A quick survey by Paper Mart revealed about the emerging tissue industry revealed. The threads of this outlook were varied yet interlinked; with favorable changes inthe consumer demographic (such as increase in income, awareness, superiority of soft tissue over MG Poster); there is a sense of imminent prosperity for the nascent industry. Indeed, current numbers show that the tissue industry has generated a tepid response in India, with a total tissue production of 60,000 tons. With a per capita consumption of only 5-6 grams (even less than China’s 2.5kg), it is evident that Indians masses view tissue as an unnecessary luxury. To counter this, two trials now lie in front of tissue manufacturers.
Firstly, to displace cheap, hard tissue (non-absorbent), which is actually poster grade. It is imperative to generate awareness about the superiority of soft crepe tissue over hard tissue (MG Poster), and thereby influence its demand.
Secondly, to change the current demand blueprint for tissue, by harnessing the growing upper-middle class. As suggested by Mr. Lakhotia, favorable changes in the living standards have augmented tissue consumption. Domestic purchases in tissue have been focused around institutional, AFH (Away from Home) tissue, with a 50%- 60% share in domestic purchase from tissue manufacturers.
Therefore, it is important to create to new sensibilities, such as an uncompromising nature towards hygiene, along with creating high quality, affordable soft tissue, in order to make tissue a necessity in our daily lives.
Mr. M.L. Pachisia,
MD, Orient Paper & Industries Ltd.
Traditionally, consumption of tissue products was not common in Indian society. Therefore, its demand in India was miniscule until a few years ago. With changing lifestyles and greater exposure to global trends, demand for tissue products has been increasing at a CAGR of over 15% since early 2000. We consider demand to increase at this rate over the next decade.
There is a growing realisation that use of disposable paper tissue products is hygienic and user-friendly. As a result, there has been all-round growth in demand for tissue products for both Home and Away from Home usage, such as toilet rolls, paper napkins, kitchen towels, toilet towels and facial tissues. Currently, a substantial part of the paper napkins segment demand is for MG paper, due to economy considerations. But this trend is also gradually moving towards soft tissue.
In spite of the substantial growth in consumption, India continues to be amongst one of the lowest tissue consuming markets on per capita basis, with a total tissue consumption estimated at around 40,000 tons per year.
Use of tissue products is an integral part of the lifestyle of developed countries, with 80% consumption of tissue in toilet and towel grades and 20% in napkin and other over-the-table tissue products. Consumption pattern gradually shifting towards higher % of total consumption for toilet rolls, paper towels, paper handkerchiefs and facial tissues. Some of the leading healthcare institutions have also recently started using disposable paper sheets instead of traditional cloth sheets, and this trend is likely to gain momentum.
Recently added capacities in the country will be underutilized for some time, unless a part of the production can be exported. Another change we envisage is in the area of tissue converting units. Traditionally, converting facilities in India have been dominated by small scale and unorganized industries. With increase in volumes and varieties, larger scale and more organized sector, converting facilities are expected to come up.
Mr. R.L. Lakhotia,
Sr. President, Century Pulp & Paper
There is huge potential for tissue consumption in India. The tissue industry is poised to surpass 15% growth due to many favourable changes. Industrial changes (such as growth in IT sector, Tourism, MNC’s), sociological changes (such as the growing upper-middle class), lifestyle changes, change in people’s attitudes towards hygiene, freshness and cleanliness; all this has augmented tissue consumption. Also, tissue consumption is increasing tremendously in institutions like hospitals, malls, office complexes, F&B chains etc. Besides, the Commonwealth Games shall create huge domestic demand for tissue .
Indian tissue consumption is of mainly hard non-absorbent tissue, unlike international usage. Due to growing awareness in personal hygiene, hard tissue will be replaced completely by soft and absorbent tissue in the near future.
Mr. G.G. Shenoy,
MD, Premier Tissues India Ltd.
In India, the tissue industry is at a very primitive stage. We were expecting a tremendous growth in tissue industry , which has not come about. Tissue is a hygiene product, but unfortunately Indians are unaware of modern hygiene practices. After the growth in the IT industry, the tissue consumption has grown enormously, mainly due to Indians seeing the usage of tissue after going abroad and seeing the usage of tissue . Awareness among the people will definitely give growth to the industry. So it is important for the public to know the hygienic benefits of using tissue paper.
Everybody is enthused about tissue, and planning to install a tissue plant. this will certainly be a problem and create lots of dilemmas. I think that growth will certainly be there, but supply has to commensurate with the growth.
Mr. Rajiv Jain,
Director, Swastic Sales Corporation
With increased awareness about personal hygiene, the Indian tissue market is growing. There is a growth of 40% to 50% in the soft tissue market. The recession has had a minimal impact on domestic tissue consumption, as people are uncompromising about personal hygiene. More and more tissue mills are coming up, but only mills offering good quality at economical prices will be successful.
Post-recession, the international tissue market is in a state of decline, particularly in developed countries like UK and USA with a 5-6% fall in consumption. Whereas, improvement in Indian standards of living, and increased awareness about personal hygiene is leading to an increase in soft tissue consumption.
Mr. Sumit Khanna,
Beeta Tissues
With increase in income and international exposure, tissue consumption has to increase. The fastest growing segment will be paper napkins and minimum growth will be in toilet paper. Succinctly put, the future looks great, but globally speaking, the present seems pessimistic.
The growth has been between 10-20%, depending upon the region. However, an exponential curve is expected in the future. We foresee faster machines, fall in paper prices, increase in exports (which was not possible till recently) and increase in size of existing established players. There is a huge difference in tissue consumption and culture between India, and the rest of the world. It is not habitual for Indians to use toilet paper, resulting in very low consumption of tissue paper.
