The global market for consumer tissue is valued at approximately SEK 310bn and is growing about 5% annually. Growth in mature markets is in the low single-digit figures, while it is considerably higher in emerging markets.
Emerging markets are growing at a faster rate than mature markets due to increasing disposable incomes and greater use of tissue. Growth in mature markets is instead driven by an increased proportion of products with higher intrinsic value.
In the market for consumer tissue, SCA holds the global number two position with a market share of approximately 10%. In Europe, SCA is the clear market leader and the acquisition of Georgia-Pacific’s tissue operation has further strengthened its market share, which is now about 30%. SCA also commands strong positions in many emerging markets, such as Russia and Colombia, where SCA is the market leader, and in Mexico, where it holds the number two position.
About 50% of products are marketed under SCA’s brands, while the remaining 50% is sold under retailers’ brands. SCA’s brand portfolio comprises several strong regional and local brands. Tempo, Zewa, Plenty and Lotus 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 clear market leader in handkerchiefs with a market share of about 70%. In 2012, toilet paper under the Tempo brand was launched in Hong Kong.
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 and, in Australia, SCA is the second largest supplier of tissue through its joint venture.
In Europe, the aim is to further strengthen brand positions while retaining the important retailers’ brands market. Therefore, for a number of years now, SCA has been working with a fullservice offering that includes production and delivery, as well as partnerships for product development, product range, design, marketing and logistics in collaboration with some of the leading European retail chains.