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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. Suominen’s main market areas are Europe and North America. Suominen also maintains a strong presence in the South American market.

The global demand for nonwovens is constantly growing. The growth depends mainly on consumer demand, which is a combination of the general economic situation and consumers’ confidence in their personal finances. However, the demand for fast-moving consumer goods – that is, end products for which most of Suominen’s products are used – is not very cyclical in nature. The growth in the demand for nonwovens has typically exceeded the growth of gross domestic product by a couple of percentage points.

Global megatrends shape Suominen’s operating environment and affect our business.

The importance of sustainability continues to grow

Megatrends such as climate change and environmental degradation drive us to minimize the environmental impacts of our operations, improve our raw material efficiency and introduce increasing range of sustainable products to the market.

The market for sustainable nonwovens is growing globally and especially in Europe and North America. Legislation and regulations as well as consumer behavior are driving the market towards more sustainable products.

In Europe, one of the most significant changes in the operating environment is the European Plastic Strategy and European Commission’s Single-Use Plastics Directive (SUPD). The directive aims to protect the environment and reduce marine pollution. SUPD impacts many end products made of nonwovens as many wipes are traditionally made at least partially from raw materials containing plastic. Labeling requirements under the Directive for single-use products containing plastic entered into force in 2021. 

Initiatives similar to SUPD have also emerged in other regions as concerns over sewer blockages and marine pollution caused by, among other reasons, the inappropriate disposal of nonwoven products have increased.

The need for more ecological and sustainable nonwoven products is clear, and Suominen is well positioned to respond to the growing demand, supporting customers in creating more sustainable product offerings.

Demographic megatrends support our growth

Demographic megatrends, such as population growth, a growing middle class, aging populations and a growing focus on health and well-being, are driving nonwovens growth forecasts due to their influence on consumer behavior. There is a direct correlation between the rise in the standard of living and demand for hygiene products. Beyond essential commodities, consumers are showing a growing preference for solutions that simplify daily routines. For instance, the rising use of moist toilet tissue wipes exemplifies this trend. Similarly, the demand for general-purpose wipes has grown, fueled by increased travel and the lasting impacts of the pandemic.

New needs are emerging with aging populations and changing healthcare models. The demand for nonwovens used in medical applications and incontinence products is increasing. On the other hand, the need to find cost-effective solutions to combat bacteria and viruses is also contributing to the increase in demand for nonwovens in the healthcare sector.

Economic and geopolitical instabilities cause uncertainties

The nonwovens market continues to have a healthy growth above GDP, but markets are facing uncertainty due to the global geopolitical situation and shifting export balance. However, Suominen’s global production platform positions the company well in chosen target markets and the comprehensive portfolio of new products differentiates the company from the competition.

While Suominen closely monitors market trends and customer dynamics, global economic uncertainties and fierce competition create challenges for long-term forecasting. Historically, demand for wipes has remained steady despite economic fluctuations, but shifting consumer preferences and spending habits require increased focus and attention.