Kemira, relevant total market
EUR billion
12/18/2024
Business units and markets
Kemira serves water-intensive industries worldwide – with the focus on water treatment, fiber production and various sustainable packaging and hygiene solutions. We help our customers design for efficiency, reuse resources, and revitalize natural systems. With over 100 years of experience, we partner with municipal water utilities, pulp, paper, board and tissue producers to deliver visible improvements.
Healthy market growth for
Kemira’s relevant markets
The two most important global megatrends driving growth of Kemira’s end markets are changing demographics and growing environmental awareness, which is further resulting in tightening regulation. The most relevant growth is expected in the water business, as well as in various renewable fiber-based solutions enabling the replacement of plastics.
While we aim to accelerate growth in these areas, we continue to take excellent care of our base business. We are a leader globally in our niche areas of chemical solutions: #1 in water treatment in Europe and #2 in the pulp and paper business globally.
Relevant markets for the Fiber Essentials and Packaging & Hygiene Solutions business units
EUR billion
Relevant market for the Water Solutions business unit
EUR billion
Water Solutions
Water Solutions represents roughly 45% of Kemira’s total sales. It offers a wide range of innovative solutions to optimize all stages of the water treatment process, while safely achieving water quality targets and meeting constantly tightening regulations. The business unit serves both municipal and industrial customers. Kemira’s water treatment product portfolio mainly consists of coagulants and polymers which play a critical role in enabling resource-efficient operations at our customers’ sites. Kemira has a strong market presence in water treatment in Europe and in North America. Water is expected to be the key contributor for Kemira’s revenue growth going forward and our long-term ambition is to double our revenue in water.
End markets
Municipal water treatment, industrial water treatment and mining
Customers
Various cities and industrial water treatment facilities especially in Europe and North America
Growth drivers
Scarcity of water, tightening regulation increasing the need for chemical water treatment globally
Market position
Market share ~25% in coagulants and ~25% in polymers in EMEA and ~20% in coagulants and ~10% in polymers in North America
Competitive advantage
Strong market share in water treatment in chosen geographic areas, large operator with acknowledged delivery reliability
Main competitors
Polymers: e.g. SNF, Solvay, Ecolab, Solenis and coagulants: mainly local companies e.g.; Feralco, USalco, Chemtrade
Trends in water treatment provide solid opportunities for sustainable growth
Packaging & Hygiene Solutions
Packaging & Hygiene Solutions represents roughly 35% of Kemira’s total sales. This business unit specializes in innovative and sustainable fiber-based solutions that support customers in transitioning to a circular economy by replacing plastics with fiber. Through close collaboration with its customers, Kemira continuously develops new solutions that meet requirements for strength, stiffness, weight, and overall quality. For liquid packaging and food service applications, strict hygiene and cleanliness standards are also upheld. Kemira maintains a strong presence in key markets, with growth driven by increasing demand for sustainable solutions, urbanization, and population growth.
End markets
Packaging, tissue, other papers
Customers
Paper, board and tissue manufacturers
Growth drivers
Increasing demand for sustainable solutions to replace single-use plastics, e-commerce, urbanized life-style and population growth
Market position
Market share ~16% globally, #2 market position
Competitive advantage
Diverse portfolio, deep chemical and application expertise driving sustainable innovation, commitment to quality and supply reliability
Main competitors
Solenis, SNF, Ecolab, Buckman
Packaging & Hygiene Solutions is #2 in an expanding global market
Large addressable market
Estimated market growth
EUR billion
Kemira has a good position
Fiber Essentials
Fiber Essentials represents roughly 20% of Kemira’s total sales. It has unique expertise in applying chemicals and in supporting pulp producers in innovating and constantly improving their operational efficiency as well as end product performance and quality. The business unit develops and commercializes new products to meet the needs of its customers, thus ensuring a leading portfolio of products and services for chemical pulp. Fiber Essentials to leverage its strong application portfolio in North America and EMEA while also building a strong position in the emerging Asian and South American markets.
End markets
Packaging, hygiene products, graphic paper, textiles
Customers
Pulp producers
Growth drivers
Increasing demand for sustainable packaging and textile fibers, for tissue and hygiene solutions, increasing wealth in emerging markets
Market position
Market share 15-20% globally, #2 market position
Competitive advantage
Efficient and well-positioned asset base combined with access to fossile-free and competitive electricity sources
Main competitors
Nouryon, Solvay, Erco, Chemtrade
Fiber Essentials sodium chlorate is the largest business; market growing particularly in South America
Regional market capacities
Rounded to the nearest 5%
Estimated market growth
EUR billion
Kemira has a good position
20% of the global capacity*
Market leader in EMEA
In the growing South American market and globally
Supplier in Southern US, strategically well positioned to support expanding fluff pulp market
Investor contacts
Mikko Pohjala
Vice President, Investor Relations
Helsinki, Finland
Heidi Lehmuskumpu
Investor Relations Manager
Helsinki, Finland