Essity US Sales Decline Amidst Economic Headwinds

The hygiene company plans price hikes as consumer restaurant visits and household net worth trend downward across the nation.

Updated on Oct. 22, 2026 in Employment

Essity US Sales Decline Amidst Economic Headwinds

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Essity reported a decline in sales and volumes for its US professional hygiene business during the third quarter of 2026. The company is now planning to increase prices across its business segments to counter rising raw material and energy costs.

Why it matters

The downturn in Essity's US sales highlights a cooling economy where consumers are cutting back on dining out as household wealth shrinks. Rising operational costs combined with softening demand present a difficult environment for manufacturers to maintain profitability.

Professional hygiene generates 40% of Essity's US revenue, which saw declining sales and volumes in Q3 2026. This follows a period where national consumer prices rose 3.7% in September and average hourly wages grew 3.0% over the last 12 months.

The players

Essity

This global hygiene and health company produces consumer and professional products, including tissue, soaps, and incontinence care.

The details

The professional hygiene sector, which accounts for a significant portion of Essity's US revenue, struggled as restaurant attendance dropped to 39% from 53% in 2019. Financial pressures are further compounded by the fact that the bottom fourth of US households saw their net worth fall by over 50% between 2022 and 2025.

2019: Weekly restaurant attendance among Americans stood at 53%.
2022-2025: Net worth for the bottom fourth of US households fell by more than 50%.
September 2026: US consumer prices rose 3.7% and employers added 29,000 jobs.
Q3 2026: Essity professional hygiene sales and volumes declined in the US.

Macro View

The downturn in commercial hygiene demand follows the pattern set by the Gallup survey on restaurant attendance, which shows a significant decline from pre-pandemic levels. This mirrors broader historical economic cycles where reduced discretionary spending directly impacts secondary suppliers.

Consumers should expect price increases across a variety of goods as companies like Essity pass on higher energy and material costs to the public. These adjustments occur as households face a tightening budget exacerbated by the significant drop in net worth among lower-income groups.

The takeaway

With restaurant attendance down and household net worth shrinking, businesses are struggling to balance rising costs with limited consumer demand. Households should prepare for broad-based price increases as companies adjust their strategies to maintain margins in a slowing economy.