7/6/2021

Market overview

Growth strategy

Targeting above-the-market revenue growth (market growth estimate 2020-2026, CAGR: ~4-5%):

Megatrend Impact How Kemira benefits from the megatrend, for example
CHANGING DEMOGRAPHICS Growing middle-class and urbanization Higher use of water ane 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 biobased 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 ~20 billion in 2020) estimated to grow to EUR 26 billion in 2026 (CAGR 4-5%).

KEMIRA RELEVANT MARKET
EUR billion

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 9 billion.

Markets impacted by COVID-19 in the short term, long-term drivers remain solid

*CAGR, compound annual growth rate
Source: Management estimation based on various sources

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. In oil and gas applications, our chemistries enable improved yield from existing reserves and reduced water and energy use.

Industry & Water market expected to grow at 5-6% CAGR*

Relevant target market around EUR 18 billion.

COVID-19 impact clear on shale, but remaining I&W business areas continue to be resilient short and long-term

*CAGR, compound annual growth rate
Source: Management estimation based on various sources

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 small local companies e.g.; Feralco, USalco, Chemtrade