Price wave hits toilet papers too

Innovations catered to consumer needs

Value sales of toilet paper grew by 36% from 2021 to 2022, but volume sales were down 4 %. While moist toilet tissue sales increased in both value and volume, classic toilet paper sales decreased in volume in 2022. Product prices soared by 50% or even more, due to the fact that raw materials and energy became more expensive. Several suppliers were unable to raise prices as much as their production cost increase, so they either limited their selling or stopped manufacturing and selling completely.

Izabella Kowalska
category manager
Essity Hungary

Izabella Kowalska, Essity Hungary Kft.’s category manager:

“In addition to this, shoppers became increasingly price-sensitive throughout the year, and they are now choosing products much more consciously than before. Price per pack is more important than before, together with what is in promotion at the time of shopping.”

Réka Forgách, Essity Hungary Kft.’s brand manager:

Réka Forgách
brand manager
Essity Hungary

“Three-ply toilet papers are the most popular products in the Zewa portfolio, and demand is the biggest for the 16-roll pack. In the moist toilet tissue category it is still normal pack sizes that dominate.”

The brand manager added that Zewa builds its new innovations on consumer research, so that that can satisfy already existing needs.

Package price and promotion lately represent an important base of selection

Manufacturers couldn’t delay the price increase any longer

Production costs of Vajda-Papír have surged by more than 100% since September 2021.

Orsolya Varga
marketing manager
Vajda-Papír

Orsolya Varga, Vajda-Papír Kft.’s marketing manager:

“Manufacturers were unable to mitigate the drastic and lasting effect of higher raw material prices and production costs, so a price increase couldn’t be delayed any longer – but of course it is retailers who decide what the on-shelf price products will be.”

The company’s latest product is Ooops! Maxi 6-roll toilet paper – there is 16 normal rolls worth of toilet paper on the 6 maxi rolls, and there are 400 sheets on one roll, which equals 51m. Vajda-Papír Kft.’s products are made of cellulose from FSC®-certified, responsible forest management and other certified sources. The packaging contains 60% recycled material and it is 100% recyclable.

Owing to the difficult economic environment, hygiene paper manufacturers are going through hard times.

Gábor Vizur
category manager
Sofidel Hungary

Gábor Vizur, Sofidel Hungary Kft.’s category manager:

“Situation in the category seems to be improving a little, but we keep monitoring changes in the sector and we will react instantly whenever it is necessary.”

When asked about the different sales channels, the category manager said discounters and supermarkets are still the most popular places for buying the category.

3-ply toilet papers and 10, 16 and 24 roll-packages sell the best

New products, new packaging

Sofidel’s Regina Big Pack product range sells very well and it has a special place in the product portfolio as well. In the 1st quarter of 2023 the company rolled out a new product range, called Regina Delicate: these new 3-ply toilet papers are softer and they represent better quality. Starting with this line, Sofidel products are packaged in 30% recycled material. With products already in the market, the company is gradually replacing the packaging with shrink wrap containing 30% or 60% recycled material.

Sándor Gödri
sales director
Metsä Tissue HU

Sándor Gödri, Metsa Tissue HU Kft.’s sales director:

“Consumer show smaller demand for premium toilet paper than before, so sales of 4-ply products plunged, while 2- and 3-ply toilet papers improved their performance.”

Shoppers like softness and skin-friendly ingredients; with purchasing power diminishing, sustainability is becoming less important.

No compromises

Sales of Metsa Tissue Kft.’s toilet papers grew in both value and volume in 2022. From Tento products the 16- and 24-roll variants came up with the best performance. The sales director told our magazine that they are purchasing the cellulose for their products from certified sources, plus they are trying to use recyclable shrink wrap for packaging – if possible made from recycled material.

As for toilet paper use in the HoReCa segment, the market is going in the direction of higher quality products, and the popularity of eco-friendly and sustainable products is growing as well. In 2022 Lucart Kft.’s volume sales doubled, and the company’s Lucart Professional products are exported to more than 70 countries.

Omar Balducci
sales manager
Lucart

Omar Balducci, Lucart Kft.’s sales manager:

“We offer a large selection of top quality, recycled Lucart Professional EcoNatural products. EcoNatural is an innovative paper+dispenser system that gives new life to drink cartons.”

Using innovative new technology, Lucart separates the different components of drink cartons, and from the cellulose they make Fiberpack® for paper production. This year the company launched a new soap dispenser system, which consists of two innovative (white and black) dispensers, and it is easy to refill with any of the 1-litre natural soaps. //

András Kuntner
business development
manager/retail
GfK

This article is available for reading in Trade magazin 2023/4.