Tissue Paper Market
2,000 pound (i.e. 1 US ton)“Parent Rolls”
Tissue paper is one of the world’s most essential commodities. Tissue paper products are generally made from three types of material: Wood-free (chemical) pulp, Wood-containing (mechanical) pulp and Recovered paper. Tissue paper came into use in 1920s and since the consumption has been consistently increasing.
Bulk tissue paper ($3B USD industry) is produced in large 2000-pound rolls (i.e. 1 US ton), nine feet high.
There are five types of tissue papers; Bathroom Tissue, Facial Tissue, Paper Towel, Paper Napkin, and Specialty or Wrapping Tissue. With the current market consuming 2.6 million tons per year, the tissue paper industry is broadly classified into two categories. They are the At Home (Consumer) tissue; and Away From Home (AFH). The At Home segment comprise of tissues that are used for domestic purposes.
The Away from Home segment are used for commercial and industrial purposes such as hotels, restaurants, hospitals and institutions; they include paper towels, toilet paper, napkins, facial tissue, dispensers and tissue products used in a working environment. A number of properties, such as absorption, porosity, coarseness, tensile strength, and tactility, determine the quality of tissue paper.
The Global Tissue Paper market has grown at a Combined Annual Growth Rate of 4.9 percent over the period 2012-2016. In 2015 the away from home sector, including hotels, experienced a spike of nearly 4%; significantly more than the previous year. This increase in demand has started to drive up the price of products, and the growth rates are exceeding what is typical for years past; suggesting that these tissues will continue to be high in demand.
In the United States demand for tissue paper products continue to increase at a consistent growth rate. In 2015 the United States had 312.88 million consumers and by 2020 that number will increase to 326.01 million consumers. The projected Combined Annual Growth Rate for the United States from 2016-2020 is 5.3%, a 9% increase in the growth rate from 2012-2016. With the United States tissue market having a 5.3% Combined Annual Growth Rate for the next 5 years, Mill 2911’s production will be rapidly absorbed.
Hospitality Market
As the world uses over €42B EUR ($52B USD) in paper products annually, the hospitality industry itself uses over €1.5B EUR ($1.9B USD) in tissue products. Suppliers in the paper industry have maintained an uninspired status quo on product types for decades; same size and same color.
Mill 2911 products’ target market is hotel brand corporate offices with annual incomes ranging from $100 million to $2B (USD). Mill 2911 is a revolutionary product opportunity due to the components of the value proposition. Mill 2911 Patron Élite branding program is the first to custom manufacture paper products to the hospitality client’s specifications, not what’s available through standard manufacturers.
Custom manufacturing, provided by Mill 2911, allows the client to feature their brand on each product, thus improving brand recognition. Wrapping and or embossing can deliver any brand image they desire. Having this significant feature is extremely attractive to the hospitality industry, some of whom are aware and eager of the forthcoming product offering, always striving for improved brand visibility and an edge in the market. Mill 2911 will be the only source capable of making and delivering their custom branded paper products for the same price (or lower) they are currently paying for non-custom branded products. This provides “a better-than-procurement contract relationship” with the client as they will have no incentive to change vendors.
Providing branding opportunities resides in the design of Mill 2911. The Gambini Flex 600 with Touch Max Embosser converting line, having advanced technology allows selection from 5 different embossing tools in 9 minutes. Traditional equipment takes 24 hours and requires an external crane to change imprinting tools, costing tens of thousands of dollars and loss of a day’s production.
As an example, if Disney Company wants a Mickey Mouse embossed on its facial tissue, Mill 2911 will be able to do it for them and then change to Ritz Carleton’s lion and crown logo while only delaying production 9 minutes, rather than 24 hours. Mill 2911 can deliver customization with virtually no increase in production cost.