MarketIssues AfH special: With global AfH sales at $25b in 2021 (fixed US exchange rate, real value, msp), the looming recovery will be uneven in a post-Covid-19 market undergoing widespread change

The recovery of the global $25bn msp AfH market (the figures in the report reflect data released in February 2022) brings opportunities as well as challenges. In 2021, the AfH boxed facial tissues market is worth $2.3bn msp, AfH paper tableware $6.9bn (combined napkins and tablecloths), AfH paper towels $5.8bn, AfH toilet paper $7bn, AfH wipers (paper and nonwovens) $3.1bn,.

A global recovery of AfH demand hinges on consumers` financial confidence and the health of the foodservice and hospitality industries, which are largely at the mercy of the state of virus control and any future global shocks due to new variants. In an uncertain environment, wipers (especially nonwovens) offer a great growth potential, given their cleaning and disinfecting efficiencies. Key findings are:

Heightened hygiene awareness, which will generate new user occasions and drives product improvements. Hygiene vigilance is fuelling tissue consumption and quality expectations across the globe leading to new products with better cleaning properties and an improved user experience. Rising disposable incomes, urbanisation and a health-centric lifestyle shift in emerging markets will continue to present significant opportunities for greater AfH tissue penetration.

Structural changes in business, education and foodservice have squeezed tissue demand. Pandemic-accelerated structural shifts such as remote working, e-learning and food delivery, will recast the AfH landscape, and, depending on the extent and duration of these shifts as the pandemic develops, will weigh on AfH tissue demand in at least the short term.

Touchless technology and automation place additional pressure but also continue to open up new opportunities. As new technologies emerge to fill in gaps in the new touch-free, efficiency- hungry economy, tissue needs may slide, due to the lack of human presence. However, high-tech machines and devices also generate new applications for specialised, electronics-friendly wipes.

Expectations of sustainability have ushered in heightened demand for eco-friendly products: Rising dedication to more eco-friendly lifestyles and increasingly stringent regulatory moves have brought eco concerns further into the spotlight, forcing another sustainability reckoning. While AfH products are not subject to the same degree of scrutiny confronting the retail market, a wave of green movements is already shifting the AfH landscape.