The tissue products industry has seen tremendous growth over the past few decades as consumers are increasingly adopting hygienic habits. From toilet paper, facial tissues, paper towels to napkins, the demand for various tissue products has surged globally. Major factors driving this industry include rapid urbanization, rising disposable incomes, improved access to sanitation facilities, and growing health and environmental awareness among people.
Toilet Paper
Toilet paper is by far the largest category within the tissue products industry. Key characteristics driving its demand are the growing number of urban households with in-house toilets and the preference for hygienic alternatives to other natural materials. According to recent industry reports, the global toilet paper market was valued at over $30 billion in 2020 and is projected to grow at 4-5% annually until 2027. Major toilet paper brands such as Charmin, Angel Soft, Quilton, and Scott are spending heavily on R&D, marketing, and expanding production capacities to capitalize on the rising demand. Sustainable and eco-friendly toilet paper variants using recycled content or from responsibly managed forests have also gained popularity among environmentally conscious consumers in recent years.
Facial Tissues
Facial tissues, commonly known as paper towels, wipes, or handkerchiefs, are the second largest category. They are used for cleaning, protection, absorption, and sanitation purposes by households as well as in healthcare, hospitality, offices, and other commercial establishments. Key factors propelling Tissue Products demand include the growing prevalence of colds, flu and allergies due to pollution and changing climatic conditions as well as the COVID-19 pandemic boosting tissue usage globally. Leading companies in this segment include Kimberly-Clark, Procter & Gamble, Essity, and Hengan that offer a variety of regular as well as lotion-infused, scent-enhanced, or antimicrobial tissues catering to diverse consumer preferences. The facial tissues market is projected to reach $25 billion by 2025, expanding at a rate of 5-6% each year.
Paper Towels
Paper towels find widespread applications in kitchens for drying hands, cleaning surfaces, and various other household tasks. Major factors contributing to their increasing popularity over cloth towels include convenience, absorbency, hygiene, and value. Key brands like Bounty, Sparkle, and Pom Poko supplying paper towels in various sheet counts, roll sizes, textures, and fragrances. Foodservices and commercial establishments are also significant consumers with paper towels replacing cloth towels in many outlets. With rising health awareness and busy lifestyles, on-the-go paper towel variants for microwaves have emerged as a new trend. The global paper towels market was estimated at $16 billion in 2020 and is forecast to reach $21 billion by 2027 exhibiting annual growth of around 4%.
Napkins
Napkins used at dining tables for hygienic napking is another key segment within tissues industry. Major manufacturers include Vanity Fair, Pigeon, and Dixie offering napkins in varied counts of around 100-250 sheets per pack, textures from soft to quilted, and designs for different occasions and places of usage like home, restaurants, or parties. Improvement in standards of living and expansion of Quick-Service Restaurants (QSRs) have boosted napkin consumption globally. The foodservice industry utilizes around 70% of the total napkins produced annually. Innovations like natural fiber, recycled, or eco-friendly variants are gaining traction due to rising ecological concerns. The global napkin market is projected to reach $4 billion by 2027 growing at 4-5% each year.
Key Players
Some of the leading companies globally in the tissue products industry are Kimberly-Clark, Essity, Georgia-Pacific, Procter & Gamble, Sofidel, WEPA, Metsa Group, KP Tissue, Cascades, and Clearwater Paper. While Kimberly-Clark is the largest player with its Kleenex and Scott brands, Essity, Georgia-Pacific, and Procter & Gamble are other top players. These tissue giants invest heavily in R&D for product innovations, technology advancements, and expanding manufacturing plants worldwide. They also focus on sustainable raw material sourcing and reducing environmental footprint of operations to address growing eco-consciousness among consumers and communities.
New Trends and Prospects
Some of the latest trends witnessed in the tissue sector include rising prominence of organic, eco-friendly, and recycled product variants, specialized offerings targeting specific uses like flushable wipes, expanding retail distribution through omni-channel strategies and online sales models. There is also increasing usage of artificial intelligence and automation in manufacturing processes to improve efficiency and reduce costs. With rapid urbanization expected across Asian and African countries over the coming years along with GDP growth in emerging markets, significant opportunities lie for tissue product companies to penetrate new regions and consumer segments. The industry is projected to reach nearly $100 billion in revenues by 2030 with continued innovations responding to changing dynamics and lifestyles globally.
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