Retail tissue – resilient performance amid ongoing turbulences
In 2024, global economic and geopolitical realities, complicated by the lasting war of Russia and Ukraine and the Israeli-Palestine military conflict, continued to keep consumers globally uncertain, even if their countries were void of similar threats.
Real GDP growth decelerated in the US to 2.7% in 2024 from 2.89% a year ago, similarly in China, sliding from 5.25% to 4.8% over 2024 and at 0% growth in Germany, to name a few countries. As a response to more complicated logistics, higher prices of fuel and energy in addition to other factors, unit prices of commodities and services grew in many countries globally causing consumers to be more uncertain about their future and thus developing more careful spending patterns.
Retail tissue remained resilient due to the commoditised status of such products, and in 2024 the industry grew by 5% in current value terms (rsp) with a 0.9% constant value sales increase, to $104bn, indicating an overall increase in unit prices.
In the future, retail tissue is forecast to post a healthy growth as well, in particular due to the anticipated valorisation with rising consumer demand on boxed facial tissue, projected to be the most dynamic by 2029 (2024 is the current year of research and 2025-2029 data is forecast-based), and the emerging niche of premium products counterbalancing the projected expansion of the private label segment.
Toilet paper – the most demanded tissue product globally, even though boxed facial tissues lead in growth dynamics
Toilet paper holds the largest category status, both historically and over the forecast period, due to its high necessity status and the boost of regular innovations, including sustainable toilet paper (e.g., UK-based supermarket Tesco’s tissue from 100% recycled materials) and premium offers (e.g., Essity’s first 4-ply premium toilet paper Tempo launched in Taiwan in 2024).
Paper towels and boxed facial tissues compete next, each appealing to consumers with their convenience of use and added value features quickly penetrating the latter category. Paper towels still have unrealised potential since with the most economical consumers it can be substituted by toilet paper.
The challenge is met by manufacturers offering kitchen towels with smaller-sized sheets in rolls. Also, multi-pack and big-sized offers are offered as less budget-heavy solutions. For instance, Ukraine’s Kyiv Cardboard and Paper Mill launched Dyvo Premium Grande Maxi kitchen towels in packaging with a convenient handle for carrying.
In turn, boxed facial tissues take the lead in terms of the dynamics, demonstrating the healthiest growth both in 2024 (rising by 2% in constant terms on 2023) and over the forecast period. Such products appeal for convenience of use, with a better ratio of price vs functionality compared to pocket handkerchiefs, and more recently with extra functionality through blurring spaces with such categories as skin care and wellness. For example, Fine Spiritual Royal Oud Facial Tissues, which apart from durability and softness also offer their consumers calming effects and a possibility to relax due to essential oil content. This new product attracts consumers with sensorial experiences of wellness and luxury on top of its basic functionality.
Asia Pacific makes the biggest contribution to value sales of global retail tissue
Region-wise, the highest value sales of retail tissue is generated by countries in the Asia Pacific, in sum contributing 31% of the industry’s global sales value. The region is also anticipated to grow further in share, to 32%, by 2029, benefiting from further innovation and the expansion of boxed facial tissue in particular.
The second-largest region in retail tissue is North America with a 26% value share. But by 2029 the region is anticipated to slide in share, to 25%.
In contrast, further expansion is anticipated to come from the rest of the regions as there is a strong potential in per capita consumption there still, especially since manufacturers keep on investing in assortments expansion, through innovative products including.
Retail tissue and consumers – current choices, and future outlook
Regarding consumer choices in household products overall, when buying household essentials consumers primarily focus on prices, functionality of products and their affordability.
According to Euromonitor’s Consumer Lifestyles Survey, a half of household essentials consumers prioritise value for money, around 46% – high quality and around 39% – low price of such products. The importance of high quality increased in 2024, in contrast to value for money and low price. Multi-functionality and an ability to buy in bulk also grew in importance.
Overall, we can conclude that consumers currently consider buying the best products they can afford, whether they are premium, standard, or economy, and that they are willing and able to pay for when this product meets their expectations. The expectations pertain to quality, design, functionality, size, durability, and aesthetics.
Specifically within retail tissue, the criteria are well met by private label offers with the category prone to a steady rise in sales value, especially in toilet paper and paper towels where such assortments are highly popular.
Consumer demand for private label is also driven by innovations aimed at improving such products quality, functionality and affordability through bigger packaging and a wider scope of prices, including through the expansion of the premium segment. Sustainable offerings also actively expand in presence. A sample of such developments is Toletta toilet paper which is sustainable, entirely biodegradable, of high quality, with improved flushability and with antibacterial protection, also available in bulk being a novel premium offer in private label.
Tissue products with sustainable features also rapidly expand in presence. Reducing environmental impact is associated with sustainability by 78% of industry respondents within Euromonitor’s Voice of Industry: Sustainability Survey, fielded in Feb 2024 (n:599). For around 60% of respondents, sustainability means prioritising social, environmental and governance issues and achieving sustainable development goals. In stores, consumers can observe more and more products associated with sustainability. These are tissue products made of alternative fibres (e.g., bamboo, eucalyptus, grass), from recycled materials and in bio-degradable packaging.
Multi-functionality is increasingly prioritised. Recent developments in retail tissue encompass experiments with packaging design, including personalisation possibilities. For example, Renova Made by You napkins allow consumers to introduce their own preferred designs on napkins. Selpak boxed facial tissues were offered in packaging that can serve as an element of decor in bathrooms, suitable for both horizontal and vertical attachment.
Overall, these developments in retail tissue will determine company performance in the nearest years and making the right choices will allow tissue players to reach the competitive edge. As Euromonitor International’s data analytics allows to predict, consumers will be more demanding to quality of retail tissue products while will be attracted by good price offers. Beneficiaries of this trend will be private label players, especially when they consider further expanding their assortments, including expanding the price segments they are present in.
Packaging will also be important, and consumers are likely to be tempted by compact and convenient packaging and formats and bulk packaging when it comes to family consumption. Large packs, especially convenient for buying online and suitable for more economical logistics, will also be demanded.
Lastly, sustainable products will be favourable options with consumers, especially when their beneficiary features are effectively delivered to consumers either through packaging or promotional campaigns. Personalising retail tissue and innovating such products with features characteristic of adjacent categories such as personal care and health and wellness will be beneficial for further growth as well.
