Unlocking Sustainability Opportunities in Tissue and Hygiene

Despite grappling with substantial sustainability hurdles, like resource intensity and waste generation, the tissue and hygiene industry is not only surviving but thriving. Seizing opportunities amidst challenges, the market for sustainable products saw an 8% value sales CAGR between 2020 and 2023, outperforming their non-sustainable counterparts.

Leveraging insights from the AI-powered Passport Sustainability platform, Euromonitor International emphasises the need for businesses to adopt transparent sustainability measures. This crucial step not only aids in mitigating risks and adhering to regulations, but also capitalises on the growing consumer preference for sustainable products.

Wide opportunity space in tackling resource use and waste intensiveness

Retail tissue is driving growth, with increasing scrutiny of corporate climate action amplifying the need to address the inherent resource-intensiveness of tissue production. To convey this message, companies continue to communicate around more sustainable sourcing efforts, for example through Forest Stewardship Council (FSC) certified claims, along with using packaging from sustainable sources to complement widely resonating claims, such as “Environmentally Friendly” and “Biodegradable (product)”.
Retail hygiene players have widely used “Natural” and “No Dye” claims, pushed by consumers’ interest in ingredient-led solutions with as few chemicals as possible. “Environmentally Friendly” and “Biodegradable (product)” claims are also among the most prevalent, along with the emergence of washable and hybrid formats aimed at curbing post-consumption waste.

Heightened scrutiny encourages tissue players to accelerate sustainability adoption

For retail tissue players, it is crucial to incorporate sustainability features along with performance and quality, as these are features consumers will not trade off easily. In fact, in Euromonitor International’s Voice of the Consumer: Sustainability Survey, 50% of global respondents named “Value for Money” as the most influential factor in their purchase of home essential products, closely followed by “High Quality”, chosen by 47%.

Given the substantial costs of incorporating sustainability-related modifications, businesses have focused on critical areas such as sourcing, ingredients and packaging. These areas are under heightened scrutiny and pressure from consumers and regulatory bodies alike, thus making it vital to communicate openly about carbon footprint reductions at every stage of the process.
Non-wood alternative fibres, like bamboo, eucalyptus and wheat straw, have surfaced as strategic solutions to counterbalance the financial and logistical challenges associated with the current resource-intensive supply chain. Their rapid renewability allows businesses to bolster their green credentials with specific claims like “sourced sustainably” and “responsible forestry”. Moreover, the use of paper packaging is on the rise, as evidenced by the surge in FSC-certified products, which signifies a growing commitment among businesses to cut down on plastic use. For instance, Tesco has recently expanded its private label range in the UK with toilet paper and kitchen towels made from recycled cardboard and paper. These FSC-certified, bleach-free products deliver both softness and absorbency at half the price of similar branded alternatives.

Sustainability complements hygiene products’ value proposition

When purchasing retail hygiene products, quality, effectiveness and performance are must-haves for consumers. Their interest in comfort, odour and leak control, softness on skin and absorbency are clearly worth the investment, as, unlike with other essential products, value for money ranks lower along their priorities.

Now, in addition to these features, sustainability is also becoming a desirable attribute. This shift is largely driven by conscientious parents and the growing interest in skin care, which has started to permeate this category. This presents an opportunity for businesses to enrich their value proposition. As a result, hygiene brands are focusing on “free from” claims like “BPA free”, along with natural claims that suggest skin protection and nourishment as part of their sustainability narrative.

In light of the intensified scrutiny surrounding product composition, brands are also refining their communication about sustainably sourced alternative materials. For instance, organic cotton, a sustainable fibre alternative, is increasingly spotlighted in the marketing of baby nappies/diapers and menstrual products.Further, companies are increasingly addressing key post-consumption challenges by reducing their use of virgin plastic and transitioning towards paper and recycled material packaging. They are also initiating recycling and upcycling programmes. A notable example of this is Unicharm’s RefF marked baby and adult diapers, which utilise upcycled pulp in Japan. Meanwhile, Pura, a B-Corp certified sustainable baby care brand, has broadened its reach to the US. It offers affordable alternatives such as plastic-free, biodegradable baby wipes, starting at USD2.88, along with organic cotton nappies packs starting from USD9.98 at Walmart.

Learn more about Sustainability in our report, Unlocking Sustainability Opportunities in Health and Beauty, and visit our Sustainability page for further insights on where to play and how to win with sustainable claims.