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Toilet paper is an essential commodity used in our daily lives for maintaining hygiene and cleanliness. They are made from fresh pulp or recycled paper and are disposable and easily degradable products. Over the years, the commodity has experienced innovation and up-gradation. They are now available in innovative designs with prints and multiple grades based on their softness. Manufacturers in the market come up with daring innovations to a product that many consumers still consider a basic item. The focus on strong, thick, and soft toilet paper coupled with the ‘luxury’ or ‘indisputably chic’ feel upon using toilet paper is growing, as consumers become more conscious of cleanliness and hygiene. The global toilet paper market is expected to reach USD 38.34 billion by 2027 at a CAGR of 4.9% during 2020-2027.
Fortune Business InsightsTM identifies the following as top factors driving the global toilet paper industry:
1. Surging Consciousness Regarding Personal Hygiene Amidst the COVID-19 Pandemic to Amplify Market Growth:
The global pandemic has propelled the importance of maintaining personal hygiene and cleanliness. The use of personal care and hygiene-related commodities has shot up significantly during the pandemic. The stockpiling and hoarding trends observed during the initial days of the pandemic have boosted the market growth considerably. To fulfill the increased product consumption worldwide, the manufacturers operating in the sector ramped up their production capacities. Below are some of the major developments observed during the pandemic:
2. Escalating Commercial & Residential Infrastructural Sectors to Uplift Market Growth:
Paper towels and toilet papers are essential commodities used in households, restaurants, hotels, etc. The increasing global population boosts the infrastructural activities across commercial and residential sectors. As per the data published in 2020 by the National Association of Home Builders, approximately 475,000 newer homes were sold in the Southern U.S. compared to 399,000 in 2019.
Additionally, the government initiatives in developing toilets and other facilities are anticipated to bode well for the market and drive product consumption. For instance, under the SBM-G scheme, the Government of India, made an investment worth USD 919.56 million and USD 401.56 in the progressing toilet block construction projects in the states of Uttar Pradesh and Bihar in February 2019.
3. Growing Consumer Inclination Towards Eco-Friendly Toilet Papers to Bolster Market Growth:
Over time, consumers have grown more conscious regarding sustainable products. The increasing consumer awareness regarding deforestation and global warming issues have augmented the demand for sustainably produced toilet paper. These papers made from natural ingredients reduce skin irritation and rash issues. The focus of manufacturers on producing such eco-friendly products is anticipated to bolster the market growth. For instance, the Forest Stewardship Council (FSC) announced that U.S.-based companies such as Natural Values and Green Forest utilize about 80% to 100% recycled content in their tissue products.
4. Rising Prominence of eCommerce Industry to Accelerate Market Growth:
With the increasing outreach of eCommerce platforms, consumers are getting more inclined towards online shopping. Consumers can place orders in advance according to their desired quantity and avoid the out-of-stock issue. The growth of the eCommerce industry is likely to foster immense market growth. For instance, Walmart Inc. declared a spike in the sales of toilet paper in March 2020. A spike of 20% was observed in the sales when compared to the previous month.
Toilet papers are now not just a basic commodity but it has become a major part of personal hygiene and luxury. Tissue companies are concentrating more on quality products with innovative business models to grab the attention of the customers.
Written By- Arun Kumar Gautam