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, 2018-2028

Market Overview

Global Paper Towels Market was valued at USD 8.82 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.3% through 2028. The paper towels market is expected to continue to grow in the coming years. The increasing awareness about hygiene and sanitation, rising disposable incomes, and growing urbanization are all factors that will contribute to the market growth.

The demand for paper towels is increasing owing to the rising awareness among consumers regarding hygiene etiquette. With the rising cases of infectious diseases, awareness regarding hygiene has increased, both in residential and commercial & institutional spaces across the globe. The convenience of use as compared to plastics and fabrics makes paper towels a more preferred option. Additionally, paper towels are biodegradable. However, their popularity can be witnessed only in the North American and European countries. Rapid urbanization, rising disposable incomes, improved standard of living, and consumer inclination towards the adoption of western cultures are some of the key factors that are expected to boost the growth of the paper towels market during the review period.

The COVID-19 pandemic has increased demand for paper towels. Paper towel hoarding and panic purchases have surged in the US and many European nations due to lockdown regulations and people remaining at home. One of the well-known producers of home appliances, Kimberly-Clark Corporation, began producing paper towels around-the-clock in response to the extraordinary surge in demand for them in the United States. In an effort to close the gap between supply and demand for paper towels, numerous businesses are springing up over the world. Global sales of paper towels are rising, and some of the major firms experiencing this trend. Therefore, until the COVID-19 pandemic subsides, the high demand for paper towels is expected to remain consistent.

Key Market Drivers

Changing Consumer Lifestyles and Habits

The paper towels market is strongly influenced by changing consumer lifestyles and habits. As people's lives become busier and more fast-paced, the demand for convenient and disposable products like paper towels has increased. These products have become an integral part of modern households due to their versatility and ease of use. One significant lifestyle change that has contributed to the growth of the paper towels market is the increase in dual-income households. With both partners working and less time for household chores, the need for quick and effective cleaning solutions has risen. Paper towels fit this need perfectly, as they are readily available, easy to use, and disposable, eliminating the need for traditional cloth towels that require washing and maintenance.

Another lifestyle factor is the shift towards smaller living spaces, such as apartments and condos, where storage space for cloth towels may be limited. Paper towels are compact and can be stored in small spaces, making them a practical choice for urban dwellers. Additionally, the rise of on-the-go lifestyles has driven the demand for portable and disposable cleaning solutions. People are eating out more, traveling frequently, and looking for ways to stay clean and hygienic while away from home. Paper towels are a convenient choice for quick cleanups and maintaining personal hygiene, contributing to their popularity. In response to these changing consumer habits, manufacturers have introduced a variety of paper towel products, including smaller, travel-sized packs, and specialized wipes designed for different cleaning purposes. The versatility of paper towels allows them to adapt to evolving consumer lifestyles, making them a major driver in the market.

Hygiene and Health Concerns

In recent years, heightened hygiene and health concerns have had a substantial impact on the paper towels market. The COVID-19 pandemic, in particular, raised awareness about the importance of maintaining cleanliness and hygiene in both public and private spaces. Paper towels emerged as an essential tool for maintaining hygiene, as they are disposable and can help reduce the risk of contamination. Paper towels are often used in public restrooms, kitchens, and other high-traffic areas to minimize the spread of germs. Their single-use nature makes them more hygienic than cloth towels, which can harbor bacteria and viruses if not cleaned properly. Consumers are now more conscious of the need for effective cleaning and hygiene practices, and this has driven the demand for paper towels.

In addition to concerns about infectious diseases, there is also a growing awareness of the environmental impact of reusable cloth towels. Many consumers are choosing paper towels made from recycled materials or eco-friendly alternatives, further driving the market toward sustainability. Moreover, hygiene and health concerns have extended to the food industry. The use of paper towels as a means to handle food safely, whether in the kitchen or in restaurants, has become more prominent. Consumers prioritize clean food preparation and serving areas, and paper towels have become an essential tool for achieving these standards.

Eco-Friendly and Sustainable Products

While the paper towels market has traditionally been associated with disposable products, there is a growing trend towards eco-friendly and sustainable alternatives. This shift is driven by increased environmental awareness among consumers and concerns about the ecological impact of disposable paper products. Manufacturers have responded to this driver by developing and marketing eco-friendly paper towels. These products are often made from recycled materials and produced using environmentally responsible manufacturing processes. Some brands also offer biodegradable paper towels that decompose more quickly in landfills, reducing their environmental footprint.

The demand for sustainable paper towels is driven by consumers who want to minimize their contribution to deforestation and reduce waste. In addition to recycled content and biodegradability, sustainable paper towels often come in eco-friendly packaging, which further appeals to environmentally conscious consumers. Furthermore, governments and regulatory bodies in various regions have introduced regulations and guidelines encouraging sustainable practices in the paper products industry. These regulations often incentivize manufacturers to adopt greener production methods and materials, creating a push for eco-friendly paper towels.

Innovations in Product Design and Technology

Innovations in product design and technology have played a crucial role in driving the paper towels market forward. Manufacturers have continuously introduced new features and improvements to meet evolving consumer demands and needs. One significant innovation is the development of stronger and more absorbent paper towels. Consumers expect paper towels to be highly effective in absorbing spills and cleaning, and manufacturers have invested in research and development to enhance these properties. Advanced manufacturing techniques have led to the creation of paper towels that are both strong and absorbent, reducing the number of sheets required for a task and ultimately reducing waste.

Moreover, there has been a notable shift toward textured and embossed paper towels. These designs provide better scrubbing and cleaning capabilities, making them suitable for a wide range of applications. The texture not only enhances cleaning but also provides a more pleasant tactile experience for consumers. Another innovative trend is the introduction of select-a-size paper towels. These products allow consumers to tear off the desired sheet size, minimizing waste and improving cost-effectiveness. This innovation aligns with the growing emphasis on sustainability, as it reduces the number of sheets used for a particular task. In terms of technology, the integration of smart packaging and marketing strategies has allowed manufacturers to connect with consumers in new ways. QR codes on packaging can provide access to cleaning tips, product information, and recycling instructions, enhancing the overall user experience. Furthermore, automation and artificial intelligence are increasingly being used in manufacturing and distribution, streamlining the production process and ensuring timely delivery to meet customer demands. In conclusion, innovations in product design and technology have not only improved the performance of paper towels but have also contributed to their adaptability in various settings, driving market growth.

Download Free Sample Report

Key Market Challenges

Environmental Concerns and Sustainability

One of the most significant challenges facing the paper towels market is growing environmental concerns and the push for sustainability. The paper towels industry relies on the production of paper, which traditionally involves cutting down trees and energy-intensive manufacturing processes. This has raised concerns about deforestation, carbon emissions, and other ecological impacts. The primary environmental concern associated with paper towels is deforestation. Many paper towel manufacturers use wood pulp from trees, leading to concerns about the depletion of forests. Sustainable sourcing practices, including responsible forestry management and the use of recycled materials, have gained traction. However, ensuring a sustainable and traceable supply chain remains a challenge for the industry. Paper towel production requires significant energy and water resources. Reducing the environmental footprint of manufacturing processes is a complex challenge. Companies are working to adopt cleaner energy sources and more efficient water management systems, but these improvements are often capital-intensive and may not be feasible for all manufacturers. Governments and environmental organizations have introduced various standards and certifications related to paper towel sustainability. Compliance with these standards can be complex and costly, further posing a challenge to manufacturers. Transitioning to more sustainable practices, such as using recycled materials and environmentally friendly production methods, can increase production costs. The challenge is finding a balance between sustainability and affordability, as consumers are often price-sensitive.

Competition and Market Saturation

The paper towels market is highly competitive and, in many regions, approaching saturation. This poses several challenges for manufacturers and retailers. In mature markets, such as North America and Europe, the paper towels market is reaching saturation levels. Most households already use paper towels, and further market penetration becomes increasingly challenging. Manufacturers must rely on innovative products and marketing to gain an edge in such markets. The market features numerous brands and product variations, leading to intense competition. With many similar offerings, brands must work harder to differentiate themselves from competitors. This challenge extends to both well-established and newer brands entering the market. The growth of private label or store brand paper towels poses a challenge to established national brands. Private label brands often offer comparable quality at lower prices, eroding market share for national brands.

The competitive nature of the market exerts pressure on pricing. Manufacturers may have to keep prices low to remain competitive, which can affect profitability. This leads to a constant challenge in balancing cost efficiency and quality. To stand out in a crowded market, manufacturers must continuously innovate. This requires investments in research and development, and there is no guarantee that innovations will resonate with consumers. The rise of e-commerce has intensified competition by providing consumers with a vast array of options from various brands. Online platforms also enable smaller, niche brands to enter the market, making it more challenging for established companies to maintain market share.

Key Market Trends

Sustainability and Eco-Friendly Products

One of the most prominent and enduring trends in the paper towels market is the growing emphasis on sustainability and eco-friendly products. Consumers and businesses are increasingly seeking paper towels that are produced using environmentally responsible methods and materials. Many paper towel manufacturers have shifted towards using recycled materials in their products. Recycled paper towels are made from post-consumer content, which reduces the demand for virgin wood pulp and decreases the environmental impact. This trend aligns with the circular economy concept, where products are recycled and reused to minimize waste.

Sustainable forestry practices are another vital component of this trend. Manufacturers are increasingly sourcing wood pulp from responsibly managed forests or those certified by organizations like the Forest Stewardship Council (FSC). These practices help ensure that forests are not overharvested and that the ecosystem is preserved. Some manufacturers have introduced biodegradable and compostable paper towels. These products break down more quickly in landfills or composting facilities, reducing their environmental impact. However, the effectiveness and cost of such options are still subject to ongoing development.

In addition to the paper towels themselves, there is a growing focus on eco-friendly packaging. Brands are using recyclable or biodegradable packaging materials to reduce waste and enhance the overall sustainability of their products. Manufacturers are investing in more energy-efficient production processes, reducing the carbon footprint of paper towels. This includes using renewable energy sources, optimizing machinery, and adopting greener practices in facilities. As sustainability becomes a more critical factor in consumer decision-making, manufacturers are engaging in educational campaigns to inform consumers about the environmental benefits of eco-friendly paper towels. These initiatives aim to create informed and conscientious buyers.

Innovations in Product Design and Technology

The paper towels market is experiencing continuous innovations in product design and technology. Manufacturers are working to improve the functionality, convenience, and performance of paper towels. One of the primary drivers of product innovation is enhancing absorbency and strength. Manufacturers are developing paper towels that can absorb more liquid and remain intact even when wet. This helps reduce the number of towels required for a task, improving cost-efficiency and reducing waste. Textured and embossed paper towels are becoming increasingly popular. These designs offer enhanced scrubbing and cleaning capabilities, making them suitable for a wide range of cleaning tasks. The texture not only improves performance but also provides a more pleasant tactile experience for consumers.

Many brands offer select-a-size paper towels, allowing consumers to tear off the desired sheet size. This feature minimizes waste and enhances cost-effectiveness, as consumers can choose the appropriate size for their needs. Smart packaging and marketing strategies have gained traction. QR codes on packaging provide access to cleaning tips, product information, and recycling instructions. Such innovations enhance the overall user experience and create opportunities for manufacturers to engage with consumers. The integration of automation and artificial intelligence in manufacturing and distribution processes is streamlining operations. This technology enables improved quality control, efficient inventory management, and timely delivery to meet consumer demands. Manufacturers are introducing specialized paper towel variants designed for specific applications. These may include kitchen towels, industrial-grade paper towels, and wipes with specific properties, such as antibacterial or sanitizing features.

Segmental Insights

Type Insights

Rolled paper towels are the most popular type of paper towel, accounting for over 60% of the global market share. This is because they are more versatile and can be used for a wider range of tasks than folded paper towels. Folded paper towels are more commonly used in commercial and institutional settings, such as offices and restaurants.

End Use Insights

The residential end user segment is the largest segment of the paper towels market, accounting for over 70% of the global market share. This is because paper towels are a staple household product in many countries. The commercial end user segment is the second largest segment, accounting for over 20% of the global market share. This segment includes businesses such as hotels, restaurants, and offices. The institutional end user segment is the smallest segment, accounting for less than 10% of the global market share. This segment includes schools, hospitals, and government agencies.

Distribution Channel Insights

Supermarkets and hypermarkets are the leading distribution channel for paper towels, accounting for over 50% of the global market share. This is because supermarkets and hypermarkets offer a wide range of paper towel products at competitive prices. Convenience stores and online retail are also important distribution channels for paper towels.

Download Free Sample Report

Regional Insights

North America dominated the paper towels market in 2022, owing to the strong consumer preference for paper towels. Additionally, the presence of some of the key players specialized in the manufacture of paper towels in the US has made North America one of the key markets for paper towels. The unprecedented growth in the demand for paper towels owing to the COVID-19 outbreak is certainly going to boost the sales of paper towels in the region up to a certain extent. The Asia-Pacific market is projected to witness significant growth during the forecast period. An increase in the consumers’ purchasing power and the inclination towards western cultures, especially in the emerging economies, is likely to create opportunities for paper towels manufacturers in the region.

Recent Developments

• In 2023 - Bounty announced the launch of a new version of Quicker Picker Upper paper towels. The brand calls the new paper towel a triple threat, driven by superior structure, flexible strength, and optimized fluid efficiencies, allowing consumer to use less to clean up the toughest messes.

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.

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:

o   Rolled Paper Towels

o   Boxed Paper Towels

o   Multifold Paper Towels

o   Others

• Paper Towels Market, By End User:

o   Residential

o   Commercial

• Paper Towels Market, By Distribution Channel:

o   Supermarket/Hypermarket

o   Multi-Branded Stores

o   Online

o   Others

• Paper Towels Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Paper Towels Market.

Available Customizations:

Global Paper Towels market report with the given market data, Tech Sci 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).

Global Paper Towels Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]