Sectoral Changes Due To Coronavirus Spread

Tissue paper industry is, definitely, one of the sectors that are heavily affected by the pandemic. The areas that are infected are happened to be the areas that have major roles in the industry.

COVID-19 has spread to more than 110 countries so far. If we take a look at the maps that show the infected countries it can be seen that the northern hemisphere is conquered by the deadly virus. This problem is a clear threat to the countries’ economies. It has the potential to trigger a global economic crisis. Therefore, researchers and analysts say we can expect a negative impact on all sectors of the economy.

Europe is the world’s biggest trading block. The worst-case scenario for Europe foresees that a full containment will not be achieved until 2021. The healthcare industry is expected to take a major blow but besides the healthcare industry, production in various industries will be disrupted too. And considering the fact that China is the capital of COVID-19, it is forecasted that GDP growth may drop as much as 3,5% points in 2020.

In the tissue paper industry, Italy and China come as the strongest countries in production and trade. Unfortunately, these two countries are the countries that are most affected by the Coronavirus. The curfews and other precautions such as working from home and shutting down the common working areas almost stopped the flow of the money. Lots of factories had to stop their production to keep their employees and the public safe. This forced FMCG companies that are in a business partnership with those shutdown-companies to change their routes to different sources.

We must look at things from a different perspective too. This damage on most of the European countries’ and China’s economy is wrecked and will take a long time for them to go back to normal. However, their crisis became someone else’s opportunity. Tissue paper companies based in less-affected countries got the chance to sell more products and make new business partnerships.

Turkey is one of the “lucky” countries, drawing a slightly better picture than other European countries. The shortage of toilet papers, baby diapers, face masks, and antibacterial hand gels in European countries and the U.S. made traders find new resources. And Turkiye is a reliable resource for them because of its geographical location and high-quality products. Tissue paper and hygiene products manufacturers have boosted their productions to satisfy the demand. The factory workers and hygiene company employees work harder than ever these days.

In the first 3 months of 2020, we witnessed a lot of dramatic changes. All the forecasts and predictions of this year have already turned out to be wrong. It is impossible to make a prediction or foresee what might happen in the tissue paper industry by the end of the year. This outbreak may cause some changes that we cannot even think of, by changing the product types or the order that we know today.


Zeynep Şevval Taşar