Tissue Paper Market By Product (Facial Tissues, Paper Towels, Wet Tissues, Wipes, Bath & Toilet Paper, and Others), Application (Household and Commercial) Distribution Channel (Offline and Online), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 – 2032

Market Perspective

The global Tissue Paper Market size was worth around USD 82.4 billion in 2022 and is anticipated to grow to around USD 112.4 billion by 2032 at a CAGR of around 3.1% between 2023 and 2032.

The rising use of paper towels for household cleaning and the thriving hotel & tourism industries, as well as increasing health and hygiene awareness among consumers drive the tissue paper market growth. In addition, facial tissues are becoming more popular in urban areas, and the production of special papers such as high-quality decorative, glazed, and printed variants boosts sales. Improved manufacturing technologies also allow for better product designs and models that cater to a broader consumer base. Other factors such as the growth of organic tissue paper, rising disposable income, and favorable government health policies also contribute to market growth.

The market has seen some successful innovations in both tissue and in-store hygiene, but there is still room for improvement to meet changing consumer needs. Cost-efficiency remains a top priority for manufacturers, as untapped potential lies in reaching new consumers. The paper machine production industry is experiencing rapid technological development, which benefits the market.

Despite the production process being relatively straightforward, the growth of the industry is hampered by increasing environmental concerns such as global warming and deforestation. To remain competitive in a market driven by price, manufacturers are turning to package innovations to improve product appeal.

Key Insights

• Based on the product, the bath & toilet paper segment held the largest market share
• Based on application, the commercial segment generated the highest revenue
• By distribution channel, the offline segment is expected to dominate the market over the forecast period
• On the basis of region, North America accounted for the largest market share

Proliferating Need for Personal Care and Sanitation Drives the Market

The growing emphasis on personal hygiene and the use of hygiene-preserving products is driving the demand for sanitary napkins. The global population's increasing spending on healthcare products, including personal hygiene, is fueling the tissue paper market share. The growing trend of partying and festivals is also boosting the demand for makeup kits and makeup-free sanitary napkins.

The increasing number of bars and cafes is driving the usage of towels and hygiene products, and the growing residential and restaurant infrastructure will further boost the demand for toilet and bathroom accessories, leading to market growth. Special towels, commonly used in hotels and restaurants to maintain cleanliness, are contributing to the demand for such products, as the growth in the number of hotels and restaurants continues to rise.

Environmental Concerns May Restrain Market Growth

The growth and demand for cellulose-based products, such as toilet paper, are being hampered by environmental issues such as deforestation and its resulting impact on global warming. The highly fragmented market, with both organized and unorganized local manufacturers of fabrics, presents operational challenges for key players in the industry.

Additionally, disruptions in the supply chain and trade restrictions in certain countries limit companies' ability to expand into international markets, hindering the tissue paper market growth. The production process of toilet paper involves the use of chemicals, including chlorine bleach, which contributes to negative environmental impacts and can be harmful to workers, presenting a significant barrier to market growth.

Increased development of New Products with Innovative Packaging Provides Lucrative Opportunities for the Market

The rising standard of living and changing lifestyles of the global population. Companies are responding to this trend by introducing innovative designs in napkins and sanitary products to provide consumers with soft and highly absorbent hygiene options. For example, Bunzl R3 has introduced a line of reusable and molded towels, napkins, and other daily necessities to offer quality hygiene products.

Governments around the world are promoting hygiene and cleanliness through advertising campaigns, increasing awareness about personal hygiene, and driving demand for tissue paper. One such initiative is the World Bank Group's Mauritania Water and Sanitation Sector Project, which aims to promote personal care and hygiene in Trarza, Gorgol, Asaba, and other regions of Mauritania. Companies are exploring new design concepts for napkins and hygiene products to improve softness, absorption, and minimize skin irritation, contributing to the tissue paper market revenue.

Recent Development

In July 2022: Essity launched its straw-based toilet paper product, Zewa, across the German market. The product uses straw left over from locally which has a straw content of at least 10%, to improve the carbon footprint of its products in the region.

In July 2022: Suzano established pulp mill processing operations in the municipality of Aracruz,  Espírito Santo, Brazil. The new plant would have a capacity of 60,000 tons of tissue per year, which would then be converted into tissue and towels.

In July 2021: Sofidel Group launched its first consumer brand, Nicky, in the United States. Nicky's innovations combine high-quality product performance with environmentally friendly paper packaging.

Segmentation Analysis

The global market is segmented into several products, including facial tissues, paper towels, wet tissues, wipes, bath and toilet paper, and others. The bath and toilet paper segment dominates the market due to the high consumption of cotton towels and napkins for bathroom sanitation. Cotton towels are preferred for their high absorbency and are widely used during bathing. Additionally, wrapping tissues and specialized wipes are frequently used for packaging fragile items, providing support, and preventing loss. This category has seen significant growth due to the expanding packaging sector globally.

The market is segmented based on application into two categories: household and commercial. The commercial segment holds a significant market share due to the widespread use of tissues in hotels and restaurants for cleaning tables and food service. The growth of the corporate sector has also led to an increased demand for facial tissues and napkins in office canteens for hand drying.

Based on distribution channels, the market is bifurcated into offline and online. The offline segment, which includes grocery stores and shopping centres, is the most dominant sector since it offers a wide range of cleaning supplies in a single location. Coupons and discounts for purchasing products in bulk also encourage people to shop for a variety of goods.

North America is Dominating the Market Share Due to an Increasing Number of Product Innovations and Packaging 

North America is experiencing strong growth due to innovative manufacturers offering attractive packaging and new products. The presence of countries such as the United States and Canada, with their high healthcare expenditure and growing awareness about hygiene, is further driving the tissue paper market. Additionally, the region is experiencing growth driven by rising income levels and changing lifestyles in developing countries.

The increasing demand for facial and wet wipes among millennials, as well as the growth of the hotel and restaurant industry, is expected to further drive market growth in the coming years. Additionally, the growing popularity of eco-friendly tissue paper products is a major factor contributing to the market's growth in North America.

Asia Pacific is the Fastest Growing Market Owing to the Increased Awareness of the Hygiene

The Asia Pacific region is expected to be a significant contributor to the market growth during the forecast period. This is due to the growing production capacity and development of wood products in countries such as China, Japan, and the East Asian region.

According to a survey by the China Paper Association, there are nearly 2,700 paper and board manufacturers in mainland China alone, as of 2019. The growing population and rising standard of living in countries such as China and India are fueling the tissue paper market share.

In Japan, consumers have high disposable incomes and demand products that offer more than just basic functionality. The market in China presents significant growth opportunities for manufacturers, with the potential for increased sales in second and third-tier cities and rural areas, as well as a well-developed consumer base in first-tier cities such as Beijing and Shanghai. The safety and sustainability certificates from relevant professional organizations are becoming a prominent purchasing criterion as awareness of product safety standards and environmental protection grows. Moreover, manufacturers are approaching domestic vendors for product development and innovation, leveraging distribution channels and marketing efforts which propels the business growth.

Competitive Landscape

• Clearwater Paper Corporation
• Essity Aktiebolag
• Kimberly-Clark Corporation
• ORIGAMI TISSUES
• P&G
• SOFIDEL
• Solaris Paper
• Suzano
• Unicharm Corporation
• Zazzle Inc.

The global tissue paper market is segmented as follows:

By Product

• Facial Tissues
• Paper Towels
• Wet Tissues
• Wipes
• Bath & Toilet Paper
• Others

By Application

• Household
• Commercial

By Distribution Channel

• Offline
• Online

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America