In a price-sensitive environment, consumers demand quality at a price that matches increasingly stringent perceived value, especially in the commoditising tissue and hygiene market. As the economies of scale that bolstered volume sales plateau, premiumisation through meaningfully better products and services beyond greater cost becomes imperative to defend share and sustain growth. This briefing examines key premiumisation opportunities for tissue and hygiene businesses to drive growth.
Delivery
This report comes in PPT.
Key Findings
Premiumisation is now a necessity, not a luxury
As price sensitivity rises and volume growth slows, brands must prioritise premiumisation to sustain growth and defend share. Delivering clear, meaningful value is now a strategic necessity, not a luxury. M&A activities by leading tissue and hygiene players to shift towards a higher value portfolio mix and defend margins underscore the strategic importance of premiumisation.
Skin health as a key value differentiator
Skin care is increasingly central to tissue and hygiene’s value proposition, with a growing range of microbiome-focused, beauty- and health-inspired, and plant-based formulations elevating tissue and absorbent nonwovens’ role in overall wellness.
Experiential expectations fuel premium proposition
Premiumisation now means delivering emotional values, not just functional performance. For stressed modern consumers, features like fragrances, tactile comfort and smart designs that regulate mood instil confidence and simplify daily routines that are an increasingly integral part of tissue and hygiene’s value equation.
Trust is the new pre-requisite
Recent controversies over labelling precision and quality compromise have exposed a disconnect between premium claims and actual product performance, leading to erosion of trust and a widening want-pay gap. Brands with radical transparency and evidence-backed claims are best positioned to sustain premium value.
Lifecycle support expands value
Leading brands are adopting a lifecycle support mindset by tapping into adjacent need states, and aligning portfolios around high-stake life occasions and stages. While tech-integrated solutions, like diagnostic tampons, remain a niche area, AI-powered smart sizing technology, wet sensors and menstrual trackers are driving expectations for more holistic and personalised care.
Why read this report?
Key findings
Tissue and hygiene demand is shaped by price sensitivity and wellness aspirations
Persistent inflation drives scrutiny of value
Leading tissue and hygiene players are actively shifting to higher value portfolio mix
Premiumisation isn’t just about setting the top price; it’s about adding value at every tier
Wellness remains as a spending priority despite consumer cutbacks
Three key pillars of premiumisation in tissue and hygiene
Value-led growth is most meaningful in categories with volume weakness
Companies must tailor strategies to local market dynamics and category realities
On a product level, shoppers in developing markets exhibit stronger aspirations
Despite rising demand, income disparities dictate timing and scale of premiumisation
Amid false advertising exposés, proof, rather than promises, matters more than ever
Health claims focused on skin safety and ingredient purity garner price premium
Natural positioning gains attraction, particularly in baby nappies/diapers
Discerning consumers increasingly scrutinise “natural” claims: Seek evidence backing
Freemore pursues premiumisation with microbiome-forward positioning
Coterie strengthens performance trust with science validation and radical transparency
The three pillars of feel-good in tissue and hygiene
Fragrances instil comfort into daily self care routines
Honey Pot’s new adaptogenic herb blend offers calming sensation for menstrual care
Confidence is evolving from simple reassurance to emotional empowerment
Essity’s Tena Men promotes active living and discreetness for underserved men
Convenience is increasingly about effortlessness
P&G’s Charmin’s “forever roll” tackles bathroom restock hassle
Building lifelong value through lifecycle-driven premiumisation
P&G and LOLA: High-stakes life stage entry through postpartum care
Unicharm: Holistic life stage ecosystem focused on healthy ageing
Kimberly-Clark x Kenvue: Lifespan companionship
Emerging future horizon: Tech-enabled lifecycle care
Near-term activation priorities and innovation opportunities by product segment
Key recommendations and opportunities
Evolution of tissue and hygiene premiumisation
Questions we are asking
Tissue and Hygiene
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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