Away-From-Home Tissue and Hygiene in New Zealand

2021 DEVELOPMENTS

Continued COVID-19 lockdowns inhibit rebound in AFH sales

While the first half of 2021 saw New Zealand free from any COVID-19 restrictions, and the opening of a quarantine-free travel bubble with Australia, the emergence of the Delta variant in August plunged the country as a whole into a strict level 4 lockdown, with only grocery stores able to open. While restrictions were relieved across most of the country in the months following, Auckland remained in a sustained lockdown, with only contactless takeaway available for foodservice.

Work from home trend now firmly entrenched in New Zealand

The original outbreak of COVID-19 in early 2020 resulted in workplaces across the country being forced into work from home arrangements. In the aftermath of this, most major companies across the country adopted flexible working policies, with employees increasingly working from home.

Asaleo Care and Kimberly-Clark continue to lead

Asaleo Care and Kimberly-Clark remained the two leading players in AFH tissue and hygiene in New Zealand in 2021. Through its Tork brand, Kimberly-Clark offers a wide range of products and solutions, including toilet paper, paper towels, napkins, wipers, paper tableware and boxed facial tissues.

PROSPECTS AND OPPORTUNITIES

Ending of lockdowns and reopening of borders key to AFH recovery

The recovery prospects for AFH tissue and hygiene will be heavily dependent on the country moving from a lockdown-based approach to managing COVID-19 with more of an outbreak management-based approach. The government has already signalled its intention to move away from the current four-tier lockdown approach that characterised New Zealand’s elimination-based approach, towards more of a suppression-based approach once the country reaches a vaccination rate of 90% of the eligible population.

Working from home is here to stay

While 2021 saw people return to the office, many companies took the disruption caused by the COVID-19 pandemic to reassess their space requirements, with businesses across the country looking to downsize their office footprints and promote working from home initiatives. While there are likely to be some growth opportunities for hand sanitisers, soap and paper towels in the early stages of the forecast period due to heightened personal and workplace hygiene requirements and protocols in office spaces as some people return to work, as New Zealand moves into the post-pandemic world, demand is likely to wane over the later stages of the forecast period.

Sustainability likely to start influencing AFH decision-making

At present, sustainability is not a major factor in decision-making in AFH tissue and hygiene in New Zealand. Whereas in retail, consumer preferences are increasingly shifting towards more sustainable products and packaging, decision-making in the AFH space is typically made by procurement officers or administration staff, for whom pricing is a more prominent aspect that influences their choice.