Tissue Towel Market is Estimated to Witness High Growth Owing to Rising Environmental Concerns & Increasing Demand for Sustainable Products
The tissue towel market is estimated to be valued at USD 53.09 billion in 2024, exhibiting a CAGR of 2.5% over the forecast period (2024-2031). Furthermore, the growing environmental concerns towards the use of paper towels and single-use plastics are prompting consumers to adopt reusable and sustainable alternatives such as tissue towels.
Increasing environmental concerns
Rising awareness about plastic pollution and its detrimental impact on the environment has been driving the demand for sustainable alternatives. Tissue towels are reusable and biodegradable in nature, thereby appealing to environmentally conscious consumers.
Growing demand for sustainable products
There is a notable shift in consumer preferences towards eco-friendly products in recent years. Numerous government regulations restricting the use of single-use plastics are further fueling the sales of sustainable tissue towels. Various tissue towel manufacturers are strategically marketing their products as being green and earth-friendly to boost their brand image and capture more market share.
Increasing awareness about hygiene and health is driving-growth in tissue towel market
One of the major drivers of the global tissue towel market is the increasing awareness among consumers about hygiene and health. Proper hand hygiene is considered very important to avoid spreading of infections and diseases. Regular use of tissue towels for cleaning hands plays a vital role in maintaining hygiene. Various government and health organizations have been promoting the importance of hand washing and usage of tissues through awareness campaigns. This has boosted the sales of tissue towels over the past few years. Consumers have also become more health conscious and prefer using tissue towels over conventional towels to ensure hands remain clean and germ-free. The COVID-19 pandemic further magnified this driver as people started focusing more on sanitization and use of disposable items like tissues.
Growing-Away-from-Home-Consumption-is-Fueling-Market-Expansion
Another key driver for the tissue towel market is the rising consumption in away-from-home settings like offices, food service places, hotels, airports and others. With increasing urbanization and changing lifestyles, more people now eat out or order food delivery very frequently. This has boosted the demand for tissue towels in restaurants and cloud kitchens. Likewise, most offices, educational institutes, shopping malls and other commercial places provide tissue towels in common washrooms due to hygiene requirements. Growing number of working women has also raised the consumption of tissues outside homes. Additionally, tissues are considered more hygienic and user-friendly option compared to cloth towels in public settings, thereby augmenting the away-from-home consumption of tissues.
Raw-Material-Price-Volatility-Pose-Challenge-to-Manufacturers
One of the major restraints for tissue towel market is the volatility in raw material prices. Being paper products, tissues are manufactured using wood pulp as the key raw material. Prices of wood pulp are dependent on timber supply and demand forces in the global market. Any fluctuations in pulp prices can squeeze the margins of tissue manufacturers. Significant hikes in input costs compel manufacturers to pass on some of the impact to customers by raising product prices. This may negatively affect the tissue demand to some extent. Another challenge is the availability of cheaper alternatives like conventional towels which can impact the tissue sales if their prices increase sharply. Proper import/export policies and agreements are required to maintain stable raw material supply.
Intense-Competition-From-Established-Players-Limiting-Scope-for-New-Entrants
The tissue towel market exhibits high degree of competition due to presence of several global and regional players. Major companies have strong brand recognition, widespread distribution networks and economies of scale that help them offer competitive prices. This poses significant barrier for new or small entrants to gain sizeable market share. Aggressive promotional activities and attractive product portfolios of incumbent players also restrict the scope for new companies. Moreover, retaliatory price wars during economic downturns further intensify the competition. While it ensures availability of quality products at competitive rates for customers, stiff competition poses challenges for new market participants and their growth ambitions. Proper differentiation strategy is important for new entrants to survive in this competitive terrain.
Growing-E-Commerce-Sales-Open-New-Opportunities
The burgeoning e-commerce sector provides lucrative opportunities for growth of tissue towel market. Many leading players have established robust online sales channels and are actively marketing their products through e-commerce portals, mobile apps as well as company websites. This allows them to expand consumer outreach as online shopping for daily essentials gain popularity. The flexibility and convenience of online shopping experience is appealing more consumers towards purchasing tissue towels on digital platforms. Factors like easy price comparisons, customized purchases in specific pack sizes and doorstep delivery are boosting the e-commerce sales of tissues. Companies offering advantage like subscription models and auto-reorder options are further benefiting from sustained online demand. E-commerce certainly emerges as a major area offering opportunities for tissue towel producers.
Increasing-Adoption-of-Recycled-and-Eco-Friendly-Products-Presents-New-Prospects
With growing environmental consciousness, adoption of recycled and eco-friendly tissue towel variants is offering new opportunities. As consumers have started considering green attributes while purchasing decisions, tissue manufacturers are launching products manufactured using recycled paper content, biodegradable materials or plant-based fibers. These sustainable tissues are increasingly gaining preference over conventional ones. Companies promoting green credentials of their products and packaging are able to leverage new customer segments concerned about minimizing environmental footprint.
Link: https://www.coherentmarketinsights.com/market-insight/tissue-towel-market-1619
Key Developments
- In May 2024, APRIL Group made a significant move into India's expanding tissue market by acquiring Origami. This strategic acquisition is part of APRIL Group's broader global expansion strategy, aimed at enhancing its presence in key markets and tapping into the growing demand for tissue products in India. By integrating Origami's operations, APRIL Group seeks to leverage its expertise and resources to provide high-quality tissue solutions, catering to both consumer and commercial needs. This entry into the Indian market underscores APRIL Group's commitment to growth and innovation in the global tissue industry.
- In March 2024, Scott launched an innovative paper kitchen towel alongside its new product, Calorie Absorber Pro. The paper kitchen towel is designed to enhance kitchen efficiency and cleanliness, offering superior absorbency and durability for everyday tasks.
- In 2023, Georgia-Pacific announced significant investments totaling more than $50 million at its Port Hudson mill in Zachary, Louisiana. These investments are aimed at enhancing the company's retail consumer towel business.
- In 2020, Sofidel launched a unique paper towel specifically designed for pets. This innovative product caters to pet owners by providing a highly absorbent and durable solution for managing spills, messes, and accidents associated with pets.
Key Players
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., and Lotus Tissues, International Tissue Company
