Market

The global market for tissue is valued at just over SEK 500bn and is growing by 4% annually. Growth in mature markets is in the low single-digit figures, while it is considerably higher in emerging markets.

In 2015, the European market for consumer tissue and AfH tissue showed low growth compared with the preceding year. The North American market for AfH showed growth, but competition rose as a result of greater investment in production capacity. The Chinese tissue market showed higher demand.

Shifts in global demographics such as population growth – due primarily to a lower infant mortality rate and increased longevity – and higher disposable incomes point to continued healthy growth for tissue products. The effect of higher disposable incomes is that more people prioritize hygiene when food and housing needs have been, or are in the process of being, satisfied. Consequently, demand for tissue products is rising in emerging markets. The growth potential for tissue products is greatest in emerging markets where market penetration is significantly lower than in mature markets and where urbanization, improved infrastructure and the retail trade are evolving rapidly. One example of the lower market penetration in emerging markets is that tissue consumption per capita per year in Eastern Europe is only about one-third of that in Western Europe. Growth is also occurring in mature markets owing to lifestyle changes and innovations that lead to increased use. Market growth is positively impacted by global hygiene and health trends and increased awareness of the importance of hygiene to improve health and avoid diseases, especially in emerging markets.

SCA’s competitors in tissue include Georgia-Pacific, Hengan, Kimberly-Clark and Sofidel.