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Esko Uutela, editor-in-chief of general research at Fastmarkets RISI's global household paper business, has been specializing in the household paper and recycled fiber markets. With more than 40 years of experience in the global paper product market, he said the performance of the Chinese household paper market is very strong.
According to the Household Paper Professional Committee of China Paper Association and the Global Trade Atlas trade data system, the Chinese market grew by 11% in 2021, which is of great significance for sustaining the growth of the global household paper. Uutela expects demand for household paper to grow 3.4 to 3.5 percent this year and in the next few years.
At the same time, the household paper market is also facing challenges, from the energy crisis to inflation. From the perspective of the industry, the future trend of lifestyle paper is likely to be strategic cooperation, many pulp producers and lifestyle paper producers are integrating their businesses to achieve synergies.
Although the future market is full of uncertainties, looking ahead, Uutela believes that the Asian market will play an important role in the development of household paper. "In addition to China, markets have grown in places like Thailand, Vietnam and the Philippines," Paolo Sergi, UPM Pulp's European lifestyle paper and hygiene business sales director, said, adding that the growth of the Chinese middle class over the past 10 years has really been a "big deal" for the lifestyle paper industry. "Combine this with the strong trend of urbanisation and it is clear that Chinese income levels have risen and many families are pursuing a better lifestyle." Driven by Asia, the global toilet paper market could grow by 4-5% a year in the next few years, he predicted.
Sergi talked about the current situation from the perspective of producers, noting that European household paper producers are now facing high energy costs. "Because of this, countries where energy costs are not as high may produce more large rolls of household paper in the future."
European consumers are back on the holiday bandwagon this summer. "As things like hotels, restaurants and food and beverage services start to come back, people are traveling again or socializing in places like restaurants and cafes." Sergi says there is a big difference in the percentage of sales in each segment between branded and branded products. "In Europe, it's about 70 per cent branded and 30 per cent branded. In North America, 20 percent are branded and 80 percent are branded. In China, branded products make up the majority because of the way the business is run."
What about the future of household paper made from recycled paper? Sergi points out that there are about 2 million tons of household paper made from recycled paper in Europe today, but that number is expected to decline in the future due to a shortage of white recycled paper in the market.
Today, sustainability has become an "essential" factor in the U.S. and European household paper markets. For consumers, sustainability is also an issue that needs to be paid attention to, rather than just a concept, besides the price of products. Consumers have a deeper understanding of environmental issues than ever before, and more and more big brands are taking part in green innovation.
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