Household - paper products 2024: tissues get cheaper to boost brands

The paper products category has turned over a new leaf. Twelve months ago, prices were soaring and shoppers were opting for value ranges and own label lines. This year, prices are down and brands are on a roll, stealing back share.

With the easing of issues that pushed up input costs in recent years – such as increased demand for packaging during the pandemic and soaring energy prices – the category is now seeing greater promotional activity and growth in lower-priced brands.

Average price per unit is down 4% for both kitchen roll and facial tissue, leading to respective value declines of 2.1% and 2%. However, volumes are up 2% and 2.1%.

Toilet tissue is also cheaper – by 5.5% per average pack. But volumes have dipped 0.4% into the red. That doesn’t mean Brits are using less loo roll, though. Instead, it reflects a shift towards larger packs and longer rolls.

“These options provide more sheets per pack, allowing consumers to buy less frequently while still meeting their needs,” explains Tracey Wilson, category management and insight lead at Cushelle owner Essity. Demand for longer rolls is being fuelled by a desire to reduce packaging waste and change rolls less often, she adds.

At the same time, the price of toilet tissue has fallen 6% per 100 sheets, Wilson says, and it’s these price cuts that have driven the £106.3m drop in category value.

“Factors contributing to this include increased promotions, the rise of cheaper brands that compete with own-label products, and retailer strategies like Aldi Price Match,” she adds.

In this challenging environment for established brands, second-biggest player Cushelle has struggled. Units have fallen 11.1% after its revamped Quilted was panned by shoppers in the summer.

Despite a campaign promising its “softest ever” rolls, Cushelle was inundated by negative reviews online. Shoppers said the new Quilted was “narrower”, “no longer soft” and “exceptionally thin”.

Essity admits the brand has faced a “challenging” year. “This downturn is primarily due to a strategic shift towards longer rolls, which initially disrupted established buying habits,” says Wilson. “As consumers adjusted to this change, it took time for the longer-roll products to gain traction in the market.”

In an effort to revive sales, Cushelle plans to roll out regular-sized rolls in larger packs.

The brand’s Essity stablemate Velvet has fared much better. New listings have helped drive up value 8.6% and unit sales 15.4%. “By aligning with market needs for high-quality products at affordable prices, Velvet has expanded its presence and attracted more buyers,” Wilson says.

Some rival brands have done similarly well. Take market leader Andrex, which accounts for more than a quarter of the £1.7bn toilet tissue category. It has grown in 3.6% in value and 2.1% in packs. This performance has been largely driven by premiumisation such as Andrex Ultimate Quilts, says owner Kimberly-Clark.

For Task Consumer Products, there’s been a different route to success. Its Little Duck brand has seen value grow 9.9% and volumes rocket 74.3% – a disparity that suggests aggressive retail pricing.

“Recent launches in a number of key retailers and increasing popularity of our brand across all sectors have enhanced sales,” says Dean Hopper, Task Consumer Products senior national account manager.

Consumers are increasingly seeing players such as Little Duck as alternatives to leading brands or own label, he adds, which has contributed to the 10.7% slump in value sales for own label toilet tissue.

Adjusted pricing strategies

Similar dynamics are at play in the kitchen roll market. Promotions have played a role in its £13m decline, says Wilson at Essity, which owns the Plenty brand.

Discounts have been deeper and more frequent, she adds, pointing out the 3.6% decline in Plenty’s value is due to a 12% price reduction. Volumes are up 5.1%.

Plenty this year lost its top spot in branded kitchen roll to Sofidel’s Regina, which has grown unit sales 29.3%. Its stablemate Nicky has also had a strong year – up 51.2% in units.

The success of these brands has been a key reason for own label losing share. It’s shed £25.2m and 8.6 million packs.

As Wilson notes: “Many brands have adjusted their pricing strategies, now selling at prices comparable to or even lower than own label products.”

A similar attitude towards branded pricing has been seen in facial tissue, contributing to unit sales rising 7.3% as own label fell 1.3%.

Overall value is down £5.7m, driven by losses in private label. Brands, on the other hand, have stayed in the black, growing by 1.4%. In absolute value terms, leading player Kleenex has registered the biggest gain of £1.7m, with pack sales up 8.4%.

“Kleenex has had a great year,” says a spokesperson for owner Kimberly-Clark. “This has been driven by escalated promotions to drive feature space and new shoppers into the category.”

The brand also increased distribution through NPD, including Kleenex Easy Breathe, which is made with eucalyptus and menthol-scented microcapsules that are activated by scrunching the tissue.

That is all the more noteworthy given the lack of innovation and choice at retail that The Cheeky Panda highlights. The sustainably-minded brand, which has grown units by 2.2%, is planning to change the situation.

“We aim to build on our balsam tissues success with new size variants in 2025 to support varying consumer needs,” says co-founder Chris Forbes. He adds that the brand expects to continue to grow sales through promotional activity in retailers including Waitrose, Ocado and Boots.

Looks like the paper products category is set to continue to change for the better.

Read more: Household - paper products 2023: Rising prices fuel value paper lines