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Gregory Grishchenko Industry Analyst
fter the unexpected tissue product run caused by the outbreak of the Covid pandemic almost a year ago all major grocery chains across the US effectively restocked supermarket shelves with pre-pandemic varieties of local brands. Even during that time of extreme demand, bamboo tissue, which has seen an explosive but exclusive online trade growth, did not feature prominently in American retail outlets. However, this year Babo toilet paper brand made of unbleached bamboo tissue appeared on display at several CVS pharmacies in Florida. CVS Pharmacy is the largest pharmacy chain in the United States with almost 10,000 locations, and among its merchandise includes household items as tissue goods. Babo brand supplier is Vanov Group from Sichuan province in Southwest China, a region known for rich bamboo vegetation and being the homeland of giant pandas. At present, Sichuan province stands for a bamboo pulp-leading source with annual production capacity of almost three
quarters of a million tonnes. Vanov uses bamboo pulp as raw material to produce unbleached tissue products including toilet paper and napkins. The company established its US sales office in New Jersey, claims the annual capacity of 200,000 tonnes of bamboo pulp and (according to its website) employs over 3,000 in three factories. With such a solid production base, its products in the US can afford a nominal profit margin (if there is one) due to shipping and handling expenses. Other bamboo tissue brands also appeared in major US chains - Target (unbleached bamboo toilet paper brand Caboo) and Costco (similar brand Reel). However, as the tissue production crisis eased, suppliers for major brands and private labels resumed full volume deliveries. Apparently, bamboo toilet paper did not pass always consumers’ cost/ value test during the first months of the epidemic and was often the only product left on shelves at the tissue product isles after all conventional tissue goods were Tissue World Magazine | March/April 2021
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Online, bamboo tissue products - especially toilet paper - are on the rise with more enterprises offering impressive varieties to attract price-concerned savers, “green” loyalists and “white cloud” softness devotees. Industry analyst Gregory Grishchenko looks at its American future as production in China gears up.
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AFTER A BRIEF RETAIL APPEARANCE ON US CHAIN STORE SHELVES, BAMBOO HAS RETURNED TO E-COMMERCE
