Throwing in the towel: Rising import penetration and input costs have constrained revenue

Operators in the Sanitary Paper Product Manufacturing industry have struggled with difficult demand conditions over the past five years. Rising import penetration and increasing input costs have placed industry operators under increasing pressure. Industry revenue is expected to decline at an annualised 1.9% over the five years through 2018-19, to $2.1 billion. This includes expected growth of 1.0% in 2018-19, attributable to strong growth in real household disposable income.Most industry products are necessity items such as toilet paper, tissues and paper towels. Demand for necessities generally remains stable over time, influenced primarily by changing demographics. Growth in population and the number of households have supported industry revenue over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Intensifying import competition has eroded industry revenue over the past five years
  • Environmental sustainability is a key consideration for consumers, supporting industry growth
  • Firms will likely benefit from rising household income and increased demand from the health sector
  • Industry Report - Industry SWOT Analysis Chapter

    The Sanitary Paper Product Manufacturing industry is in the decline phase of its economic life cycle. Industry value added (IVA), a measure of an industry's contribution to the wider economy, is projected to decline at an annualised 0.8% over the 10 years through 2023-24. This decline represents an underperformance relative to the overall economy, with Australian GDP anticipated to rise at an annualised 2.7% over the same period. Declining IVA indicates an industry is in the decline phase of its economic life cycle.As most industry products are household staples or necessity items, the range of products the industry manufactures does not change significantly over time. Industry product groups are clearly segmented and have reached saturation point. As ...purchase to read more.

    Additional Insights for the Sanitary Paper Product Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Sanitary Paper Product Manufacturing are:

  • Ability to quickly adopt new technology
  • Establishment of brand names
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Number of births in the Sanitary Paper Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Sanitary Paper Product Manufacturing Industry?

    Industry operators primarily manufacture sanitary paper products including tissues, nappies, napkins, towels and women’s sanitary goods. These products are typically sold to grocery and paper product wholesalers or directly to retailers.

    Industry Products
  • Personal-care products
  • Sanitary tissues
  • Baby products
  • Other paper products
  • Industry Activities
  • Disposable nappy (cellulose based)
  • Tampon (cellulose based)
  • Manufacturing tissues, paper towels, toilet tissues and paper napkins
  • Sanitary napkin (cellulose based)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Number of births
  • World price of wood pulp
  • Female population aged 18 and older
  • Trade-weighted index

  • Current Performance
  • Operating landscape
  • Profit and restructuring
  • Competition
  • Environmental awareness
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue opportunities
  • Profitability
  • Trade trends
  • Table: Sanitary Paper Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sanitary Paper Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Paper Product Wholesaling
  • Accommodation and Food Services
  • Health Services
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Basic Organic Chemical Manufacturing
  • Electricity, Gas, Water and Waste Services
  • Mining and Industrial Machinery Wholesaling
  • Paper Product Wholesaling
  • Pulp, Paper and Paperboard Manufacturing

  • Products & Services
  • Sanitary tissues
  • Personal-care products
  • Baby products
  • Other paper products
  • Chart: Sanitary Paper Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Retailers
  • Other industries
  • Export markets
  • Chart: Major Market Segmentation for the Sanitary Paper Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Sanitary Paper Product Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sanitary Paper Product Manufacturing Industry

  • Industry Globalization
    Kimberly-Clark Pacific Holdings Pty Limited, ABC Tissue Products Pty Ltd, Asaleo Care Limited,
  • Table: Kimberly-Clark Pacific Holdings Pty Limited - financial performance
  • Table: ABC Tissue Products Pty Ltd - financial performance
  • Table: Asaleo Care Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sanitary Paper Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sanitary Paper Product Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A wood pulp by-product used in the production of paper, paperboard and water-soluble adhesives.
  • Chemical Pulp
  • Produced by combining woodchips and chemicals in large vessels known as digesters, which break down the cellulose fibres.
  • Effluent
  • Liquid or fluid wastage produced during the manufacturing process.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sanitary Paper Product Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
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    This report on Sanitary Paper Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sanitary Paper Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sanitary Paper Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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