Tissue Towel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Tissue Towel Market is projected to expand from USD 38.33 Billion in 2025 to USD 46.25 Billion by 2031, reflecting a CAGR of 3.18%. Comprising absorbent disposable paper items made from virgin or recycled wood pulp, these products are essential for cleaning and hygiene in both residential and commercial settings. Growth is largely fueled by increased global health awareness and the ongoing revitalization of the hospitality sector, which has boosted the need for single-use sanitation supplies. Additionally, swift urbanization in developing nations is driving a consumer preference for convenient disposable hygiene products. Evidence of this resilient recovery is seen in data from the Confederation of European Paper Industries, which noted a 5.6 percent rise in tissue paper production among member countries in 2024.

Despite this positive trajectory, the market faces significant hurdles due to the volatility of raw material and energy costs. Since tissue manufacturing requires substantial energy and relies on global pulp availability, price instability in these inputs can drastically affect operational expenses. These fluctuations pose a risk to manufacturers' profit margins and limit their ability to expand market reach effectively.

Market Drivers

Significant growth within the hospitality and food service industries acts as a major driver for the Global Tissue Towel Market. With the normalization of travel and dining, establishments such as hotels and restaurants are focusing on premium sanitation supplies to satisfy consumer demands for superior hygiene. This rebound in out-of-home activities has led to increased commercial purchasing of disposable towels, napkins, and bath tissues to ensure strict sanitary conditions. The economic benefit of this revival is illustrated by Essity's 'Annual Report 2024' from March 2025, which reported a record profit of SEK 20.3 billion, largely attributed to robust organic growth and favorable pricing strategies within its Professional Hygiene division.

At the same time, rising demand for sustainable and eco-friendly goods is transforming production focus and supply chain management. Both individual consumers and institutional purchasers are showing a preference for tissues derived from recycled fibers or alternatives like bamboo, encouraging manufacturers to commit resources toward decarbonization and responsible sourcing. For instance, Sofidel announced in April 2025 that it had cut specific greenhouse gas emissions by 19.5 percent in 2024 relative to 2018, meeting its ecological transition goals. Supporting this shift in production, the American Forest & Paper Association noted in 2025 that the U.S. paper sector enhanced asset efficiency, achieving operating rates of 87.5 percent in 2024.

Market Challenges

Fluctuating costs for energy and raw materials present a major obstacle to the growth of the Global Tissue Towel Market. Since tissue production is energy-intensive and depends heavily on wood pulp, the industry is vulnerable to price shifts in these critical resources. Unpredictable increases in utility and procurement expenses lead to higher production costs, which significantly squeeze profit margins. This financial unpredictability forces companies to reallocate funds intended for innovation and expansion toward covering operational necessities, thereby hindering long-term investment and reducing market competitiveness through unstable pricing.

Recent industrial data underscores the negative effect of these cost burdens on financial results. In 2024, the China Paper Association reported a 2.71 percent drop in total profits for the paper industry compared to the prior year, even though overall revenue remained substantial. This decline in profitability demonstrates how rising input costs and economic instability undermine manufacturers' financial stability, ultimately restricting their capacity to foster market development and maintain growth momentum.

Market Trends

The competitive environment is shifting due to the expansion of high-quality private label portfolios, where retailers are focusing on premium store-brand items to challenge national brands. Instead of relying only on low prices, major retailers are collaborating with contract manufacturers to create advanced tissue products with improved softness and absorbency, targeting value-driven consumers who demand high performance. This move toward premium private labels enables retailers to gain market share by providing quality comparable to national brands at more affordable prices. The growth of this segment is highlighted by Clearwater Paper’s 'Second Quarter 2024 Results' from August 2024, which noted a 4 percent increase in retail tissue sales volume during the first half of the year, indicating strong consumer adoption of store brands.

Concurrently, the industry is seeing a trend of premiumization fueled by advanced Through-Air-Drying (TAD) technology, aimed at delivering superior attributes like increased bulk, loft, and absorbency. Producers are actively modernizing their facilities, moving from traditional light dry crepe methods to structured tissue technologies to produce ultra-premium towels with tangible quality benefits. These upgrades are crucial for standing out in a crowded market, allowing manufacturers to command higher prices and satisfy the refined tastes of modern consumers. A notable example of this trend is Valmet’s January 2025 announcement regarding a contract to provide Irving Consumer Products with a new Advantage ThruAir Drying tissue line, which is expected to boost the manufacturer's capacity for ultra-premium tissues by 75,000 tons annually.

Key Players Profiled in the Tissue Towel Market

• Kruger Inc.
• WEPA Hygieneprodukte GmbH
• Cascades Inc.
• Georgia-Pacific
• Metsa Tissue
• Procter & Gamble
• Korean Cosmetics Worldwide
• Asaleo Care Limited
• HengAn
• SHP Group

Report Scope

In this report, the Global Tissue Towel Market has been segmented into the following categories:

Tissue Towel Market, by Product Type:

• Rolled Towels
• Folded Towels
• Boxed Towels
• Others

Tissue Towel Market, by Application:

• Residential
• Commercial

Tissue Towel Market, by Distribution Channel:

• Offline
• Online

Tissue Towel Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tissue Towel Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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