IS THE TISSUE CONSUMPTION LEADER ABOUT TO ENTER A NEW MARKET ERA?

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Even a two decades long upgrade in machinery – net gain of six installed since 2007 – has seen CAGR drop from 1-2% to 0.83%. The region is being closely studied to see if sustainability plays a more significant part in quality or cost requirements as the dominance of traditional manufacturers declines. Fisher International’s Senior Consultant Bruce Janda reports.

The United States has the world’s largest economy, and the third-largest population. Tissue producers across the whole of the North American region operate in a unique market. It is a very slow-growing and mature market despite Americans consuming tissue at the highest per-person rate in the world.

They also consume more tissue products away from home, such as when traveling, working, or entertaining. Average production for this area comes in at about 35% Commercial or AfH tissue, which again is the highest rate globally. This is why there was such a disruption in the tissue sector during the pandemic when everyone had to stay home.

The United States has the most significant percentage of tissue capacity running with TAD or other structured technology for advanced tissue production. After all, the birthplace of TAD technology was in Green Bay, Wisconsin.

However, Canada and Mexico play significant roles in production and consumption due to the North American Free Trade Agreement (NAFTA). Because of this, tissue finished products and parent rolls have free access to be transported across the continent. Therefore, Mexico and Canada continue investing in domestic TAD or structured tissue technology.

For example, Kimberly-Clark’s minority interest in Kimberly-Clark de Mexico dates back decades. There is also a trend of Canadian investment in US tissue mills, with some interest from Mexican tissue companies. This is because Canadian tissue consumers have very similar consumption rates and product wants. Mexico’s consumers on the other hand have a wide range of purchasing power, but it is still possible to find very high-end tissue products designed for affluent markets in specific locations.

The United States population growth rate is estimated at 0.68% in 2023 by the World Factbook. The population trend and GDP per person are shown in Figure 1. GDP results sagged in 2020 due to the pandemic but recovered smartly in 2021-22. Canada’s income and population trends are very similar, as shown in Figure 2. The country’s population growth is estimated to be 0.73%, and generally slightly greater due to more immigration support.

Mexico’s trends are shown in Figure 3. Their income is about 35-40% of Canada or the United (...)

This is just an article preview, for the full magazine, articles, contacts, images, and charts open the PDF. Tissue World Magazine, The independent news provider for the global tissue business