Innovation apart from price might also be a guarantee of the future

Paper tissue has been the most dynamically growing segment in the domestic market of household paper products in recent years. Dry tissue is used for removing wet and greasy stains while wet tissue is used for dust and special purposes. As Zsuzsa Hunwald, from SCA (manufacturer of ZEWA) has told us, growth is most dynamic in sales of dry paper tissue in big rolls at present. Moisture absorbing capacity and softness are more important than the number of layers in this segment. A good price/value ratio is important, but low quality is not popular. In the opinion of Attila Kecskeméti from Forest Papír Kft., higher quality products representing some added value are expected to produce growth primarily. Stagnation or decline is expected in the lowest price segment. – We are focusing on multifunctional and 3 layer tissues – he says. Wet tissue has great potential for future growth. The Kamilla Prémium is a wet toilet paper by Forest Papír, while Zewa Fresh comes in packaging which can be closed, filling a market gap. Private labels have probably already approached their maximum potential. No great prospects for further growth are foreseen in this segment. Innovation continues to remain the privilege of manufacturers’ brands as retailers are not willing to finance the risks of new product launches. Zewa Deluxe Pure White was introduced in 2008. The new Zewa Softis Aromathera paper tissue is dedicated to the wellness trend. Zewa Wish&Weg design 2in1 is the latest member of the Wish&Weg product line. A new high capacity production line was put into operation by Forest Papír Kft last year which has allowed them to completely renew their range of roll products in both the medium and the premium segments. They have also become market leaders in paper napkins where design is an important consideration for consumers. Hyper markets, discounts and purchasing partnerships are the primary distribution channels for household paper products, accounting for 80 per cent of total sales. While hyper markets accounted for 40 percent of sales in the paper towel segment, their market share in paper tissue was only 28 percent.