Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Mature market challenged by limited engagement and focus on value
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- Figure 1: Total US sales and fan chart forecast of household paper products, at current prices, 2012-22
- Aging population poses challenge to many categories
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- Figure 2: Repertoire of household paper products regularly purchased, by generation, November 2017
- Value-driven mindset present across product segments
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- Figure 3: Purchase product on sale or with coupon, by type of paper product, November 2017
- The opportunities
- Wipes see growth among key demographics
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- Figure 4: Any (net) and regular usage of wipes, by generation, parental status, and Hispanic origin, November 2017
- Interest in added benefits suggests potential for innovative offerings
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- Figure 5: Interest in facial tissue with added benefits, by generation and Hispanic origin, November 2017
- Eco-friendly options appeal to younger generations
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- Figure 6: Purchase of any eco-friendly paper products, by generation, November 2017
- What it means
The Market – What You Need to Know
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- Slow growth in mature $18.2 billion market
- Product staples are largest segments, but wipes are fastest growing
- Cleaning wipes and reusable products compete with paper products
- Despite positive economic context, economizing mindset limits growth
- Challenges to the market with aging population
Market Size and Forecast
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- Slow growth seen in mature $18.2 billion market
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- Figure 7: Total US sales and fan chart forecast of household paper products, at current prices, 2012-22
- Figure 8: Total US sales and forecast of household paper products, at current prices, 2012-22
Market Breakdown
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- Toilet paper and paper towels account for majority of market
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- Figure 9: Share of household paper product retail sales, by segment, 2017 (est)
- Most segments struggle, while wipes thrive
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- Figure 10: Total US retail sales of household paper products, by segment, at current prices, 2015 and 2017
- Trended data shows declining usage of facial tissues and napkins
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- Figure 11: Household usage of paper products, by product type, 2012-17
- Other retail channels build sales
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- Figure 12: Total US retail sales of household paper products, by channel, at current prices, 2015 and 2017
Market Perspective
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- Cleaning and disinfecting wipes compete with traditional paper towels
- Competition from reusable products and interest in green options
Market Factors
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- Macroeconomic factors suggest fairly positive outlook
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- Figure 13: Consumer Sentiment Index, January 2007-October 2017
- Entrenched value-driven mindset remains a challenge
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- Figure 14: Disposable personal income change from previous period, January 2007-October 2017
- Aging population and usage shifts of younger buyers challenge growth
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- Figure 15: US population, by generation, 2012-22
Key Players – What You Need to Know
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- P&G builds share while other players struggle
- Private label builds share across most segments
- More wipes, material innovations, and smart monitoring on the horizon
Company and Brand Sales of Household Paper Products
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- P&G builds share, but private label is the biggest winner
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- Figure 16: Multi-outlet sales of household paper products, by leading companies, rolling 52 weeks 2016 and 2017
What’s Working?
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- Strongest gains seen in moist towelettes and flushable wet wipes
- Private label posts gains across all segments except napkins
- P&G sees gains thanks to leading brands
- Bounty leverages well-known brand across different product tiers, focuses on families
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- Figure 17: Bounty ad, “more life per roll”, 2016
- Tiered offerings under the Charmin brand, promoted with playful, irreverent ads
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- Figure 18: Charmin ad, “Shiney Hiney Song”, 2016
What’s Struggling?
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- Kimberly-Clark and Koch Industries fail to maintain share
- Challenges in napkins, facial tissues impact leading players
What’s Next?
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- Renewable sources and eco-friendly products
- The integration of natural scents and food-based ingredients could enhance value
- Probiotic tissue offers potential to address odor and plumbing issues
- Smart devices can monitor paper usage, replenishment
- Customization of paper offerings and expanded colors, designs
The Consumer – What You Need to Know
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- Penetration and usage highest for staples, lower for other segments
- Paper towels used for range of purposes, especially among younger adults
- Substitution limits growth in tissue segment
- Younger consumers, parents, and Hispanics engaged in wipe segment
- Older and affluent consumers comprise core napkin consumer base
- Brick and mortar retailers lead as consumers seek value
- Younger generations show highest interest in eco-friendly products
Purchase of Household Paper Products
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- Paper product staples enjoy near universal penetration
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- Figure 19: Any and regular purchase of household paper products, November 2017
- Greatest share of consumers regularly use three to four paper products
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- Figure 20: Repertoire analysis of regularly purchased products, November 2017
- Younger generations stick to basics, older users embrace a range
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- Figure 21: Repertoire of household paper products regularly purchased, by generation, November 2017
- Affluent households regularly use a greater range of products
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- Figure 22: Repertoire of household paper products regularly purchased, by household income, November 2017
- Parental status drives the number and variety of products used
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- Figure 23: Repertoire of household paper products regularly purchased, by parental status, November 2017
Purchase of Paper Towels and Reasons for Using
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- Paper towels are used by vast majority
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- Figure 24: Purchase of paper towels, November 2017
- Younger adults over index for usage of towels infused with disinfectant
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- Figure 25: Any (net) or regular purchase of paper towels infused with disinfectant, by generation, November 2017
- Paper towels widely used, especially for cooking and cleaning
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- Figure 26: Reasons for using paper towels, November 2017
- Younger generations prone to use paper towels for body care
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- Figure 27: Reasons for using paper towels, by generation, November 2017
- Lower-income users seek function from paper towels
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- Figure 28: Reasons for using paper towels, by household income, November 2017
- Parents want convenience
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- Figure 29: Reasons for using paper towels, by parental status, November 2017
Purchase of and Attitudes toward Facial Tissues
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- Facial tissues not considered household staple
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- Figure 30: Purchase of facial tissues, November 2017
- Income drives regular purchase, especially of boxed tissue
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- Figure 31: Regular purchase of facial tissues, boxed and pocket, by household income, November 2017
- Regular purchase of tissues is low among younger generations
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- Figure 32: Any (net) and regular purchase of facial tissues, boxed and pocket, by generation, November 2017
- Race and Hispanic origin shape usage of tissue
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- Figure 33: Regular purchase of facial tissues, boxed and pocket, by race/Hispanic origin, November 2017
- Toilet paper serves as a substitute for tissues
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- Figure 34: Attitudes toward facial tissues, November 2017
- Opportunities in tissues with added benefits
- Younger generations willing to substitute, use occasionally
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- Figure 35: Attitudes that limit usage of facial tissues, by generation, November 2017
- Despite limited usage, younger generations want added benefits
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- Figure 36: Interest in facial tissue with added benefits, by generation, November 2017
Purchase of and Attitudes toward Toilet Paper and Wipes
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- Toilet paper sees universal usage
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- Figure 37: Purchase of toilet paper and wipes, November 2017
- Usage of wipes higher among younger generations
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- Figure 38: Any (net) and regular purchase of wipes, by generation, November 2017
- Parents want convenience of wipes
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- Figure 39: Any (net) and regular purchase of wipes, by parental status, November 2017
- Mixed attitudes toward toilet paper and wipes
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- Figure 40: Attitudes toward toilet paper and wipes, November 2017
- Younger consumers use wipes, but have concerns
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- Figure 41: Attitudes toward toilet paper and wipes, by generation, November 2017
- Benefits to wipes relevant to parents
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- Figure 42: Attitudes toward toilet paper and wipes, by parental status, November 2017
Purchase of and Attitudes toward Paper Napkins
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- Paper napkins are viewed as discretionary
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- Figure 43: Purchase of paper napkins, November 2017
- Older generations use napkins regularly
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- Figure 44: Any (net) and regular purchase of paper napkins, by generation, November 2017
- Income drives purchase of napkins
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- Figure 45: Any (net) and regular purchase of paper napkins, by household income, November 2017
- Consumers are split on usage of napkins
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- Figure 46: Attitudes toward paper napkins, November 2017
- Younger generations are occasional users
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- Figure 47: Attitudes related to usage occasions of paper napkins, by generation, November 2017
- Younger generations hold favorable views of reusable options
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- Figure 48: Attitudes toward reusable/cloth napkins, by generation, November 2017
Shopping for Household Paper Products
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- Vast majority of purchases made at brick and mortar stores
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- Figure 49: type of retailer used, by type of paper product, November 2017
- Younger generations more likely to shop online
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- Figure 50: Type of retailer used for purchasing any paper product (net), by generation, November 2017
- Sales and coupons are standard across product types
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- Figure 51: Purchased on sale or with coupon, by type of paper product, November 2017
- Name brands are favored, but store brands are widely used
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- Figure 52: Type of brand purchased, by type of paper product, November 2017
- Eco-friendly options see niche usage
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- Figure 53: Purchase of eco-friendly paper products, by type of paper product, November 2017
- While limited, younger generations more open to eco-friendly options
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- Figure 54: Purchase of any eco-friendly paper products (net), by generation, November 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 55: Total US sales and forecast of household paper products, at inflation-adjusted prices, 2012-22
- Figure 56: Total US retail sales of household paper products, by segment, at current prices, 2012-22
- Figure 57: Total US retail sales of household paper products, by channel, at current prices, 2012-2017
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- Figure 58: Cost to raise a child from birth to age 18 for middle-income families, by share of expense, 1993 vs 2013
- Figure 59: Average household size, by race and Hispanic origin, 2016
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- Figure 60: Distribution of generations by race and Hispanic origin, 2017
- Figure 61: Median household income, by race and Hispanic origin of householder, 2015
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Appendix – Key Players
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- Figure 62: Multi-outlet sales of paper napkins, by leading companies and brands, rolling 52 weeks 2016 and 2017
- Figure 63: Multi-outlet sales of paper towels, by leading companies and brands, rolling 52 weeks 2016 and 2017
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- Figure 64: Multi-outlet sales of toilet tissue, by leading companies and brands, rolling 52 weeks 2016 and 2017
- Figure 65: Multi-outlet sales of facial tissue, by leading companies and brands, rolling 52 weeks 2016 and 2017
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- Figure 66: Multi-outlet sales of flushable wet wipes, by leading companies and brands, rolling 52 weeks 2016 and 2017
- Figure 67: Multi-outlet sales of hand/face moist towelettes, by leading companies and brands, rolling 52 weeks 2016 and 2017
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Appendix – The Consumer
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- Figure 68: Paper towel brand usage, Summer 2012-17
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- Figure 69: Paper napkin brand usage, Summer 2012-17
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- Figure 70: Toilet paper brand usage, Summer 2012-17
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- Figure 71: Facial tissue brand usage, Summer 2012-17
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