Most Away From Home tissue products are bought by building owners, institutions and janitorial services directly from distributors. The products are usually bought in bulk and are often tied to the type of dispensers that are being used in their particular establishments in order to maintain the loyalty of customers towards that particular brand. The major ground of competition usually revolves around price of the product, compatibility of the product with dispensers, and ease of replenishment.
Recycled Products likely to Find Increase in Demand
Most of the away from home tissue and hygiene market products are made for paper sources. In many countries, like United States, where these products are used extensively, needs large amounts of resources from tress in order to produce these hygiene products. It is estimated that it takes more than 10 trees to produce 100 pounds of toilet paper. On an average every American consumes more than 23 rolls of toilet paper every year. At a global scenario, to meet such huge demand, more than 27,000 trees are chopped down to procure the source required to manufacture away from home tissue and hygiene products.
Such high range of deforestation in order to produce the paper required for tissue and hygiene products at the current levels of global warming is highly dangerous for the environment. Cutting down 27,000 tress on a daily basis accounts to the loss of more than 7 million pounds of oxygen produced by those tress every day. In order to prevent any further damage the environment, many governments have taken initiatives to use recycled products. In case of United States, federal government requires any tissue products bought with its funds, either by its agencies or by contractors, grantees or any other federally funded purchasers, to follow EPA guidelines and buy paper products with certain minimum recovered fiber/postconsumer contents. This is encouraging many other governments to adopt these regulations, which is increasing the demand for recycled away from home tissue and hygiene products even in highly mature markets, like North America and Europe.
Asia-Pacific Records Quick Growth in Demand
According to the current market data, Asia-Pacific is the third largest market for away from home tissue and hygiene products in the world after North America and Europe. Countries, like China, Australia, Singapore, and India stood as the key source of demand for these products. The high demand from the market channels, such as hospitals & healthcare units, hospitality units, food businesses, and other businesses are driving the demand for away from home tissue and hygiene products in the region. The highest demand was recorded from environmental sanitation needs in restaurants, stores, public toilets etc. where hygiene products are provided widely for the customers.
Rapidly growing middle class population in many Asia-Pacific countries and increasing disposable incomes of the population led to increased domestic travel significantly, which in turn, drives the demand for the away from home tissue and hygiene products. The region is also becoming one of the most famous medical tourism hubs. There are more than 0.3 million births and 0.1 million deaths everyday in the regions, which leads to increased consumption of away from home tissue and hygiene products, such as wipes, paper towels, and napkins, in both domestic users and commercial users, like hospitals and healthcare industry. As the price of raw materials for away from home tissue and hygiene products are expected to go up during the forecast period it is expected that the price efficiency becomes the major competitive factor for vendors especially in countries, like India, where people do not like spending more on disposable products.
Toilet Paper Towards 100% Penetration
Paper and cloth towels in the market are proven to be having the highest drying capacity when compared to many other alternatives, like electronic dryers. According to a study conducted by Mayo Clinic Proceedings, a prominent medical journal, on drying efficiency of several hand drying methods, the results indicated that residual water was more efficiently removed from the hands by paper towels when compared to jet air dryers and hot air dryers. The study also indicates that drying time of male and female users differ for a given method of drying again resulting in favourable number for away from home tissue and hygiene products.
Recent studies claim that three in 10 shoppers are considered heavy users of bathroom tissues and they shop for about 13 or more rolls every month. Toilet papers are seeing the advantage from the support of effective category segmentation and added value innovations. Prime innovations, like dermatologically tested variants, flushable variants, and the double layered toilet papers are distinguishing the general toilet papers from the premium ones.
In some of the countries the value growth of the market is entirely driven by the introduction of premium and super-premium toilet papers. The differentiation of these premium and super-premium away from home tissue and hygiene products is already seen on the super market shelves in the form of premium packaging used to pack these products. As the biggest subsector of AFH market bathroom tissues are already enjoying the household penetration rates close to 100%. Now the vendors are pushing consumers towards the premium end of the market to gain an edge over the competitors in the highly fragmented market environment.
Key Developments in the Market
- January 2018 - Huggies, a subsidiary of Kimberly-Clark awarded four additional USD 10,000 grants to support hospital hugging programs. These four hospitals joined an additional eleven that received “No Baby Unhugged” grants in 2017. The generous funding is expected to increase the visibility of Huggies brand in the Dallas region along with helping the babies to reach homes from hospitals quicker
- December 2017 - The away-from-home division of Procter & Gamble (P&G), announced the launch of its new Charmin® Bathroom Tissue for commercial use. The company aims to compete with premium away from home products in the market with their innovation of the two-ply tissue, which is noticeably softer than many leading premium commercial tissues in the market
- August 2017 - Georgia-Pacific acquires Ohio-based PAX Corrugated Products. PAX operates a corrugated sheet plant in Lebanon, Ohio and is well known for its distribution channels in food, pharmaceutical, and automotive industries. The acquisition is expected to expand the consumer base of Georgia-Pacific and enhance its premium packaging capabilities
Reasons to Purchase this Report
- Current and future away from home tissue and hygiene market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness fastest growth during the forecast period
- Latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
This report can be customized to meet your requirements.
The self-service market was valued at USD 21.2 billion in 2017 and is projected to reach USD 45.3 billion by the end of 2023, growing at a CAGR of 13.3% over the forecast period of 2018 -2023. The scope of the report is limited to the type self-service and its uses in various industries. The regions considered in the scope of the report include - North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Market Definition
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2.1 Internet Retailing
4.2.2 Increasing Demamnd for Rcycled Products
4.2.3 Increased Spending on Hygiene
4.2.4 Population Growth
4.3.1 Growing Trend of Electronic Dryers
4.3.2 Slow Growth In the Markt
4.3.3 Extreme Competition Due to Highly Fragmented Market
4.4 Industry Attractiveness - Porter's Five Forces
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Product
4.4.5 Competitive Rivalry within the Industry
4.5 Industry Valuechain Analysis
5. Away From Home Tissue and Hygiene Market Segmentation
5.1 By Type of Product
5.1.1 Paper Napkins
5.1.2 Paper Towels
5.1.4 Toilet Papers
5.1.5 Incontinence Products
5.2 By End-user
5.2.2 Food & Beverages Industry
5.2.3 Hospitals & Health Care
5.3 By Region
5.3.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.3.4 Latin America
188.8.131.52 Rest of Latin America
5.3.5 Middle East & Africa
184.108.40.206 United Arab Emirates
220.127.116.11 Saudi Arabia
18.104.22.168 Rest of Middle East & Africa
6. Global Vendor Market Share Analysis
7. Competitive Analysis
7.1 Kimberly-Clark Corporation
7.2 Georgia Pacific LLC
7.3 SCA (Svenska Cellulosa Aktiebolaget)
7.4 Procter & Gamble
7.5 Cascades Tissue Group Inc.
7.6 Wausau Paper Corp.
7.7 Sofidel Group
7.8 Clearwater Paper Corporation
7.9 Kruger Products
7.10 Fujian Hengan
*List is Not Exhaustive
8. Investment Analysis
9. Future of Away From Home Tissue and Hygiene Market
- Kimberly-Clark Corporation
- Georgia Pacific LLC
- SCA (Svenska Cellulosa Aktiebolaget)
- Procter & Gamble
- Cascades Tissue Group Inc.
- Wausau Paper Corp.
- Sofidel Group
- Clearwater Paper Corporation
- Kruger Products
- Fujian Hengan