Tissue and Hygiene in 2014 and Beyond

GLOBAL TISSUE & HYGIENE IN 2014 AND BEYOND

EUROMONITOR INTERNATIONAL, APRIL 2015

GLOBAL RETAIL MARKETPLACE

ENGINES OF GROWTH

FUTURE OUTLOOK

GLOBAL RETAIL MARKETPLACE

ENGINES OF GROWTH

FUTURE OUTLOOK

© Euromonitor International

4TISSUE & HYGIENE GLOBAL RETAIL MARKETPLACE IN 2014

Retail Tissue & Hygiene

US$174 billion

Retail Tissue

US$77 billion

Retail Hygiene

US$97 billion

US$, constant value, fixed 2014 exchange rate

© Euromonitor International

5HEALTHY GROWTH CONTINUES IN 2014

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

2010 2011 2012 2013 2014

Retail Hygiene Retail Tissue

Retail Hygiene % Y-on-Y growth Retail Tissue % Y-on-Y growth

Both retail tissue and hygiene record growth in value and volumes

Hygiene products show stronger performance

US

$, m

illio

n, 2

01

4 fix

ed

exch

an

ge r

ate

Ye

ar-

on

-Ye

ar

% g

row

th

Retail sales, US$ constant value

© Euromonitor International

6INCONTINENCE PRODUCTS IN SPOTLIGHT

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2009-10 2010-11 2011-12 2012-13 2013-14

Cotton Wool/Buds/Pads Incontinence Nappies/Diapers/Pants

Sanitary Protection Wipes

Ye

ar-

on

-Ye

ar

% g

row

th

In 2014, retail sales of adult incontinence recorded a 6% growth in constant US$ value

Strong focus on light incontinence and feminine care

Contributing to growth in emerging markets are growing acceptance of incontinence products, aided by efforts to

overcome stigma associated with the condition, evolving modern retail infrastructure, and increasing availability of

incontinence products in stores

Retail hygiene, US$ constant rsp value, % growth

GLOBAL RETAIL MARKETPLACE

ENGINES OF GROWTH

FUTURE OUTLOOK

© Euromonitor International

8DEVELOPING MARKETS ENERGIZE GLOBAL SALES

0.00 10.00 20.00 30.00 40.00

Chile

South Africa

Indonesia

Peru

Colombia

Saudi Arabia

Poland

Iran

Argentina

South Korea

Russia

Mexico

Brazil

China

Top developing markets by value, US$ bn

China accounted for 20% of global sales in retail

tissue and hygiene in 2014, remaining one of the key

participants in the global marketplace

But many smaller markets in Latin America, Middle

East, Africa, and Asia Pacific have seen increased

consumer demand, supported by urbanization,

improved sanitation infrastructure, rising incomes ,

and increased availability of more affordable

products

© Euromonitor International

9BRAZIL: FOURTH LARGEST MARKET GLOBALLY

0

2

4

6

8

10

12

14

0.000.501.001.502.002.503.003.504.004.505.00

2010 2011 2012 2013 2014Retail Hygiene Retail Tissue

Retail Hygiene y-on-y % growth Retail Tissue y-on-y growth

Brazil’s rapidly growing middle class pushed the demand for tissue and hygiene in retail, with consumer tastes and

product selection becoming increasingly sophisticated

As Brazil economy slows down, pace of value growth is expected to subside while still maintaining positive trajectory

US

$ b

n,

con

sta

nt

va

lue

Yea

r-o

n-Y

ear

% g

row

th

US$ bn, constant rsp value

© Euromonitor International

10MIDDLE EAST AND AFRICA: WORLD OF OPPORTUNITIES

-5.00

0.00

5.00

10.00

15.00

20.00

2009-10 2010-11 2011-12 2012-13 2013-14

Egypt Israel Tunisia

United Arab Emirates South Africa Kenya

Morocco Saudi Arabia Iran

Nigeria Algeria Cameroon

2009, Nigeria, retail diapers% company value share

WemyIndustries Ltd, 3%

2014, Nigeria, retail diapers,% company value share

WemyIndustries Ltd, 6%

While not all markets perform equally well, on the whole the region of Middle East and Africa (MEA) generated additional US$2.5 billion in retail sales of tissue and hygiene between 2004 and 2014

International brands play an important role in MEA. However, many domestic manufacturers have seen steady expansion, adding to the widening choice of available and affordable products

Retail sales, y-on-y % constant value growth, US$, fixed 2014 exchange rate

GLOBAL OVERVIEW

ENGINES OF GROWTH

FUTURE OUTLOOK

© Euromonitor International

12POSITIVE GROWTH AHEAD

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2014-15 2015-16 2016-17 2017-18 2018-19

Retail Hygiene Retail Tissue

Global tissue and hygiene, retail sales forecast , % y-on-y value growth

% y

-on

-y c

on

sta

nt

va

lue

gro

wth

Retail tissue and hygiene will continue to see positive growth ahead, with developing markets fuelling global demand

© Euromonitor International

132015 INNOVATION: A GLIMPSE OF THINGS TO COME

Kleenex partners with fashion designer Betsey Johnson

Poise Thin-Shape Pads for light incontinence

Bounty Kitchen Towels with Dawn

THANK YOUSvetlana Uduslivaia

Head of Tissue and Hygiene

Euromonitor International

Chicago

1-312-922-1115 ext. 8302

E-mail: [email protected]

© Euromonitor International

15

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