Market OUTLOOK
Is sustainability shaping the hygiene tissue industry? Evidence from the field Article by 1Nicole Hensley MBA, 2Amelys Brito, 1Franklin Zambrano, 3Dr. Hasan Jameel, 3Dr. Richard Venditti, 3 Dr. Stephen Kelley & 3Dr. Ronalds Gonzalez MBA 1. 2. 3.
Ph.D. student focused on consumer perception, North Carolina State University (NCSU) Ph.D. student focused on sustainability, NCSU Professor, Co-Director Tissue Pack Innovation Lab, NCSU
Based on cutting-edge data collected by the Tissue Pack Innovation Lab at North Carolina State University
T
he world is demanding more sustainable materials and processes to power the economy and improve lives. Global megatrends, e.g., sustainability and changes in demographic behavior (Fig. 1), are shaping the way we conduct business 1, and consumers are relying on companies to lead the path forward in addressing these trends 2. Sustainability-conscious consumers are driving changes in the market by simply purchasing products and services marketed as “green.� Consumer goods and service industries have responded with unprecedented and massive changes in their product offerings, along with a critical review of their manufacturing processes and supply chains 3,4,5. The hygiene tissue industry is no exception, leading producers to explore alternative technologies, raw materials, and additives to meet this new demand and drive innovation 6. In the last few years, we have seen dramatic increases in the number of tissue products making claims around sustainable attributes. Some players in the industry have looked at these market developments as an opportunity to create product differentiation, accompanied by significant price premiums.
MARKET DYNAMICS AROUND THE SUSTAINABILITY MOVEMENT AND CLAIMS IN THE HYGIENE TISSUE INDUSTRY Shifts in the market will be determined by gaining influence from generational groups, e.g., Boomers to Gen Z, who have different priorities and behaviors. Millennials are attracted by the environmental aspects of a sustainable lifestyle, while Gen Z is more concerned about social impacts such as human rights and poverty 7. The older generations, namely Baby Boomers and Generation X, still
1
Modly, T. (2016). Five megatrends and their implications for global defense and security. PwC Report on Megatrends, 1-27. Cone Communications. (2017). 2017 Cone Communications CSR Study. Boston, MA: Cone Communications. Retrieved from www.conecomm.com/2017-cone-communications-csr-study-pdf `
2
Nike Purpose: Supply Chain Sustainability Index. (2020). Retrieved 20 February 2020 from https://purpose.nike.com/supply-chain-sustainability-index
3
Where to Begin & Overview | 3M Sustainability. (2020). Retrieved 20 February 2020, from www.3m.com/3M/en_US/sustainability-us/
4
Marriott International. (2020). 2025 Sustainability & Social Impact Goals. Retrieved from http://serve360.marriott.com/wp-content/uploads/2019/10/Serve-360-goals-page-tabloid_2-updated-20180916-English.pdf
5
Fisher International. (2019). Could Consumer Focus on Sustainability Disrupt the Tissue Business? Retrieved from www.fisheri.com/ images/features/webinars/Fisher_Webinar_Could_Consumer_Focus_on_Sustainability_Disrupt_the_Tissue_Business.pdf.
6
7
Cone Communications. (2017). 2017 Cone Gen Z Study: How to Speak Z. Boston, MA: Cone Communications.
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