Tissue Demand Keeps Growth Path in Latin America

During Tissue World São Paulo, FastmarketRISI’s Marina Faleiros reported that despite overcapacity and social tensions this year, Latin America will continue to see positive growth in tissue production and demand over the next few years. According to presentations given during the Tissue World São Paulo event earlier this year, Brazil will remain as the key driver for consumption in the region, but several other countries will also receive investments, including Mexico.

“Latin America has good prospects for sustainable growth in its tissue business. Many countries are in the accelerating phase of their consumption development curve. Brazil, in this scenario and with its continuing urbanization and improving hygienic standards, will be a key driver for tissue consumption, with new opportunities especially in its northeastern area,” Fastmarkets RISI tissue principal Esko Uutela said in a presentation.

According to the economist, the supply side is very fragmented in Latin America, particularly Brazil, but new players have emerged in many countries, even in Mexico. “There are a lot of investments and competition will remain a key, as overcapacity is a major threat,” he said.

In a presentation given by Euromonitor’s research analyst Rafael Pellegrini in the same event, Latin America was also shown as the fastest-grown region in terms of compound annual growth rate (CAGR) in value of retail, moving from $10 billion in 2018 to almost $15 billion in 2023. The Asia-Pacific market is also growing fast and is a giant in value, expected to reach more than $30 billion by 2023.

“In Latin America, Brazil represents one third of the market, but lags behind in value-added tissue, being the third largest toilet paper market but only the 13th in napkins, including sales in Brazil, North America and Western Europe,” Pellegrini said.

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