More economical manufacturer paper products and private labels with improved quality

In 2009, the household paper market expanded by 1 percent in terms of volume and by 9 percent in value – a growth largely generated by toilet paper. Sales stalled in the paper tissue, paper towel and napkin segments. In the background of the process we find the general price increase early last year, but a shift is also observable in the private label segment – which represents 45 percent of the category – towards higher quality products. Réka Nagy, SCA Hygiene Products Kft.’s regional product manager told Trade magazin that annual consumption in Hungary was 8 kg per capita – in the United States it is above 13 kg. Demand is slowly moving towards 3- and 4-layer products and larger packaging units.

Attila Vagyon, Metsa Tissue Hungary Kft.’s commercial manager talked about the popularity of 1- and 2-roll packaging units among paper towels. József Kreiter, Vajda Papír Kft.’s sales manager talked about shoppers becoming increasingly conscious and more price-sensitive: brand loyalty is not characteristic of the category. Renáta Pédl, FOREST-Papír Kft.’s marketing manager informed us of the company’s renewal of its roll-product portfolio and a restructuring on the market. József Kreiter expects a market stabilisation process for 2010. He spoke about Zewa’s ‘Long lasting tenderness’ campaign, which calls attention to the importance of checking certain product details before buying toilet paper – simply looking at the price is not enough. It is characteristic of Hungarian consumers that they like scented products. Attila Vagyon is of the opinion that added value can also generate growth, for instance using scents and balms, or opening to the world of younger generations.

This is the reason why Metsa Tissue plans to introduce products for children: rolls with Lambi sheep prints. Zewa Kids is a brand that cares about the hygiene education of children: the portfolio consists of 3-layer toilet paper, 4-layer tissue and wet wipes. In the paper towel segment, Zewa’s new product is XXL Design, for which the company started a cross-promotion with Kométa in May. Forest’s latest innovation is the Selfness Ecoring product family (toilet paper, paper tissue and napkins).Vajda Papír added paper tissues to its Aloe Vera selection. They will start using a new production line this summer, as a result of which novelties can be expected in the second half of the year. Metsa Tissue plans to introduce 1- and 2-roll Tento Giant XL paper towels, and not only for kitchen use. The company plans to launch loyalty programmes on the Internet. For instance, they created a Lambi Kids virtual space for children, where they can engage in creative activity. Metsa Tissue prepares for the summer with special packaging solutions: a transparent beach bag with 2 Tento toilet papers and an Eko bag with 2 Tento toilet papers and 1 Tento hand wipe. Forest organised a prize game on the Internet with a bird hospital in Hortobágy, from 15 March until 15 September 2010, which primarily concentrates on schoolchildren and their parents. Forest’s other campaign, from 3 May until 31 December 2010, promotes Hungarian products; it is called ‘BUY-TAKE-WIN’ and the main prize is a car.