There is a common saying never to start the conversation with statistical data, but nowadays, without statistics, opinions do not have much cognizance.  

Presently, the Indian soft tissue market is approximately 1.8+-10% Lakh TPA, including both virgin and recycled-grade soft tissue. Further, the market is split exactly half between both grades. Demand fell 25-30% during years 20-22 due to COVID-19, but thereafter, it recovered immediately after COVID-19.  

Growth of the Indian Soft Tissue Market 

Presently, the demand is expected to grow at 15-18% per annum, so an understanding of all is that Indian domestic Soft Tissue demand by 2026 will be approx. 2.5 Lakh TPA +-8% .   

Already, various Indian Paper Manufacturers have announced a new/increase in soft tissue paper production capacity by more than approximately 1.2 Lakh TPA, which is expected to be in production by FY 2026. Further, some additional capacity is under active consideration or finalization but is yet to be announced. It is expected that the total capacity expansion in soft tissue will be 02 Lakh TPA by 2026.  

The derivative from the above statistical data is that by 2026, the Indian Soft tissue paper Industry will be net of surplus in production.     

Limitations in the Logistics of Soft Tissue Paper  

Soft tissue paper has logistics limitations: 

High Logistical Cost 

The volume of Jumbo rolls is almost 2.5/3 times that of conventional writing printing Paper, resulting in high logistical costs for the Jumbo Rolls. 

Location of the Home Market 

The location of planned and executed capacity expansion is not near the market/selling point prospective but from infrastructural advantages/constraints. For example, a mill in south INDIA will pay approximately 08-10% of the average selling price as logistic costs to compete to sell of the same product being manufactured in North India, and the same will be vice versa. All other product aspects remain constant. Due to high logistic costs, tissue producers generally consider 150/200 KM Dia as their prospective home market.  

This will create a scenario wherein many local mills located near the port with new prospective soft tissue production capacity will target international markets, considering them their home market instead of targeting local markets only to balance the logistic cost of export and supplying in the domestic market.     

This will be Renaissance moment for the Indian Soft Tissue Paper Industry and the Industry will come of age as being an internationally Acceptable Grade Soft tissue Paper Supplier.   

Frequently Asked Questions 

1. What recent technological advancements are influencing the production and quality of soft tissue paper in India?

Growth in domestic demand is driving the capacity expansion . It is highest in the any form of paper & fibre industry. Understanding the growth potential in the segment Indian industry is now investing in universally accepted technologies and production parameters - this will result in internationaly acceptable soft tissue from India.

2. Which countries have the highest demand for jumbo rolls of soft tissue paper? What are their import requirements and regulations?

Three factors come into play Logistics , local, Demand  Supply and Import Tariff . A nice balance has to be worked.

3. Who are the leading manufacturers and suppliers of soft tissue paper in India, and what are their market shares?

Virgin sector in India at present is dupoly whereas recycled there are multiple players.

4. What are the current trends in the global tissue paper market, and how are they impacting demand for jumbo rolls?

Globally  also Tissue Paper remains and as one of highest growth category in fibre industry .  scarcity of water (Alternative) has multiplying effect on demand growth.