Retail Tissue in Malaysia

2021 DEVELOPMENTS

Retail tissue benefits from short-term stockpiling and heightened hygiene awareness during pandemic

Retail tissue will record a negligible change in current value sales in 2021, retaining similar levels to both 2019 and 2020. Results have been mixed in the category, with paper towels and boxed facial tissues being more sought after due to the increased trend towards hygiene awareness and the cleanliness of their home environment.

Boxed facial tissues and pocket handkerchiefs continue to face competition from soft pack tissues

Sales growth for facial tissues increase in Malaysia will see a return to higher growth in 2021 after the deceleration in 2020. Nevertheless, given that consumers continue to spend more time at home than they did pre-pandemic, many are using toilet paper for this purpose as the latter is cheaper.

Nibong Tebal Paper Mill strengthens leadership thanks to established and reputable product portfolio

Domestic player Nibong Tebal Paper Mill (NTPM) will maintain its dominance of retail tissue in 2021, as it offers a comprehensive product range that caters to different consumer budgets and needs, such as recycled and non-recycled tissue products (including toilet paper). Its brand Royal Gold is present in both facial tissues and toilet paper, catering to more affluent individuals who value premium quality, whilst Premier is the leading brand within facial tissues, paper tableware, and paper towels with a mid-priced positioning.

PROSPECTS AND OPPORTUNITIES

Lingering hygiene habits and product innovations to drive category growth

The longer-term impact of COVID-19 is predicted to be felt by niche areas within retail tissue, such as paper towels. This category is set to record higher demand over the forecast period thanks to consumer cleaning habits that have been engrained during the pandemic likely to continue.

Increasing demand for virgin pulp expected as consumers express concern over bleached products

Over the forecast period, Malaysia is expected to experience a relatively strong demand for virgin pulp in retail tissue products. The demand has arisen following concerns over the effects of bleached recycled paper and will continue to gain traction as consumers become increasingly concerned about their health and hygiene.

Strong growth potential due to relatively low per capita usage

In contrast with retail hygiene, retail tissue in Malaysia will continue to have fairly low penetration compared with other countries in the region. For example, it will continue to register much lower per capita consumption than Singapore, despite its larger population.