Product and Service
Companies included in consumer tissue sector in personal care industry primarily are manufacturers of bulk tissue paper, paper towels, bathroom tissues, and paper napkins.
Demand for Product and Service
As indicated by typical sales data, the demand for products of companies in this sector seems to have been weak in the past several years due probably to increasing competition in price as a result of increasing capacity in sector.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
The demand for consumer tissues products seems to have been weak in the past three years as indicated by the declining sales volume of those typical companies in this sector while selling price has been declining as well during the same period.
Lower priced products seem to have been more impacted than premium and brand products in the unfavourable market environment in the past two years and the sales seem to be picking up in the first quarter of 2018 from brand products as well.
Causes behind the trend
Demand for products in this sector should have been driven by factors such as population growth and household income.
Increasing capacity and shifting of product mix to premium products may cause increasing competition in price and decreasing sale volume among private label products.
Demand and supply cycle may be the major driver behind fluctuation of sales and price of products in this sector. However, growth in demand for higher quality and larger volume tissues products, as a natural result of changes in demography, life-style, and income, provides a solid base for existing companies in sector to earn stable cash flow.