Toilet Paper Market Size, Share & COVID-19 Impact Analysis, By Type (Rolled and Folded), Ply Count (One, Two, and Others), Application (Household, Healthcare, Hospitality, and Others), and Regional Forecast, 2020-2027

The global toilet paper market size was USD 26.14 billion in 2019 and is projected to reach USD 38.34 billion by 2027, exhibiting a CAGR of 4.9% during the forecast period. Toilet Paper is one of the most essential items among all tissue products. These papers are primarily divided into two types, namely, at-home and away-from-home, wherein burgeoning demand from both categories is supporting the global market expansion. Premium products with embossed, ultra-soft, fragranced, and printed toilet tissues are gaining traction in mature markets. On the other hand, flushable toilet papers are on the rise due to the growing incidence of clogging of septic systems. Similarly, the emergence of online distribution channels has further boosted the market growth of sanitary paper products.

Panic Buying among People Increased Product Demand during COVID-19 Pandemic

Panic buying in the first few months of 2020 has immensely increased the demand for household essential goods including tissue papers.  Lockdown rules imposed by respective government authorities made people stay at home, thereby increasing the consumption of at-home toilet tissues. For instance, Kimberly-Clark’s 2020 first-quarter sales reached USD 1.7 billion which increased by nearly 13%, as compared to the same period in 2019. The increase in toilet paper sales can be attributed to the volume surge including double-digit gains for K-C’s bathroom tissue and facial tissues under the consumer segment during Q1 2020.

Similarly, Procter & Gamble took efforts to rapidly make their idle and not-in-use equipment in working conditions to ramp up the production of Charmin toilet paper to cater to its increasing demand. Product hoarding led the retail stores to follow rationing on such essential goods to streamline product distribution. However, the demand from hotels, offices, and public places was affected due to the shutting down of the majority of commercial facilities. On the other hand, the lockdown rules are likely to loosen up as the coronavirus spread is being contained across the globe. This, in turn, is expected to lead to regular demand from the commercial sector in the near future.

LATEST TRENDS

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Increasing Demand for Greener Products to Accelerate Market Growth

The increasing awareness regarding deforestation for paper pulp production has led to a dilemma among toilet paper users regarding its usage. However, manufacturers are constantly focusing on alternative ways to reduce the burden on virgin paper pulp derived from trees and taking the initiative to use recycled fibers in their products. Similarly, they are making efforts to source raw materials responsibly. For instance, in September 2019, Procter & Gamble announced to increase in the percentage of FSC-certified tissue fiber by 2025 from about 40% to 75% in their Charmin, Bounty, and Puffs brands.

Besides, players are keen on following greener practices during the entire supply chain of the product. For instance, products such as Georgia-Pacific’s Compact Coreless 2-Ply Bathroom Tissue will further reduce the usage of paper pulp for the core of the tissue roll and help save nature. Similarly, Lucart Group produces these papers from fibers derived from post-consumer recycled beverage cartons. Therefore, the growing environmental concerns have led to an increased demand for sustainable bath tissues.

DRIVING FACTORS

Rising Number of Commercial Facilities to Boost Product Demand

The increasing trend of travel and tourism has led to the growth of the hospitality industry across the globe. This, coupled with the increased hygiene requirements has pushed the demand for tissue products in hotels, resorts, and restaurants which would contribute to the market growth.

Besides, the increasing working-class population has further boosted product usage at offices and corporate sectors to cater to the workplace requirements of employees.  For instance, as per the U.S. Census Bureau’s data on Country Business Patterns, the total number of establishments reached 7,912,405 in 2018 from 7,860,674 in 2017 in the U.S. Similarly, the increasing number of working women has increased the requirements of hygiene maintenance in office, as well as public restrooms. Therefore, the rising number of commercial facilities is expected to fuel the growth of this market.

Rising Focus on Online Distribution Channels to Add Impetus to Market

The per capita consumption of toilet paper is relatively higher in developed countries such as the United States, Canada, and European countries, as compared to other nations. However, the growing infrastructural facilities related to distribution channels are expected to increase market penetration and provide easy access to such essential grocery items in emerging markets. 

• For instance, in October 2020, Alibaba Group Holding Ltd. announced an investment of USD 3.6 billion in Sun Art Retail Group Ltd., which operates more than 100 hypermarkets in China.

Similarly, the COVID-19 pandemic has shifted consumer preference towards convenient online buying methods for daily use products which are further expected to support the global toilet paper industry growth.

RESTRAINING FACTORS

The emergence of Bidet Toilets to Restrain Market Growth

Increasing awareness regarding the conservation of natural resources has led to an urgent need to minimize the usage of this paper. Bidet toilets are among the important alternatives available in the market, which is expected to limit the demand for toilet tissues. Moreover, the increasing prices of paper pulp raw material would further negatively impact market size.

SEGMENTATION

By Type Analysis

Rolled Segment to Dominate Owing to its Traditional Format

Based on type, the market is segmented into rolled and folded. The rolled segment is expected to hold a major share owing to its traditional format which offers convenience in usage, as well as product refilling. However, players are coming up with new product offerings in the folded format due to the positive consumer response. For instance, Kimberly-Clark offers Folded Bath Tissue which allows taking only one tissue at a time. This, in turn, results in using about 40% less paper, as compared to the rolled type. Therefore, owing to the increasing consumer demand for folded type, the segment is expected to grow rapidly.

By Ply Count Analysis

Two-Ply Segment to Hold Major Share due to Cost-effectiveness

Based on the ply count, the market is segmented into one, two, and others. The increasing number of plies surges tissue strength. Therefore, people are increasingly looking for 3, 4, and also 5 plies products.  For instance, as per the survey result published by the Consumer Council-Hong Kong in May 2018, 4-ply toilet rolls had higher strength than tested 3-ply products. However, as the number of ply increases, the product’s overall cost increases. Therefore, the two-ply segment is expected to dominate the market as it has sufficient strength, and softness, and is available at an affordable cost.

By Application Analysis

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Higher Usage Rate to Make Household Segment Dominant  

Based on the application, the toilet paper market is segmented into households, hospitality facilities, healthcare facilities, and others. Improvements in healthcare facilities, as well as the growth of the hotel industry, are expected to propel the demand for away-from-home bath tissues.

However, the usage rate of the paper is greater among households as it is an essential daily use commodity. An increasing number of residential facilities is raising its consumption and thereby contributing significantly to the segment growth. Similarly, the growing number of nuclear families and the trend of living alone has increased the number of households, as well as the usage of these papers per household. For instance, as per the data released by the U.S. Department of Commerce, the number of households where only a single person stays increased from 31,399 thousand in 2010 to 36,479 thousand in 2019 in the U.S. Therefore, the household segment is expected to hold a major toilet paper market share.

REGIONAL INSIGHTS

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The higher spending power of the population in the U.S. and Canada has led to a burgeoning demand for bath tissues in North America. Players in the region are therefore focusing on the production of new products to cater to the rising consumer demand.

• For instance, in August 2018, KP Tissue Inc. announced to invest USD 575 million in Québec, Canada for a new tissue production plant, which is expected to manufacture about 70,000 metric tons of bathroom tissue and paper towels annually upon maturity. The production is expected to start in 2021.

A growing number of hospitality facilities in Europe are expected to increase product consumption. For instance, as per the data released by Eurostat, the total number of nights spent in tourist accommodation establishments in the European Union has grown by 40 % from 2005 to 2018. Moreover, the demand for premium products is increasing from the millennial population in these countries which is further expected to strengthen the market share.

Asia Pacific's market value stood at USD 9.55 billion in 2019 and is set to hold a significant market share. The per capita usage is relatively lower in Asian countries. However, the presence of highly populous countries, increasing urbanization, and industrialization have led to improved restroom facilities and thereby increased product demand.

• For instance, as per the Japan Paper Association, sanitary tissue production in Japan has increased from 1,765,656 tonnes in 2015 to 1,805,544 tonnes in 2019.

Moreover, the increasing trend of westernized culture in Asian countries is likely to support the product demand owing to the higher number of households and commercial facilities with the provision of commodes in the restrooms.

In South America, the improving standard of living in countries such as Brazil, Argentina, and Chile among others is expected to promote product usage. Key players in the market are focusing on new product development owing to the changing consumer preferences. For instance, in December 2019, Brazil-based Suzano launched a new brand, ‘Mimmo’ of toilet paper products which are easy-start rolls provided with ‘cut here’ smart perforation.

The market in the Middle East and Africa currently holds a lower share due to the presence of less developed countries, their poor economic conditions, and the overall lower average volume of tissue consumption among all regional markets. However, the market is expected to grow at a steady rate, wherein the increasing awareness of personal care and hygiene is expected to drive the demand for sanitary tissue products in the region.

KEY INDUSTRY PLAYERS

The emergence of Private Label Brands to Increase Competition in Market

Currently, the market comprises several top-performing companies such as Essity, Procter & Gamble, Georgia Pacific, Kimberly-Clark, and others. However, increasing competition from private label brands has significantly affected the revenue generation of branded products. For instance, in July 2019, Amazon launched AmazonCommerical, its private label brand offering toilet paper, paper towels, and other tissue paper products to business-to-business clients.

Therefore, prominent players are focusing on increasing their market shares by adopting strategies such as partnerships, acquisitions, and product launches. For instance, in December 2018, Solaris Paper Company acquired Asaleo Care in Australia. The acquisition also includes Asaleo’s one of the leading toilet paper brands named Sorbent. Therefore, key players are taking efforts to strengthen their foothold, wherein emerging private-label brands are expected to fragment the market.

LIST OF KEY COMPANIES PROFILED:

• Procter & Gamble Co. (Cincinnati, U.S.)


• Kimberly-Clark (Dallas, U.S.)


• Essity AB (Stockholm, Sweden)


• Georgia-Pacific LLC (Atlanta, U.S.)


• Hengan Group (Jinjiang, China)


• Sofidel Group (Porcari, Italy)


• Kruger Inc. (Montreal, Canada)


• Empresas CMPC S.A (Santiago, Chile)


• WEPA Hygieneprodukte GmbH (Arnsberg,  Germany)


• Unilever (London, U.K.)

KEY INDUSTRY DEVELOPMENTS:

• April 2019 – Georgia Pacific announced to invest of around USD 120 million in its Naheola Mill, the U.S. which produces bath tissues. This investment is expected to grow the company’s bath tissue business.


• July 2019 – Cascades acquired Orchid Paper Products Company, which is expected to support the former in strengthening its footprint in the market.

REPORT COVERAGE

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The toilet paper market research report provides a detailed market analysis and focuses on key aspects such as competitive landscape, applications, and leading product types. Besides this, it offers insights into market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

Toilet Paper Market Scope & Segmentation