Paper Towels Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Rolled Paper Towels, Boxed Paper Towels, Multifold Paper Towels, Others), By End User (Residential, Commercial), By Distribution Channel (Supermarket/Hypermarket, Multi-Branded Stores, Online, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.81 Billion
CAGR (2026-2031)	5.11%
Fastest Growing Segment	Commercial
Largest Market	North America
Market Size (2031)	USD 13.23 Billion

Market Overview

The Global Paper Towels Market will grow from USD 9.81 Billion in 2025 to USD 13.23 Billion by 2031 at a 5.11% CAGR. Paper towels are disposable, absorbent tissue products manufactured from wood pulp or recycled fibers, primarily utilized for drying hands, absorbing spills, and cleaning surfaces in both residential and commercial environments. The market’s expansion is fundamentally driven by heightened global awareness regarding hygiene and infection control, particularly within the healthcare, food service, and hospitality sectors where single-use products are essential for minimizing cross-contamination. Furthermore, rapid urbanization and the growing preference for convenience in household maintenance continue to bolster demand for these disposable cleaning solutions.

However, the industry encounters a significant challenge in the form of volatile raw material costs and stringent environmental regulations concerning deforestation and waste management, which can strain profit margins and limit production scalability. Illustrating recent sectoral performance, according to the Confederation of European Paper Industries, in 2024, tissue paper production increased by 5.6% across its member countries, reflecting resilient demand despite these operational pressures.

Key Market Drivers

Escalating Global Emphasis on Personal Hygiene and Handwashing Protocols is significantly reshaping the Global Paper Towels Market as facilities prioritize infection control over cost-saving mechanisms. This driver is largely propelled by the heightened scrutiny of public restroom standards, where paper towels are increasingly favored over jet air dryers due to their ability to mechanically remove bacteria and minimize aerosolized pathogen spread. The preference is particularly acute in high-traffic commercial and healthcare environments where cross-contamination risks are paramount, forcing facility managers to upgrade their hand-drying infrastructure. According to the Tork Insight Survey 2025, released in July 2025, 74% of respondents expect moderate or high levels of hygiene in public restrooms, yet only 20% of facilities deliver on those expectations, underscoring the urgent market pressure for superior hand-drying solutions. Consequently, the industry is witnessing accelerated procurement of premium paper towel dispensers to align with these elevated sanitation standards and mitigate user anxiety regarding facility cleanliness.

Rising Consumer Demand for Sustainable and Bamboo-Based Product Alternatives serves as a parallel catalyst, compelling manufacturers to innovate beyond virgin wood pulp to secure long-term viability. As environmental stewardship becomes a decisive purchasing criterion, the industry is witnessing a robust transition toward products featuring high recycled content and alternative fibers like bamboo, which offer comparable absorbency with a reduced ecological footprint. According to the American Forest & Paper Association, May 2025, tissue producers utilized approximately 3.8 million tons of recycled paper in 2024, reflecting the sector's aggressive pivot toward circular manufacturing inputs. This sustainability trend is further evidenced by the financial performance of key market players adapting to these volume-driven demands. According to Cascades Inc., in November 2025, the Tissue Papers segment reported third-quarter sales of $412 million, driven largely by stronger volumes and improved operational execution in response to these evolving consumption patterns.

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Key Market Challenges

The volatility of raw material costs and stringent environmental regulations constitutes a primary obstacle impeding the expansion of the global paper towels market. Manufacturers depend heavily on wood pulp, and unpredictable price fluctuations in this essential input create financial instability that complicates long-term planning. When this volatility is combined with rigorous environmental mandates regarding deforestation and waste management, companies are compelled to allocate significant resources toward compliance and sustainable sourcing certification. This diversion of capital restricts the funds available for infrastructure investment, effectively compressing profit margins and limiting the ability of producers to scale operations in response to market needs.

Consequently, these operational pressures have led to a tangible contraction in manufacturing capabilities within key regions. According to the American Forest & Paper Association, in 2024, tissue capacity in the United States decreased by 1.7%. This reduction illustrates how the burden of rising input costs and regulatory adherence directly hampers market growth, forcing the industry to consolidate assets rather than expand production volumes to meet potential demand.

Key Market Trends

Integration of IoT-Enabled Touchless Smart Dispensers is transforming commercial facility management by utilizing data analytics to optimize labor and inventory. Facility managers increasingly rely on connected systems that monitor supply levels in real-time, allowing staff to refill units only when necessary rather than on fixed schedules. This technology reduces product waste and operational costs, offering a distinct value proposition beyond basic hygiene compliance. The market viability of these high-tech solutions is reflected in the financial results of major category leaders. According to Essity's Annual Report 2024, published in March 2025, the Professional Hygiene segment reported a 3.2% increase in net sales in the fourth quarter of 2024, validating the commercial sector's robust adoption of these digital cleaning solutions.

Expansion of Direct-to-Consumer Subscription Models is reshaping residential distribution as manufacturers leverage e-commerce to secure recurring revenue. This model addresses the logistical inconvenience of purchasing bulky paper products in-store by offering automated, customizable replenishment directly to households. By bypassing intermediaries, brands can improve margin stability and deepen customer loyalty through subscription incentives. This migration to online channels is quantitatively supported by major industry performance. According to Procter & Gamble's 2024 Annual Report, released in August 2024, e-commerce sales grew by 9% for the fiscal year to account for 18% of total company sales, highlighting the accelerating consumer preference for digital procurement of family care essentials.

Segmental Insights

The Commercial segment currently represents the fastest-growing category within the global paper towels market, driven by heightened hygiene protocols across institutional settings. This expansion is largely fueled by the hospitality, healthcare, and corporate sectors prioritizing disposable hand drying solutions to minimize cross-contamination risks. Furthermore, guidelines from entities such as the World Health Organization regarding sanitation in public facilities have accelerated the shift away from electric dryers in favor of single-use paper products. Consequently, increased foot traffic in commercial establishments and stricter sanitation mandates continue to sustain the elevated demand for these essential hygiene supplies.

Regional Insights

North America maintains a dominant position in the Global Paper Towels Market, primarily due to heightened hygiene standards and a strong consumer preference for disposable cleaning products. The region benefits from robust manufacturing capabilities and high penetration rates in both residential and commercial sectors, such as food service and healthcare. Additionally, federal initiatives like the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency drive institutional demand for sustainable paper products containing recovered fiber. These factors, combined with established supply chains, ensure the region's continued market leadership.

Recent Developments

• In September 2025, Essity expanded its proprietary coreless technology to the household towel category, marking a significant product innovation for the European market. The company applied this advanced manufacturing feature to its premium consumer brands, effectively eliminating the central cardboard tube from its paper towel rolls. This launch resulted in tighter, long-lasting double rolls that significantly reduced packaging waste and lowered the carbon emissions associated with transportation and warehousing. By introducing this sustainable solution to household paper towels, the company aimed to drive circularity and reduce environmental impact in the Global Paper Towels Market.
• In March 2025, Kimberly-Clark Professional launched a new digital innovation known as Onvation SmartFit technology to improve operational efficiency in commercial facilities. This product launch featured a compact, internet-enabled sensor designed to be easily installed inside existing paper towel and bath tissue dispensers. The technology provided facility managers with real-time data and predictive analytics regarding product levels, which helped to optimize cleaning schedules and minimize product waste. This advancement directly addressed the needs of the Global Paper Towels Market by ensuring reliable product availability and enhancing the restroom experience for users.
• In December 2024, Procter & Gamble announced a commitment to invest $20 million between 2025 and 2030 in the research and development of non-wood fibre alternatives. This breakthrough research initiative was part of an agreement with investors to provide greater transparency regarding the environmental impact of the company's supply chain. The funding was targeted at discovering sustainable materials that could eventually reduce the reliance on virgin wood pulp for the manufacturer's extensive tissue and towel portfolio, including the Bounty brand. This move underscored the company's dedication to sustainable innovation within the Global Paper Towels Market.
• In September 2024, Georgia-Pacific celebrated the completion of a significant capital improvement project at its Broadway mill in Green Bay, Wisconsin. This massive expansion, involving an investment of nearly $550 million, included the installation of a new through-air-dried (TAD) paper machine and three state-of-the-art converting lines. The upgraded facility was designed to increase the production capacity for high-quality retail paper products, specifically focusing on the company’s flagship Brawny paper towels as well as premium private-label brands. This development aimed to support the growing demand in the Global Paper Towels Market by enhancing manufacturing efficiency and automation.

Key Market Players

• American Specialties, Inc.
• Kimberly-Clark Corp.
• The Procter & Gamble Company
• Georgia-Pacific LLC
• Kruger Inc.
• Seventh Generation Inc.
• The Kroger Co.
• Mercury Paper, Inc.
• WEPA Hygieneprodukte GmbH
• Cascades Inc.

By Type	By End User	By Distribution Channel	By Region
Rolled Paper Towels Boxed Paper Towels Multifold Paper Towels Others	Residential Commercial	Supermarket/Hypermarket Multi-Branded Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Paper Towels Market, By Type:

• Rolled Paper Towels
• Boxed Paper Towels
• Multifold Paper Towels
• Others

• Paper Towels Market, By End User:

• Residential
• Commercial

• Paper Towels Market, By Distribution Channel:

• Supermarket/Hypermarket
• Multi-Branded Stores
• Online
• Others

• Paper Towels Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE