Retail Tissue in Turkey

2021 DEVELOPMENTS

Demand for retail tissue remains high as a result of remote working and learning measures

Demand for retail tissue remained high in 2021 as COVID-19 related restrictions remained in place in the first half of the year. The home seclusion trend boosted demand for toilet paper and paper towels.

High unit price growth curbed by price promotions

In 2021, the cost of imported raw materials, production and distribution of retail tissue in Turkey increased due to the further devaluation of the Turkish lira. However, in order to maintain their sales levels, companies cut profit margins so as to not pass these cost increases onto consumers in final product prices.

Fairly consolidated competitive landscape with discounter BIM retaining overall slim leadership in 2021

Retail tissue remained a fairly consolidated competitive landscape in 2021, led by BIM Birlesik Magazacilik and its private label line Blume. BIM Birlesik Magazacilik benefits from the strength of private label and ongoing popularity of discounters as many consumers downgraded their preferences and opted for more affordable options.

PROSPECTS AND OPPORTUNITIES

Despite slowdown in volume growth rate, retail tissue will continue to thrive, driven by dominant toilet paper

Demand for retail tissue is predicted to continue to grow over the forecast period, mainly driven by toilet paper and paper towels, which are perceived to be essential products in any Turkish household. After the significant upturn in demand during the pandemic, volume growth rates are set to slow from 2022.

Paper towels set to see overall strongest volume growth due to versatility

Paper towels is predicted to continue to record the most dynamic performance within retail tissue over the forecast period, due to its versatility in the home including its replacement of boxed facial tissues and napkins. Offering multifunctionality, paper towels can be used in both the kitchen and bathroom, with increased hygiene consciousness likely to encourage consumers to switch to paper towels for the purpose of drying their hands and wiping surfaces.

Private label likely to further benefit from ongoing price sensitivity while brands will attempt to expand portfolios to appeal to all income groups

At the end of the review period, private label held the highest combined volume share within the most important retail tissue categories of toilet paper and paper towels. Over the forecast period, private label’s volume share is predicted to further increase due to its price advantage and expanding number of outlets from both supermarkets and discounters that offer these products, particularly as consumers are likely to remain extremely price sensitive over the early part of the forecast period.