Faced with a fall in international oil prices, the Venezuelan government limited the allocation of foreign exchange for imports, with both domestic producers and importers unable to meet consumer demand. The volume decline of tissue and hygiene was greater in 2017 than the review period annual average.
Shortages in packaging material supplies such as plastic, inks, adhesives and carton boxes resulting from limited and erratic allocation of foreign exchange has seen domestic toilet paper production decline since 2014. Given that toilet paper is a basic, essential product for Venezuelans, the government and many small companies had to bring imported brands into the market from countries such as China (37% of total imports in tonnes), the US (35%) and Colombia (27%) in 2017.
Due to the hostile scenario, there is no incentive for new manufacturers to enter or plants to expand, so traditional domestic companies such as Papeles Venezolanos PAVECA, Manufacturas de Papel MANPA and Sanifarma Pañalex dominate tissue and hygiene, whilst most multinational companies have either halted operations or reduced them to a minimum due to the outstanding debts the Venezuelan government is carrying. Financial constraints complicate access to lines of credit and delay payments to suppliers of key ingredients, besides preventing domestic subsidiaries from returning profits to headquarters, thus damaging global financial results.
The scarcity of tissue and hygiene products prompted companies to consider new distribution channels, as there was not sufficient inventory to sell to all channels. Therefore, the main health and beauty specialist retailers are negotiating with manufacturers and importers to acquire a larger share of supply to be distributed in their outlets nationwide in order to maintain fully stocked shelves.
The downward trend that started in the review period in the majority of home care product categories is projected to continue over the forecast period. However, tissue and hygiene is expected to record a less negative volume CAGR from over the forecast period than that of the review period as consumers and suppliers strive to find a solution in the continuing fight within a hostile environment.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Discover the latest market trends and uncover sources of future market growth for the Tissue and Hygiene industry in Venezuela with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Tissue and Hygiene industry in Venezuela, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in Venezuela for free:
The Tissue and Hygiene in Venezuela market research report includes:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Tissue and Hygiene market research database.