Session T1 at PaperCon's Tissue360° Forum, April 29 - May 1, 2013, in Atlanta, Ga., USA, will define, dissect, and analyze the global tissue and hygienic products market, setting the stage for seven intensive technology sessions that follow over the next three days—chemistry, fiber, advanced production systems, water and energy, controls and measurement, yankee dryer, and converting developments. Sponsored by TAPPI's newest print publication, Tissue360° magazine, these eight Tissue Forum sessions provide the most comprehensive exploration of emerging market drivers and technology developments available anywhere for understanding and meeting challenges of the rapidly evolving tissue and hygienic products industry.
Leading off Session T1, Esko Uutela of RISI examines the tissue, towel, and personal hygiene products arena in North America and worldwide in term of current and projected capacities as well new and emerging trends that will shape markets into the foreseeable future. Lindsay Gervais of Pöyry Management Consulting then looks specifically at the critical fiber side of tissue and hygiene products, assessing the decline of recycled fiber quality and availability and the outlook for virgin and other fiber sources, as well as nonwovens resources that will determine the future direction of these product markets.
Uutela notes that the tissue business is booming today after recovering quickly and strongly from the 2009 recession. Globally, tissue consumption approached 32 million metric tpy in 2012 and for the first time exceeded the volume of newsprint. RISI expects the long-term growth to continue at an annual average rate of 4% or slightly above. During the past 10 years, China has been the prime motor for growth in the global paper and board industry, and so also in the tissue business, followed by Latin America, which also has shown strong expansion. In the next 10 years, large emerging markets such as Brazil, Turkey, and Russia will increasingly offer tissue companies new business opportunities.
The North American tissue market is experiencing a new investment boom this year, expected to continue through 2014, Uutela continues. This time the main driver for new projects seems to be the need for ultra and premium grade tissue, partly as a reflection of major retailers' target to upgrade their private label offerings closer to the main brands in quality, although there is a clear trend toward higher quality in the away from home sector as well. "Market growth has flattened, particularly in terms of weight as the product light-weighting trend continues. Competition does not show any signs of alleviation, and it's amazing to see how a growing number of small, independent converters have been able to forge ahead based on their niche products, flexible service, and sub-contracting orders from the big players," Uutela says.
Gervias adds that amidst a backdrop of falling demand for printing and writing paper in mature markets, a key concern for several tissue manufacturers is the availability, quality, and cost of recovered paper. "But at what point does recycled paper become uneconomical compared with other fiber options?" she asks.
In her presentation, Gervais explores the combination of falling yields and rising costs of SOP (sorted office paper) to determine a breakeven cost of manufacture when compared with a virgin fiber furnish. She examines the impacts of this key issue and takes a look at other fiber resources and their future role in tissue manufacturing.
More information about PaperCon 2013 is available online, including online registration. Additional information about the Tissue360° Forum program is also available online.
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