Türkiye’s geographical gateway status brings a unique sequence of commercial benefits and challenges for its robust tissue industry. To the immediate south Syria, Iraq and Iran. Further south Lebanon and Israel. To the north across the Black Sea, Ukraine and Russia. Türkiye’s trade thrives despite instability.
Historic market growth is 10% while individual consumption in 2004 was 1.6kg – and 9kg today, driven largely by the country’s young and dynamic population and ongoing urbanisation. Demand in some sectors is stronger than pre-Covid levels and now consumers expect new products and higher standards, all of which is resulting in a fast-evolving category mix. Demand is expected to continue rising.
Export success has raised associated problems. Tonnage volume is close to domestic volume. Country and Operations Reports analyse how producers are maintaining trade balance. Hayat Kimya, a 2004 tissue sector entrant, has grown enough to now launch an Algerian operation. Şahin Civelek, Global Tissue Production Director, says: “The real challenge is managing through a period of domestic overcapacity and cost pressure … compounded by regional conflicts affecting energy prices and availability, logistics disruptions, and similar issues.”
Global tissue leadership is the stated aim for Arbex
In MarketIssues Ehab Abou-Oaf, Chief Executive of Arbex, the newly formed $3.4bn joint venture between Suzano and Kimberly-Clark, outlines what he means by ‘the pure play on tissue and hygiene’ propelling its growth model.
“Contrary to common wisdom,” he says, “there is still a lot to improve and innovate in our categories, even in bath tissue, which has 100% penetration among consumers … who are still demanding better cleaning, better softness from the products. Innovation is going to be a great vector to allow us to grow. The focus and pure play as a separate entity will enable Arbex to operate with speed, to make the right investments at the right time.”
That vector will push up Arbex’s share of the global market, already at 24-25%, towards the stated ambition of “undisputed global leader.”
European tissue: managing sustainability and regulatory pressures
Tissue is deeply embedded in Europe’s economic and social infrastructure. TWM’s Focus On and ExitIssues make that clear, and raises fundamental challenges.
Industry performance is impressive: €36.6bn value added, 421,100 jobs supported, €16.4bn annual tax revenue and €19.7bn sales. €0.91 of every €1 spent remains in Europe.
Will current conditions allow producers to sustain investment at scale? Carlos Reinoso, Director General of the European Tissue Symposium, calls for “competitive access to energy, greater regulatory predictability and a level playing field between products manufactured under Europe’s demanding standards and those entering the European market.”
With carbon neutrality by 2050 targeted, AFRY Management Consulting looks at the performance of mills and answers the basic question … what do consumers really think of sustainability, and how much of a sales edge does it provide?
