Tissue Paper Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Tissue Paper Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

With the global average consumption per person per year reaching 55kg, the global tissue paper market is expected to grow at a CAGR of 6.45% during 2021 - 2026. According to the RISI, it is anticipated that tissue production might globally exceed 44 million tons in 2021, increasing more than 14 million tons over 2010. Advancements in tissue manufacturing technology and the efficient use of raw materials will improve the design of tissue products and the way they are dispensed.

• The tissue paper industry growth is variable from region to region due to various factors such as availability of raw materials, environmental impacts, income levels, consumer behavior, etc.
• Asia-Pacific is expected to witness the highest growth rate during the forecast year due to rising disposable incomes, improving living standards, rapid industrialization, and globalization in emerging economies like China, Japan, and India.
• Flourishing tourism and hospitality industry and increasing population of working-class globally coupled with the growing awareness among consumers related to health & hygiene is expected to drive the global tissue paper market.
• The growth of the tissue paper market dependent on the pulp industry can hinder the market's growth with rising environmental concerns such as deforestation and global warming with the trees being cut at a rapid rate.
• The COVID-19 has raised the demand for tissue papers with people focusing on self hygienic owing to the spread of the virus and preferring to carry products for themselves and also with people who started to stocking up supplies with almost the whole world getting into the lockdown has driven the sales in the market.

• Among all the tissue paper products, bathroom tissue remains the key tissue category, driving the tissue market forward through a combination of necessity and the general westernization of toilet culture. Increased development of organic tissue papers, rising disposable incomes, and government policies to promote public health are also some of the major factors driving the market's growth.
• The rising awareness in hygiene awareness in the region has been contributing toward the growth of the market. Also, the surge in disposable incomes and rising standard of living in the region have led to a rise in demand for more premium sanitaryware products for added convenience.
• There is a sudden spike in demand for tissue papers with to the spread of the COVID-19 pandemic. The manufacturers of these tissues produce 20% more than the normal levels, which might strain the supply chain. Also, the decreasing prices of the tissues significantly decreasing in households of the US is also a driving factor for the growth of the market.
• On the other hand, increasing raw material prices are a significant factor that is negatively impacting the growth of the market for bathroom tissue all over the world. Moreover, the new innovative products, such as electronic dryers, are impacting the market's growth.

With an annual per capita consumption of 27kg, the average American consumer uses most tissue papers in volume terms. Also, the most significant subsector is toilet paper, which has a household penetration rate of close to 100%. Pushing consumers towards the premium end of the market has become the primary driver of growth.

The US consumer tissue market is also highly concentrated, with roughly 80% of sales in the hands of the top three manufacturers Kimberly-Clark, Procter & Gamble, and Georgia-Pacific.

The Away-from-Home segment of the tissue market dominates the sales in this region. However, dwindling availability and deteriorating quality of recovered fiber is obliging tissue makers to use more virgin fiber.

The manufacturers in the region are integrating with pulp companies to lower costs and increase the long-term growth potential. However, such integrations can impact the market pulp capacity negatively impacting the tissue market. Fierce competition, volume maturity, and price pressure are also putting constraints on the growth of the tissue market.

With the developments in technologies of manufacturing and design of toilet papers, the improvement in economic conditions is a key factor that drives the market's growth. The increasing per capita disposable income and consumers' spending capacity increase, leading to a rise in expenditure on toilet paper.

The tissue paper market is highly fragmented due to high demand, the presence of major players, and numerous players entering the market to have a stronghold in it by developing high-quality products for various end-user applications. Some of the key players include Kimberly-Clark Corporation, Georgia Pacific LLC (Koch industries), SCA (Svenska Cellulosa Aktiebolaget), Procter & Gamble, Clearwater Paper Corporation, Wausau Paper Corp., and Kruger Products, among others.

• February 2021 - KP Tissue Inc. and Kruger Products L.P. announced the start of their Sherbrooke manufacturing facility for its TAD tissue machine with a USD 240 million investment for expansion. This investment is part of the company’s focus on expanding its business and offering tissue products to customers across North America.
• September 2020 - SCA has announced an agreement on the acquisition of forest in Latvia from Forest Holding AB, which covers ​​approximately 19,150 hectares. The standing timber volume is about 1.8 million cubic meters which will help strengthen its raw material base and operations with its forest stands.

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