Essity explores strategic alternatives for Consumer Tissue unit
This move highlights Essity’s proactive stance on streamlining assets amid evolving market dynamics in tissue and hygiene products.
SWEDEN – Essity, a prominent Swedish health and hygiene firm, has kicked off a strategic review of its global Consumer Tissue business area to evaluate ownership structures.
This move could unlock maximum value and support strong growth for both the division and the broader company.
The board approved this evaluation as part of routine portfolio optimization efforts aimed at driving long-term shareholder returns.
Options on the table include potential separation or other changes in ownership, though no transactions are confirmed or imminent.
President and CEO Ulrika Kolsrud stated, “Essity’s Consumer Tissue business has a strong offering under its own brands, retailer brands, and through private label, with leading market positions and an efficient supply chain.”
“The strategic review will evaluate different options for the ownership of Consumer Tissue and is part of our efforts to optimize Essity’s product portfolio and maximize value creation.”
The Consumer Tissue division operates 29 manufacturing sites globally and employs approximately 13,000 people, according to Essity.
It offers a range of products, including toilet paper, kitchen towels, pocket tissues, facial wipes, wet wipes, and napkins, marketed under brands like Lotus, Tempo, Zewa, Cushelle, Plenty, Regio, and Familia.
Essity also manufactures consumer tissue products for retailers’ private-label and store-brand programs.
In 2025, Consumer Tissue delivered net sales of SEK 43,537 million (USD 4 billion), accounting for 31% of Essity’s total group sales.
It posted EBITA (excluding items affecting comparability) of SEK 5,187 million (USD 477 million), yielding an EBITA margin of 11.9%, underscoring its scale and profitability within the hygiene giant’s operations.
Essity notes on its site that the consumer tissue sector is experiencing major shifts. Rising economic strains are pushing households toward value-oriented options over premium ones, according to the company.
Meanwhile, emerging rivals are altering the competitive landscape and necessitating sharper strategic positioning.
Sustainability has emerged as a core consumer demand, it stated.
Meanwhile, easily this year, Edgewell Personal Care Company finalized the USD 340 million sale of its feminine care business to Essity.
The deal, announced on February 2, 2026, from Shelton, Connecticut, transfers Edgewell’s full feminine care portfolio to Essity.
Edgewell plans to deploy the net proceeds, after taxes and fees, primarily to strengthen its balance sheet and eliminate its U.S. revolving credit facility debt, while fueling growth in the shave, sun, and skin care, and grooming segments.
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