Italy’s all sector volume growth tops pre-pandemic levels, and per capita volume consumption is the highest in Western Europe. Report by Sarah Wood, Senior Research Analyst, Euromonitor International.
Overall tissue demand remained high in Italy in 2024. Both retail and AfH tissue experienced volume growth, above pre-pandemic levels, despite high inflation impacting consumers’ spending capabilities. The tissue sector continues to benefit from the fact that these products are essential and are not easily substitutable.
Retail tissue also saw value growth in 2024, with toilet paper as the largest category and highest-growing category across the 2025-2029 forecast period. Despite being a worldwide hub for production of toilet paper, during the pandemic and subsequent lockdowns, the country did not experience inventory issues, unlike many others across Western Europe. As a result, demand for toilet paper remained more stable than the rest of the region. Boxed facial tissues showed the fastest growth in 2024, with this growth largely the result of lasting post-pandemic trends in which Italians increasingly substitute textile handkerchiefs for boxed facial tissues.
High inflation and reduced disposable income have fuelled the growth of private label in recent years. Large grocery retailers have been investing in private label developments through new packaging, new formulations, and improved sustainability features. One example of this comes from Coop Italia, who have re-worked retail tissue products across their Viviverde private label line, so that they are now made from fibrepack, a recycled fibre derived from soft drink cartons. Developments such as this continue to make private label an increasingly attractive option for Italian consumers.
AfH tissue grew in volume consumption in 2024 more moderately than in the years immediately following the pandemic. However, there was still demand for AfH occasions in 2024, with visits to restaurants and cafes driving this demand.
Putting Italy in the context of Western Europe, the tissue per capita volume consumption in Italy is higher than the average for Western Europe. Italy has an aging population which contributes to this, given that older adults use tissue products on a more frequent basis.
The aging population in Italy is higher than the regional average, with 24% of the total population aged 65+, in comparison to Western Europe, where only 20% of the total population was 65+ in 2024. In addition to this, Italy is a major tourist destination, with this contributing to the consumption of tissue products in public spaces as well as private accommodation. Inbound arrivals to Italy increased in 2024, with in-destination spending similarly seeing value growth in 2024. Spending on food and dining in particular experienced value growth, with this positively impacting tissue consumption.
Consumers warm up to branded products amid sustainability innovations
Whilst private label continued to grow in retail value and volume sales in 2024 and remained the largest tissue player of all, they did cede some value share to branded players as the effects of inflation have eased and some Italian consumers moved away from private label to branded products. This is evident given that Sofidel’s Regina products remain amongst the most popular brands in terms of value sales across retail tissue in 2024, despite having a higher price point compared to other brands. Sofidel remains popular amongst Italian consumers given its performance, specifically its absorbency and usability, as well as the fact the company invests in sustainable practices, features that consumers are willing to pay more for.
Sustainability remains an area of innovation for tissue players in Italy, with continued focus centred on creating a wider appeal to sustainability-conscious consumers as well as decreasing operating costs and carbon footprint. One example of this in Italy comes from Eurovast, who are working to increase the sustainability of their Fior di Carta brand. According to Eurovast, 98% of the materials they use are renewable, with production of waste down by 5% across its plants in Italy, UK, and the Netherlands. These sustainable achievements are regularly disclosed to consumers through regular communication and sponsorship activities.
New legislation to come into force in Italy in 2025 protecting consumers from shrinkflation
Retail tissue will continue to grow in both volume and value terms across the forecast period in Italy, as demand will remain stable for these products. Toilet paper is forecasted to have the largest and most dynamic growth in the years to come, thanks in part to the wide availability of types, grades of softness and colours, as well as the fact that toilet paper will remain an essential product for consumers. In addition, Italy will remain an important supplier of toilet paper, and their localised supply chain and ample inventory will allow them to meet consumer demand more cost-efficiently.
New legislation is also coming into place in 2025 to help target ‘shrinkflation’, the phenomenon in which the price of a product remains the same whilst its size gets smaller. The new legislation requires that Italian consumers must be informed on the packaging if the quantity of the product inside has been reduced to match the previous retail price. This will provide Italian consumers with some protection from continued shrinkflation and will help moderate unit prices for tissue goods.
AfH tissue experiences comparatively moderate growth in 2024
AfH tablecloths have emerged in recent years as a dynamic category with steady growth from 2021 onwards as the consumer foodservice industry in Italy has embraced paper as an alternative to textile tablecloths. Paper tablecloths are more hygienic as they can be replaced for each customer, they enable restaurants to save money on dry-cleaning and are available in a wide range of patterns, colours and sizes. This has made them an increasingly attractive option in recent years, with this reflected in their recent growth.
The AfH tissue sector in Italy will continue to experience volume growth across the forecast period. AfH paper tableware, particularly napkins and tablecloths, will continue to experience steady growth as the switch from textile to paper will continue to spread across the foodservice industry. Toilet paper and wipes in the sector will also continue to perform well in future years, given that these products are deemed essential, with constant steady demand remaining across the forecast period.
Channel performance in AfH tissue has remained relatively stable overall in 2024. Business/industry is the largest AfH channel in terms of share of sales for AfH tissue in Italy, despite ceding a small amount of its total share. The Horeca channel experienced a small increase in share of sales in 2024, as the consumer foodservice industry in Italy continues to embrace paper products as an alternative to textile products.
