Table of Contents
Executive Summary
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- The market
- Amid economizing, an opportunity for premium-quality products
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- Figure 1: Total US sales and fan -chart forecast of household paper products, at inflation-adjusted prices, 2009-19
- Three biggest segments dominate category but generate minimal growth
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- Figure 2: Sales of household paper products, segmented by type, 2012 and 2014
- Top three companies control nearly three quarters of sales, but store brands on the rise
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- Figure 3: Manufacturer sales of household paper products, 2013 and 2014
- The consumer
- Usage slips for facial tissues and paper napkins
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- Figure 4: Household usage of paper products, by product type, 2009-14
- Household size drives usage frequency
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- Figure 5: Household usage rate of paper products, by household size, August 2013-September 2014
- What we think
Issues and Insights
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- Leveraging new use occasions and partnerships to drive super-premium
- The issues
- The implications
- Private label potential
- The issues
- The implications
- Who says you can’t take it with you?
- The issues
- The implications
- Cleaning up with push-and-wipe cleaners
- The issues
- The implications
Market Size and Forecast
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- Key points
- Sales and forecast of household paper products
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- Figure 6: Total US sales and forecast of household paper products, at current prices, 2009-19
- Figure 7: Total US sales and forecast of household paper products, at inflation-adjusted prices, 2009-19
- Amid economizing, an opportunity for premium-quality products
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- Figure 8: Total US sales and fan-chart forecast of household paper products, at inflation-adjusted prices, 2009-19
- Fan chart forecast
Market Drivers
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- Economizing mindset keeps sales growth in check
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- Figure 9: Paper product shopping behaviors, December 2013
- Household income stabilizes but remains weak
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- Figure 10: Median household income, in inflation-adjusted dollars, 2003-13
- Rising consumer confidence could help market
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- Figure 11: Thomson Reuters/University of Michigan Index of Consumer Sentiment, 2009-15
- Households with kids decline as a percentage of all households
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- Figure 12: Households, by presence of children, 2003-13
- Growing influence of Hispanic market
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- Figure 13: Households with own children, by race and Hispanic origin of householder, 2013
- Figure 14: Population, by race and Hispanic origin, 2010-20
Competitive Context
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- Paper towels face competition from other cleaning products
- Toilet paper not immune to competition from durables
- Sales of sponges and scouring pads outpace paper towels by small margin
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- Figure 15: Total US sales and forecast of sponges and scouring pads, at current prices, 2009-19
- Disposable wipes poised to gain, possibly at the expense of paper towels
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- Figure 16: Total US sales and forecast of cleaning cloths/wipes, at current prices, 2009-19
- Competition across segments
Segment Performance
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- Key points
- Biggest segments dominate category but generate minimal growth
- Paper napkin sales slip amid declining usage
- Flushable wipes and hand/face towelettes grow from small base
- Opportunity to build all-family use of wet wipes
- Sales of household paper products, by segment
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- Figure 17: Sales of household paper products, segmented by type, 2012 and 2014
- Figure 18: Sales and forecast of household paper products, segmented by type, 2009-19
Retail Channels
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- Key points
- Value-focused channels continue to gain share
- Subscription services gain momentum
- Sales of household paper products, by channel
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- Figure 19: Sales of household paper products, by channel, 2012 and 2014
- Figure 20: Sales of household paper products, by channel, 2009-14
Leading Companies
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- Key points
- P&G share slips, but company holds lead
- Kimberly-Clark manages slight gain
- Manufacturer sales of household paper products
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- Figure 21: Manufacturer sales of household paper products, 2013 and 2014
Brand Share – Toilet Tissue
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- Key points
- Private label continues to advance, but pace of gain slows
- National brands place emphasis on specific features
- Manufacturer sales of toilet tissue
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- Figure 22: Manufacturer sales of toilet tissue, 2013 and 2014
Brand Share – Paper Towels
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- Key points
- Viva Vantage helps to expand super-premium niche
- New super-premium entry from Bounty
- Flexible sheet size options gain momentum
- Manufacturer sales of paper towels
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- Figure 23: Manufacturer sales of paper towels, 2013 and 2014
Brand Share – Facial Tissue
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- Key points
- Leading brands turn to packaging to reenergize slumping sales
- Private label continues to advance
- Manufacturer sales of facial tissue
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- Figure 24: Manufacturer sales of facial tissue, 2013 and 2014
Brand Share – Paper Napkins
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- Key points
- Private label expansion puts squeeze on mid-tier brands
- Manufacturer sales of paper napkins
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- Figure 25: Manufacturer sales of paper napkins, 2013 and 2014
Brand Share – Flushable Wet Wipes
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- Key points
- Cottonelle’s dual use promotion may be benefiting overall segment
- Manufacturer sales of flushable wet wipes
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- Figure 26: Manufacturer sales of flushable wet wipes, 2013 and 2014
Brand Share – Hand/Face Moist Towelettes
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- Key points
- Private label gains, but opportunities exist for innovative niche brands
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- Figure 27: Manufacturer sales of hand/face moist towelettes, 2013 and 2014
Marketing Strategies
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- P&G brands equate quality and strength with value
- Charmin Ultra Strong
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- Figure 28: Charmin Ultra Strong, “Airport Security” TV spot, 2014
- Charmin Ultra Soft
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- Figure 29: Charmin Ultra Soft, “Binoculars” TV spot, 2014
- Bounty
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- Figure 30: Bounty, “Pizza Party” TV spot, 2014
- Sparkle offers an alternative take on value
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- Figure 31: Sparkle paper towels, “Kerry the Fairy” TV spot, 2013
- Cottonelle promotes dual usage
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- Figure 32: Sparkle paper towels, “Kerry the Fairy” TV spot, 2013
The Consumer – What You Need to Know
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- Key points
Household Usage Trends
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- Usage slips for facial tissues and paper towels
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- Figure 33: Household usage of paper products, by product type, 2009-14
Household Usage – Key Demographics
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- Facial tissue, paper napkin usage lowest among 25-34 age group
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- Figure 34: Household usage of paper products, by age, August 2013-September 2014
- Usage incidence increases with household income
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- Figure 35: Household usage of paper products, by household income, August 2013-September 2014
- Largest households a little less likely to use paper towels, facial tissues
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- Figure 36: Household usage of paper products, by household size, August 2013-September 2014
- Black, Hispanic households less likely to use facial tissue
- Hispanic and Asian households more likely to use paper napkins
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- Figure 37: Household usage of paper products, by race/Hispanic origin, August 2013-September 2014
Usage Frequency
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- Household size drives usage frequency
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- Figure 38: Household usage rate of paper products, by household size, August 2013-September 2014
Brands Used Most Often
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- Toilet paper brands show modest demographic skews
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- Figure 39: Brand of toilet paper used most often in household, by demographics, August 2013-September 2014
- Bounty tops paper towel usage across demographic groups
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- Figure 40: Brand of paper towels used most often in household, by demographics, August 2013-September 2014
- Kleenex dominates facial tissue usage
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- Figure 41: Brand of facial tissue used most often in household, by demographics, August 2013-September 2014
- Private label paper napkins prevalent across demographic groups
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- Figure 42: Brand of paper napkins used most often in household, by demographics, August 2013-September 2014
Appendix – Other Useful Consumer Tables
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- Household usage rate of paper products
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- Figure 43: Household usage rate of paper products, by age, August 2013-September 2014
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- Figure 44: Household usage rate of paper products, by household income, August 2013-September 2014
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- Figure 45: Household usage rate of paper products, by household size, August 2013-September 2014
Appendix – Trade Associations
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- American Forest & Paper Association (AF&PA)
- Sanitary Supply Wholesaling Association (SSWA)
- Manufacturers Representatives of America, Inc. (MRA)
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