Asia Pacific is currently the largest and fastest growing retail tissue market in the world and still has huge room for growth due to its fast-growing economy. Rising urbanisation and average disposable income coupled with growing hygiene awareness will be the key to strong growth over the forecast period. This trend is further supported by the Coronavirus pandemic in 2020 which sees retail tissue impacted positively and likely to benefit over the long run.
While Asia Pacific has recorded the strongest growth in retail tissue sales for the past five years, it will continue to expand due to low per capita consumption. The region’s economy is still growing fast, with increasing disposable income and urbanisation. Manufacturers are also looking to expand to smaller cities and rural areas.
Most consumers in developing markets are still price sensitive. Hence, manufacturers are working on affordable innovations to attract low- and middle-income consumers, having value for money as a priority in product development.
During the COVID-19 pandemic, most people are forced to spend their work, study and leisure time at home, and it has resulted in increased usage of retail tissue products. Hygiene awareness is growing across Asia Pacific due to fear of virus and disease. This trend helped boost sales of retail tissue products in 2020, and the trend is set to carry on even after the pandemic ends.
While consumer habit still brings many to offline grocery retailers, e-commerce started gaining huge traction during the pandemic due to fear of contracting the virus or “out-of-stocks” in offline stores.
While Asia Pacific overall has the largest growth potential, each country has its own uniqueness with different consumers’ views and preferences. This brings a huge advantage for local manufacturers and private label who understand these needs and create suitable marketing campaigns required to gain share.
This trend is particularly strong in developing markets such as Indonesia, Vietnam, and Thailand as products offer convenience in terms of carrying and have lower unit prices. Post-COVID-19, more people will carry such products in their daily activities.
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