Table of Contents
Executive Summary
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- The market
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- Figure 2: Best- and worst-case forecast of China retail volume sales of household paper products, 2011-21
- Figure 3: Best- and worst-case forecast of China retail value sales of household paper products, 2011-21
- Companies and brands
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- Figure 4: Value share of leading companies, 2013-15
- The consumer
- Moist toilet paper gains the strongest growth but still low in penetration
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- Figure 5: Usage of different household paper products, March 2016
- Using alternatives and low relevance are the top barriers
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- Figure 6: Usage barriers of selected paper products, March 2016
- To remove skin oil is the key purpose of using moist wipes
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- Figure 7: Purposes for using moist wipes, March 2016
- Multi-usage potential for kitchen paper
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- Figure 8: How people might use kitchen paper products, March 2016
- Moist paper products are perceived better
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- Figure 9: Comparison between dry and moist paper products, March 2016
- Switching behaviour is common in household paper market
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- Figure 10: Consumer attitudes towards brand loyalty, by consumers attitudes towards brand difference, March 2016
- Threats coming from adjacent category
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- Figure 11: Consumer attitudes towards using paper products designed for babies, by age, March 2016
- What we think
Issues and Insights
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- What is the next step for moist wipes in China?
- The facts
- The implications
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- Figure 12: Double-sided cleaning wipes launched by Natura Cosméticos, Chile, 2016
- Figure 13: Lip wipe launched by Lush, Canada, 2015
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- Figure 14: Flavoured wipe launched by Woolworth, South Africa, 2014
- Opportunities for driving more usage of kitchen paper products
- The facts
- The implications
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- Figure 15: Examples of kitchen paper products with superior cleaning power, Poland and UK, 2015
- Figure 16: Examples of calorie-lowering kitchen roll, South Korea and Singapore, 2013-15
- How can moist toilet paper better engage with consumers?
- The facts
- The implications
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- Figure 17: Examples of moist toilet paper products with attractive features, Portugal and Germany, 2016
The Market – What You Need to Know
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- The growth of the household paper market is slowing down
- Premiumisation and niche segments drive future market growth
- Still room for growth
- Facial tissue is estimated to surpass toilet paper in the coming years
Market Size and Forecast
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- The slowdown in the growth of the market
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- Figure 18: Retail market size of household paper products in China, 2011-16
- The market is forecast to grow at a CAGR of 4.3%
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- Figure 19: Best- and worst-case forecast of China retail value sales of household paper products, 2011-21
- Figure 20: Best- and worst-case forecast of China retail volume sales of household paper products, 2011-21
Market Drivers and Challenges
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- Still room for growth
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- Figure 21: Per capita spending on household paper products, by country, 2010-15
- Increasing consumer interest in niche household paper products
- Cooking and cleaning habits can further drive segment growth
- Still need wider market education
- Oversupply of household paper products
- Competition from adjacent category
Market Segmentation
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- Facial tissue to surpass toilet paper in the coming years
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- Figure 22: Retail market value of household paper products, by segments, 2011-16
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- Figure 23: Best- and worst-case forecast of China retail value sales of toilet paper, 2011-21
- Steady growth of facial tissue segment
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- Figure 24: Best- and worst-case forecast of China retail value sales of facial tissue, 2011-21
- Strongest growth in kitchen paper
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- Figure 25: Best- and worst-case forecast of China retail value sales of kitchen paper, 2011-21
Key Players – What You Need to Know
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- Market consolidation taking place
- APP and Vinda continue gaining market with different strategies
- Innovation highlights
Market Share
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- Competition between national enterprises and regional manufacturers
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- Figure 26: Value share of leading companies, 2013-15
- Regulations from the Government help to improve industry efficiency
Competitive Strategies
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- APP adjusts its product structure to better target the mass market
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- Figure 27: APP’s sales volume, by brand, 2013-15
- Vinda aims at high-end consumers
- Manufacturers are embracing e-commerce to drive sales
- Unique brand positioning to differentiate from others
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- Figure 28: Kitchen paper products with different selling points, China, 2014-16
Who’s Innovating?
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- Fewer new entries, more packaging innovations
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- Figure 29: Share of newly launched household paper products, by launch type, China, 2013-15
- Packaging innovations
- Easier-to-tear pack design
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- Figure 30: Household paper products with a new open design
- Flexible sizes
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- Figure 31: Household paper products with flexible sizes
- Leveraging green packaging to establish an eco-friendly image
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- Figure 32: Household paper products with green packaging
- Ingredient innovations
- Unbleached natural pulp is used to deliver a safety image
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- Figure 33: New household paper product launch with ‘no additives/preservatives’ claim, China, 2013-15
- Figure 34: Household paper products made with unbleached natural pulp
- Moist products feature botanical ingredients
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- Figure 35: Household paper products with botanical ingredients
- Moist wipes can leverage TCM ingredients to fill in the gap
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- Figure 36: ‘Anti-bacterial’ claim in new moist wipe launches, by country, 2015
- Figure 37: Household paper products with TCM ingredient
- Fragrance innovations: focusing on more scent choice
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- Figure 38: New household paper product launch with ‘fragrance free’ claim, China, 2013-15
- Figure 39: Household paper products with different fragrance
- Functional innovations
- Additional function of facial tissue
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- Figure 40: Facial tissues which can be used as a face towel
- Water activated paper towel is set to shake-up the kitchen paper segment
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- Figure 41: Water activated paper towel launched by P&G
The Consumer – What You Need to Know
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- Consumers’ wide usage behaviour drives market growth
- Using alternatives and low relevance are the main usage barriers
- Consumers are most likely to use moist wipes to remove skin oil
- Consumers use kitchen paper products for multiple purposes
- Moist paper products are better perceived by consumers
- Challenge from adjacent category
Usage of Paper Products
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- Wider usage drives market growth
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- Figure 42: Usage of different household paper products, March 2016
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- Figure 43: Penetration of moist toilet paper and moist wipes, by age and household income, January 2014 and March 2016
- Moist toilet paper still has a long way to go
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- Figure 44: Usage of toilet paper, March 2016
- Moist wipe has yet to be developed
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- Figure 45: Usage of facial tissue, March 2016
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- Figure 46: Usage of moist wipes, by demographic. March 2016
- Figure 47: Usage of handkerchief among female consumers, by age, March 2016
- More opportunities exist in kitchen paper sector
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- Figure 48: Usage of kitchen paper, March 2016
Usage Barrier
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- Using alternatives and low relevance are the primary barriers
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- Figure 49: Usage barriers of selected paper products, March 2016
- Having little understanding leads to defection from moist toilet paper
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- Figure 50: Usage barriers of moist toilet paper, by non-users and lapsed users, March 2016
- Moist wipes are perceived as “not environmentally friendly” and “not clean enough”
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- Figure 51: Usage barriers of moist wipes, by non-users and lapsed users, March 2016
- Rising awareness of the benefits of using kitchen roll
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- Figure 52: Usage barriers of kitchen roll, by non-users and lapsed users, March 2016
- Cost is a key to win back kitchen wipe users
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- Figure 53: Usage barriers of kitchen wipes, by non-users and lapsed users, March 2016
Purposes for Using Moist Wipes
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- More functional benefits expected from moist wipes
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- Figure 54: Purposes for using moist wipes, March 2016
- Cooling benefits to target 20-29s
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- Figure 55: Purposes for using moist wipes, by age, March 2016
- Consumers in North region tend to use moist wipes to remove dust
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- Figure 56: Purposes for using moist wipes, by region, March 2016
Opportunity for Kitchen Paper Products
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- Multi-usage behaviour
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- Figure 57: Repertoire analysis of how people might use kitchen paper products, March 2016
- Consumers are cautious about using kitchen paper
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- Figure 58: How people might use kitchen paper products, March 2016
- Figure 59: Kitchen paper products that provide “food contact approved” certifications, UK and Germany, 2016
- More interest in using kitchen paper to deal with tough grease
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- Figure 60: Kitchen wipes with plant extracts as ingredients, Korea and Japan, 2014-16
Comparison between Dry and Moist Paper Products
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- Price is the key
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- Figure 61: Comparison between dry and moist paper products, March 2016
- Adults change their minds after becoming parents
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- Figure 62: Consumers who agree that moist paper products are better, by whether have child(ren) at home, March 2016
General Attitudes towards Household Paper Products
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- Consumers perceive different product quality from brands
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- Figure 63: Consumer attitudes towards brands of household paper products, by monthly household income and whether have child(ren) at home, March 2016
- But switching is still common
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- Figure 64: Consumer attitudes towards brand loyalty, by consumers attitudes towards brands of household paper products, March 2016
- Opportunities to enlarge consumer base
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- Figure 65: Consumer attitudes towards using and recommending products, by age and household income, March 2016
- 30% of consumers claim they have used paper products designed for babies
- Moist wipe is more appealing
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- Figure 66: Consumer attitudes towards product usage, by usage frequency of household paper products, March 2016
Meet the Mintropolitans
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- Earlier adopters
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- Figure 67: Consumers who claim to use selected paper products more than once a month, by consumer classification, March 2016
- Mintropolitans are sophisticated users
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- Figure 68: Opportunity for kitchen paper products, by consumer classification, March 2016
- More ethical concerns
Appendix – Market Size and Forecast
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- Figure 69: China household paper market, value and volume, 2011-21
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Appendix – Methodology and Definitions
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- Methodology
- Fan chart forecast
- Abbreviations
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