Tissue, global market growing between demand and innovation

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Within a global scenario marked by a general increase in demand, the tissue sector approaches the upcoming Aticelca annual congress supported by forecasts pointing to further medium-to-long-term growth, as confirmed by authoritative sources. Carlos Reinoso, General Director of ETS, discusses this with us.

Ahead of the Aticelca Congress scheduled for May 22–23 in Pasiano di Pordenone, Industria della Carta interviewed Carlos Reinoso, General Director of the European Tissue Symposium. The topics covered in the conversation ranged from an overview of industry trends and its key growth drivers to emerging technologies and the most important innovations to watch closely in the coming years.

First of all, how would you assess the performance of the tissue industry in Europe and globally, Director?

The European tissue industry remains a resilient and growing sector. The use of its products is driven by essential hygiene needs, both at home and away, and by a growing awareness of the importance of health and sustainability among European consumers. The good news is that the same outlook applies globally: the sector’s growth remains strong. Worldwide demand has tripled over the past thirty years, rising from 15.5 million tons in 1993 to 45.6 million tons in 2023—the most recent year for which we have complete data. Long-term growth rates average 3.65% annually and are driven by urbanization, increasing hygiene awareness, and sustainability expectations.

The tissue industry has seen significant growth across the board: from personal hygiene products like facial tissues and wipes, to household items such as toilet paper and kitchen rolls, as well as the wide range of products used in the HORECA sector and industrial applications around the globe. The COVID-19 pandemic had a major impact on our sector and increased demand for paper products due to their proven superior hygiene features. Changes after the health emergency helped redefine consumer behavior and led to a stronger preference for higher-quality tissue products, as well as those that are more environmentally friendly and skin-safe.

If this is the overall picture, what can you tell us specifically about Europe?

Here in Europe, the demand for tissue products remains stable. There is a strong emphasis on sustainability, recyclability, and responsible fiber sourcing. With the European Union regulatory frameworks setting new requirements promoting circularity and lower environmental impact for tissue products, we have seen both the market and producers gradually adapt. Sustainability is now the dominant driver, with regulations like the EU’s Ecodesign for Sustainable Products Regulation (ESPR) shaping product design and recyclability throughout our industry.

In response to these evolving regulations—alongside rising cost pressures in the sector—supply chain optimization and energy efficiency have become two key priorities. Responsible fiber sourcing also tops the agenda. In short, the tissue industry is currently at a crossroads, trying to balance regulatory compliance with cost pressures on energy, transportation, and labor, as well as consumer demand for more innovative and eco-friendly solutions.

How are the market and industry evolving in other global regions, especially China?

Global consumption is indeed driven by China. It is followed by North America, Latin America, and Asia (excluding Japan), which are also experiencing rising market shares. Looking at emerging markets in Asia, Latin America, and parts of Africa, we continue to see robust growth, also driven by urbanization, rising disposable income levels, and improved hygiene standards spreading across these regions.

Where is most of the production and consumption concentrated today?

China is confirming its position as the world’s largest tissue producer and consumer, thanks not only to its vast domestic demand but also to its investments in production improvements. North America (the U.S. and Canada) comes next, where the market is driven by premium products, innovation, and a deep-rooted awareness of hygiene.

Europe is also a major producer, with significant capacity, particularly in countries like Italy, Germany, and those in Scandinavia. Europe plays a leading role in high-quality tissue production and shows a strong commitment to sustainability—from raw material sourcing and manufacturing to the finished product.

When we consider the most important end markets, both North America and Western Europe continue to hold a dominant position in the premium and sustainably sourced product segments. China, India, and Southeast Asia stand out as rapidly expanding markets, thanks to growing personal hygiene awareness and economic growth fueling demand. The sector is also seeing steady growth in Latin America, particularly in household and personal hygiene categories.

The Middle East and Africa remain emerging landscapes for tissue, where we are witnessing widespread adoption influenced by infrastructure challenges across these regions.

What significance does the tissue industry currently attach to the word innovation?

There are many innovations across the entire value chain: they are changing how we operate and offering new opportunities for the tissue sector as a whole. First, let’s look at how production technologies are evolving. New high energy-efficiency drying systems, such as air-based TAD and eTAD, are improving softness and absorbency while reducing energy consumption. However, despite some success, their adoption has been limited by market rigidity and retailer hesitations.

Smart manufacturing and AI-based process control are optimizing raw material use, minimizing downtime, and ensuring consistent product quality. The sector has also seen various manufacturing improvements, from high-speed automated converting lines to increased production efficiency, which reduces waste and boosts customization capabilities.

Meanwhile, despite ongoing research, laser technology has seen limited success so far: traditional log saw cutting remains the dominant method.

Emerging innovations also concern the fibers we use: non-wood fibers and higher-quality recycled fibers are complementing virgin wood pulp and ensuring a variety of sourcing options for the industry.

Lastly, a wave of innovation has transformed product packaging. I’m thinking of biodegradable, plastic-free packaging solutions that align with regulatory requirements and consumer expectations for eco-friendly products and packaging.

What can we expect in terms of production technology development?

There are many exciting developments across the tissue production value chain. These include solutions for water reuse and more energy-efficient drying methods, both of which help reduce the sector’s environmental footprint and make production less resource-intensive at every level.

The same goes for reducing the industry’s carbon footprint, with the increasing use of renewable energy sources and process electrification. We are also engaged in several initiatives to promote a circular economy, strengthen recycling infrastructure, and improve fiber recovery from post-consumer waste and scraps.

Here in Europe, we are working to ensure strategic autonomy in raw materials by reducing dependence on external suppliers to strengthen supply and logistics resilience.

Innovation is a constant in our industry, and in the long term, I believe we may eventually see the development of groundbreaking technologies that would allow water-free tissue production. This is undoubtedly a thrilling prospect for the sector, and I hope to be around to witness it firsthand.

In your role at the Symposium, what is your opinion of Italian manufacturing?

Italy is a leading producer in Europe, and its tissue business is increasingly export-oriented. To offset stagnating domestic demand, Italian producers have expanded their export focus, and today about 50% of Italian tissue sales abroad go to new markets as well as traditional European neighbors.

Moreover, many of Italy’s major tissue companies have evolved into true multinationals, expanding their production capabilities both within Europe and globally. This ensures greater market penetration, supply chain resilience, and strategic access to emerging countries and regions.

This expansion not only strengthens Italy’s position as a key player in the global industry but also reinforces its leadership in the production of innovative, high-quality, and sustainable tissue on an international scale.

I’d also like to highlight that Italy is a global leader in packaging machinery production and home to top technology suppliers driving efficiency and innovation in the sector.

Italian companies excel in automation, high-speed converting, and flexible manufacturing solutions—all key growth factors. If I had to summarize where Italy’s competitive edge lies, I would cite its expertise in high-speed converting and customized production. This excellence consolidates the country’s position as one of the tissue industry’s strategic global suppliers.

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