US retail tissue market led by Georgia-Pacific and Procter & Gamble

Press Release   •   Jul 11, 2013 09:36 BST

Current value growth within the US retail tissue market increased by 2% in 2012, to reach US$16.4 billion.

A highly commoditised category, retail tissue is driven by people‟s basic needs around the house. Therefore, population growth is an important factor for retail tissue performance. The 1% population growth in 2012 is in accord with the 2% current value growth in 2012.

According to a recent market report, 'Retail Tissue in the US,' toilet paper remains the largest category in current value terms, totalling US$8.8 billion in 2012. Toilet paper is a staple in American homes with no viable culturally acceptable substitutes.

Toilet paper continued to be the fastest-growing category in 2012 with 2% current value growth. However, the growth in 2012 was slower than the 3% value compound annual growth rate (CAGR) during 2007-2012. This might be attributed to a faster value growth of higher-priced recycled and standard toilet paper in the last few years, in comparison to 2012.

Kitchen towels, commonly called paper towels in the US, are most frequently used in the kitchen in place of a sponge to wipe up messes or dry off hands. They are also used for cleaning around the house along with various cleaning liquids such as glass cleaner. Many households substitute paper napkins with kitchen towels for meals.

Just as some households use kitchen towels instead of paper napkins, other households do the opposite and use paper napkins to clean up spills instead of using kitchen towels because they are at hand, normally being used in the kitchen as well. However, using paper napkins instead of kitchen towels is far less common than using kitchen towels instead of paper napkins.

In 2012, Georgia-Pacific maintained its leading position in toilet paper with 29% share, in both value and volume terms. Second to Georgia-Pacific, Procter & Gamble maintained its lead over Kimberly-Clark with 27% value share. Procter & Gamble's Charmin maintained its lead in toilet paper in value terms, whilst Kimberly-Clark's Scott and Kleenex Cottonelle also saw value sales gains in 2012.

Procter & Gamble's Bounty brand of kitchen towels maintained its market leader position with a 45% current value share in 2012. This is not unexpected as it has consistently maintained approximately four times the share of its closest competitor. This strong market presence is due to high brand awareness.

Private label increased its value sales by 5% to reach US$3.3 billion in retail tissue in 2012. Private label continued to lead paper tableware sales with a 32% value share. In current value terms, 34% of napkins and 4% of tablecloths were private label in 2012.

For more information on the US retail tissue market, see the latest research: US Retail Tissue Market

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