Global recession should not impact toilet paper consumption, says Walter Schalka
Despite optimistic projections, the CEO of Suzano pointed to a possible downgrade from the 3 ply model to the 2 ply model
The global scenario has been one of many challenges in the transition of the industry to a post-pandemic period. Among them, the war between Russia and Ukraine stands out, which inflicted other economic problems, mainly in Europe, such as the energy crisis that has affected several tissue manufacturers.
The low levels of global pulp inventories, which resulted in an increase in the price of the commodity, have also been a determining factor for the sector, as well as logistical bottlenecks around the world.
Given this adverse context, Walter Schalka, CEO of the Brazilian tissue and pulp company Suzano, believes that the tissue market should not undergo major changes in terms of consumption. “There may even be a global recession, but toilet paper consumption is not going to change much. There may even be a downgrade, from a 3 ply model to another 2 ply, for example, however, total consumption has little volatility”, says the executive.
Despite the difficulties, according to Schalka, there are positive prospects for Suzano’s future. The Executive says that there is a movement in some countries in favor of hardwood pulp – which is the company’s specialty. “The production of hardwoold, in the last month, did not grow and the demand grew 120 thousand tons [in the world]”, he explains.
According to the CEO of the pulp giant, this change occurs because hardwood is taking over softwood’s space. “Today, the global tissue market runs 46% on hardwood – that number was 30% a few years ago. Do you know how much we produce with hardwood? 100%,” he says.
In general, he believes that the tissue market should continue to expand. “The population in the world grows, as well as urbanization, which increases tissue consumption. So, our market will continue to grow”, he concludes.
