Australia Tissue Paper Market, By Product Type (Toilet Paper, Facial Tissues, Napkins, Wrapping Tissue, Others), By End User (Residential, Commercial), By Sales Channel (Hypermarket/Supermarket, Departmental Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Australia Tissue Paper market was valued at USD 2.13 billion in 2024 and is anticipated to grow USD 2.90 billion by 2030 with a CAGR of 5.33% during the forecast period. The Australian tissue paper market is undergoing significant transformation, driven by heightened hygiene awareness, environmental concerns, and evolving consumer preferences. The COVID-19 pandemic amplified the demand for disposable hygiene products across households, healthcare, and hospitality sectors. Consumers increasingly prioritize sustainable options, leading to a surge in eco-friendly products like recycled and bamboo-based tissues. Manufacturers are responding by adopting sustainable practices, such as using alternative fibers and reducing water and energy consumption. The Australian government has committed USD 0.64 billion to the Recycling Modernisation Fund (RMF) to enhance domestic recycling capabilities. This initiative aims to reduce the export of recyclables and promote the use of recycled materials in manufacturing, supporting the production of eco-friendly tissue paper products

Key Market Drivers

Rising Hygiene Awareness

One of the primary drivers of the Australian tissue paper market is the growing awareness around personal hygiene and sanitation. This trend was particularly accelerated during the COVID-19 pandemic, which dramatically increased the consumption of tissue products across homes, offices, and public spaces. Australians have become more conscientious about cleanliness, resulting in heightened demand for facial tissues, toilet paper, paper towels, and wet wipes. The cultural shift toward routine use of tissue paper products is now deeply ingrained, especially in urban centers where fast-paced lifestyles support the use of disposable hygiene products. 

Moreover, public institutions and businesses have enhanced hygiene protocols, further boosting commercial demand. Hospitals, educational institutions, restaurants, and retail spaces have scaled up their usage of tissue paper to meet safety standards. As Australia continues to focus on improving public health outcomes, the use of tissue products is expected to remain a staple across both residential and commercial sectors. In 2023-24, as per the report, estimates that Australia used 335.1 kilotonnes of tissue stock for producing toilet paper, facial tissues, hand towels, and various other tissue products.

Sustainability and Environmental Consciousness

Australia is witnessing a growing movement toward sustainable living, and this trend is significantly shaping the tissue paper market. Consumers are increasingly favoring products made from recycled materials, bamboo pulp, or responsibly sourced fibers certified by bodies such as FSC (Forest Stewardship Council). Environmental concerns over deforestation, landfill waste, and carbon emissions are leading customers to choose eco-friendly alternatives, even at premium prices. A Monash University survey indicates that 46% of Australian consumers consider sustainability a significant factor in their purchasing decisions. This shift towards eco-conscious consumer behavior is driving the demand for tissue paper products made from recycled materials and sustainable sources

Manufacturers have responded by adopting sustainable practices, including the use of chlorine-free bleaching, renewable energy in manufacturing, water conservation methods, and recyclable packaging. Brands that actively promote environmental responsibility and transparency in sourcing and production are gaining a competitive edge. Local companies and retailers are also investing in in-store recycling programs and refill models to reduce waste.

Technological Advancements in Manufacturing

Innovation in production technology is a key driver that is enhancing both the quality and efficiency of tissue paper manufacturing in Australia. Advanced techniques like Through-Air Drying (TAD) and eTAD are being adopted to produce stronger, softer, and more absorbent tissues with lower environmental impact. These technologies allow manufacturers to reduce energy and water usage while meeting the evolving demands of consumers who expect comfort and performance from their tissue products.

Automation and AI-driven monitoring systems are also being integrated into production lines to reduce human error, improve consistency, and streamline logistics. Smart packaging solutions with QR codes or eco-labels are gaining traction, allowing consumers to trace product origins and verify eco-credentials. These improvements not only help in cost optimization but also support the development of differentiated products that cater to specific consumer segments, such as hypoallergenic tissues or multi-layer toilet rolls.

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Key Market Challenges

Rising Competition from Low-Cost Imports

One of the most pressing challenges facing domestic tissue paper manufacturers in Australia is the influx of low-cost imports, particularly from countries with cheaper labor and lenient environmental regulations. Countries such as China, Indonesia, and Malaysia export large volumes of tissue products to the Australian market at prices significantly lower than those of local producers. These imported products often benefit from economies of scale and less stringent regulatory requirements, allowing them to undercut local prices.

This has placed considerable pressure on Australian manufacturers, who must contend with higher production costs, stricter environmental compliance standards, and rising input expenses, including labor, energy, and raw materials. As a result, local producers find it increasingly difficult to maintain competitiveness without compromising on product quality or sustainability. The continued penetration of imported products could threaten the viability of domestic manufacturing unless the government intervenes with supportive trade policies, tariffs, or subsidies to level the playing field.

Sustainability Pressures and Compliance Costs

Although sustainability is a major driver of market growth, it also poses significant operational and financial challenges. As consumers and regulatory authorities demand more environmentally friendly products, tissue paper manufacturers are under pressure to reduce their carbon footprint, minimize water and energy consumption, and source sustainable raw materials. Meeting these expectations often requires substantial investment in new technology, machinery upgrades, staff training, and sustainable packaging solutions.

For small and medium-sized enterprises (SMEs) in the tissue industry, these costs can be prohibitive. Transitioning to practices such as using FSC-certified fibers, chlorine-free bleaching, and biodegradable packaging can drive up production costs and affect profit margins. Moreover, non-compliance with environmental standards could result in penalties, reputational damage, or loss of consumer trust.

Key Market Trends

Premiumization and Product Innovation

Australian consumers are increasingly seeking higher-quality tissue products that offer superior softness, strength, and skin sensitivity benefits. This demand for premium tissue paper has led to a wave of innovation across product segments, particularly toilet paper, facial tissues, and paper towels. Multi-ply options, quilted textures, and hypoallergenic varieties are now widely available to meet the growing expectations of discerning customers.

The market is also seeing innovation in product formats and functionalities. For example, flushable wet wipes, antibacterial tissues, and scented options are gaining popularity. These enhancements cater to niche preferences and add perceived value, allowing manufacturers to justify premium pricing.

Localization and Regional Manufacturing Resilience

In response to supply chain disruptions and increasing reliance on imports, there is a growing trend toward local sourcing and manufacturing resilience in the Australian tissue paper industry. Events such as the COVID-19 pandemic and global shipping crises exposed vulnerabilities in overseas supply chains, pushing businesses to consider reshoring or expanding domestic production capacity.

Investments in local manufacturing offer multiple benefits: faster response to market demand, reduced environmental impact from transportation, and enhanced control over product quality. Some companies are also exploring partnerships with regional suppliers for pulp and packaging materials to strengthen supply security.

Localization not only enhances operational resilience but also aligns with consumer preferences for Australian-made products, which are often associated with better quality and environmental compliance. Government incentives, such as grants for sustainable manufacturing and infrastructure development, further support this trend.

Segmental Insights

Product Type Insights

Napkins represent the dominating segment in the Australia tissue paper market due to their widespread use across both household and commercial settings. Their demand is particularly strong in the foodservice and hospitality industries, where hygiene and convenience are critical. Australian consumers also favor disposable napkins for everyday use, celebrations, and events, driving consistent sales. The availability of various types—ranging from standard paper napkins to premium, eco-friendly options—caters to diverse consumer preferences. Additionally, increased emphasis on hygiene and the rise of quick-service restaurants have further bolstered napkin consumption, solidifying their leading position within the tissue paper product category.

Sales Channel Insights

Supermarkets/hypermarkets dominated the distribution segment of the Australia tissue paper market due to their extensive reach, wide product variety, and consumer preference for one-stop shopping. These retail formats offer convenience, competitive pricing, and regular promotions, making them the primary choice for purchasing tissue paper products. Major chains like Woolworths and Coles ensure consistent availability of both private-label and branded tissue paper, catering to various budgets and preferences. Their strong supply chains and in-store visibility further enhance product accessibility. As a result, supermarkets and hypermarkets continue to lead in sales volume, driving the dominance of this segment in the market.

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Regional Insights

Australia Capital Territory (ACT) and New South Wales (NSW) dominated the Australia tissue paper market due to their high population density, urbanization, and strong consumer purchasing power. These regions house major metropolitan areas, including Sydney and Canberra, where demand for tissue products is consistently high across residential, commercial, and institutional sectors. The presence of leading retail chains, hospitality venues, and healthcare facilities further drives tissue paper consumption. Additionally, advanced infrastructure and efficient distribution networks ensure steady product availability. The combination of economic development, consumer awareness, and retail penetration solidifies ACT and NSW as the leading regions in the tissue paper market.

Recent Development

• In March 2025, Yarn’n, an Indigenous-owned Australian company, has launched its 100% recycled toilet paper, Deadly Dunny Paper, into Woolworths supermarkets nationwide and online. Each roll is FSC-certified, produced using 50% less water and 90% less energy than traditional methods.

• In May 2025, Foodbank Australia has partnered with Encore Tissue to launch an Australian-made toilet paper brand, sold exclusively through Woolworths stores nationwide. Each 20-roll pack contributes directly to Foodbank’s food relief efforts, addressing the rising demand for assistance amid increasing housing and grocery costs.

• In July 2023, Sybron has introduced SySoft Luxury Bamboo Toilet Tissue, crafted entirely from bamboo and packaged without plastic, in collaboration with UniGreen. This initiative aims to replace wood pulp paper and plastic consumables with bamboo-based products.

Key Market Players

• Kimberly-Clark Corporation
• Essity Aktiebolag
• Vinda International Holdings Limited
• The Procter & Gamble Company
• Hengan International Group Company Ltd.
• Clearwater Paper Corporation
• Unicharm Corporation
• Sofidel Group
• Kruger Inc.
• MPI Papermills Inc.

Report Scope:

In this report, the Australia Tissue Paper Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Tissue Paper Market, By Product Type:

o   Toilet Paper

o   Facial Tissues

o   Napkins

o   Wrapping Tissue

o   Others

• Australia Tissue Paper Market, By End User:

o   Residential

o   Commercial

• Australia Tissue Paper Market, By Sales Channel:

o   Hypermarket/Supermarket,

o   Departmental Stores

o   Online

o   Others

• Australia Tissue Paper Market, By Region:

o   Australia Capital Territory & New South Wales

o   Northern Territory & Southern Australia

o   Western Australia

o   Queensland

o   Victoria & Tasmania

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Australia Tissue Paper Market.

Available Customizations:

Australia Tissue Paper Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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