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Operating environment

Suominen is the global market leader in nonwovens for wipes and ranks among the world’s largest producers of spunlace nonwovens worldwide. Suominen’s main market areas are Europe and North America. Suominen also maintains a strong presence in the South American market.

In 2025, Suominen operated in an environment characterized by continued macroeconomic uncertainty and geopolitical tensions. The general economic situation, inflationary pressures, and shifts in global trade policies influenced market sentiment and purchasing behavior across regions. Ongoing geopolitical tensions, including the war in Ukraine and instabilities in the Middle East, continued to create uncertainty globally.

In addition, developments related to US trade tariffs contributed to volatility in global supply chains and temporarily disrupted demand patterns, particularly during the first half of the year.

Despite these uncertainties, the nonwovens and wipes markets continued to demonstrate resilience and long-term growth potential. Demand for daily consumer goods is not highly cyclical in nature, and the wipes market has historically demonstrated stability even in challenging economic conditions.

Trade policy-driven market volatility

Market dynamics during the year were influenced by excess capacity in certain nonwoven categories, particularly spunlace, combined with changes in global trade flows due to trade policies.

Turkish and Chinese producers increased their focus on European markets during periods of tariff instability, intensifying competition and contributing to price pressure, while subsequent clarifications shifted pressure back toward North America. At the same time, protectionist measures, including anti-dumping investigations in Brazil, highlighted the growing role of trade regulation in shaping market dynamics.

Oversupply and intensified competition placed pressure on pricing, especially in Europe, with raw material prices declining to record low levels. At the same time, customers increasingly focused on optimizing inventories and diversifying sourcing to mitigate supply chain risks.

While short-term fluctuations in demand occurred due to supply chain disruptions and inventory adjustments, the underlying long-term demand drivers for wipes and hygiene products remain intact.

Resilient demand despite consumer uncertainty

Consumer confidence remained subdued in many markets due to the prolonged cost-of-living crisis and tighter household budgets. As a result, consumers continued to prioritize value, leading to further growth in private label products across several wipes categories.

The nonwovens market continued to grow in 2025, although growth rates varied between markets and product categories. North America remained on a solid growth track, while growth in Europe was more moderate. South America continued to show strong growth, supported by demographic trends and increasing penetration of wipes and hygiene products.

The wipes category as a whole continues to be a structurally growing product segment. Growth varies by application, with adult and general-purpose products showing steady demand, supported by hygiene awareness, convenience and changing lifestyles.

Moist toilet tissue continues to be one of the fastest growing product categories globally. The category is well established in North America, where consumer adoption has been strong for several years, and growth remained healthy in 2025. In Europe, moist toilet tissue is increasingly gaining traction, following a similar adoption path.

Continued transition toward plastic-free solutions

The interest in and transition toward plastic-free solutions continued to be strong in 2025. The trend is driven by a combination of regulatory developments, evolving consumer expectations, and the sustainability ambitions of brand owners and private label manufacturers.

Regulation related to single-use plastics, chemicals, product claims and product labeling is tightening across several markets, particularly in Europe. Differences in regulatory approaches between regions add complexity for the industry, requiring close monitoring and active engagement with regulators and industry bodies. 

At the same time, consumers are increasingly aware of the potential impacts of everyday products and expect more sustainable choices without compromising performance. This has further accelerated the shift toward plastic-free and fiberbased nonwoven materials in wipes and hygiene applications.

In addition to regulatory and consumer-driven factors, large end-product manufacturers play a central role in driving the transition. Many of Suominen’s customers have set ambitious climate and sustainability targets, including commitments to reduce greenhouse gas emissions and the use of fossil-based materials across their value chains. For these customers, substituting conventional materials with plant-based alternatives with a lower carbon footprint is a key enabler in achieving their long-term climate objectives.

As a result, material choices, product design and supply chain transparency have become increasingly important in customer decision-making. The continued transition toward plastic-free solutions is expected to remain a key structural driver shaping the nonwovens and wipes markets in the coming years.