Growth strategy
Targeting above-the-market revenue growth (market growth estimate 2023-2028, CAGR: ~2-3%):
| Megatrend | Impact | How Kemira benefits from the megatrend, for example |
| CHANGING DEMOGRAPHICS | Growing middle-class and urbanization | Higher use of water and tissue |
| Changing lifestyles with growth in e-commerce | Higher use of packaging and board | |
| GROWING ENVIRONMENTAL AWARENESS |
More efficient use of scarce natural resources | Chemicals to support circular economy needs |
| Focus on renewable solutions and recyclable materials for our customers | Alternatives to fossil fuel based solutions | |
| Tightening environmental regulation | Increased need for water treatment | |
| Climate change mitigation | Increased need for water treatment |
Kemira provides expertise and tailored combinations of chemicals for water intensive industries. Kemira’s relevant market (EUR ~35 billion in 2023) estimated to grow to EUR 6 billion in 2028 (CAGR 2-3%).
KEMIRA RELEVANT MARKET
EUR billion
*CAGR, compound annual growth rate
Source: Management estimation based on various sources
Pulp & Paper
Kemira’s Pulp & Paper segment has unique expertise in applying chemicals and supporting pulp & paper producers to innovate and constantly improve their operational efficiency.
Pulp & Paper market is expected to grow at 1-2% CAGR*
Relevant target market around EUR 12 billion.
*CAGR, compound annual growth rate
Demand drivers:
- Hardwood and softwood pulp demand increasing driven by growth of packaging needs (e-commerce, non-plastic solutions), growing tissue demand and lack of recycled fiber
- Demand increase continues for packaging, driven by online shopping, last-mile delivery, product safety and non-plastic solutions
- Growth in tissue demand driven by increasing wealth in emerging countries
- Ongoing digitalization of media drives decline of graphic paper demand
Water link:
-
Efficient utilization of water at the core of pulp and paper manufacturing.
-
Energy consumption, product quality, process runnability
and customers’ profitability depend on water efficiency.
Main competitors:
- e.g. Solenis, Nouryon, Ecolab, SNF, Chemtrade, Solvay
Industry & Water
Industry & Water supports municipalities and water intensive industries in the efficient and sustainable utilization of resources. In water treatment, we help in optimizing every stage of the water cycle.
Industry & Water market expected to grow at 3-5% CAGR*
Relevant target market around EUR 29 billion.
*CAGR, compound annual growth rate
Demand drivers:
- Higher demand for water driven by industrial growth and population growth
- More stringent discharge limits for waste water
- Better dewatering of sludge
- Phosphorus recovery
- Water reuse
Water link:
- Focus on environmental regulations (waste water and reuse).
- Increased total process efficiency requirements for water intensive processes.
- Applications reducing costs, minimizing water consumption and increasing yield.
Main competitors:
- Polymers: e.g. SNF, Solvay, Ecolab, Solenis
- Coagulants: mainly local companies e.g.; Feralco, USalco, Chemtrade