Overall AFH tissue and hygiene managed to maintain current value growth in 2020, although it saw the slowest rate of increase for many years. However, the reason for this growth was strong price rises due to the increase in the rate of VAT from 5% to 15% in the middle of the year, rather than being attributed to volume growth.
However, AFH tissue saw a double-digit decline in volume sales in 2020, with current value sales also seeing a small decline despite exceptionally strong price rises. Volume sales of AFH tissue products declined at a very high rate when the lockdown was imposed in the first half of the year due to COVID-19.
Fine Solutions by Hygienic Paper (Fine) continued to lead AFH tissue and hygiene in Saudi Arabia in 2020. Many mid-range and lower-end foodservice outlets, hotels and serviced apartments, hospitals, medical centres, medium to small businesses and other organisations prefer to purchase these locally manufactured products to keep costs down.
After a difficult year in 2020, AFH tissue and hygiene is set to see slightly better current value growth in 2021, despite seeing much slower price rises. In volume terms, AFH hygiene is set to see a return to a slightly slower growth rate in 2021, as the impact of COVID-19 lessens and there are fewer hospital admissions thanks to social distancing, mask-wearing and vaccination.
AFH tissue is also set to see an improvement in its volume performance in 2021, as some level of normalisation will be seen in this year. As the virus comes under better control, more people are expected to return to working in the office and more consumers will regain their confidence in visiting restaurants in 2021.
Horeca will remain the strongest channel for sales of AFH tissue products over the forecast period, accounting for more than two thirds of sales, thanks to the strength of foodservice and hotels in the country. In fact, the lack of disruption to foodservice in 2021 after closures during lockdown in 2020 will drive the significant recovery of this channel.
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Understand the latest market trends and future growth opportunities for the Away-From-Home Tissue and Hygiene industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Away-From-Home Tissue and Hygiene research and analysis database.
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