TISSUE TOWEL MARKET ANALYSIS

Tissue Towel Market Size and Trends

The tissue towel market is estimated to be valued at US$ 53.09 Bn in 2024 and is expected to reach US$ 63.11 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 2.5% from 2024 to 2031.

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The widespread use of bath and kitchen towels in households and commercial buildings such as hospitals, hotels and offices has been the major factor contributing to the growth of the tissue towel market globally. The market has been witnessing notable growth in developed regions, such as North America and Europe, due to increasing health awareness and changing lifestyles of consumers. Consumers prefer premium and innovative products with added benefits such as softness, absorbency, and durability. Various product launches catering to consumer demand along with lucrative marketing strategies by key players is also a key trend prevailing in the market. For a hygienic and better lifestyle, consumers are willing to pay more for quality tissue towels which has been benefiting the market growth. Convenience remains the primary factor driving demand from both residential and commercial sectors.

Increasing hygiene consciousness

With growing awareness about health and hygiene, consumers are paying more attention to cleanliness and proper sanitation. Use of tissue towels has increased significantly as people want to ensure their surroundings are clean and germ-free. Tissue towels have become a necessity in public restrooms, households, offices, and other places where proper hand drying is important after washing hands. Their absorbent quality allows users to dry hands thoroughly without any moisture left behind. Several campaigns by health organizations to promote hand washing at regular intervals have made people more cognizant about using a fresh tissue towel each time. The availability of tissue towels at all public conveniences further reinforces their use instead of other traditional methods of drying hands. With hygiene emerging as a priority, consumer behavior has evolved to adopt tissue towels on a daily basis in their life. This rising hygiene consciousness is fueling strong demand and acting as a key driver for the growth of the tissue towel market.

Market Concentration and Competitive Landscape

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Increasing working population propelling tissue towel uptake

The large working populace constitutes a significant portion of tissue towel consumption. With more people joining the workforce, tissue towels have become an important amenity provided by employers to enable hygienic hand drying for staff at offices and workplaces. The fast pace of current professional life leaves little time for other options, making tissue towels a perfect solution for quick drying. Their portability allows users to carry a tissue towel conveniently while commuting between locations. Busy work schedules coupled with growing health awareness have made tissue towels an indispensable companion for the working community. Various professional establishments ranging from IT parks to manufacturing units recognize the importance of adequate provision of tissue towels and ensure their availability across all employee touchpoints. The expanding working demography worldwide is proportionally elevating demand for tissue towels to meet their unique needs. This driver of an increasing workforce substantially props up the adoption rate and widespread usage of tissue towels.

Key Takeaways from Analyst:

North America currently dominates the global market owing to high consumption levels in countries like the U.S. and Canada. However, Asia Pacific is predicted to be the fastest growing region due to rising disposable incomes and expanding population in major countries of the region.

Demand for premium and ultra-premium products is increasing as consumers are willing to pay more for towels with superior quality and feel. Manufacturers are launching innovative towels made of material blends and infused with additives that enhance softness. In addition, growing health and hygiene awareness amid the COVID-19 pandemic is boosting tissue sales as people use more towels for cleaning purposes.

High raw material prices remain a key challenge for tissue towel producers. The costs of pulp, cotton, and polyester are subject to volatility due to currency fluctuations and supply constraints. Environmental concerns around deforestation from pulp extraction can also act as a restraint.

Market Challenges: Availability of alternative napkins and towels

There are several alternatives available to consumers which are providing tough competition to tissue towels. Paper towels which are thick, strong and reusable are widely used in households and commercial establishments for cleaning and drying purposes. Unlike thin tissue towels which get torn easily, paper towels are durable and can be used multiple times before getting discarded. Their reuse ability means paper towels induce less waste generation as compared to tissue towels. Another widely used alternative are cloth towels which are made of cotton or other fabric materials. These towels are washable and reusable numerous times before replacement. They prove to be extremely cost effective for users in the long run compared to constantly purchasing tissue towels.

Market Opportunities: Targeting emerging economies

Many developing nations in Asia Pacific and Africa are experiencing rapid urbanization and rising incomes. As living standards improve in these regions, there is increasing demand for hygienic and convenient paper products. Tissue towels offer a more sanitary alternative to cloth towels that were traditionally used. Several factors are driving this change in consumer behavior. Easy accessibility and affordability of tissue towels via widespread retail channels is encouraging trial among new users. Further, health awareness is also on the rise in emerging cities as people recognize the role of hygiene in preventing spread of diseases. The COVID-19 pandemic has further highlighted the importance of sanitation and use of disposable articles. International organizations like WHO have actively campaigned about hand washing and use of towels/tissues. This is influencing purchasing decisions in emerging nations.

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Insights by product type: Consumer convenience and cost-effectiveness drive roll towel demand

In terms of product type, roll towel segment is expected to contribute 47.7% share of the market in 2024, owing to its convenience of use and cost savings for consumers. Roll towels are more convenient to use as consumers can simply tear off as many sheets as needed in public restrooms or at home, without wetting their hands in the process. This makes roll towels particularly suitable for usage outside the home. Furthermore, roll towels allow for cost savings over time versus folded or boxed towels. As rolls contain hundreds of sheets, consumers need to replace them less frequently compared to other towel varieties. This reduces purchasing frequency and overall expenditure on towels.

The roll format also allows for easy portability and storage. Rolls are compact in size and can be carried with ease for travel use. They take up minimal storage space in public facility dispensers or at home. This wide range of benefits have made Roll Towels a preferred choice among time-strapped consumers who value hassle-free usage on the go. Working professionals and students frequently opt for Roll Towels given their active lifestyles that require towels outside home. Overall, the convenience and cost advantages of roll towels have helped this segment dominate the product type landscape.

Insights by application: Personal hygiene and self-care drive robust demand in personal care applications

In terms of applications, personal care segment is expected to contribute 34.6% share to the tissue towel market in 2024, owing to the growing focus on hygiene and self-care routines. With increasing health awareness, consumers are paying greater attention to personal cleanliness and wellness. Using tissue towels specifically for hands, face and body during toilet use and post-workout is considered important from a hygiene standpoint. Tissue towels are suitable for personal care allow for thorough yet gentle drying without streaking or residue.

Furthermore, the self-care segment has grown significantly with more consumers investing time and money towards skincare and grooming. Tissue towels are well-suited for exfoliation, removing mineral deposits after showers and grooming routines. Their soft textures and thickness provide the right amount of abrasion without irritation. Leading players have launched tissue towels targeted at personal hygiene and self-indulgence needs like body and facial care. This has boosted their popularity for Personal Care over other household uses. Rising health consciousness and self-care culture will continue propelling this application segment in the future.

Insights by distribution channel: Accessibility and large assortment drive hypermarkets/supermarkets channel dominance

In terms of distribution channel, hypermarkets/supermarkets segment is expected to contribute 38.8% share to the tissue towel market in 2024, due to their widespread presence and wide product assortment. As one-stop shopping destinations, supermarkets allow consumers to purchase towels along with their regular groceries under a single roof. Their large store sizes and layouts make tissue towels highly visible and accessible on prominent shelves.

Furthermore, most supermarket and hypermarket chains stock an extensive variety of towel types from various brands. This gives consumers ample choice in features like material, absorption levels, fragrance etc. according to their needs. Prominent locations within stores also allow suppliers to run attractive promotions and builds rampant brand exposure. Many consumers find it convenient to pick up toweling needs during weekly supermarket runs rather than visit separate drugstores. The scale of operations also enables supermarkets to procure tissue towels in bulk from manufacturers, allowing for competitive pricing. Attractive deals and combo packs during festive seasons draw in higher footfalls as well. Overall, such accessibility and large product selection have allowed hypermarkets and supermarkets to dominate towel distribution over other channels. This trend is likely to continue with their expanding store footprint across urban and rural regions.

Regional Insights

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North America has emerged as the largest as well as most developed regional market for tissue towels globally. The region is expected to account for 35.6% of the market share in 2024. While the U.S. is the largest individual country market, Canada and Mexico are also significant markets in their own capacity. The ubiquitous presence of tissue towel manufacturers as well as retailers combined with high per capita consumption makes North America the dominant force.  Availability and easy access are the major strengths driving tissue towel sales. Raw material sourcing is convenient given strong pulp and paper industry presence. Manufacturing infrastructure is highly advanced, enabling mass production while keeping costs competitive. Established distribution channels ensure wide market penetration. Moreover, consumer preference for hygienic and convenience products provide the necessary market demand. Stringent quality standards are in place to ensure product performance meet consumer needs consistently.

Asia Pacific has been exhibiting promising growth aided by rising incomes, changing lifestyles and expanding urbanization. Countries like China, India, Indonesia and Vietnam are leading this upward movement. Growing health awareness along with increasing focus on personal care are driving tissue towel usage. Rapidly developing retail infrastructure like supermarkets and hypermarkets improve product availability in both rural and urban markets. This region benefits significantly from its demographic dividends of a burgeoning middle-class and young population. The large population size translates to a huge potential marketplace. Manufacturers are scaling up operations by setting up manufacturing bases to cater to the swelling indigenous demand. Flourishing e-commerce is effectively expanding the reachable market by addressing accessibility gaps.

Market Report Scope

Tissue Towel Industry News

• In May 2024, APRIL Group entered India's growing tissue market by acquiring Origami, thus bolstering its global expansion strategy
• In March 2024, Scott launched innovative paper kitchen towel, Calorie Absorber Pro
• In 2023, Georgia-Pacific invested over US$50 million, at its Port Hudson mill in Zachary, Louisiana. The investments will greatly enhance the company's retail consumer towel business.
• In 2020, Sofidel launched paper towels for pets

*Definition: The tissue towel market offers a variety of paper towels and wipers that are used for cleaning and drying purposes. Tissue towels are made from natural fibers like wood pulp or recycled paper. They are very absorbent and come in various thickness, sizes, textures and designs to suit different applications from household cleaning and drying to commercial and industrial uses. Popular tissue towel brands offer assorted packages of folded or rolled towels of varying sheet counts, absorption levels and prices to appeal to the needs of both retail consumers and business customers.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Roll Towel
  • Folded Towel
  • Boxed Towel
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Personal Care
  • Home Care
  • Healthcare
  • Hospitality
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Pharmacies/Drug Stores
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Kruger Inc.
  • Wepa Leuna GmbH
  • Cascades Inc
  • Georgia-Pacific LLC
  • Metsä Tissuem Procter & Gamble Co.
  • Kimberly-Clark Corporation
  • Asaleo Care Limited
  • Hengan Group
  • SHP Slovak Hygienic Paper Group
  • AB Grigeo
  • Essity Aktiebolag (publ)
  • Industrie Celtex S.p.A
  • Lucart S.p.A.
  • Sofidel S.p.A
  • Century Paper and Pulp
  • Petrofer
  • Solenis
  • Saraya Mystair Hygiene Pvt. Ltd.
  • Lotus Tissues
  • International Tissue Company