The joint factors of high inflation, elevated unit prices and strained supply chains became significant challenges for retail tissue, resulting in a deceleration of growth in 2022. As prices increase further, consumers are forced to make more selective decisions, heightening demand for performance-focused, multifunction tissue products that deliver a stronger cost-benefit ratio and are harder to find substitutes for.
This report comes in PPT.
Lifestyle shifts such as flexible working schedules, as well as favourable fundamentals such as improved income, urbanisation and untapped per capita potential, will bode well for retail tissue’s long-term growth in developing markets, especially in Asia Pacific, with facial tissues expected to carry the strongest growth momentum due to awareness improvement and product diversification.
While inflation appears to have peaked globally last year, unit prices are likely to either remain steady or increase further in the near term, which, given typically low brand loyalty within the tissue industry, may further benefit private label and smaller price-accessible local brands in especially developing markets. However, pricing pressure also incentivises further portfolio segmentation, driving businesses to adopt a multifaceted approach to land the best intersection of value and efficacy across the price ladder, as well as diversification into adjacent growth categories.
New spending habits and health priorities lead to more consumers clamouring for product features that deliver cleaning efficacy and an enhanced hygiene sensation. This requires more evidence-based, emotion-forward communications focused on mileage benefits catering to needs across various life routines and occasions. Such strategy is especially important for premium-positioned tissue goods to differentiate in a value-sensitive market.
As consumers search for efficacy and emotional resonance in purchases, tissue suppliers seeking notable market differentiation are increasingly exploring active ingredients and fragrances that can deliver tangible benefits and elevate emotional wellness, opening a new opportunity land for premium tissue innovations.
Companies are highlighting sustainability, a multi-angled concept, as a crucial part of brand strategy, with raw material sourcing being a key focus of long-term investment, which aligns with broader ESG expectations and supply chain diversification endeavours. With non-wood fibres such as bamboo and wheat straw gaining awareness, the next step is to narrow the performance trade-off and drive larger-scale production at a feasible cost.
This is the aggregation of retail and away-from home tissue and disposable hygiene products as well as Rx/reimbursement adult incontinence.
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