Tissue markets overview and trends that will shape the next 5 years - Paper Technology International 2023 - Paper Technology International 2023 - Flipbook - Page 22

Tissue markets overview and trends that will shape the next 5 years - Paper Technology International 2023

PAPERTECHNOLOGYINTERNATIONAL
Global top 10 country tissue making capacity by
share of technology
5. The US is unique regarding the high share of advanced
technology machines in tissue production – comprising 90% of
the world’s market for TAD, NTT, etc. This is because US consumers
prefer and demand higher-end tissue products that are soft and
absorbent.
Tissue furnish consumption purchased vs,total
Source: FisherSolve
6. Tissue mills buy market pulp for most of their fiber furnish
As illustrated left, about 80% of global tissue is made using
purchased pulp. Considering that pulp makes up 60% of parent roll
costs for the average global tissue mill, it should be no surprise that
it is also the largest single driver of cost on average.
Source: FisherSolve
US, Chinese and German tissue and pulp prices
USD / ST, Trade-Derived R2 = 0.6
7. Globally, tissue prices and
pulp prices share turning points.
This then leads to another attribute
of these types of markets, which
is the price correlation. Using
FisherSolve’s Market Module, we
can analyze the calculated trade
derived weighted tissue prices for
selected regions and acknowledge
the correlation coefficient between
pulp and tissue prices which is quite
high (about 0.6 R2).
Source: FisherSolve
2022 - 2030 Tissue annual average demand growth by region.
8. We expect global tissue demand to grow 1-5% in the coming
decade – with the most growth occurring in Asia.
Now, let’s narrow it down a bit and look specifically at the North
American tissue market and some of the trends that will shape this
market in the future.
NA Overview
Source: FisherSolve
The current North American tissue market is at about a 10 million short ton value with net imports (excluding the US and Canada) at about
480,000 short tons (st). When looking towards the future, we expect the market to grow by roughly 1% over the next year.
Within the North American
tissue segment, roughly oneTop 10 North American tissue producers by capacity.
third of the market is made
up of private label share. The
image right illustrates the top
10 North American producers
by capacity, and it’s interesting
to note that the top three
companies account for about
50% of total capacity.
Source: FisherSolve
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