Tissue cleans up on rising living standards.Rising living standards living standards npl → nivel msg de vida living standards living npl → niveau m de vie living standards living npl are spurring major growth for tissue products in developing areas, such as Asia and Europe, while tissue manufacturers seek growth in developed regions with value-added products. These two trends have powered growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. substantially higher than most other paper grades. [ILLUSTRATION OMITTED] The bulky nature of tissue tends to limit its trade across continents. Consequently, geographic distribution of production and consumption are identical. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , and China are the leading producing regions, accounting for 30%, 24% and 15% of global output, respectively. KEY DRIVERS The main demand drivers for tissue are population growth; age structure and urbanization; economic development and rising living standards; changes in retail trade; and new product development. The use of tissue products other than toilet tissue typically grows faster with rising income levels. The use of higher-quality tissue products is also closely related to income levels. Tissue consumption also correlates with population growth and age structure. In Europe, population growth will be very slow, though, providing less support for incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. demand. Changes in retail trade (the trend toward supermarkets and self-service stores) continue to influence tissue buying habits in most parts of the world (larger packages for tissue products, discount sales, etc.). In some areas such as China and the Middle East, increased availability of tissue products due to recent large investments in tissue production capacity will have a positive influence on future tissue demand growth. [GRAPHIC OMITTED] Products in the at-home and away-from-home (AFH AFH Adaptive Frequency Hopping AFH Away From Home AFH Army Family Housing AFH Air Force Handbook AFH Atlantic Fish Health (Charlottetown, PEI, Canada) AFH Administration, Finance, and Human Resources ) tissue segments continue to change as manufacturers seek a competitive edge. Prints, lotions lotions, n.pl nonoily treatments intended to be applied to the skin for a variety of cosmetic or medicinal purposes. , vitamins, and anti-viral tissue are examples of "valued-added" products for the consumer market. Cost-efficient dispenser designs (less waste, no-touch, colors), specialty wipes, and core-less tissue rolls are some of the product innovations in the AFH segment. The AFH segment is most developed in North America, where it accounts for 33% of tissue paper consumption. In Western Europe AFH accounts for about 25-30% of the total market. In Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. its share is about 10%, offering good growth prospects for the future. Toilet paper is the main end use in all regions. The consumption of toilet tissue has grown slightly below average for the entire tissue category, reflecting the increased penetration of other tissue products. Toilet paper's share of the tissue market decreases with increasing disposable income disposable income Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also . The kitchen towel segment is the second largest end use for tissue paper, and towels are typically used in Western countries. In emerging markets, kitchen towel's share is still marginal. Rising income levels, growing numbers of women at work, and replacement of cloth towels contribute to the increased use of kitchen towels. Other towel products include tissue towels used mainly in the AFH segment (gas stations, restaurants, factories, hotels, and hospitals). Napkins account for a small share of the total tissue paper business. Rising income levels, tourism, and growth of the fast food industry are the main demand drivers. Facial tissue demand is partly driven by climatic factors. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market is well developed, but facial tissue's market share is also high in the Middle East and Asia-Pacific. The tissue business is growing fastest in Eastern Europe, China and the rest of Asia where economic growth, rising living standards, and the growth of travel, hotel businesses, and fast food chains all contribute to demand growth. Note: This article is part of a series by Jaakko Poyry Consulting, Tarrytown, New York Tarrytown is a village in Westchester County, New York, United States. The population was 11,090 at the 2000 census. The Village of Tarrytown is located in the northwest part of the Town of Greenburgh, New York. , USA, a provider of consulting services. Contact Ms. Soile Kilpi by email at soile.kilpi@poyryusa.com, or by phone at +1 914 332-4000. JAAKKO POYRY CONSULTING |
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