US Tissue Market in Resurgence Phase

Posted August 09, 2016 in Pulp and Paper Industry by Elizabeth Tischer

The U.S. tissue market has experienced a significant growth in the amount of demand that is in place for it. During the first three quarters of 2014, the industry experienced a growth of the demand by an impressive 2.8%. Products that were then created from the tissue then experienced a further increase.

While domestic items increased in their consumption, there was a surprising decrease in the number of exports that were created from this tissue. Studies show that the growth of exported products experienced decline in what consumers used from exported goods, and the converted tissues of imports from the Away from Home sector is expected to continue to drop.

In 2015, there was another spike in growth also. The sector experienced a spike of nearly 4%, which was significantly more than the previous year. This increase in demand has started to drive up the price of products, and the growth rates are exceeding what is typical for years past. For example, 2013 only saw a .9% growth, so these larger percentages suggest that these tissues will continue to be high in demand.

So what is responsible for the sudden boom in demand? Some experts believe that gasoline prices falling, are contributing to a higher demand for these tissues. With places like hotels upgrading their tissue usage thanks to the increase in travelers. Additionally, places like rest areas, restaurants, and similar locations who specialize in tissue and other paper products are also assisting in the sudden spike in sales.  

This doesn’t mean that the growth might be eternal. While sales of tissue products created domestically are expected to rise, they will ultimately hit a peak at some point. But Sofidel, a leader in the US market, doesn’t seem to be too concerned. With the increase in demand, they have opted to put their money forward and invest $300 million over a three year period. They believe that the change in the industry will continue to help propel local brands and that will translate to a stronger economy. This investment will also help to increase jobs in their local markets also, as new jobs are created in order to ensure that the rising demand has its needs met with actual people.

Of course, this focus on helping to give back to the community and to create jobs isn’t something new. The paper industry has long committed itself to ensuring that it takes care of people in the areas where they harvest and create the products that we all use.

With the US market of pulp increasing in demand, there will also be an increase in demand for workers to harvest and process the residual materials. In fact the US AfH tissue is estimated to spike another 27% potentially over the course of the next year thanks to the Wausau Paper deal that is in the works. That means new driving forces are coming to the industry and further helping with the growth that is in place, and to handle the demand that is there.

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