RR
Disposable Income USD and Per Capita Tissue Consump8on
8,250
5,500
2,750
0
3.0
4.3
5.5
6.8
8.0
Per capita consumpLon (kg) Poland
Romania
Source: Euromonitor International
Disposable Income and Per Capita Tissue Consump8on
Disposable income per capita (USD)
11,000
8,250
THE NEXT STEP FOR HOUSEHOLDS IS TO WEIGH THE VALUE-TO-COST RATIO FOR THESE PRODUCTS, LIKELY PRECIPITATING A MOVE DOWN IN PRICE SEGMENTS FOR PRODUCTS WHERE IT IS POSSIBLE (WHERE THERE IS AVAILABILITY) AND REASONABLE TO DO SO. THE MARKET RESPONSE TO THIS CHALLENGE WILL BE CRITICAL IN DETERMINING WHICH DIRECTIONS CONSUMERS TRAVEL. WHILE ATTEMPTS TO ABSORB PRICE INFLATION WITHIN MARGINS MAY HAVE SOME POSITIVE INFLUENCE ON MAINTAINING PRICES FOR THE SHORT TERM, IT APPEARS THIS RESPONSE HAS ALREADY BEEN BREACHED. Although we do not have similar, comparable data for the Romanian
5,500
market, our local analyst identifies similar double-digit value growth for major brands.
2,750
However, as products like toilet paper can be seen as a rather 0
3.0
4.3
5.5
6.8
Per capita consumpLon (kg) Poland
8.0
essential product, it will still be an item that consumers will purchase on a regular basis. There is little evidence from the
Romania
financial crisis era of 2008 that consumers cut down on toilet paper
Source: Euromonitor International
volumes during a crisis; rather, they look to trade down or purchase in bulk to achieve better pricing. That said, categories outside of core toilet paper will likely be more exposed to emerging consumer Poland Retail Tissue Value by Category 2021
thriftiness. This is reflected in “uncertainty” levels connected with key retail tissue categories, with lower levels exhibited by toilet paper compared to any other category, this in part due to the levels of substitution possible.
Trading out and category exposure The next step for households is then to weigh the value-to-cost ratio for these products, very likely precipitating a move down in price segments for products where it is possible (where there is availability) and reasonable to do so. The market response to this challenge will be critical in determining which directions Toilet Paper
Paper Towels
Facial Tissues
Paper Tableware
consumers travel. While attempts to absorb price inflation within margins may have some positive influence on maintaining prices for the short term, it appears this response has already been breached. For retail tissue, and toilet paper, there is a wide offer of private
Source: Euromonitor International
label brands in most markets, with private label occupying a 21% global market share of retail tissue sales in 2021. Comparing Romania Retail Tissue Value by Category 2021
Poland and Romania against other leading European tissue markets illustrates that, although present, private label potentially has some way to develop. Indeed, we can highlight the Spanish market as historically one to take into account, a market that, pre-financial crisis, had relatively low levels of private label activity but now leads even Germany in terms of its market presence. This is more significant given that only 10% of grocery sales are accounted for by discounters, similar to levels found in both Poland and Romania. The place of purchase is also something that tends to be reconsidered when times are tight, with consumers looking for savings through bulk purchases in hypermarkets or discounters to press the price even lower. In Poland, these trends are already
Toilet Paper
Paper Towels
Facial Tissues
Paper Tableware
a part of the market landscape, with private label and discounters being popular avenues for consumers even before the pandemic times. The channel has well-established players such as Biedronka
Source: Euromonitor International
that enjoy a widespread network of outlets throughout the country, Tissue World Magazine | March/April 2022
23
Regional Report: Poland & Romania
Disposable income per capita
11,000
