In 2016, the European market for consumer tissue showed low growth and increased competition.
The European and North American markets for AfH tissue showed low growth. Growth was slightly higher in Europe than in North America. The Chinese tissue market showed higher demand. Offering and market position: SCA is the world’s second largest supplier of consumer tissue. SCA’s product offering includes toilet paper, household towels, handkerchiefs, facial tissues, wet wipes and napkins.
In Europe, SCA is the market leader and holds a market share that is about double that of the second largest player. SCA also holds strong positions in many emerging markets, such as in Russia and Colombia, where the Group is the market leader, and in Mexico, where it holds the number two position.
SCA holds the number one position in China through its majority shareholding in Vinda. Products sold under SCA’s own brands account for about 64% of sales, while the remaining 36% is sold under retailers’ brands.
SCA’s brand portfolio comprises several strong regional and local brands. Tempo, Zewa and Lotus are leading brands in large areas of Europe. Cushelle, Velvet and Plenty are strong brands in the UK and Ireland, and Edet in the Nordic region and the Netherlands. In Hong Kong and Morocco, Tempo is the market leader in handkerchiefs. In South America, SCA markets products under the Familia and Favorita brands, and holds strong positions in emerging markets including Colombia, Chile and Ecuador. In the Mexican market, SCA occupies a strong position with the Regio brand. Vinda is the leading brand in China.
In the markets where SCA is represented, the strategy is to be the leading supplier of strong brands by maintaining a high pace of innovation and successful brand marketing. SCA is also focused on expanding its product categories to further strengthen the customer offering. For example, a moist toilet paper was launched under the Lotus brand and wet wipes under the Tempo brand in 2016. For consumer tissue, SCA has assigned priority to increase profitability by reducing costs and optimizing sourcing, production and distribution efficiency. In Europe, the aim is to further strengthen SCA’s leading market position and SCA’s own consumer tissue brands and to grow the branded share of total sales. In parallel, SCA aims to be the best retailer-branded supplier.