Private label has become a key model within the tissue market, enabling retailers to offer competitively priced products under their own brands while optimizing costs and strengthening customer loyalty. In this context, manufacturers have increasingly shifted toward strategic partnerships with major retail chains, moving beyond purely price-driven models.
Against this backdrop, Grupo Corporativo Papelera is advancing its expansion into the United States, supported by its strong position in Mexico and a significant internal restructuring following the crisis faced in 2021. During its presentation at Tissue World Miami 2026, CEO Eduardo Soto Zanetta recalled that the company came close to insolvency due to a combination of market overcapacity, post-pandemic inventory buildup, and simultaneous increases in pulp and energy costs.
Today, the company holds a 39 percent share of Mexico’s private label tissue market, primarily through contracts with major retailers such as Walmart, Costco, and Sam’s Club. Its production capacity reaches approximately 180,000 metric tons per year across three facilities in the State of Mexico, generating around $440 million in annual revenue and employing about 1,600 people. This positions the company as a leading mid-sized player in a segment that has grown significantly over the past decade.
Meanwhile, the U.S. market shows private label penetration of approximately 35 percent, with demand exceeding domestic supply and requiring imports of nearly one million metric tons annually. In response, the company has adopted a strategy focused on operational proximity to its clients. Rather than acting as an exporter, it aims to integrate directly into the supply chains of the same retailers it already serves in Mexico.
As part of this strategy, Grupo Corporativo Papelera has been operating a converting facility in Houston for four years and is now building a second plant in Texas, in New Caney, which will include two paper machines. This expansion follows a clear logic of supporting its clients on both sides of the border while leveraging operational, commercial, and infrastructure synergies.
The events of 2021 marked a turning point in the company’s management approach. Since then, it has implemented formal corporate governance, including independent board members and stricter controls over investment decisions. It has also strengthened its leadership team with executives from other industries and adopted stronger financial discipline to better navigate adverse conditions.
As a result, current expansion projects are being developed under more conservative criteria, aligned with confirmed demand rather than speculative growth. The additional capacity planned for the coming years will be distributed between Mexico and Texas based on concrete client commitments.
Ultimately, the company’s move into the United States reflects a broader structural trend in the North American market, where demand for private label tissue continues to grow. In this context, Grupo Corporativo Papelera’s strategy is not to compete broadly, but to position itself as an essential partner to a limited number of major retailers, focusing on long-term relationships and operational efficiency.
