The home seclusion trend as a result of the pandemic and subsequent lockdown in Portugal resulted in a notable upturn in demand for retail tissue in 2020 across much of the category, with the exception of paper tableware. Remote working and studying, in addition to the closure of horeca outlets, resulted in a significant shift from away-from-home channels for tissue products, as consumers spent more time at home cooking and preparing meals.
Despite a significant upturn in demand for much of retail tissue in 2020, the category recorded higher current value growth compared to volume. The temporary out of stock situation of the dominant private label within toilet paper, and the suspension of promotional activity during the lockdown due to heightened demand forced consumers to upgrade and choose more premium offers, even if they would not normally, out of desperation and fear of going without.
Renova retained its leadership of retail tissue in 2020 with it holding a strong position in most categories. The company benefited from some trading up to higher quality products due to stock shortages and initial panic buying during the pandemic.
Following a surge in demand during the pandemic in 2020 as a result of the home seclusion trend, 2021 is expected to see retail tissue register a slowdown in demand as local consumers gradually return to a certain level of normality, and start to spend more time outside of the home. Economic instability and rising unemployment is expected to support demand for more affordable private label options, certainly in the short term, in contrast to some trading up witnessed during the pandemic due to product shortages in retailers.
Manufacturers will be caught between wanting to add greater value to retail tissue through the development of more premium and innovative products, which include the use of more natural and sustainable options, while addressing ongoing price sensitivity which favours the dominant private label. This would benefit the mature paper towels and toilet paper.
After registering strong current value growth and share gain during 2020, e-commerce is expected to continue to gain in relevance over the forecast period. New consumers to this distribution channel during the pandemic are likely to make repeat purchases, particularly for bulky toilet paper, as they come to appreciate the benefits of convenient home delivery and the opportunity to find competitive prices, particularly as the early part of the forecast period is likely to be marked by increasing price sensitivity as a result of decreased disposable incomes and unemployment.
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Understand the latest market trends and future growth opportunities for the Retail Tissue industry in Portugal 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 Retail Tissue research and analysis database.
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