About the market:

Between 2001 and 2005, the market has increased in value by some 7%; however, this is some way behind volume sales, which have risen by 25% over the same time period. Toilet tissues form the largest sector and account for some two-thirds of sales However, although volume growth has continued, deflation in the market has meant that value has declined since 2003. The facial tissues market is also suffering major problems primarily due to own-label pricing policies. Nevertheless, the kitchen towels sector continues to show strong growth.

Mintel argues that the market for household paper products is not the most engaging; consumers do not actively shop the fixture, tending instead to dip in and out, picking up off the shelf what readily comes to hand. Building a raft of added-value brands with USPs has been a holy grail for many manufacturers in this market. However, there seems to be consumer confusion about pricing tiers and what individual products mean in terms of performance – consumers only perceive a loose benefit for those products that retail at a premium. Instead, manufacturers must engage the consumer by differentiating by usage occasions that address specific consumer need states.