Competition intensifies in U.S. tissue paper market

The global tissue paper industry, including products such as toilet paper, paper towels, and facial tissues, is a lucrative business, generating approximately US$80 billion annually. This category ranks as the largest non-food segment for many retailers and is the third-largest product category overall. 

Costco, the sixth-largest global retailer, reports that its Kirkland Signature brand of bathroom tissue is its best-selling product, with annual sales of US$500 million. Tissue paper also plays a crucial role in driving store traffic, with total basket spending doubling when customers purchase tissue products. 

Market dynamics reveal significant regional differences in the balance between national brands and private labels. In the U.S., national brands dominate the tissue market, holding about 75% of volume share. Conversely, in European markets such as Germany and Belgium, private labels account for over 80% of tissue sales. 

National brands in the U.S. have maintained their market leadership through rapid innovation and by incentivizing retailers to carry their full product lines. However, a competitive battle is unfolding as private label manufacturers, including First Quality, Clearwater, and Sofidel, seek to challenge established players and convince retailers to shift toward private label products. 

At the same time, consumer preferences in the U.S. are increasingly leaning toward ultra-quality tissue products. Several private label manufacturers have invested in expanding their capacity to produce these premium offerings. Meanwhile, national brands continue to defend their market position through innovation, promotional activities, and maintaining strong brand loyalty. 

As competition intensifies, the ultimate market-share winner remains uncertain, with both national brands and private labels vying for dominance in this evolving landscape.