Private label becomes a structural force in the U.S. tissue Market

Private label is strengthening its position in the U.S. tissue market as a long term structural shift rather than a temporary response to inflation. This view was highlighted by Luigi Lazzareschi, CEO of Sofidel, who emphasized that the trend reflects a deep and lasting transformation across the industry.

According to data from Circana, private label sales in bath tissue increased from 1.4 billion dollars in 2011 to 5.3 billion in 2025, while market share rose from around 10 percent to approximately 37 percent. In paper towels, share expanded from 27 percent in 2014 to 45 percent in 2025, with market value growing from 1.8 billion to 4.5 billion dollars. Combined, these categories reached close to 10 billion dollars in private label sales last year, more than tripling over the past decade.

Three main drivers explain this shift. First, a lasting change in consumer preferences, particularly among younger generations such as Generation Z and Generation Alpha, who are more willing to adopt private label and remain loyal when quality is competitive. Second, an evolution in retailer strategy, where private label serves both margin improvement and customer loyalty building. Third, the expansion of the club channel, led by players such as Costco, Sam’s Club and BJ’s Wholesale Club, which has accelerated premium private label adoption.

 

Sofidel growth in the United States reflects this strategy. The company entered the market about fourteen years ago without a domestic industrial base and now operates fourteen facilities with sixteen machines. Its expansion followed a two phase approach focused first on geographic coverage and logistics efficiency, and later on quality upgrades and technological investment, including the acquisition of assets from Clearwater Paper.

Private label currently holds around 40 percent market share across tissue categories and continues to grow faster than the overall market. This dynamic increases pressure on national brands to clearly define and demonstrate their value proposition. At the same time, maintaining balance in the category requires consistent quality, sustainable pricing and ongoing innovation to avoid value erosion.

In this context, the structural shift toward private label is already established. The key challenge for industry players is to manage this transition effectively while sustaining growth and market stability.