Retail Tissue in Italy

2021 DEVELOPMENTS

Regina new product developments

Overall sales of retail tissue were positively impacted by the COVID-19 outbreak in 2020, with toilet paper witnessing the most dynamic growth. Both recycled and non-recycled toilet paper saw a significant increase in demand, partly due to Italian consumers panic buying toilet paper due to fears that stocks would run out and they would be unable to purchase more products due to quarantine and limited access to stores.

Domestic brand Regina continues to flourish while Foxy shows promise with its premium options

Regina remained the leading brand in retail tissue in 2021. Soffass SpA leverages on strong brand awareness for Regina and the perceived high-quality of its products, which are widely distributed within the main retail channels.

Environmental sustainability in focus for Lucart

Like other companies in the tissue and hygiene industry, Lucart launched an e-shop for its Grazie Natural brand following the outbreak of COVID-19. The company produces a range of premium and sustainable retail tissue products under the brand, including toilet paper, paper towels, napkins and facial tissues.

PROSPECTS AND OPPORTUNITIES

Rising energy and production costs expected to put upward pressure on prices

Production costs continue to rise within retail tissue and this is expected to lead to an increase in unit prices which could threaten volume growth. With the cost of energy, oil and gas and production materials all on the rise globally it will likely prove increasingly difficult for manufacturers and retailers to maintain their margins over the forecast period.

Napkns could benefit from new foodservice partnerships

Effective May 2021, Ikea launched a partnership with Glovo for home delivery of its foodservice products in six cities across Italy. If successful, the trial is likely to be replicated across all Ikea stores in the country, in order to capitalise on growth of food delivery, but also to maintain and nurture physical contact with consumers at a time when online purchases of furniture continue to grow.

Shortages of recycled paper could put push manufacturers towards alternative materials

Besides foreseeing production cost increases, the retail tissue industry will also have to cope with an increasing demand for recycled paper and paperboard products. With retailers and manufacturers embracing the drive towards environmental sustainability on a larger scale, many food and non-food products have moved from plastic to paper packaging, at a time when the industry is facing a reduction in the production of recycled paper coming from newspapers, physical books etc.