Club stores are redefining private label growth in the U.S. tissue market

The U.S. tissue market continues to show signs of transformation, driven by changing consumer preferences and the evolving strategic relationship between manufacturers and retail chains. In this environment, private label products are strengthening their position across the sector.

In this context, during his participation at Tissue World Miami 2026, Luigi Lazzareschi explained how club store retailers have become key drivers of structural private label growth.

According to the executive, retailers such as Costco, Sam’s Club, and BJ’s Wholesale Club no longer view private label solely as a margin enhancing tool. Instead, they increasingly use it as a strategic instrument to strengthen consumer loyalty and differentiate their value proposition.

The figures presented highlight the scale of this evolution. In bathroom tissue, private label market share increased from approximately 9 percent in 2011 to nearly 37 percent in 2025. In paper towels, penetration rose from 27 percent in 2014 to 45 percent in 2025.

Lazzareschi explained that this expansion reflects a structural shift driven both by new consumer demands and by retailers’ deliberate efforts to strengthen proprietary product portfolios.

He also emphasized that the success of the club store model lies in deeper collaboration between retailers and manufacturers. These partnerships involve product co development, continuous improvement, logistics optimization, and joint efforts to improve supply chain efficiency.

The executive noted that this approach closely mirrors Sofidel’s long established European experience, where the company developed a strong private label business before expanding into the U.S. market.

He concluded that the future of the segment will depend on manufacturers’ ability to build partnerships grounded in innovation, operational consistency, and strategic collaboration rather than price competition alone.