The global market for tissue is valued at approximately
SEK 390bn annually and grows by 4% annually. Europe accounts for just over 25% and North America for about 30% of the overall market, with growth rates of 3% and 2%, respectively.
Growth drivers
Growth in tissue is driven by innovation, the global population increase, higher market penetration and increased disposable income. Market penetration in emerging markets is relatively low, with considerable growth potential. There is a higher growth rate in Eastern Europe than in more mature markets in the West as a result of rising disposable incomes and greater use of tissue products.
SCA's market position
SCA is the world’s third-largest tissue company. In 2011, the Group’s global market share in consumer tissue was 8% and in AFH tissue 16%.
SCA’s brand portfolio comprises seven major global and regional brands and a number of local brands. Tempo, Plenty and Zewa are market leaders in large areas of Europe, while Cushelle, Velvet and Edet are strong in the UK and the Nordic region. In Hong Kong, Tempo is the market leader in handkerchiefs with about 70% market share. In South America, SCA markets products through joint ventures under the Familia and Favorita brands, and holds strong positions in emerging markets including Colombia, Ecuador and Chile. In the Mexican market, SCA occupies a strong position with the Regio brand and, in Australia, SCA is the second-largest supplier of tissue.
For AFH tissue, SCA is number two globally and has a global market share of 16% with the Tork brand, which is marketed in 80 countries and has annual sales in excess of EUR 1bn. The global brand Tork provides significant synergies since the difference in consumer and customer requirements are minimal in regard to tissue and dispenser systems in the various parts of the world. SCA is the market leader in Europe with a 20% market share and is number three in North America with a market share of 20%.
For consumer tissue, a new brand platform was developed in Europe to improve the performance in meeting consumer requirements and build stronger brands over time. The aim is to enhance the efficiency of the brand portfolio and also differentiate the brands for products intended for personal hygiene and products intended for homes and households. The work on implementing the brand platform is progressing according to plan.
Table
Tissue, SCA market positions 2011 | Europe | North America | Worldwide |
|---|
| 1 | - | 3 |
|---|
| 1 | 3 | 2 |
|---|
Table
SCA sales of tissue by product segment 2011, percent | |
|---|
| 61 |
|---|
| 39 |
|---|
Graph
SCA sales of tissue by product segment 2011, percent
Table
SCA sales of tissue by region 2011, percent | |
|---|
Europe | 66 |
|---|
North America | 18 |
|---|
Australasia | 8 |
|---|
Latin America | 7 |
|---|
Asia | 1 |
|---|
Graph
SCA sales of tissue by region 2011, percent