In 2003, household paper products was a $9.7 billion market in the U.S., up 25% from 1998 levels. Paper products like toilet paper and paper towels are staples in U.S. households, enjoying a 99% penetration rate. Facial tissues and paper napkins are used in at least three in four households, but these products face competition from toilet paper and paper towels in households which may not be able to afford or see the value in buying all products.

Toilet paper accounted for 48% of sales in 2003, and sales grew 32% over the review period of 1998-2003, as manufacturers stepped up their marketing efforts to lure consumers to higher-priced brands. But the smallest segment of the household paper products market was also the fastest growing. Moist towelettes, which accounted for 2% of sales in 2003, grew 126% over the entire review period. The variety of products included in the segment (e.g. those to be used in conjunction with toilet paper, those targeted at women and children, etc.) and overall consumer acceptance of wipes products are responsible for growth.

Price competition from low-cost leaders like Wal-Mart and increasing numbers of store-branded new products kept the prices of paper products low, prompting consumers to look for the best deal more than sticking to a particular name brand. The emergence of warehouse clubs allowed those who could afford it to buy in bulk, saving money per unit and lengthening the time between replacements.

Mintel expects that shrinking household size will have a negative effect on the number of consumers willing to buy bulk packages of paper products, slowing the shift in sales to the warehouse club channel. The growing racial and ethnic diversity of the U.S. will impact growth of particular segments that are not as widely used among minority groups, like paper napkins and facial tissues. Unless manufacturers can impress upon them why they need to buy these products in addition to the toilet paper and paper towels they already buy, there will be a growing portion of the population beyond manufacturers’ reach.

This report addresses all the key issues affecting the water filtration market, such as the dominance of corporations, the variations in distribution between segments, and how increased interest in health and home improvement have impacted the market. Mintel’s original consumer research penetrates attitudes about the category and examines purchasing behavior by age, gender, ethnicity and income. A six-year trend analysis predicts future growth for the market, helping you form a long-term marketing strategy.

This report covers the market for household paper products in the U.S., including:

Toilet tissue

Paper towels

Facial tissues

Paper napkins

Moistened wipes or scent-impregnated varieties of toilet and facial tissues, as well as recycled versions of all the above segments.

Sanitary Protection—U.S., consumer intelligence, January 2002

A number of U.S. reports covering related sectors have been published, are planned, or are in preparation, including:

Home Laundry—U.S., consumer intelligence, June 2004

Food Storage—U.S., consumer intelligence, May 2004

Household Cleaning Products Volume 2: The Consumer—U.S., consumer intelligence, May 2004

Household Cleaning Products Volume 1: The Market—U.S., consumer intelligence, April 2004

Dishwashing Products—U.S., consumer intelligence, March 2004

Hispanics and Household Products—U.S., consumer intelligence, July 2003

Disposable Baby Products—U.S., consumer intelligence, September 2002

Sanitary Protection—U.S., consumer intelligence, January 2002