Tissue and hygiene players face a challenging environment of tighter consumer spending and fierce competition. Volume recovery and margin protection are forcing market players to reassess their priorities. They are banking on value creation through stronger value proposition, usage expansion, e-commerce penetration and better-for-you sustainability branding to strike the right chord in such a fragile environment.
This report comes in PPT.
Global tissue and hygiene leader board rankings remained largely consistent over the review period. Market momentum supported absolute growth but rising competition from regional players and private label impacted market share. Portfolios spread across price segments, categories and/or regions allowed players to retain competitiveness.
Leading tissue and hygiene companies, traditionally strong in developed countries, are facing market saturation due to mature consumption levels. Consequently, they are strategically targeting developing markets with lower per capita consumption, large populations and growing spending appetite. They are appealing to young women and mothers with a wide variety of retail adult incontinence and menstrual care goods, building on destigmatisation and educational efforts.
Global players will be affected by unpredictable trade policies in the near to mid term. This likely means delay of projects, more expensive raw materials and equipment and the reorganisation of supply chain networks and internal structure. Disruption to supply chains echoing that during the COVID era will be likely, necessitating the need for companies to stay agile.
Industry leaders are prioritising their core brands and divesting long-tail products that fail to deliver sales targets or do not match the leaner, more focused, vision of the companies. For their core portfolios, they actively reposition existing and launch new products across price tiers to improve value perception. This is in the form of more explicit core benefit call-outs, targeting need gaps and sharper product tailoring for local preferences.
Digitisation has helped democratise distribution with control no longer limited to traditional grocery retailers, with online sales outpacing overall category growth and fast-tracking new entrants’ visibility, demanding change and diversification of business model.
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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