Euromonitor unpacks market trends for Södra customers in Barcelona

1. Tissue can expect solid growth but must innovate to thrive:

The retail tissue market is experiencing steady growth, with a notable increase in Eastern Europe, which is projected to grow nearly 20 percent over the rest of this decade. Offline Retail channels still account for more than 80 percent of retail tissue sales although retail e-commerce is growing rapidly, with over 160 percent growth in the past five years.

Relevant innovations will focus on sustainability and consumer-centric value creation, such as premiumisation and multi-functionality.

With 2 percent constant value growth in 2024 (manufacturer selling prices), away-from-Home tissue continues to grow more strongly than retail (1 percent in 2024) (retail selling prices). Away-from-home enjoyed USD 30 billion of sales globally in 2024 compared with USD 105 billion for retail tissue.

2. Paper packaging is the winner in the sustainability race:

Paper packaging is driving above-average growth across the main formats, with recyclability and natural origins being the main appeal both to businesses procuring packaging and consumers.

The high price of sustainable packaging remains a barrier, although 71 percent of businesses polled in Euromonitor’s Voice of the Industry: Sustainability Survey in 2025, plan to develop products with sustainable packaging claims.

Key innovation directions in packaging are sustainability, transportability and compact sizing, as well as formats which suit e-commerce.

3. Consumers face headwinds:

More than 30 percent of surveyed consumers are concerned about their current financial situation, and this has increased over the past two years.

Demographic shifts, such as an ageing population, urbanisation and increasing single-person households, are influencing market demand.

Around a half of industry respondents are launching new products (55%) and refocusing marketing activities (48%) in response to changing consumer trends.

4. Plastic waste really bothers consumers:

Reducing plastic use remains a high priority for around 50 percent of consumer respondents and is the most often-cited environmental concern relating to packaging. The relatively high price of sustainable packaging is a core barrier to purchasing sustainable products, however.

Paper is the leading choice for sustainable packaging as an alternative to plastics and is widely viewed by consumers as a premium packaging material. This is driving above-average growth for paper across core packaging formats.

The following surveys were referenced in Natalia Bezrebra’s presentation:

• Euromonitor International Tissue & Hygiene 2025 edition
• Euromonitor International Packaging 2025 edition
• Euromonitor International Economies and Consumers Annual Data
• Euromonitor International Voice of the Consumer: Lifestyles Survey, fielded January-February 2025
• Euromonitor International Voice of the Consumer: Sustainability Survey, fielded January-February 2025
• Euromonitor International Voice of the Industry: Sustainability Survey, fielded March-April 2025