INDIA’S TISSUE MARKET: A GROWING GIANT WITH ROOM TO EXPAND
This content is being republished with the consent of Fisher International and ResourceWise. Read more about Paper Industry at ResourceWise. Jan 8, ‘25
India, now holding the title of the world’s most populous nation, has tissue manufacturers worldwide sitting up and taking notice. With a steady compound annual growth rate (CAGR) of 11% since 2007, India’s tissue industry is showing promise. But here’s the catch: per capita tissue consumption in the country is less than 0.5kg, a far cry from the global average of 5kg. This isn’t just a challenge; it’s a golden growth opportunity wrapped in a soft tissue.
SNAPSHOT OF INDIA’S TISSUE INDUSTRY
The Indian tissue market has been on a steady growth trajectory, recording a CAGR of 11.8% from 2007 to 2024. However, growth hasn’t hit hyperspeed yet, signaling some underlying hurdles.
One fascinating fact? Recycling is king in India’s tissue production. Much like its paper industry, the tissue sector heavily relies on recovered fiber. India has received recognition from the Forest Stewardship Council (FSC) for its impressive recycling efforts, with 70% of waste raw materials being recycled to achieve FSC certification. Even better, India exclusively uses raw materials from non-forest trees, safeguarding natural forests—a win for both the industry and the environment.
WHAT’S DRIVING THE MARKET?
India’s tissue market dances to the tune of various factors:
- Population Boom: More people, more potential demand.
- Rising GDP: Increased spending power can lead to higher tissue consumption.
- Inflation and Imports: While India imports more tissue than it exports, imports have surged, especially during pandemic-related. disruptions
To keep up with this growing demand, production capacity is expanding, but there’s a catch, cultural habits, hygiene infrastructure, and consumer behavior are slowing the adoption curve.
CHALLENGES: NOT ALL ROSES (OR RECYCLED FIBERS)
Every market has its roadblocks, and India’s tissue industry is no exception:
- Fiber Price Fluctuations: As recycled fiber remains the backbone, price volatility can be a dampener.
- Exchange Rate Woes: Currency fluctuations can impact import/export dynamics.
- Regulatory Scrutiny: Environmental norms keep manufacturers on their toes.
- Ownership Shifts: Consolidations and ownership changes at tissue mills add to the unpredictability.
THE OPPORTUNITY WRAPPED IN A CHALLENGE
Despite these hurdles, India’s tissue market holds immense potential. Rising awareness around hygiene, expanding urbanization, and increasing disposable incomes are nudging the market forward. However, cracking this market will require more than just capacity expansion. Success hinges on understanding consumer habits, addressing structural barriers, and crafting a competitive edge.
FINAL TAKEAWAY
India’s tissue market is like a tightly wound roll—layers of challenges and opportunities waiting to be unwrapped. As demand grows and recycling continues to drive production, the industry stands poised for significant expansion. For businesses eyeing this market, staying informed and adaptable will be key.
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