Retail Tissue in Poland

2021 DEVELOPMENTS

Continued growth driven by demand for essential products and more time at home

Retail tissue continued to see healthy volume and value growth in 2021 as consumers remained at home and, with stricter hygiene practices in place, used tissue products more frequently than they did pre-pandemic. Products such as napkins were considered useful as eating at home became the norm to avoid crowded spaces such as bars and restaurants.

Velvet Care retains leadership of retail tissue despite strong presence of private label

Velvet Care retained its overall lead of retail tissue in 2021 in volume terms, despite the strong competition generated by the second-ranked private label brand Jeronimo Martins (Biedronka). Velvet Care’s leadership is supported by its wide product portfolio and availability in all key channels of distribution including popular chins of discounters.

Discounters and e-commerce make further gains as consumers seek convenience and cheaper prices

Discounters, including well-known brands such as Biedronka and Lidl, consolidated its position as the leading distribution channel for retail tissue in 2021, gaining value share from competitors such as health and beauty specialist retailers. The channel benefits from a large product range spanning both private label and brands as well as competitive prices and it also gained some share from large hypermarkets during the pandemic.

PROSPECTS AND OPPORTUNITIES

Growth to continue as consumers retain some pandemic habits

Retail tissue is generally perceived as a necessity in Poland, especially toilet paper. Consumers are also becoming more reliant on paper towels, which is quite often used to replace the function of kitchen towels and napkins.

Lingering price sensitivity will continue to favour discounters and private label

Although value growth of retail tissue is predicted to continue to outperform volume growth rates over the forecast period, the difference will not be as pronounced as it was in the pre-pandemic years as growth in the average unit price is set to notably slow. Lingering price sensitivity triggered by the pandemic is set to drive stronger demand for private label as consumers search for more affordable tissue products.

Low but growing share for non-recycled toilet paper despite sustainability concerns

Paper towels and toilet paper are predicted to record the strongest volume growth rates over the forecast period as they are deemed to be essential products for most households. Although sustainability and environmental concerns are growing amongst some consumer groups in Poland, the trend for using recycled materials does not appear to be as strong within retail tissue.