May 20, 2024
Tissue Products

Rise of the Tissue Products Industry

The tissue products industry has seen immense growth over the past few decades owing to changing consumer habits and rising awareness about hygiene. Tissue papers which were once considered a luxury product are now becoming an essential commodity in daily lives.

Growth of Organized Retail
The organized retail sector has expanded significantly across the world in the past 20 years. Supermarkets and hypermarkets now account for a major share of total retail sales of packaged goods. The wide shelf space and attractive displays at these retail chains have made tissue products more accessible and visible to consumers. Moreover, modern retailers stock a diverse range of tissue brands suiting different consumer budgets which was not possible through traditional outlets earlier. The boom in organized retail has contributed massively to the rise in tissue product sales volume globally.

Rising Hygiene Awareness
With easier access to information through internet and smartphones, people are more conscious about health and hygiene today than ever before. The importance of practices like hand hygiene is widely propagated. Using tissues for cleaning, especially in public places, is considered more hygienic than other alternatives. Additionally, the perception that tissues prevent spread of contagious illnesses like flu and cold has gained prominence. The heightened awareness regarding cleanliness and health has made tissue products an essential commodity rather than a luxury item in households.

Emergence of Organized Players
In the early years, the Tissue Products industry was highly fragmented with many small, unorganized players lacking marketing muscle and distribution reach. However, in the last 15 years, several professional manufacturers with robust supply chain and marketing capabilities have forayed into the Indian tissue market. Companies like Pudumjee Paper, Greenply, Kimberly Clark Lever, and others have invest heavily in building processing units, establishing retail presence, and amplifying branding initiatives. Their consistent focus on product innovation, competitive pricing, and 360-degree marketing has significantly grown the market size and disrupted the fragmented landscape enabling further expansion.

Changing Lifestyles & Rising Incomes
With rapid urbanization and economic growth in emerging countries, lifestyles have transformed remarkably. People now prefer convenience products like packaged snacks, ready meals, and disposable papers instead of traditional alternatives. Working professionals and nuclear families have less time for cleaning chores compelling greater usage of tissues at home and workplaces. Simultaneously, a sizeable affluent population has emerged with rising disposable incomes enabling higher spends on superior tissue and personal care products. These evolving consumer trends have created a huge opportunity for tissue manufacturers globally.

Growing Organized Sales Channels
While traditional retail still accounts for a sizeable tissue pie, organized distribution is gaining prominence steadily. Online retail behemoths like Amazon and Flipkart have enlarged the addressable tissue market manifolds. Aggressive marketing, attractive pricing, subscription plans, and convenient delivery have spurred both repeat and first-time online purchases. Modern stores run by Reliance Retail, DMart, etc are replicating such digital strategies offline. Moreover, tissue product sales are rising exponentially in restaurants, cafes, cinemas, offices, and other commercial establishments serviced through organized procurement channels. This new distribution footprint has become a major revenue driver for industry leaders.

Innovation and New Product Launches
Top companies in this industry consistently invest in R&D to develop differentiated and value-added products. While basic tissues satisfy primary utility, premium variants infused with innovative ingredients are finding many takers. For example, tissues with moisturizers or antibacterial functions especially during COVID times. Companies also offer varied tissuebox sizes, paper wrapping, floral patterns suitable for gifting. Moreover, some players have ventured beyond regular tissues into wet wipes, napkins, toilet rolls, and facial tissues expanding overall category size. These product extensions address evolving preferences and increase per customer spending and loyalty in the long-run. Such non-stop innovations will keep encouraging market evolution.

Key Market Players
Kimberly Clark India- Being a global leader in tissue manufacturing, Kimberly Clark has a mammoth production presence and distribution network in India too. Its popular tissue brands like Kleenex, Cottonelle, and Huggies meet different price-segment needs.
Pudumjee Pulp and Paper Mills- Major player catering to premium tissue demand. Its brands Pudumjee and Bambooli command strong market share and are available across all retail channels.
Greenply Industries- One of India’s largest tissue paper producers known for quality offerings at affordable costs. Its Greenply brand leads the mid-segment category.
Softy International- A prominent player offering a wide range of value-priced tissues suitable for mass consumption through its various brands.
Maini Paper Industries- Provides affordable tissue solutions to households under reputed brands like Maini and Softouch available pan India.

Wrapping Up
There is more scope for tissue usage to grow in the country given its low per capita consumption compared to developed markets. With rapid acceptance of modern lifestyles, increasing hygiene awareness, evolving retail landscape and ongoing product innovations, the tissue industry promises sustained high double-digit growth rates. Key players are expanding operations to tap opportunities in rural India as well through custom-made products and distribution routes. The future remains bright for both tissue manufacturers and customers alike.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it