scale.
Continued Expansion Post-Spin-off
Essity continued its expansion trajectory after the spin-off. Acquisitions in 2020 included 75% of ABIGO Medical and Novioscan, further strengthening its medical solutions portfolio.
Shaping Market Reception
These early strategic moves, combining organic growth and targeted acquisitions, were instrumental in establishing Essity's market standing. They shaped its development into a global hygiene and health leader, a testament to its Growth Strategy of Essity.
Essity PESTLE Analysis
- Covers All 6 PESTLE Categories
- No Research Needed – Save Hours of Work
- Built by Experts, Trusted by Consultants
- Instant Download, Ready to Use
- 100% Editable, Fully Customizable
What are the key Milestones in Essity history?
Essity has marked significant achievements and embraced innovation throughout its history, while also navigating considerable challenges. A pivotal moment in the Essity company background was its 2017 listing on Nasdaq Stockholm, coinciding with the strategic acquisition of BSN medical. This move substantially bolstered its medical solutions segment, integrating well-known brands such as Jobst, Leukoplast, Cutimed, and Actimove. The company's dedication to sustainable progress is evident, with 85% of its innovations introduced in the three years leading up to 2023 demonstrating social and/or environmental benefits. Recent product introductions, like TENA Proskin Pants and Cutimed Sorbion dressings, directly address increasing market demand in crucial product areas. Essity's commitment to environmental, social, and governance (ESG) principles has garnered external recognition, including being named a supplier engagement leader by CDP for the sixth consecutive year in 2025 and achieving an AAA rating from MSCI's ESG assessment.
| Year | Milestone |
|---|---|
| 2017 | Essity was listed on Nasdaq Stockholm and acquired BSN medical, significantly expanding its medical solutions portfolio. |
| 2023 | The company exited the Russian market, divesting its operations for approximately SEK 1.2 billion. |
| 2024 | Essity completed the divestment of its stake in Vinda International Holdings Limited for approximately SEK 19 billion, refining its portfolio. |
| 2024 | Essity achieved a record profit of SEK 20.3 billion, its highest ever. |
| 2025 | A SEK 3 billion Class B share buyback program commenced in April. |
Essity consistently drives innovation, with a focus on sustainable solutions that benefit both society and the environment. Recent product launches reflect a commitment to meeting evolving consumer needs and market trends.
TENA Proskin Pants
These advanced incontinence products offer improved comfort and discretion, catering to a growing demand for high-quality personal care solutions.
Cutimed Sorbion Dressings
These innovative wound care dressings are designed for enhanced healing and patient comfort, showcasing Essity's expertise in medical technology.
Sustainability in Innovation
As of 2023, 85% of innovations launched in the preceding three years offered social and/or environmental improvements, underscoring a deep-seated commitment to sustainable practices.
CDP Supplier Engagement Leader
For the sixth consecutive year in 2025, Essity was recognized by CDP as a supplier engagement leader, highlighting its proactive approach to supply chain sustainability.
MSCI ESG Rating AAA
Achieving an AAA score in MSCI's ESG rating demonstrates Essity's leading position in environmental, social, and governance performance among its peers.
Portfolio Optimization
The divestment of Vinda and exit from Russia are strategic moves to focus on higher-margin, less volatile product segments, aligning with the company's long-term growth strategy, which is further detailed in Revenue Streams & Business Model of Essity.
Essity has encountered economic headwinds, including global pressures and the impact of a strengthening USD on its Consumer Goods and Consumer Tissue segments in late 2024. These challenges have prompted the implementation of efficiency programs and strategic portfolio adjustments, such as divestments, to bolster financial performance and focus on core strengths.
Global Economic Pressures
The company has navigated global economic uncertainties and increased costs, particularly those stemming from currency fluctuations like a stronger USD. These factors impacted profitability in specific business areas during late 2024.
Cost Management and Efficiency
In response to economic challenges, Essity has actively pursued efficiency programs designed to generate substantial cost savings. These initiatives are crucial for maintaining financial resilience and supporting strategic objectives.
Strategic Divestments
The divestment of its stake in Vinda International Holdings Limited in March 2024 and the exit from the Russian market in July 2023 represent significant strategic realignments. These actions aim to streamline operations and concentrate on higher-margin, lower-volatility product categories.
Shareholder Returns
To enhance shareholder value amidst market conditions, Essity initiated a SEK 3 billion Class B share buyback program in April 2025, demonstrating confidence in its financial stability and future prospects.
Record Profitability
Despite external challenges, Essity achieved a historic profit of SEK 20.3 billion in 2024, underscoring the effectiveness of its strategic initiatives and operational management.
Portfolio Refinement
The company's strategic focus is on strengthening its portfolio within segments characterized by higher margins and greater stability, a direction reinforced by recent divestments and acquisitions.
Essity Business Model Canvas
- Complete 9-Block Business Model Canvas
- Effortlessly Communicate Your Business Strategy
- Investor-Ready BMC Format
- 100% Editable and Customizable
- Clear and Structured Layout
What is the Timeline of Key Events for Essity?
The Essity company background traces a path from a diversified forest products entity to a specialized hygiene and health leader. This evolution is marked by strategic acquisitions and a clear focus on improving well-being through essential products.
| Year | Key Event |
|---|---|
| 1849 | The origins of Essity's hygiene expertise began with the founding of Mölnlycke. |
| 1929 | Svenska Cellulosa Aktiebolaget (SCA), a forestry company, was founded in Sweden. |
| 1975 | SCA acquired Mölnlycke AB, establishing the groundwork for its hygiene business. |
| 2017 | Essity Aktiebolag (publ) was spun off from SCA and listed on Nasdaq Stockholm, marking a significant milestone in the Brief History of Essity. |
| 2022 | Essity acquired Knix and Modibodi, positioning itself as a global leader in leakproof apparel. |
| 2024 | Essity reported a record profit of SEK 20.3 billion and net sales of SEK 146 billion for the full year. |
| 2025 | Essity announced a new share buyback program valued at SEK 3 billion. |
Strategic Growth Drivers
Essity is poised for continued profitable growth, fueled by demographic shifts like an aging population and rising living standards. Increased awareness of hygiene and health also supports its market position.
Financial Targets
The company aims for annual organic sales growth exceeding 3% and an EBITA margin above 15% (excluding items affecting comparability). This reflects a strategy focused on high-return segments and expanding market presence.
Geographic Expansion
Essity plans to increase its presence in key growth regions, specifically North America and Latin America. This expansion is a core part of its strategy to capture new market opportunities.
Sustainability Commitments
Sustainability is a major focus, with science-based targets for emissions reduction and packaging. Essity aims for 85% renewable or recycled packaging by 2025 and 100% recyclability by the same year.
Essity Porter's Five Forces Analysis
- Covers All 5 Competitive Forces in Detail
- Structured for Consultants, Students, and Founders
- 100% Editable in Microsoft Word & Excel
- Instant Digital Download – Use Immediately
- Compatible with Mac & PC – Fully Unlocked
- What is Competitive Landscape of Essity Company?
- What is Growth Strategy and Future Prospects of Essity Company?
- How Does Essity Company Work?
- What is Sales and Marketing Strategy of Essity Company?
- What are Mission Vision & Core Values of Essity Company?
- Who Owns Essity Company?
- What is Customer Demographics and Target Market of Essity Company?
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.