Executive Summary
The market for disposable paper products is estimated to be valued at
£2.11bn at retail selling prices (rsp) in 1997 by industry sources.
Overall, the market has seen an upturn in value growth in recent years,
following a period of only minimal growth in real terms during the early
1990s.
The market may be broadly segmented between disposable tissue products,
disposable nappies and sanitary protection products. The disposable tissue
products sector is the largest of these, valued at £1.31bn in 1997. The
sector comprises a wide range of products -- toilet tissue, facial tissues,
kitchen rolls and baby wipes; the largest of these subsectors consists of
toilet tissue, valued at £803m in 1997.
Disposable nappies comprise the second largest sector, valued at £483m and
accounting for 23% of the total value of the total market. Sanitary protection
products are valued at some £314m, accounting for 14.9% of the total
market value. Within this latter sector, sales have been fuelled by increased
sales of premium-priced towels and panty liners.
Overall, there has been an increase in market segmentation due, largely, to the
development of an increasingly sophisticated product range. New product
innovation includes the expansion of the toilet tissue sector into moist tissue
products, the introduction of `ultra-balm' facial tissues with moisturising
properties, the launch of training pants in the nappies sector, and the
development of increasingly discreet sanitary towel products, with enhanced
absorbancy.
The disposable tissue products sector is dominated by Kimberly-Clark, which
significantly increased its presence in the market in 1996 when it merged with
another leading US-owned multinational, Scott. The other leading player in the
market is Procter & Gamble, which leads both the sanitary protection
product and disposable nappy sectors.
Both the sanitary protection products and the disposable tissue product sectors
are expected to see a continuation in market value in real terms in the
foreseeable future. This growth will be fuelled by new product innovation and
the development of the own-label sector into added-value, premium products. The
disposable nappies sector is also expected to increase by value, although
volume sales will continue to decline unless there is an upward turn in the
birth rate.
Seventh Edition 1997
Edited by Richard Caines
ISBN 1-85765-694-6
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