Tissue Towel Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Rolled Towels, Folded Towels, Boxed Towels, Others), By Application (Residential, Commercial), By Distribution Channel (Offline, Online), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 38.33 Billion
CAGR (2026-2031)	3.18%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 46.25 Billion

Market Overview

The Global Tissue Towel Market will grow from USD 38.33 Billion in 2025 to USD 46.25 Billion by 2031 at a 3.18% CAGR. Tissue towels are absorbent disposable paper products manufactured from virgin or recycled wood pulp and designed for cleaning and hygienic applications across residential and commercial sectors. The market is primarily driven by heightened global health awareness and the sustained recovery of the hospitality industry, which has amplified the demand for single-use sanitation items. Furthermore, rapid urbanization in emerging economies is accelerating the consumer shift toward convenient disposable hygiene solutions. According to the Confederation of European Paper Industries, in 2024, tissue paper production across its member countries increased by 5.6 percent, highlighting a resilient industrial recovery.

Despite this positive momentum, the market encounters a substantial obstacle in the volatility of raw material and energy costs. The manufacturing process is energy-intensive and dependent on global pulp supplies, meaning that fluctuations in input prices can severely impact operational costs and constrain market expansion efforts for manufacturers.

Key Market Drivers

The robust expansion of the hospitality and food service sectors serves as a primary catalyst for the Global Tissue Towel Market. As travel and dining activities normalize, hotels, restaurants, and institutional facilities are prioritizing high-quality sanitation products to meet elevated consumer expectations for cleanliness and hygiene. This resurgence in out-of-home consumption has directly amplified the procurement of disposable paper towels, napkins, and bathroom tissues by commercial entities seeking to maintain stringent sanitary standards. Highlighting the financial impact of this sector's recovery, according to Essity, March 2025, in the 'Annual Report 2024', the company achieved a record profit of SEK 20.3 billion, a performance significantly driven by strong organic growth and positive price mixes in its Professional Hygiene business area.

Concurrently, surging consumer demand for eco-friendly and sustainable products is fundamentally reshaping manufacturing priorities and supply chain strategies. Consumers and institutional buyers are increasingly favoring tissue products made from recycled fibers or alternative materials like bamboo to minimize environmental impact, prompting manufacturers to invest heavily in decarbonization and sustainable sourcing. According to Sofidel, April 2025, in a press release regarding 2024 financial results, the company successfully reduced its specific greenhouse gas emissions by 19.5 percent compared to 2018 levels, aligning with its science-based targets for ecological transition. To support this evolving production landscape efficiently, according to the American Forest & Paper Association, in 2025, the U.S. paper industry improved its asset utilization with operating rates reaching 87.5 percent in 2024.

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Key Market Challenges

The volatility of raw material and energy costs constitutes a significant barrier to the expansion of the Global Tissue Towel Market. Tissue manufacturing is an energy-intensive process that relies heavily on wood pulp, making the sector highly sensitive to price fluctuations in these essential inputs. When procurement and utility expenses rise unpredictably, manufacturers face increased production costs that severely compress profit margins. This financial instability compels companies to divert capital away from capacity expansion and innovation to cover operational overheads. Consequently, the inability to maintain stable pricing structures limits market competitiveness and discourages the long-term investment required for sustainable industry growth.

The direct impact of these cost pressures on financial performance is evident in recent industrial data. According to the China Paper Association, in 2024, total profits for the paper industry declined by 2.71 percent compared to the previous year, despite the sector generating substantial total revenue. This contraction in profitability highlights how escalating input costs and economic volatility erode the financial health of manufacturers, effectively hampering their ability to drive market development and sustain growth momentum.

Key Market Trends

The Expansion of High-Quality Private Label Portfolios is fundamentally altering the competitive landscape as retailers increasingly prioritize premium store-brand offerings to rival national competitors. Rather than competing solely on price points, major retailers are partnering with contract manufacturers to develop sophisticated tissue products that feature enhanced softness and absorbency, directly appealing to value-conscious consumers who refuse to compromise on performance. This strategic shift towards "premium private label" allows retailers to capture greater market share by offering national-brand quality at a lower cost structure. Evidence of this growing segment is provided by major suppliers; according to Clearwater Paper, August 2024, in the 'Second Quarter 2024 Results', the company reported that its retail tissue volumes sold increased by 4 percent in the first six months of 2024 compared to the prior year, signaling robust consumer uptake of store-brand options.

Simultaneously, the market is experiencing significant Premiumization Through Advanced Through-Air-Drying (TAD) Technology, driven by the imperative to deliver superior product characteristics such as higher bulk, loft, and water-holding capacity. Manufacturers are aggressively upgrading their production assets from conventional light dry crepe processes to structured tissue technologies, enabling the creation of ultra-premium towels that offer distinct tactile advantages. These technological investments are essential for differentiation in a saturated market, allowing producers to justify higher price points and meet the sophisticated preferences of modern buyers. Highlighting this investment trajectory, according to Valmet, January 2025, in a press release regarding its fourth-quarter orders, the company secured a contract to supply a new Advantage ThruAir Drying tissue line to Irving Consumer Products, a move designed to expand the manufacturer's annual capacity for ultra-premium tissue products by 75,000 tons.

Segmental Insights

The Online segment represents the fastest-growing distribution channel in the Global Tissue Towel Market, primarily driven by the increasing consumer preference for convenience and bulk purchasing. E-commerce platforms facilitate the acquisition of non-perishable household essentials through subscription services, which ensure consistent product availability while reducing the frequency of physical store visits. Furthermore, the rapid expansion of digital infrastructure has enabled manufacturers to reach a broader audience, fostering direct-to-consumer sales models that offer competitive pricing. This structural shift in procurement habits continues to propel the robust development of online sales for tissue products.

Regional Insights

North America maintains a dominant position in the Global Tissue Towel Market, primarily driven by the region's high per capita consumption of disposable hygiene products. This leadership is sustained by established consumer preferences for convenience and sanitation, particularly within the United States. Furthermore, the strong operational base of major manufacturers facilitates consistent supply and product development. Stringent hygiene protocols in commercial and healthcare sectors, often reflecting guidelines from the Centers for Disease Control and Prevention regarding hand hygiene, reinforce the widespread reliance on single-use paper towels, ensuring steady market stability.

Recent Developments

• In August 2025, Cascades launched a new product line branded as Cascades Fluff Excellence, positioned as a premium bathroom tissue solution for the North American market. The product was engineered to deliver enhanced softness, thickness, and strength, replacing the company’s previous Ultra tier to better align with evolving consumer preferences. The launch was supported by a modernized branding strategy and updated packaging that utilized clear visual pictograms to communicate product attributes. This initiative reflected the company’s focus on upgrading its portfolio within the competitive global tissue towel market to drive growth in the consumer hygiene segment.
• In June 2025, Suzano and Kimberly-Clark announced the formation of a major joint venture valued at approximately $3.4 billion to manage the latter's consumer tissue business in international markets. Under the agreement, the Brazilian pulp manufacturer acquired a 51% controlling stake in the new entity, while the United States-based partner retained the remaining interest. The collaboration encompassed manufacturing facilities and brand licensing rights in over 70 countries, excluding the US market. This strategic partnership was designed to combine operational efficiencies with established brand recognition to strengthen their combined position in the global tissue towel market.
• In November 2024, Sofidel finalized the acquisition of the tissue division of Clearwater Paper Corporation in a transaction valued at approximately $1.06 billion. This strategic expansion transferred ownership of four manufacturing plants in the United States to the Italian tissue producer, increasing its annual production capacity by 340,000 metric tons. The deal significantly reinforced Sofidel’s presence in the North American private label sector, allowing it to broaden its offering of paper towels and bath tissue. Integrating these assets enabled the company to optimize its supply chain and better serve large retail partners in the global tissue towel market.
• In January 2024, Tork launched a new range of soft and efficient hand towels and toilet paper manufactured entirely from 100% recycled fibers. The product introduction was aimed at meeting the rising demand for sustainable hygiene solutions in professional environments such as offices and hospitality venues. By utilizing post-consumer paper materials, the brand sought to reduce the environmental footprint of its offerings without compromising on absorbency or performance. This development highlighted the growing trend of circularity and resource efficiency among leading manufacturers in the global tissue towel market.

Key Market Players

• Kruger Inc.
• WEPA Hygieneprodukte GmbH
• Cascades Inc.
• Georgia-Pacific
• Metsa Tissue
• Procter & Gamble
• Korean Cosmetics Worldwide
• Asaleo Care Limited
• HengAn
• SHP Group

By Product Type	By Application	By Distribution Channel	By Region
Rolled Towels Folded Towels Boxed Towels Others	Residential Commercial	Offline Online	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Tissue Towel Market, By Product Type:

• Rolled Towels
• Folded Towels
• Boxed Towels
• Others

• Tissue Towel Market, By Application:

• Residential
• Commercial

• Tissue Towel Market, By Distribution Channel:

• Offline
• Online

• Tissue Towel 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