The sudden outbreak of Covid-19 has had negative impacts on various industries, including the paper industry in China. As economic growth slowed, the tourism industry and the food and beverage sector took a hit. As a result, consumers’ demand for napkins – tissues used in outdoor environments also plummeted.
However, the consumption of kitchen towel paper increased as more people ate meals at home. Most factories have resumed production, but overall output in the first quarter of 2020 was affected by the Covid-19 pandemic.
Investment in new production capacities in the first half of 2020 was dampened by the impact of overcapacity, stiff competition and the COVID-19 outbreak. Industry leaders have boosted profits during the pandemic thanks to economies of scale, brand effects, developed sales systems, and diversified product portfolios.
Impact of the Covid-19 pandemic
The Covid-19 pandemic has changed the way people live, including the use of tissue paper. During the outbreak, online sales increased. It is clear that the increased consumption of tissue paper is due to changes in hygiene awareness.
Demand for tissue paper has increased and customers have higher expectations for the speed of logistics operations. Nowadays, customers are more interested in higher quality products and the market is also seeing more and more environmentally friendly packaging of tissue paper.
In order to respond to consumer demand in the context of the Covid-19 epidemic, many companies have proposed many directions and measures, including solutions focusing on long-term branding strategies, investment in promotion and marketing, promote e-commerce and increase sales at convenience stores.
Changing consumer demand in the Chinese market
In 2019, the average consumption of tissue paper in China reached 6.9 kg/person, still lower than developed countries, but the outlook of this market is very positive.
C&S Paper Company is dedicated to research and development (R&D) and sales of premium tissue products in this market. In business, it is equally important to understand the market needs and provide customers with products that match their needs and desires.
C&S Paper Company and similar businesses supplying tissue products in the Chinese market can clearly recognize the changing needs of customers. However, when the market share of toilet paper is decreasing, the consumption of paper towels is increasing. The cause of this situation is due to the trend of customers increasingly preferring to use face paper, and use it instead for the purposes that toilet paper is serving.
China’s tissue paper demand is catching up with developed countries
Currently, the gap in tissue consumption level between the Chinese market and the market in developed countries is narrowing. Furthermore, the growth rate of the Chinese market is expected to be higher than the global average, making China the fastest growing region in the world.
Tissue paper manufacturers are now competing to develop more differentiated, value-added products through an increased focus on product functionality.
The tissue market in China is very competitive and most of the tissue brands in the market are privately owned.
Metsä Fiber Company – Raw material supplier for tissue paper manufacturers in China. Metsä Fiber has a good source of raw materials and a modern factory, the quality of Metsä Fiber’s pulp products meets the high requirements of tissue paper production in China.
Metsä Fiber has a flexible supply chain and is able to supply materials by rail between Europe and China. This has shortened the door-to-door delivery time from 80 days to 20 days.
In addition, Metsä Fiber’s foresight in the field of environmental management provides value for the discovery and implementation of sustainability strategies by tissue manufacturers themselves.