Abstract
The household paper market is dominated by sales of toilet tissue. This is a mature market with near universal penetration. However, growth is being achieved across all three sectors due to the shift towards added-value products. Mounting consumer concern about environmental issues is also a challenge that manufacturers across the whole market have to address.
Key themes of the report:
- Growth in market value is being achieved through a move to added-value products. However, rising pulp and energy costs are also driving up prices.
- The rising concern over environmental issues means that consumers need to be reassured about product origins.
- Many consumers make their purchase decisions based solely on price. However, softness and strength remain important product qualities.
- Own-label products are important, with many consumers unconvinced that there is any advantage in paying extra for brands.
- Spend on above-the-line advertising is decreasing, while extra-free product remains a key promotional mechanic.