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Tissue and Hygiene in China
Tissue and hygiene maintains the healthy growth in 2015

With increasing disposable income and hygiene awareness, consumers’ demands for tissue and hygiene products kept growing in 2015. Compared with the performance of tissue, hygiene recorded a higher growth rate in 2015. It was because the hygiene market experienced more obvious premiumisation trends with a series of innovative new products. Especially for children’s nappies/diaper/pants, parents care less about prices but focus on the quality of products, leading to the increasing shares of high-end products.

 

Natural and green products begin to capture consumers’ attention

With the pursuit for premium products and increasing environmental protection awareness, consumers are tending to purchase tissue and hygiene products with natural and green material and ingredients. For instance, consumers have increasingly favoured tissue products made with non-wood and unbleached material by Shandong Tralin Paper Co. Similarly, a series of hygiene products with organic or eco-friendly ingredients especially for babies have been launched to satisfy consumers’ high-end demand.

Hengan Fujian Holding Co Ltd leads the tissue and hygiene market in 2015

Thanks to its wide product portfolio across tissue and hygiene, Hengan Fujian replaced Procter & Gamble (Guangzhou) to rank first in the whole tissue and hygiene market in 2015. The company has adjusted its strategy by continuing to focus on innovating and upgrading its products, do more marketing advertising and promote mid-to-high-end and high-end products in order to satisfy the market’s changing demands. Furthermore, it has invested heavily in its e-commerce channel, which showed booming sales in 2015.

Internet retailing poses a huge threat to traditional store-based retiling

Although supermarkets and hypermarkets still maintained the dominant position in the tissue and hygiene market, they received intense competition from internet retailing, which saw booming sales in 2015. By taking advantage of lower prices, improved delivery experience, as well as the extensive marketing advertising of 2015 Tmall 11.11 Global Shopping Festival, consumers began to transition from traditional physical stores to online channels due to the convenience.

Tissue and hygiene will keep enjoying growth over the forecast period

Tissue and hygiene in China is expected to enjoy healthy value growth over the forecast period, during which hygiene will achieve a more favourable performance than tissue thanks to the two-child policy, aging population and premiumisation trend in the future. Meanwhile, with increased urbanisation, demand for tissue and hygiene products from low-tier cities will also drive the value increase.

 


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