Expected Rate Changes in Tissue Industry
Trade requires two, and when one side has problems this affects the partnership dramatically. Unfortunately, this is how things have been between trading companies due to political conflicts, epidemics, and war crisis’ since the beginning of 2020 and the tissue industry faced some issues too.
When you get into exporting business you accept the problems you may face. First of all you need to determine if the product will sell. If the answer is yes then you can start building your company. People do not usually add exceptional factors to the equations. For example, probably none of the trading companies foreshadowed that there will be an epidemic crisis in the new year. This China-originated crisis called Coronavirus, changed the predictions about the tissue industry.
A Sudden Surprise For The Tissue Industry
By the end of 2019, research establishments published their reports on the future of the tissue industry in 2020 and the following years. Almost all of them showed that the industry will be growing steadily. And in global comparison, most revenues were generated in China with USD 49,26 billion in 2020. China was expected to be the most dominant market for tissue industry and hygiene industry, followed by Japan.
When we look at the past, we can see that in Europe the growth rate in tissue industry was 12% down due to political issues. In 2008, the growth rate was almost 10% but in one year it went down to -2%. Now, considering the fact that China dominates the tissue industry, in both export and import, we can see a similar graph by the end of 2020. Because naturally, countries decided to stop trading with China to keep their people away from the Coronavirus and keep them safe.
On the bright side, they say history repeats itself. In 2010, after the political crisis in Europe, the growth rate rose up to 12% which means it was 14% up then 2009. If we can manage to solve this global problem, we can revitalize and save the industry, and China can repair its damaged economy.