Retail Tissue in the US

2020 IMPACT

Extended home seclusion and enhanced cleaning routine boost retail tissue demand

Retail tissue’s substantial sales gain in 2020 was mainly driven by shoppers’ higher-than-usual demand for toilet paper, paper towels and facial tissues due to extended home seclusion and enhanced hygienic awareness.

Tissue scarcity favours private label products, direct-to-consumer brands and non-tissue products

Despite supply hiccups during sporadic stockpiling phases, Procter & Gamble continued to lead the US retail tissue category. However, shelves empty of brand-name products and consumers tightening belts led to an increase in willingness to try private label products, which had over the years closed the quality gap to a point where consumers, particularly less brand-loyal millennials, no longer associated premium quality with higher-priced named-brands only.

Empathy sets the tone for customer engagement

In a time of crisis, tissue brands were shifting the communication to acknowledge an altered landscape and to further deepen consumers’ connection to this daily staple.

RECOVERY AND OPPORTUNITIES

Demand softens as recovery sets in, while new habits keep per capita consumption elevated

Retail tissue demand will soften considerably as the pandemic retreats and the shelter-in-place order loosens, with fundamentals such as population growth gradually becoming the main growth driver once more. The switch to cost-efficient, sustainable alternatives such as washable cloths and bidets could further diminish gains in categories such as paper towels, facial tissues and toilet paper.

Private label products gain further momentum from added capacity and deeper economic contraction

Private label products in retail tissue will sustain their growth momentum and expect steady share gains in the coming years. Ongoing investments by manufacturers to build additional tissue production capacity largely dedicated to private label products will provide a sure sign for optimism.

Sustainability initiatives continue to ring true

Sustainability may not have been the top priority for consumers during the acute initial phase of COVID-19 when immediate attention turned to securing supply of goods. However, manufacturers and brands continued investments in responsible sourcing, energy-efficient manufacturing and plastic-free packaging, as well as the growing consumer interest in alternative fibres such as bamboo pulp and wheat straw.